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Varonis Systems Inc VRNS

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Stock XNAS Rating as of
$44.84 −0.03 (0.07%)
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As of Delayed Price Closed
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Company Report

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Varonis Faces Tough Competition as a Small Vendor in a Large Cybersecurity Pond

Malik Ahmed Khan

We view Varonis Systems as a strong data security vendor that occupies a tough competitive landscape. The firm’s solutions revolve around data security, privacy, and compliance. While the firm’s history stretches back to its founding in 2004, we are pessimistic on what the future holds for the firm as intense competition and possibly an uptick in churn due to the firm’s ongoing cloud transition stand to exact a cost on the firm’s growth and profitability outlook.

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Price vs Fair Value

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VRNS is trading at a 49% premium.
Price
$44.79
Fair Value
$94.00
Uncertainty
Very High
1-Star Price
$48.90
5-Star Price
$25.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Varonis remains a strong competitor in the data security and privacy space.

Bears

Large vendors, including hyperscalers, have competing solutions that could affect Varonis’ retention metrics.

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News

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Trading Information

Previous Close Price
$44.87
Day Range
$43.86–45.02
52-Week Range
$22.34–52.88
Bid/Ask
$45.00 / $44.88
Market Cap
$5.00 Bil
Volume/Avg
592,613 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
106.03
Price/Sales
9.80
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.87%

Company Profile

Varonis Systems is a cybersecurity vendor focused on data privacy and security. The firm is currently undergoing a cloud transition as it weans its on-premises customers over to its cloud products that are delivered as software-as-a-service. The New York-based firm was founded in 2004 and went public in 2014.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Small Growth
Total Number of Employees
2,233
Website
https://www.varonis.com

Competitors

Valuation

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Metric
VRNS
BOX
DBX
Price/Earnings (Normalized)
 106.0318.7012.70
Price/Book Value
 9.99——
Price/Sales
 9.803.913.32
Price/Cash Flow
 66.3411.259.20
Price/Earnings
VRNS
BOX
DBX

Financial Strength

Metric
VRNS
BOX
DBX
Quick Ratio
 2.341.121.19
Current Ratio
 2.501.241.26
Interest Coverage
 −37.00——
Quick Ratio
VRNS
BOX
DBX

Profitability

Metric
VRNS
BOX
DBX
Return on Assets (Normalized)
 4.38%19.14%22.78%
Return on Equity (Normalized)
 9.56%——
Return on Invested Capital (Normalized)
 2.66%41.48%35.11%
Return on Assets
VRNS
BOX
DBX
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