VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD
Overall VRNT gets a fundamental rating of 6 out of 10. We evaluated VRNT against 283 industry peers in the Software industry. While VRNT belongs to the best of the industry regarding profitability, 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
VRNT had positive earnings in the past year.
VRNT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: VRNT reported negative net income in multiple years.
VRNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRNT has a Return On Assets of 2.84%. This is in the better half of the industry: VRNT outperforms 69.61% of its industry peers.
VRNT's Return On Equity of 4.91% is fine compared to the rest of the industry. VRNT outperforms 70.32% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.48%, VRNT is in the better half of the industry, outperforming 74.56% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRNT is significantly below the industry average of 12.21%.
The last Return On Invested Capital (4.48%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 4.91% | ||
| ROIC | 4.48% |
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
Looking at the Profit Margin, with a value of 7.15%, VRNT is in the better half of the industry, outperforming 72.79% 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 11.70%, VRNT is doing good in the industry, outperforming 78.45% of the companies in the same industry.
VRNT's Operating Margin has improved in the last couple of years.
VRNT has a Gross Margin (71.28%) which is in line with its industry peers.
VRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.7% | ||
| PM (TTM) | 7.15% | ||
| GM | 71.28% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRNT is destroying value.
The number of shares outstanding for VRNT has been reduced compared to 1 year ago.
The number of shares outstanding for VRNT has been reduced compared to 5 years ago.
The debt/assets ratio for VRNT has been reduced compared to a year ago.
2.2 Solvency
VRNT has an Altman-Z score of 1.30. This is a bad value and indicates that VRNT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VRNT (1.30) is comparable to the rest of the industry.
The Debt to FCF ratio of VRNT is 3.18, which is a good value as it means it would take VRNT, 3.18 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VRNT (3.18) is better than 63.25% of its industry peers.
VRNT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of VRNT (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.18 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.47
WACC9.63%
2.3 Liquidity
A Current Ratio of 1.12 indicates that VRNT should not have too much problems paying its short term obligations.
VRNT has a worse Current ratio (1.12) than 69.61% of its industry peers.
VRNT has a Quick Ratio of 1.09. This is a normal value and indicates that VRNT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.09, VRNT is doing worse than 69.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The earnings per share for VRNT have decreased by -4.40% in the last year.
The Earnings Per Share has been decreasing by -6.23% on average over the past years.
The Revenue has decreased by -0.14% in the past year.
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)-4.4%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-7.48%
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-4.36%
3.2 Future
The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 5.43% on average per year.
EPS Next Y14.99%
EPS Next 2Y11.72%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue Next Year3.11%
Revenue Next 2Y4.15%
Revenue Next 3Y5.43%
Revenue Next 5YN/A
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
VRNT is valuated cheaply with a Price/Earnings ratio of 6.62.
Based on the Price/Earnings ratio, VRNT is valued cheaply inside the industry as 95.41% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.60. VRNT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.75, the valuation of VRNT can be described as very cheap.
Based on the Price/Forward Earnings ratio, VRNT is valued cheaper than 96.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.43. VRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.75 |
4.2 Price Multiples
92.93% of the companies in the same industry are more expensive than VRNT, based on the Enterprise Value to EBITDA ratio.
VRNT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. VRNT is cheaper than 95.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.26 | ||
| EV/EBITDA | 8.4 |
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.
The decent profitability rating of VRNT may justify a higher PE ratio.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y11.72%
EPS Next 3Y10.79%
5. Dividend
5.1 Amount
VRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:VRNT (5/21/2025, 1:03:50 PM)
17.27
-0.35 (-1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners105.62%
Inst Owner Change-0.09%
Ins Owners0.86%
Ins Owner Change5.64%
Market Cap1.07B
Analysts78.46
Price Target30.09 (74.23%)
Short Float %6.24%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP30.9%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.41%
Min EPS beat(2)-23.66%
Max EPS beat(2)22.83%
EPS beat(4)2
Avg EPS beat(4)-0.88%
Min EPS beat(4)-23.66%
Max EPS beat(4)22.83%
EPS beat(8)5
Avg EPS beat(8)1.17%
EPS beat(12)9
Avg EPS beat(12)3.11%
EPS beat(16)13
Avg EPS beat(16)7.66%
Revenue beat(2)1
Avg Revenue beat(2)-2.83%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)4.6%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.6%
Revenue beat(8)2
Avg Revenue beat(8)-2.44%
Revenue beat(12)2
Avg Revenue beat(12)-2.26%
Revenue beat(16)5
Avg Revenue beat(16)-1.59%
PT rev (1m)0%
PT rev (3m)-18.06%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)-47.69%
EPS NY rev (1m)0.59%
EPS NY rev (3m)-5.58%
Revenue NQ rev (1m)2.63%
Revenue NQ rev (3m)-12.8%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.62 | ||
| Fwd PE | 5.75 | ||
| P/S | 1.18 | ||
| P/FCF | 8.26 | ||
| P/OCF | 6.82 | ||
| P/B | 0.81 | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.4 |
EPS(TTM)2.61
EY15.11%
EPS(NY)3
Fwd EY17.38%
FCF(TTM)2.09
FCFY12.1%
OCF(TTM)2.53
OCFY14.67%
SpS14.63
BVpS21.29
TBVpS-2.32
PEG (NY)0.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.84% | ||
| ROE | 4.91% | ||
| ROCE | 6.01% | ||
| ROIC | 4.48% | ||
| ROICexc | 5.11% | ||
| ROICexgc | 91.17% | ||
| OM | 11.7% | ||
| PM (TTM) | 7.15% | ||
| GM | 71.28% | ||
| FCFM | 14.29% |
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%
ROICexcg growth 3Y0.75%
ROICexcg 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-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 3.18 | ||
| Debt/EBITDA | 2.04 | ||
| Cap/Depr | 58.49% | ||
| Cap/Sales | 3.03% | ||
| Interest Coverage | 14 | ||
| Cash Conversion | 102.56% | ||
| Profit Quality | 199.86% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 1.3 |
F-Score7
WACC9.63%
ROIC/WACC0.47
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)-4.4%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-7.48%
EPS Next Y14.99%
EPS Next 2Y11.72%
EPS Next 3Y10.79%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.14%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-4.36%
Revenue Next Year3.11%
Revenue Next 2Y4.15%
Revenue Next 3Y5.43%
Revenue Next 5YN/A
EBIT growth 1Y42.56%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year14.71%
EBIT Next 3Y9.01%
EBIT Next 5YN/A
FCF growth 1Y3.98%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y4.52%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%