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VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis

NASDAQ:VRNT - Nasdaq - US92343X1000 - Common Stock - Currency: USD

20.22  -1.06 (-4.98%)

After market: 20.22 0 (0%)

Fundamental Rating

6

Overall VRNT gets a fundamental rating of 6 out of 10. We evaluated VRNT against 282 industry peers in the Software industry. VRNT scores excellent on profitability, but there are some minor concerns on its financial health. VRNT may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make VRNT a good candidate for value investing.


Dividend Valuation Growth Profitability Health

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7

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.
VRNT Yearly Net Income VS EBIT VS OCF VS FCFVRNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 50M 100M 150M 200M 250M

1.2 Ratios

The Return On Assets of VRNT (2.33%) is better than 70.21% of its industry peers.
The Return On Equity of VRNT (3.95%) is better than 71.63% of its industry peers.
With a decent Return On Invested Capital value of 4.54%, VRNT is doing good in the industry, outperforming 74.82% of the companies in the same industry.
VRNT had an Average Return On Invested Capital over the past 3 years of 3.56%. This is significantly below the industry average of 12.11%.
The last Return On Invested Capital (4.54%) for VRNT is above the 3 year average (3.56%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 2.33%
ROE 3.95%
ROIC 4.54%
ROA(3y)1.13%
ROA(5y)0.55%
ROE(3y)1.95%
ROE(5y)0.91%
ROIC(3y)3.56%
ROIC(5y)2.96%
VRNT Yearly ROA, ROE, ROICVRNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 2 -2 4

1.3 Margins

VRNT's Profit Margin of 5.87% is fine compared to the rest of the industry. VRNT outperforms 73.05% of its industry peers.
VRNT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 9.88%, VRNT is in the better half of the industry, outperforming 75.89% of the companies in the same industry.
VRNT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 70.27%, VRNT perfoms like the industry average, outperforming 53.90% of the companies in the same industry.
In the last couple of years the Gross Margin of VRNT has grown nicely.
Industry RankSector Rank
OM 9.88%
PM (TTM) 5.87%
GM 70.27%
OM growth 3Y27.59%
OM growth 5Y97.41%
PM growth 3YN/A
PM growth 5Y16.09%
GM growth 3Y2.67%
GM growth 5Y2.15%
VRNT Yearly Profit, Operating, Gross MarginsVRNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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5

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.
Compared to 5 years ago, VRNT has less shares outstanding
VRNT has a better debt/assets ratio than last year.
VRNT Yearly Shares OutstandingVRNT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M
VRNT Yearly Total Debt VS Total AssetsVRNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

Based on the Altman-Z score of 1.20, we must say that VRNT is in the distress zone and has some risk of bankruptcy.
VRNT has a Altman-Z score (1.20) which is comparable to the rest of the industry.
VRNT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 4.32
Altman-Z 1.2
ROIC/WACC0.5
WACC9.13%
VRNT Yearly LT Debt VS Equity VS FCFVRNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B

2.3 Liquidity

A Current Ratio of 0.64 indicates that VRNT may have some problems paying its short term obligations.
VRNT's Current ratio of 0.64 is on the low side compared to the rest of the industry. VRNT is outperformed by 86.88% of its industry peers.
A Quick Ratio of 0.62 indicates that VRNT may have some problems paying its short term obligations.
With a Quick ratio value of 0.62, VRNT is not doing good in the industry: 86.88% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.62
VRNT Yearly Current Assets VS Current LiabilitesVRNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

The earnings per share for VRNT have decreased strongly by -17.20% in the last year.
VRNT shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.23% yearly.
VRNT shows a decrease in Revenue. In the last year, the revenue decreased by -2.09%.
The Revenue has been growing slightly by 1.44% on average over the past years.
EPS 1Y (TTM)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%

3.2 Future

VRNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.80% yearly.
The Revenue is expected to grow by 6.08% on average over the next years.
EPS Next Y14.48%
EPS Next 2Y11.83%
EPS Next 3Y11.5%
EPS Next 5Y11.8%
Revenue Next Year2.96%
Revenue Next 2Y4.25%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%

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.
VRNT Yearly Revenue VS EstimatesVRNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M 800M 1B
VRNT Yearly EPS VS EstimatesVRNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1 2 3 4

