NasdaqGS:VRNT

Stock Analysis Report

Executive Summary

Verint Systems Inc. provides actionable intelligence solutions worldwide.

Snowflake

Fundamentals

Proven track record with reasonable 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


Market Performance


7 Day Return

0.5%

VRNT

1.0%

US Software

0.6%

US Market


1 Year Return

-1.5%

VRNT

22.1%

US Software

6.2%

US Market

Return vs Industry: VRNT underperformed the US Software industry which returned 22.1% over the past year.

Return vs Market: VRNT underperformed the US Market which returned 6.2% over the past year.


Share holder returns

VRNTIndustryMarket
7 Day0.5%1.0%0.6%
30 Day-2.8%-0.6%-1.8%
90 Day-20.7%-4.2%-2.0%
1 Year-1.5%-1.5%23.9%22.1%8.6%6.2%
3 Year24.0%24.0%122.2%113.5%45.7%36.3%
5 Year-16.6%-16.6%181.9%161.5%68.5%50.0%

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 based on future cash flows and its price relative to the stock market?

22%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: VRNT ($44.01) is trading below our estimate of fair value ($56.66)

Significantly Undervalued: VRNT is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: VRNT is poor value based on its PE Ratio (49.5x) compared to the Software industry average (47.7x).

PE vs Market: VRNT is poor value based on its PE Ratio (49.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: VRNT is good value based on its PEG Ratio (1x)


Price Based on Value of Assets

PB vs Industry: VRNT is good value based on its PB Ratio (2.3x) compared to the US Software industry average (5.3x).


Next Steps

Future Growth

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

50.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: VRNT's forecast earnings growth (50.2% per year) is above the savings rate (2.7%).

Earnings vs Market: VRNT's earnings (50.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: VRNT's revenue (8.8% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: VRNT's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: VRNT's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Verint Systems performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VRNT's earnings have grown by 14.8% per year over the past 5 years.

Accelerating Growth: VRNT's earnings growth over the past year (48.3%) exceeds its 5-year average (14.8% per year).

Earnings vs Industry: VRNT earnings growth over the past year (48.3%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: VRNT's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: VRNT's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: VRNT has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Verint Systems's financial position?


Financial Position Analysis

Short Term Liabilities: VRNT's short term assets ($960.8M) exceeds its short term liabilities ($638.8M)

Long Term Liabilities: VRNT's short term assets ($960.8M) do not cover its long term liabilities ($1.0B)


Debt to Equity History and Analysis

Debt Level: VRNT's debt to equity ratio (61.9%) is considered high

Reducing Debt: VRNT's debt to equity ratio has reduced from 71.1% to 61.9% over the past 5 years.

Debt Coverage: VRNT's debt is well covered by operating cash flow (26.3%).

Interest Coverage: VRNT's interest payments on its debt are well covered by EBIT (3.7x 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 1.204840x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of Verint Systems's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Dan Bodner (60yo)

25.7yrs

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 ($USD8.83M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

12.8yrs

Average Tenure

58yo

Average Age

Experienced Management: VRNT's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

61yo

Average Age

Experienced Board: VRNT's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$170,86816 Jul 19
Douglas Robinson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,096
Max PriceUS$55.19
SellUS$344,94719 Jun 19
Dan Bodner
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares6,240
Max PriceUS$55.28
SellUS$100,88618 Jun 19
Elan Moriah
EntityIndividual
Role
Unit President
President of Customer Engagement Solutions
Shares1,825
Max PriceUS$55.28
SellUS$38,69618 Jun 19
Peter Fante
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares700
Max PriceUS$55.28
SellUS$84,52318 Jun 19
Douglas Robinson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,529
Max PriceUS$55.28
SellUS$284,30717 Jun 19
Richard Nottenburg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,076
Max PriceUS$56.01
SellUS$922,30513 Jun 19
Elan Moriah
EntityIndividual
Role
Unit President
President of Customer Engagement Solutions
Shares16,308
Max PriceUS$57.08
SellUS$1,124,35216 Apr 19
Douglas Robinson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares17,887
Max PriceUS$63.20
SellUS$1,070,46016 Apr 19
Elan Moriah
EntityIndividual
Role
Unit President
President of Customer Engagement Solutions
Shares17,073
Max PriceUS$63.20
SellUS$1,857,61516 Apr 19
Peter Fante
EntityIndividual
Role
Chief Administrative Officer
Chief Administrative Officer
Shares29,715
Max PriceUS$63.20
SellUS$4,934,25116 Apr 19
Dan Bodner
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares78,642
Max PriceUS$63.20
SellUS$236,16515 Apr 19
Douglas Robinson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares3,757
Max PriceUS$62.86
SellUS$64,18216 Jan 19
Douglas Robinson
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares1,432
Max PriceUS$44.82
SellUS$261,78821 Dec 18
Richard Nottenburg
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,675
Max PriceUS$46.13

Ownership Breakdown


Management Team

  • Dan Bodner (60yo)

    Chairman

    • Tenure: 25.7yrs
    • Compensation: US$8.83m
  • Douglas Robinson (63yo)

    Chief Financial Officer

    • Tenure: 12.8yrs
    • Compensation: US$2.09m
  • Peter Fante (51yo)

    Chief Administrative Officer

    • Tenure: 3.1yrs
    • Compensation: US$2.03m
  • Elan Moriah (56yo)

    President of Customer Engagement Solutions

    • Tenure: 11.1yrs
    • Compensation: US$2.56m
  • Alan Roden

    Senior Vice President of Corporate Development & Investor Relations

    • Tenure: 17.8yrs
  • Jonathan Kohl

    Senior VP

    • Tenure: 0yrs
  • Jane O'Donnell

    Senior Vice President of Global Human Resources

    • Tenure: 12.8yrs
  • Elad Sharon

    President of Cyber Intelligence Solutions

    • Tenure: 0.8yrs

Board Members

  • Jack Egan (61yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$299.32k
  • Bill Kurtz (61yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$276.99k
  • Dan Bodner (60yo)

    Chairman

    • Tenure: 25.7yrs
    • Compensation: US$8.83m
  • Rich Nottenburg (65yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$269.99k
  • Earl Shanks (62yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$274.99k
  • Howard Safir (75yo)

    Independent Director

    • Tenure: 17.4yrs
    • Compensation: US$280.99k
  • Stephen Gold (59yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: US$107.03k
  • Penny Herscher (58yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$255.99k

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$2.939b
  • Shares outstanding: 66.77m
  • 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

Biography

Verint Systems Inc. provides actionable intelligence solutions worldwide. The company’s Customer Engagement Solutions segment offers automated quality management, automated verification, branch surveillanc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 00:48
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.

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