VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
USA - NASDAQ:VRNT - US92343X1000 - Common Stock
20.28 USD
+0.03 (+0.15%)
20.28 USD
0 (0%)
Taking everything into account, VRNT scores 6 out of 10 in our fundamental rating. VRNT was compared to 285 industry peers in the Software industry. VRNT scores excellent on profitability, but there are some minor concerns on its financial health. VRNT scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes VRNT very considerable for value investing!
1. Profitability
1.1 Basic Checks
VRNT had positive earnings in the past year.
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
Looking at the Return On Assets, with a value of 2.04%, VRNT is in the better half of the industry, outperforming 64.91% of the companies in the same industry.
The Return On Equity of VRNT (3.41%) is better than 66.32% of its industry peers.
The Return On Invested Capital of VRNT (4.02%) is better than 71.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 11.89%.
The 3 year average ROIC (3.56%) for VRNT is below the current ROIC(4.02%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 5.08%, VRNT is doing good in the industry, outperforming 67.72% of the companies in the same industry.
VRNT's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 8.80%, VRNT is doing good in the industry, outperforming 73.33% of the companies in the same industry.
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 52.63% 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
VRNT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
VRNT has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
Compared to 1 year ago, VRNT has an improved debt to assets ratio.
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 in the lower half of the industry: VRNT underperforms 62.46% 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/WACC0.41
WACC9.92%
2.3 Liquidity
A Current Ratio of 0.65 indicates that VRNT may have some problems paying its short term obligations.
VRNT's Current ratio of 0.65 is on the low side compared to the rest of the industry. VRNT is outperformed by 87.37% of its industry peers.
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.
With a Quick ratio value of 0.63, VRNT is not doing good in the industry: 87.37% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
VRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
The Earnings Per Share has been decreasing by -6.23% on average over the past years.
VRNT shows a decrease in Revenue. In the last year, the revenue decreased by -2.32%.
Measured over the past years, VRNT shows a small growth in Revenue. The Revenue has been growing by 1.44% on average per year.
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
The Earnings Per Share is expected to grow by 12.05% on average over the next years. This is quite good.
VRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.30% yearly.
EPS Next Y14.41%
EPS Next 2Y12.08%
EPS Next 3Y11.56%
EPS Next 5Y12.05%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.48%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.43, the valuation of VRNT can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 90.53% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.19. VRNT is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of VRNT.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaply inside the industry as 95.44% of the companies are valued more expensively.
VRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 88.42% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 94.04% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.31 |
4.3 Compensation for Growth
The 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 3Y11.56%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.28
+0.03 (+0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.57%
Inst Owner Change-2.72%
Ins Owners1.35%
Ins Owner Change3.26%
Market Cap1.22B
Revenue(TTM)893.84M
Net Income(TTM)45.43M
Analysts72.86
Price Target23.95 (18.1%)
Short Float %8.16%
Short Ratio2.16
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)-16.72%
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%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.43 | ||
| Fwd PE | 6.19 | ||
| P/S | 1.37 | ||
| P/FCF | 10.86 | ||
| P/OCF | 8.84 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.31 |
EPS(TTM)2.15
EY10.6%
EPS(NY)3.28
Fwd EY16.17%
FCF(TTM)1.87
FCFY9.21%
OCF(TTM)2.29
OCFY11.31%
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
WACC9.92%
ROIC/WACC0.41
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 3Y11.56%
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 3Y4.48%
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 9.43 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.