NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$7.1b

Last Updated

2021/09/21 22:20 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


Similar Companies

Share Price & News

How has Varonis Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

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.


Market Performance


7 Day Return

-0.03%

VRNS

-0.5%

US Software

-2.5%

US Market


1 Year Return

75.2%

VRNS

38.3%

US Software

33.0%

US Market

Return vs Industry: VRNS exceeded the US Software industry which returned 38.3% over the past year.

Return vs Market: VRNS exceeded the US Market which returned 33% over the past year.


Shareholder returns

VRNSIndustryMarket
7 Day-0.03%-0.5%-2.5%
30 Day18.1%-0.4%-0.9%
90 Day16.0%8.4%0.8%
1 Year75.2%75.2%39.0%38.3%35.0%33.0%
3 Year174.1%174.1%135.9%129.8%57.6%47.9%
5 Year575.9%575.9%366.0%343.1%120.8%96.7%

Long-Term Price Volatility Vs. Market

How volatile is Varonis Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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 ($101.74)

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 (7.5x).


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 ($USD6.20M) is about average for companies of similar size in the US market ($USD6.43M).

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 company bio, 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$7.065b
  • 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


Biography

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. I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/21 22:20
End of Day Share Price2021/09/21 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.