VRNS

Varonis Systems, Inc.

Fundamental data last updated:September 25, 2026

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company profile

SECTOR

Technology

industry

Software - Infrastructure

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Varonis Systems, Inc. provides software products and services that allow enterprises to manage, analyze, alert, and secure enterprise data in North America, Europe, the Middle East, Africa, and internationally. Its software enables enterprises to protect data stored on premises and in the cloud, including sensitive files and emails; confidential personal data belonging to customers, and patients and employees' data; financial records; strategic and product plans; and other intellectual property. The company offers DatAdvantage that captures, aggregates, normalizes, and analyzes every data access event for users on Windows and UNIX/Linux servers, storage devices, email systems, Intranet servers, cloud applications, and data stores; and DatAlert that profiles users, devices, and their behaviors related to systems and data, detects and alerts on deviations that indicate compromise, and provides a Web-based dashboard and investigative interface. It also provides Data Classification Engine that identifies and tags data based on criteria set in various metadata dimensions, as well as provides business and information technology (IT) personnel with actionable intelligence about data; and DataPrivilege, which offers a self-service Web portal that allows users to request access to data necessary for their business functions, and owners to grant access without IT intervention. In addition, the company provides Data Transport Engine, which provides an execution engine that unifies the manipulation of data and metadata, translating business decisions, and instructions into technical commands, such as data migration or archiving; and DatAnswers that offers search functionality for enterprise data. Varonis Systems, Inc. sells products and services through a network of distributors and resellers. The company serves IT, security, and business personnel. Varonis Systems, Inc. was incorporated in 2004 and is headquartered in New York, New York.

 


VALUATION

P/E

-28.25

Market Cap ($M USD)

$3.74B

Forward P/E

46.44

PEG

0.29

PRICE TO SALES

5.66

PRICE TO BOOK

8.12

EV / EBITDA

-31.90

5-Year Average P/E

Free Cash Flow Yield

3.20%

DCF Value

$-21.13

Graham Number

N/A

Price to FCF

31.25

EV to FCF

34.03

Earnings Yield

-3.54%

FCF Yield

3.20%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.13

Next Year EPS Growth Estimate

$0.69

Next Year Revenue Growth Estimate

$1.02B

Return on Equity (ROE)

-26.10%

FREE CASH FLOW

Operating Margin

-22.30%

Debt-to-Equity

0.96

Piotroski F-Score

3

Altman Z-Score

1.52

Return on Invested Capital (ROIC)

-14.78%

Current Ratio

1.69

Quick Ratio

1.69

Net Debt to EBITDA

-2.60

Interest Coverage

0.00

Gross Profit margin

78.11%

FCF PER SHARE

$1.03

REVENUE PER SHARE

$5.70

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Varonis Systems, Inc. significantly. With a DCF value deeply negative, the stock’s current trading price suggests a disconnect from intrinsic value. The Forward P/E of 39.79 indicates high growth expectations, yet the negative Earnings Yield and a precarious Altman Z-score of 1.37 highlight financial fragility. Despite a “Buy” consensus, the company’s valuation metrics suggest caution, as the market may be overestimating its growth potential relative to its financial health.

AI Exposure / Tech Reliance

Operating in the Software - Infrastructure industry, Varonis is well-positioned to leverage AI and modern tech shifts. Its focus on data security and management aligns with the increasing demand for robust cybersecurity solutions. This strategic positioning could enhance its resilience and adaptability in a rapidly evolving tech landscape.

The Bull Case

For a GARP investor, Varonis presents an intriguing opportunity. The Forward PEG ratio of 0.24 suggests undervaluation relative to growth, while a robust Gross Profit Margin of 78.11% indicates strong pricing power. Although the Piotroski F-Score is modest at 3, the company's ability to generate Free Cash Flow, with a yield of 3.57%, underscores its potential for capital efficiency and long-term value creation.

The Bear Case

However, the bear case is compelling. Varonis suffers from a high Price/Book ratio of 7.28 and a Price/Sales of 5.08, indicating overvaluation. The negative ROIC of -14.78% and Operating Margin of -22.30% reveal operational inefficiencies. Trading near its 52-week high, the stock appears technically overextended, suggesting limited upside without significant improvement in execution.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$36.00

Institutional Ownership %

1-Year Beta

0.80

Insider Buying % (6 Mo)

Distance to 52-Week High

100.88%

Distance to 52-Week Low

38.07%

EARNINGS SURPRISE %

220.00%

50-DAY SMA

$25.42

200-DAY SMA

$37.04

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.