Verint Systems Inc. Fundamental Analysis
Verint Systems Inc. (VRNT) shows weak financial fundamentals with a PE ratio of 62.66, profit margin of 4.89%, and ROE of 2.46%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRNT's fundamental strength across five key dimensions:
Efficiency Score
WeakVRNT struggles to generate sufficient returns from assets.
Valuation Score
ModerateVRNT shows balanced valuation metrics.
Growth Score
ModerateVRNT shows steady but slowing expansion.
Financial Health Score
ModerateVRNT shows balanced financial health with some risks.
Profitability Score
ModerateVRNT maintains healthy but balanced margins.
Key Financial Metrics
Is VRNT Expensive or Cheap?
P/E Ratio
VRNT trades at 62.66 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VRNT's PEG of -23.50 indicates potential undervaluation.
Price to Book
The market values Verint Systems Inc. at 0.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.92 times EBITDA. This is generally considered low.
How Well Does VRNT Make Money?
Net Profit Margin
For every $100 in sales, Verint Systems Inc. keeps $4.89 as profit after all expenses.
Operating Margin
Core operations generate 8.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.46 in profit for every $100 of shareholder equity.
ROA
Verint Systems Inc. generates $1.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verint Systems Inc. produces operating cash flow of $105.15M, showing steady but balanced cash generation.
Free Cash Flow
Verint Systems Inc. generates strong free cash flow of $92.70M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.53 in free cash annually.
FCF Yield
VRNT converts 7.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
62.66
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-23.50
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How VRNT Stacks Against Its Sector Peers
| Metric | VRNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 62.66 | 35.26 | Worse (Expensive) |
| ROE | 2.46% | 659.00% | Weak |
| Net Margin | 4.89% | 10024586234.00% | Weak |
| Debt/Equity | 0.33 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 0.65 | 3.21 | Weak Liquidity |
| ROA | 1.47% | 166.00% | Weak |
VRNT outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verint Systems Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta