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VRNS

Varonis SystemsNasdaqGS:VRNS Stock Report

Market Cap

US$7.2b

7D

-1.7%

1Y

78.4%

Updated

25 Sep, 2021

Data

Company Financials +
VRNS fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

VRNS Overview

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally.

Varonis Systems Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Varonis Systems
Historical stock prices
Current Share PriceUS$67.61
52 Week HighUS$36.74
52 Week LowUS$75.33
Beta1.17
1 Month Change9.37%
3 Month Change16.19%
1 Year Change78.41%
3 Year Change176.90%
5 Year Change573.85%
Change since IPO360.98%

Recent News & Updates

Shareholder Returns

VRNSUS SoftwareUS Market
7D-1.7%0.5%0.1%
1Y78.4%38.7%35.3%

Return vs Industry: VRNS exceeded the US Software industry which returned 42.4% over the past year.

Return vs Market: VRNS exceeded the US Market which returned 37.5% over the past year.

Price Volatility

Is VRNS's price volatile compared to industry and market?
VRNS volatility
VRNS Beta1.17
Industry Beta0.95
Market Beta1

Stable Share Price: VRNS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: VRNS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20041,719Yaki Faitelsonhttps://www.varonis.com

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees’ data; financial records; strategic and product plans; and other intellectual property. The company offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, and Intranet servers; and DatAlert that profiles users and their behaviors related to systems and data, detects and alerts on deviations that indicate compromise, and provides a Web-based dashboard and investigative interface.

Varonis Systems Fundamentals Summary

How do Varonis Systems's earnings and revenue compare to its market cap?
VRNS fundamental statistics
Market CapUS$7.23b
Earnings (TTM)-US$106.86m
Revenue (TTM)US$335.15m

21.6x

P/S Ratio

-67.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
VRNS income statement (TTM)
RevenueUS$335.15m
Cost of RevenueUS$51.13m
Gross ProfitUS$284.02m
ExpensesUS$390.88m
Earnings-US$106.86m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.00
Gross Margin84.74%
Net Profit Margin-31.88%
Debt/Equity Ratio38.9%

How did VRNS perform over the long term?

See historical performance and comparison

Valuation

Is Varonis Systems undervalued compared to its fair value and its price relative to the market?

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRNS ($67.61) is trading below our estimate of fair value ($101.72)

Significantly Below Fair Value: VRNS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: VRNS is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: VRNS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VRNS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VRNS is overvalued based on its PB Ratio (12.7x) compared to the US Software industry average (7.9x).


Future Growth

How is Varonis Systems forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRNS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: VRNS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: VRNS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: VRNS's revenue (20.2% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: VRNS's revenue (20.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRNS's Return on Equity is forecast to be low in 3 years time (7.3%).


Past Performance

How has Varonis Systems performed over the past 5 years?

-42.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRNS is currently unprofitable.

Growing Profit Margin: VRNS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: VRNS is unprofitable, and losses have increased over the past 5 years at a rate of 42.8% per year.

Accelerating Growth: Unable to compare VRNS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: VRNS is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (22.1%).


Return on Equity

High ROE: VRNS has a negative Return on Equity (-18.73%), as it is currently unprofitable.


Financial Health

How is Varonis Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VRNS's short term assets ($897.0M) exceed its short term liabilities ($181.6M).

Long Term Liabilities: VRNS's short term assets ($897.0M) exceed its long term liabilities ($280.4M).


Debt to Equity History and Analysis

Debt Level: VRNS's debt to equity ratio (38.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if VRNS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable VRNS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: VRNS is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 21.9% per year.


Dividend

What is Varonis Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate VRNS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate VRNS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VRNS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRNS's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRNS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Yaki Faitelson (46 yo)

17.67yrs

Tenure

US$6,201,417

Compensation

Mr. Yakov Faitelson, also known as Yaki, Co-founded Varonis Systems, Inc. in 2004 and has been its Chairman, Chief Executive Officer and President since 2004. Mr. Faitelson is responsible for leading the m...


CEO Compensation Analysis

Compensation vs Market: Yaki 's total compensation ($USD6.20M) is about average for companies of similar size in the US market ($USD6.42M).

Compensation vs Earnings: Yaki 's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: VRNS's management team is considered experienced (4.4 years average tenure).


Board Members

Experienced Board: VRNS's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: VRNS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13%.


Top Shareholders

Company Information

Varonis Systems, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Varonis Systems, Inc.
  • Ticker: VRNS
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$7.229b
  • Shares outstanding: 106.92m
  • Website: https://www.varonis.com

Number of Employees


Location

  • Varonis Systems, Inc.
  • 1250 Broadway
  • 29th Floor
  • New York
  • New York
  • 10001
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/25 02:20
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.