Verint Systems Inc.
Find Ratings ReportsVERINT SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2020 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. VERINT SYSTEMS INC has average liquidity. Currently, the Quick Ratio is 1.03 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.19% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 328.2 | 324.87 |
| EBITDA ($mil) | 77.36 | 59.21 |
| EBIT ($mil) | 51.64 | 36.1 |
| Net Income ($mil) | 10.18 | 11.68 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 655.49 | 451.0 |
| Total Assets ($mil) | 3124.68 | 2982.45 |
| Total Debt ($mil) | 866.78 | 910.47 |
| Equity ($mil) | 1453.28 | 1318.81 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 74.08 | 70.07 |
| EBITDA Margin | 23.56 | 18.22 |
| Operating Margin | 15.73 | 11.11 |
| Sales Turnover | 0.4 | 0.43 |
| Return on Assets | 0.56 | 1.71 |
| Return on Equity | 0.85 | 3.88 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 1.12 | 1.57 |
| Debt/Capital | 0.37 | 0.41 |
| Interest Expense | 9.73 | 10.1 |
| Interest Coverage | 5.31 | 3.57 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 65.74 | 66.82 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.11 | 0.17 |
| Book value / share | 22.11 | 19.74 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 668798.0 | 487138.0 |
BUY. VERINT SYSTEMS INC's P/E ratio indicates a significant premium compared to an average of 56.70 for the Professional, Scientific, and Technical Services subsector and a significant premium compared to the S&P 500 average of 39.42. For additional comparison, its price-to-book ratio of 2.29 indicates a significant discount versus the S&P 500 average of 4.10 and a significant discount versus the subsector average of 42.56. The price-to-sales ratio is below the S&P 500 average and is well below the subsector average, indicating a discount.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| VRNT 280.67 | Peers 96.71 | VRNT 12.52 | Peers 141.24 | |||||||||||||||||||||
|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations. VRNT is trading at a significant premium to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. VRNT is trading at a significant discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| VRNT 18.17 | Peers 101.44 | VRNT 0.41 | Peers 2.50 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. VRNT is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. VRNT trades at a significant discount to its peers. |
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| Price/Book |
|
Earnings Growth |
|
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| VRNT 2.29 | Peers 42.56 | VRNT -76.32 | Peers 75.96 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. VRNT is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, VRNT is expected to significantly trail its peers on the basis of its earnings growth rate. |
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| Price/Sales |
|
Sales Growth |
|
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| VRNT 2.63 | Peers 16.91 | VRNT -2.39 | Peers 30.80 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. VRNT is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. VRNT significantly trails its peers on the basis of sales growth. |
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