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9

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.75, the valuation of VRNT can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 91.49% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of VRNT to the average of the S&P500 Index (26.82), we can say VRNT is valued rather cheaply.
The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of VRNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 96.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.21. VRNT is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.75
Fwd PE 6.19
VRNT Price Earnings VS Forward Price EarningsVRNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRNT indicates a rather cheap valuation: VRNT is cheaper than 91.13% of the companies listed in the same industry.
91.49% of the companies in the same industry are more expensive than VRNT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 12.73
EV/EBITDA 10.55
VRNT Per share dataVRNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

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)0.6
PEG (5Y)N/A
EPS Next 2Y11.83%
EPS Next 3Y11.5%

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0

5. Dividend

5.1 Amount

VRNT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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VERINT SYSTEMS INC

NASDAQ:VRNT (8/1/2025, 8:09:47 PM)

After market: 20.22 0 (0%)

20.22

-1.06 (-4.98%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)06-04 2025-06-04/amc
Earnings (Next)09-02 2025-09-02/amc
Inst Owners112.12%
Inst Owner Change0.25%
Ins Owners1.29%
Ins Owner Change13%
Market Cap1.22B
Analysts78.46
Price Target28.76 (42.24%)
Short Float %9.61%
Short Ratio3.33
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.32
Dividend Growth(5Y)N/A
DP33.63%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2%
Min EPS beat(2)-23.66%
Max EPS beat(2)27.66%
EPS beat(4)2
Avg EPS beat(4)4.39%
Min EPS beat(4)-23.66%
Max EPS beat(4)27.66%
EPS beat(8)5
Avg EPS beat(8)3.22%
EPS beat(12)9
Avg EPS beat(12)4.78%
EPS beat(16)13
Avg EPS beat(16)8.01%
Revenue beat(2)1
Avg Revenue beat(2)-2.72%
Min Revenue beat(2)-10.26%
Max Revenue beat(2)4.81%
Revenue beat(4)2
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-10.26%
Max Revenue beat(4)4.81%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)3
Avg Revenue beat(12)-1.79%
Revenue beat(16)5
Avg Revenue beat(16)-1.3%
PT rev (1m)0.7%
PT rev (3m)-4.42%
EPS NQ rev (1m)0.48%
EPS NQ rev (3m)-58.93%
EPS NY rev (1m)0%
EPS NY rev (3m)0.14%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-11.82%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 8.75
Fwd PE 6.19
P/S 1.36
P/FCF 12.73
P/OCF 9.89
P/B 0.91
P/tB N/A
EV/EBITDA 10.55
EPS(TTM)2.31
EY11.42%
EPS(NY)3.26
Fwd EY16.14%
FCF(TTM)1.59
FCFY7.86%
OCF(TTM)2.05
OCFY10.12%
SpS14.89
BVpS22.11
TBVpS-2.72
PEG (NY)0.6
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.33%
ROE 3.95%
ROCE 6.09%
ROIC 4.54%
ROICexc 5.19%
ROICexgc N/A
OM 9.88%
PM (TTM) 5.87%
GM 70.27%
FCFM 10.67%
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 RankSector Rank
Debt/Equity 0
Debt/FCF 4.32
Debt/EBITDA 0
Cap/Depr 56.35%
Cap/Sales 3.06%
Interest Coverage 16.42
Cash Conversion 89.66%
Profit Quality 181.84%
Current Ratio 0.64
Quick Ratio 0.62
Altman-Z 1.2
F-Score7
WACC9.13%
ROIC/WACC0.5
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)-17.2%
EPS 3Y4.61%
EPS 5Y-6.23%
EPS Q2Q%-50.85%
EPS Next Y14.48%
EPS Next 2Y11.83%
EPS Next 3Y11.5%
EPS Next 5Y11.8%
Revenue 1Y (TTM)-2.09%
Revenue growth 3Y1.31%
Revenue growth 5Y1.44%
Sales Q2Q%-5.96%
Revenue Next Year2.96%
Revenue Next 2Y4.25%
Revenue Next 3Y4.38%
Revenue Next 5Y6.08%
EBIT growth 1Y-1.29%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year13.26%
EBIT Next 3Y5.75%
EBIT Next 5Y7.32%
FCF growth 1Y-13.73%
FCF growth 3Y8.71%
FCF growth 5Y-6.89%
OCF growth 1Y-15.66%
OCF growth 3Y7.82%
OCF growth 5Y-7.92%