Attractive stocks have exceptional fundamentals. In the case of Verint Systems Inc. (NASDAQ:VRNT), there's is a financially-healthy company with a strong history and a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Verint Systems here.
Proven track record with reasonable growth potential
One reason why investors are attracted to VRNT is its earnings growth potential in the near future of 50%, made up of high-quality, operational cash from its core business, which is expected to increase by 55% next year. This indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. In the previous year, VRNT has ramped up its bottom line by 48%, with its latest earnings level surpassing its average level over the last five years. Not only did VRNT outperformed its past performance, its growth also surpassed the Software industry expansion, which generated a 19% earnings growth. This is an notable feat for the company.
VRNT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that VRNT has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. VRNT appears to have made good use of debt, producing operating cash levels of 0.26x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For Verint Systems, there are three essential aspects you should further research:
- Valuation: What is VRNT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VRNT is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does VRNT return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from VRNT as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VRNT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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 firstname.lastname@example.org. 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.