NasdaqGS:VRNT

Stock Analysis Report

Executive Summary

Verint Systems Inc. provides actionable intelligence solutions worldwide.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: VRNT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-7.2%

VRNT

-4.4%

US Software

-4.1%

US Market


1 Year Return

-37.0%

VRNT

6.9%

US Software

-14.9%

US Market

Return vs Industry: VRNT underperformed the US Software industry which returned 5.9% over the past year.

Return vs Market: VRNT underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

VRNTIndustryMarket
7 Day-7.2%-4.4%-4.1%
30 Day-30.3%-13.8%-19.1%
90 Day-34.1%-8.2%-23.4%
1 Year-37.0%-37.0%8.0%6.9%-13.2%-14.9%
3 Year-5.4%-5.4%98.9%90.4%10.7%3.5%
5 Year-39.3%-39.3%163.7%145.2%28.5%14.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VRNT ($36.53) is trading below our estimate of fair value ($62.16)

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


Price To Earnings Ratio

PE vs Industry: VRNT is poor value based on its PE Ratio (84.2x) compared to the Software industry average (39.2x).

PE vs Market: VRNT is poor value based on its PE Ratio (84.2x) compared to the US market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: VRNT is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: VRNT is good value based on its PB Ratio (1.9x) compared to the US Software industry average (4.2x).


Next Steps

Future Growth

How is Verint Systems forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

59.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRNT's forecast earnings growth (60.5% per year) is above the savings rate (1.7%).

Earnings vs Market: VRNT's earnings (60.5% per year) are forecast to grow faster than the US market (12.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VRNT's revenue (6.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: VRNT's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRNT's Return on Equity is forecast to be low in 3 years time (16.4%).


Next Steps

Past Performance

How has Verint Systems performed over the past 5 years?

40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRNT has high quality earnings.

Growing Profit Margin: VRNT's current net profit margins (2.2%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: VRNT's earnings have grown significantly by 40.9% per year over the past 5 years.

Accelerating Growth: VRNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VRNT had negative earnings growth (-56.5%) over the past year, making it difficult to compare to the Software industry average (18.7%).


Return on Equity

High ROE: VRNT's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Verint Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VRNT's short term assets ($999.1M) exceed its short term liabilities ($702.9M).

Long Term Liabilities: VRNT's short term assets ($999.1M) do not cover its long term liabilities ($1.1B).


Debt to Equity History and Analysis

Debt Level: VRNT's debt to equity ratio (65.5%) is considered high.

Reducing Debt: VRNT's debt to equity ratio has reduced from 72.3% to 65.5% over the past 5 years.

Debt Coverage: VRNT's debt is well covered by operating cash flow (29.3%).

Interest Coverage: VRNT's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet

Inventory Level: VRNT has a low level of unsold assets or inventory.

Debt Coverage by Assets: VRNT's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if VRNT'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 VRNT'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?

13.3yrs

Average management tenure


CEO

Dan Bodner (60yo)

26.17s

Tenure

US$8,831,265

Compensation

Mr. Dan Bodner has been the President and Chief Executive Officer of Verint Systems Inc. a subsidiary of Comverse Technology Inc., since February 1994 and served as its Corporate Officer. From 1991 to 1998 ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD8.83M) is above average for companies of similar size in the US market ($USD4.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dan Bodner
Chairman26.17yrsUS$8.83m0.88% $21.7m
Douglas Robinson
Chief Financial Officer13.33yrsUS$2.09m0.22% $5.5m
Peter Fante
Chief Administrative Officer3.58yrsUS$2.03m0.0014% $34.6k
Elan Moriah
President of Customer Engagement Solutions11.58yrsUS$2.56m0.074% $1.8m
Alan Roden
Senior Vice President of Corporate Development & Investor Relations18.25yrsno datano data
Jonathan Kohl
Senior VPno datano datano data
Jane O'Donnell
Senior Vice President of Global Human Resources13.25yrsno datano data
Elad Sharon
President of Cyber Intelligence Solutions1.25yrsno datano data

13.3yrs

Average Tenure

58yo

Average Age

Experienced Management: VRNT's management team is seasoned and experienced (13.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dan Bodner
Chairman26.17yrsUS$8.83m0.88% $21.7m
John Egan
Lead Independent Director2.67yrsUS$299.32k0.043% $1.1m
William Kurtz
Independent Director3.58yrsUS$276.99k0.014% $352.5k
Richard Nottenburg
Independent Director7.17yrsUS$269.99k0.0043% $105.1k
Earl Shanks
Independent Director7.75yrsUS$274.99k0.047% $1.1m
Howard Safir
Independent Director17.92yrsUS$280.99k0.038% $933.0k
Stephen Gold
Independent Director1.67yrsUS$107.03k0.0026% $62.6k
Penelope Herscher
Independent Director3yrsUS$255.99k0.0081% $198.3k
Andrew Miller
Director0.33yrno datano data

3.0yrs

Average Tenure

61yo

Average Age

Experienced Board: VRNT's board of directors are considered experienced (3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Verint Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verint Systems Inc.
  • Ticker: VRNT
  • Exchange: NasdaqGS
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$2.455b
  • Shares outstanding: 64.13m
  • Website: https://www.verint.com

Number of Employees


Location

  • Verint Systems Inc.
  • 175 Broadhollow Road
  • Suite 100
  • Melville
  • New York
  • 11747
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRNTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2002
VTYDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2002
VTYBRSE (Berne Stock Exchange)YesCommon StockCHCHFMay 2002

Biography

Verint Systems Inc. provides actionable intelligence solutions worldwide. The company’s Customer Engagement Solutions segment offers automated quality management, automated verification, branch surveillance and investigation, case management, chat engagement, coaching/learning, compliance recording, customer communities, desktop and process analytics, and digital feedback solutions. It also provides email engagement, employee desktop, enterprise feedback, financial compliance, full-time recording, gamification, identity and interaction analytics, internal communities, knowledge management, mobile workforce, performance management, robotic process automation, social analytics, speech transcription, speech and text analytics, virtual assistant, voice self-service, voice self-service fraud detection, Web/mobile self-service, work manager, and workforce management solutions. The company’s Cyber Intelligence Solutions segment offers cyber security solutions; and intelligence fusion center and Web and social intelligence software that enables collection, fusion, and analysis of data from the Web. It also provides network intelligence suite, which enables security organizations generate critical intelligence from various network, and internal and external open sources; and situational intelligence software that enables security organizations to fuse, analyze, and report information, as well as take action on risks, alarms, and incidents. The company also offers a range of customer services, including implementation and training, consulting, managed, and maintenance and support services. It sells its solutions through its direct sales team; and through indirect channels, such as distributors, systems integrators, value-added resellers, and original equipment manufacturer partners. Verint Systems Inc. has a partnership agreement with Custodia Technology Limited. The company was founded in 1994 and is headquartered in Melville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 06:41
End of Day Share Price2020/04/02 00:00
Earnings2020/01/31
Annual Earnings2020/01/31


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.