Yahoo Finance Interested In Verint Systems Inc. (NASDAQ:VRNT)? Here's What Its Recent Performance Looks Like
When Verint Systems Inc. (NasdaqGS:VRNT) announced its most recent earnings (31 July 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Verint Systems has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see VRNT has performed.
See our latest analysis for Verint Systems
How Well Did VRNT Perform?
VRNT's trailing twelve-month earnings (from 31 July 2019) of US$58m has jumped 48% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which VRNT is growing has accelerated. What's enabled this growth? Let's take a look at whether it is solely a result of industry tailwinds, or if Verint Systems has seen some company-specific growth.
In terms of returns from investment, Verint Systems has fallen short of achieving a 20% return on equity (ROE), recording 5.0% instead. Furthermore, its return on assets (ROA) of 3.1% is below the US Software industry of 6.6%, indicating Verint Systems's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Verint Systems’s debt level, has increased over the past 3 years from 2.5% to 5.3%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 71% to 62% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Verint Systems has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Verint Systems to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for VRNT’s future growth? Take a look at our free research report of analyst consensus for VRNT’s outlook.
Financial Health: Are VRNT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 July 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
