(VRNS) Varonis Systems - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 3.641m USD | Total Return: -27.7% in 12m
Avg Turnover: 59.9M
Qual. Beats: 2
Rev. Trend: 98.9%
Qual. Beats: 0
Warnings
Interest Coverage Ratio -11.0 is critical
Altman Z'' -1.41 < 1.0 - financial distress zone
Tailwinds
Idiosyncratic Leader
Varonis Systems (VRNS) is a cybersecurity company specializing in data security posture management (DSPM) and threat detection. The firm provides a Software-as-a-Service (SaaS) platform designed to locate, classify, and secure sensitive data across hybrid cloud and on-premises environments, including Microsoft 365 and various database systems.
Operating within the Systems Software sub-industry, Varonis utilizes a subscription-based business model, which typically offers higher revenue predictability compared to traditional perpetual licensing. The sector is currently driven by the increasing complexity of data governance requirements and the rise of AI-driven cyber threats, forcing organizations to automate the enforcement of least-privilege access.
The company serves a diverse global client base across highly regulated sectors such as financial services, healthcare, and the public sector. For a deeper analysis of the companys competitive positioning, consider reviewing the detailed metrics available on ValueRay. Varonis remains headquartered in Miami, Florida, and has expanded its technological footprint to include automated remediation and behavioral analytics since its inception in 2004.
- SaaS transition completion accelerates annual recurring revenue growth and margin expansion
- Increasing data privacy regulations drive enterprise demand for automated classification tools
- Generative AI adoption increases corporate risk exposure and security software spending
- Expansion of Microsoft 365 ecosystem adoption boosts high-margin subscription renewals
- Competitive pressure from hyperscale cloud providers impacts long-term pricing power and share
| Net Income: -130.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.01 > 0.02 and ΔFCF/TA -1.45 > 1.0 |
| NWC/Revenue: 67.01% < 20% (prev 18.83%; Δ 48.18% < -1%) |
| CFO/TA 0.08 > 3% & CFO 134.5m > Net Income -130.4m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 1.69 > 1.5 & < 3 |
| Outstanding Shares: last quarter (115.8m) vs 12m ago 2.78% < -2% |
| Gross Margin: 78.11% > 18% (prev 0.82%; Δ 7.73k% > 0.5%) |
| Asset Turnover: 41.11% > 50% (prev 36.35%; Δ 4.76% > 0%) |
| Interest Coverage Ratio: -10.99 > 6 (EBITDA TTM -127.5m / Interest Expense TTM 12.9m) |
| A: 0.27 (Total Current Assets 1.08b - Total Current Liabilities 638.6m) / Total Assets 1.63b |
| B: -0.55 (Retained Earnings -906.3m / Total Assets 1.63b) |
| C: -0.09 (EBIT TTM -141.8m / Avg Total Assets 1.61b) |
| D: -0.75 (Book Value of Equity -885.7m / Total Liabilities 1.18b) |
| Altman-Z'' = -1.41 = CCC |
| DSRI: 1.10 (Receivables 156.6m/123.6m, Revenue 660.2m/573.4m) |
| GMI: 1.05 (GM 78.11% / 82.29%) |
| AQI: 0.64 (AQ_t 0.28 / AQ_t-1 0.43) |
| SGI: 1.15 (Revenue 660.2m / 573.4m) |
| TATA: -0.16 (NI -130.4m - CFO 134.5m) / TA 1.63b) |
| Beneish M = -3.16 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 34.15 with a total of 2,592,141 shares traded.
Over the past week, the price has changed by +11.38%,
over one month by +25.14%,
over three months by +47.84% and
over the past year by -27.72%.
Varonis Systems has received a consensus analysts rating of 4.10. Therefore, it is recommended to buy VRNS.
- StrongBuy: 10
- Buy: 4
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 36.3 | 6.4% |
P/E Forward = 181.8182
P/S = 5.5145
P/B = 7.8482
P/EG = 7.3788
Revenue TTM = 660.2m USD
EBIT TTM = -141.8m USD
EBITDA TTM = -127.5m USD
Long Term Debt = 452.8m USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 569.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 58.4m
Net Debt = -216.3m USD (calculated: Debt 569.6m - CCE 785.9m)
Enterprise Value = 3.42b USD (3.64b + Debt 569.6m - CCE 785.9m)
Interest Coverage Ratio = -10.99 (Ebit TTM -141.8m / Interest Expense TTM 12.9m)
EV/FCF = 228.5x (Enterprise Value 3.42b / FCF TTM 15.0m)
FCF Yield = 0.44% (FCF TTM 15.0m / Enterprise Value 3.42b)
FCF Margin = 2.27% (FCF TTM 15.0m / Revenue TTM 660.2m)
Net Margin = -19.75% (Net Income TTM -130.4m / Revenue TTM 660.2m)
Gross Margin = 78.11% ((Revenue TTM 660.2m - Cost of Revenue TTM 144.5m) / Revenue TTM)
Gross Margin QoQ = 75.99% (prev 78.91%)
Tobins Q-Ratio = 2.10 (Enterprise Value 3.42b / Total Assets 1.63b)
Interest Expense / Debt = 2.27% (Interest Expense 12.9m / Debt 569.6m)
Taxrate = 21.0% (US default 21%)
NOPAT = -112.0m (EBIT -141.8m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 1.66 (Total Current Assets 1.08b / Total Current Liabilities 649.4m)
Debt / Equity = 1.26 (Debt 569.6m / totalStockholderEquity, last quarter 453.5m)
Debt / EBITDA = 1.70 (negative EBITDA) (Net Debt -216.3m / EBITDA -127.5m)
Debt / FCF = -14.43 (Net Debt -216.3m / FCF TTM 15.0m)
Total Stockholder Equity = 499.6m (last 4 quarters mean from totalStockholderEquity)
RoA = -8.12% (Net Income -130.4m / Total Assets 1.63b)
RoE = -9.27% (Net Income TTM -130.4m / Total Stockholder Equity 1.41b)
RoCE = -7.63% (EBIT -141.8m / Capital Employed (Equity 1.41b + L.T.Debt 452.8m))
RoIC = -11.24% (negative operating profit) (NOPAT -112.0m / Invested Capital 996.0m)
WACC = 8.00% (E(3.64b)/V(4.21b) * Re(8.97%) + D(569.6m)/V(4.21b) * Rd(2.27%) * (1-Tc(0.21)))
Discount Rate = 8.97% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 83.55 | Cagr: 2.80%
[DCF] Terminal Value 73.10% ; FCFF base≈23.9m ; Y1≈21.0m ; Y5≈17.0m
[DCF] Fair Price = 4.25 (EV 272.2m - Net Debt -216.3m = Equity 488.5m / Shares 114.8m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.94 | # QB: 2
Revenue Correlation: 98.88 | Revenue CAGR: 11.87% | SUE: 0.61 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.01 | Chg30d=N/A | Revisions=-7% | Analysts=22
EPS next Quarter (2026-09-30): EPS=0.02 | Chg30d=-61.82% | Revisions=-81% | Analysts=21
EPS current Year (2026-12-31): EPS=0.12 | Chg30d=+42.50% | Revisions=+85% | GrowthEPS=-34.1% | GrowthRev=+17.9%
EPS next Year (2027-12-31): EPS=0.38 | Chg30d=-7.84% | Revisions=-20% | GrowthEPS=+222.1% | GrowthRev=+18.0%
[Analyst] Revisions Ratio: +85%