VERINT SYSTEMS INC (VRNT) Stock Fundamental Analysis
USA - NASDAQ:VRNT - US92343X1000 - Common Stock
20.32 USD
+0.01 (+0.05%)
20.28 USD
-0.04 (-0.2%)
Taking everything into account, VRNT scores 6 out of 10 in our fundamental rating. VRNT was compared to 280 industry peers in the Software industry. While VRNT has a great profitability rating, 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.
VRNT had a positive operating cash flow in the past year.
In multiple years VRNT reported negative net income over the last 5 years.
VRNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRNT's Return On Assets of 2.04% is fine compared to the rest of the industry. VRNT outperforms 65.00% of its industry peers.
With a decent Return On Equity value of 3.41%, VRNT is doing good in the industry, outperforming 66.43% of the companies in the same industry.
The Return On Invested Capital of VRNT (4.02%) is better than 71.79% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRNT is significantly below the industry average of 11.85%.
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
Looking at the Profit Margin, with a value of 5.08%, VRNT is in the better half of the industry, outperforming 67.86% of the companies in the same industry.
VRNT's Profit Margin has improved in the last couple of years.
VRNT has a Operating Margin of 8.80%. This is in the better half of the industry: VRNT outperforms 73.57% of its industry peers.
VRNT's Operating Margin has improved in the last couple of years.
VRNT has a Gross Margin (69.91%) 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so VRNT is destroying value.
Compared to 1 year ago, VRNT has less shares outstanding
Compared to 5 years ago, VRNT has less shares outstanding
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.
The Altman-Z score of VRNT (1.22) is worse than 63.57% of its industry peers.
VRNT has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 3.67 | ||
| Altman-Z | 1.22 |
ROIC/WACC0.41
WACC9.88%
2.3 Liquidity
VRNT has a Current 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.
VRNT has a worse Current ratio (0.65) than 86.43% 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.
VRNT has a Quick ratio of 0.63. This is amonst the worse of the industry: VRNT underperforms 86.43% of its industry peers.
| 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.
The Earnings Per Share has been decreasing by -6.23% on average over the past years.
Looking at the last year, VRNT shows a decrease in Revenue. The Revenue has decreased by -2.32% in the last year.
VRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.44% yearly.
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
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.
Based on estimates for the next years, VRNT will show a small growth in Revenue. The Revenue will grow by 6.08% on average per year.
EPS Next Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
Revenue Next Year2.95%
Revenue Next 2Y4.3%
Revenue Next 3Y4.48%
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.
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 9.45, the valuation of VRNT can be described as very reasonable.
Based on the Price/Earnings ratio, VRNT is valued cheaper than 90.36% of the companies in the same industry.
VRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 6.21 indicates a rather cheap valuation of VRNT.
96.79% of the companies in the same industry are more expensive than VRNT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VRNT to the average of the S&P500 Index (22.71), we can say VRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 6.21 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRNT is valued cheaply inside the industry as 89.64% 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 94.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.88 | ||
| EV/EBITDA | 11.35 |
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)0.66
PEG (5Y)N/A
EPS Next 2Y11.94%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
No dividends for VRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.32
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners112.08%
Inst Owner Change-3.58%
Ins Owners1.31%
Ins Owner Change13%
Market Cap1.23B
Analysts72.86
Price Target23.95 (17.86%)
Short Float %8.07%
Short Ratio2.51
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)-20.86%
PT rev (3m)-14.09%
EPS NQ rev (1m)-2.48%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.49%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 6.21 | ||
| P/S | 1.37 | ||
| P/FCF | 10.88 | ||
| P/OCF | 8.86 | ||
| P/B | 0.92 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.35 |
EPS(TTM)2.15
EY10.58%
EPS(NY)3.27
Fwd EY16.1%
FCF(TTM)1.87
FCFY9.19%
OCF(TTM)2.29
OCFY11.29%
SpS14.82
BVpS22.1
TBVpS-2.51
PEG (NY)0.66
PEG (5Y)N/A
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%
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-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
WACC9.88%
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 Y14.43%
EPS Next 2Y11.94%
EPS Next 3Y11.48%
EPS Next 5Y11.8%
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 5Y6.08%
EBIT growth 1Y-25.15%
EBIT growth 3Y29.26%
EBIT growth 5Y100.25%
EBIT Next Year6.95%
EBIT Next 3Y5.75%
EBIT Next 5Y7.32%
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%