Varonis Systems Inc

Technology
Computer Software: Prepackaged Software
www.varonis.com

Moat Score
Safety Score

Market Cap $5.55B
PE -66
Debt $953.01M
Cash $282.22M
EV $6.22B
FCF $96.88M

Earnings

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Sales & Net Margins

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Earnings	-$83.67M
EBIT	-$72.87M
ROE	-20%
ROA	-5%
FCF	$96.88M
Equity	$428.56M
Growth Stability	1
PE	-66.31
PB	12.95
P/FCF	57.27
P/S	10.15
Price/Cash	0.05
Debt/Equity	2.22
Debt/FCF	9.84
Net Margins	-21%
Gross Margins	84%
Op. Margins	-13%
Sales Growth YoY	21%
Sales Growth QoQ	14%
Sales CAGR	17%
FCF CAGR	9%
Equity CAGR	28%
Earnings Growth YoY	-20%
Earnings Growth QoQ	-23%

Sales CAGR 5Y	19%
FCF CAGR 5Y	61%
Equity CAGR 5Y	44%
Earnings CAGR 3Y	11%
Sales CAGR 3Y	11%
FCF CAGR 3Y	670%
Equity CAGR 3Y	-9%
Market Cap	$5.55B
Revenue	$546.54M
Assets	$1.52B
Total Debt	$953.01M
Cash	$282.22M
Shares Outstanding	111.38M
EV	6.22B
Moat Score	4%
Safety Score	71%
Working Capital	480.39M
Current Ratio	1.81
Gross Profit	$459.40M
Shares Growth 3y	1%
Equity Growth QoQ	-7%
Equity Growth YoY	-4%

Assets & ROA

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Stockholders Equity & ROE

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Varonis Systems Inc provides software solutions that protect data from insider threats and cyber attacks. The company, through its software, allows organizations to protect data stored on premises and on a cloud, such as sensitive files and emails; confidential customer, patient and employee data; financial records; strategic and product plans; and other intellectual property.

SEC Filings

Direct access to Varonis Systems Inc (VRNS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Varonis Systems Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Varonis Systems Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

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Varonis Systems Inc Discounted Cash Flow

Fully customizable DCF calculator online for Varonis Systems Inc.

Years

Calculation mode

= $1.9B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$97M	$106M	$116M	$127M	$139M	$152M	$167M	$182M	$199M	$218M	$239M	$2.4B
DCF		$96M	$96M	$95M	$95M	$94M	$94M	$94M	$93M	$93M	$92M	$921M
Value	$1.9B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	-19%	-17%	-11%	-6%	-11%	-31%	-32%	-30%	-26%	-20%	-21%
ROA	-	-12%	-9%	-5%	-10%	-24%	-14%	-9%	-11%	-8%	-5%
ROE	-	-25%	-21%	-13%	-23%	-84%	-100%	-20%	-25%	-21%	-20%

Bad Net Margins (-21.09%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-0	-13.69	-68.03	524.13	4.61	9.84
Debt over Equity	-	-	-	-	-	0	2.32	0.38	0.5	0.51	2.22
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Bad Debt/FCF ratio (9.84)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Bad Debt/Equity ratio (2.22)

The company is overleveraged and has a bad balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	26%	29%	32%	24%	-6%	15%	33%	21%	5%	19%
Earnings YoY growth	-	10%	-17%	-23%	109%	176%	19%	24%	7%	-19%	-
Equity YoY growth	-	-12%	-1%	23%	23%	-25%	1%	534%	-16%	-2%	44%
FCF YoY growth	-	-23%	-148%	213%	27%	-358%	-56%	-79%	-114%	11K%	61%