VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
USA - NASDAQ:VRNT - US92343X1000 - Common Stock
20.29 USD
+0.02 (+0.1%)
20.29 USD
0 (0%)
Taking everything into account, VRNT scores 6 out of 10 in our fundamental rating. VRNT was compared to 281 industry peers in the Software industry. VRNT scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on VRNT. This makes VRNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year VRNT was profitable.
In the past year VRNT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: VRNT reported negative net income in multiple years.
Each year in the past 5 years VRNT had a positive operating cash flow.
1.2 Ratios
VRNT has a Return On Assets of 2.04%. This is in the better half of the industry: VRNT outperforms 63.35% of its industry peers.
VRNT's Return On Equity of 3.41% is fine compared to the rest of the industry. VRNT outperforms 64.77% of its industry peers.
VRNT has a better Return On Invested Capital (4.02%) than 71.17% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRNT is significantly below the industry average of 12.08%.
The last Return On Invested Capital (4.02%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROIC | 4.02% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
1.3 Margins
VRNT has a better Profit Margin (5.08%) than 65.12% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
The Operating Margin of VRNT (8.80%) is better than 73.67% of its industry peers.
In the last couple of years the Operating Margin of VRNT has grown nicely.
VRNT's Gross Margin of 69.91% is in line compared to the rest of the industry. VRNT outperforms 52.67% of its industry peers.
In the last couple of years the Gross Margin of VRNT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% |
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), VRNT is destroying value.
The number of shares outstanding for VRNT has been reduced compared to 1 year ago.
Compared to 5 years ago, VRNT has less shares outstanding
VRNT has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.22, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
VRNT has a Altman-Z score of 1.22. This is comparable to the rest of the industry: VRNT outperforms 40.57% of its industry peers.
There is no outstanding debt for VRNT. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.4
WACC9.94%
2.3 Liquidity
A Current Ratio of 0.65 indicates that VRNT may have some problems paying its short term obligations.
With a Current ratio value of 0.65, VRNT is not doing good in the industry: 88.97% of the companies in the same industry are doing better.
VRNT has a Quick Ratio of 0.65. This is a bad value and indicates that VRNT is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.63, VRNT is doing worse than 89.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
The earnings per share for VRNT have decreased strongly by -23.21% in the last year.
Measured over the past years, VRNT shows a decrease in Earnings Per Share. The EPS has been decreasing by -6.23% on average per year.
VRNT shows a decrease in Revenue. In the last year, the revenue decreased by -2.32%.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
3.2 Future
Based on estimates for the next years, VRNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.05% on average per year.
The Revenue is expected to grow by 6.30% on average over the next years.
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.53%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.51%
Revenue Next 5Y6.3%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.44 indicates a reasonable valuation of VRNT.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 88.61% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (25.56), we can say VRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.19, the valuation of VRNT can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 94.31% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.62. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaper than 87.19% of the companies in the same industry.
91.46% of the companies in the same industry are more expensive than VRNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.32 |
4.3 Compensation for Growth
VRNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
VRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)N/A
EPS Next 2Y12.08%
EPS Next 3Y11.53%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.29
+0.02 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.57%
Inst Owner Change-1.13%
Ins Owners1.35%
Ins Owner Change3.92%
Market Cap1.22B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts72.86
Price Target23.95 (18.04%)
Short Float %9.95%
Short Ratio3.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP35.22%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.67%
Min EPS beat(2)23.69%
Max EPS beat(2)27.66%
EPS beat(4)3
Avg EPS beat(4)12.63%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)6
Avg EPS beat(8)8.42%
EPS beat(12)9
Avg EPS beat(12)6.45%
EPS beat(16)13
Avg EPS beat(16)7.28%
Revenue beat(2)2
Avg Revenue beat(2)3.26%
Min Revenue beat(2)1.7%
Max Revenue beat(2)4.81%
Revenue beat(4)3
Avg Revenue beat(4)0.21%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)4
Avg Revenue beat(8)-0.39%
Revenue beat(12)4
Avg Revenue beat(12)-1.39%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)-20.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.44 | ||
| Fwd PE | 6.19 | ||
| P/S | 1.37 | ||
| P/FCF | 10.86 | ||
| P/OCF | 8.85 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.32 |
EPS(TTM)2.15
EY10.6%
EPS(NY)3.28
Fwd EY16.16%
FCF(TTM)1.87
FCFY9.21%
OCF(TTM)2.29
OCFY11.3%
SpS14.82
BVpS22.1
TBVpS-2.51
PEG (NY)0.65
PEG (5Y)N/A
Graham Number32.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.04% | ||
| ROE | 3.41% | ||
| ROCE | 5.39% | ||
| ROIC | 4.02% | ||
| ROICexc | 4.57% | ||
| ROICexgc | N/A | ||
| OM | 8.8% | ||
| PM (TTM) | 5.08% | ||
| GM | 69.91% | ||
| FCFM | 12.6% |
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
ROICexc(3y)4.12%
ROICexc(5y)3.6%
ROICexgc(3y)78.15%
ROICexgc(5y)N/A
ROCE(3y)4.77%
ROCE(5y)3.96%
ROICexgc growth 3Y0.75%
ROICexgc growth 5Y160.59%
ROICexc growth 3Y28.35%
ROICexc growth 5Y108.76%
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 51.05% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 11.19 | ||
| Cash Conversion | 107.26% | ||
| Profit Quality | 247.96% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z | 1.22 |
F-Score6
WACC9.94%
ROIC/WACC0.4
Cap/Depr(3y)48.9%
Cap/Depr(5y)43.87%
Cap/Sales(3y)3.26%
Cap/Sales(5y)3.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.21%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-32.65%
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.53%
EPS Next 5Y12.05%
Revenue 1Y (TTM)-2.32%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-1.03%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.51%
Revenue Next 5Y6.3%
EBIT growth 1Y-25.15%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year8.22%
EBIT Next 3Y6.03%
EBIT Next 5Y7.52%
FCF growth 1Y-7.67%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-11.57%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%
VERINT SYSTEMS INC / VRNT FAQ
What is the fundamental rating for VRNT stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRNT.
What is the valuation status for VRNT stock?
ChartMill assigns a valuation rating of 9 / 10 to VERINT SYSTEMS INC (VRNT). This can be considered as Undervalued.
Can you provide the profitability details for VERINT SYSTEMS INC?
VERINT SYSTEMS INC (VRNT) has a profitability rating of 7 / 10.
What are the PE and PB ratios of VERINT SYSTEMS INC (VRNT) stock?
The Price/Earnings (PE) ratio for VERINT SYSTEMS INC (VRNT) is 9.44 and the Price/Book (PB) ratio is 0.92.
What is the expected EPS growth for VERINT SYSTEMS INC (VRNT) stock?
The Earnings per Share (EPS) of VERINT SYSTEMS INC (VRNT) is expected to grow by 14.41% in the next year.