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Verint Systems (Verint Systems) Owner Earnings per Share (TTM) : 0.90 (As of Jan. 2024)


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What is Verint Systems Owner Earnings per Share (TTM)?

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Verint Systems's Owner Earnings per Share (TTM) ended in Jan. 2024 was $0.90. It's Price-to-Owner-Earnings ratio for today is 36.68.


The historical rank and industry rank for Verint Systems's Owner Earnings per Share (TTM) or its related term are showing as below:

VRNT' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 6.41   Med: 18.67   Max: 122.55
Current: 36.72


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Verint Systems was 122.55. The lowest was 6.41. And the median was 18.67.


VRNT's Price-to-Owner-Earnings is ranked worse than
67.48% of 1027 companies
in the Software industry
Industry Median: 23.2 vs VRNT: 36.72

Verint Systems's Earnings per Share (Diluted) for the three months ended in Jan. 2024 was $0.37. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jan. 2024 was $0.29. It's PE Ratio ratio for today is 113.83.

Verint Systems's EPS without NRI for the three months ended in Jan. 2024 was $0.38. Its EPS without NRI for the trailing twelve months (TTM) ended in Jan. 2024 was $0.95. It's PE Ratio without NRI ratio for today is 34.93.


Verint Systems Owner Earnings per Share (TTM) Historical Data

The historical data trend for Verint Systems's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Verint Systems Owner Earnings per Share (TTM) Chart

Verint Systems Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Owner Earnings per Share (TTM)
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.35 0.88 0.63 0.53 0.90

Verint Systems Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Owner Earnings per Share (TTM) Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.53 0.72 1.01 1.01 0.90

Competitive Comparison of Verint Systems's Owner Earnings per Share (TTM)

For the Software - Infrastructure subindustry, Verint Systems's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Verint Systems's Price-to-Owner-Earnings Distribution in the Software Industry

For the Software industry and Technology sector, Verint Systems's Price-to-Owner-Earnings distribution charts can be found below:

* The bar in red indicates where Verint Systems's Price-to-Owner-Earnings falls into.



Verint Systems Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Verint Systems's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 38.6
Depreciation, Depletion and Amortization 71.5
Change In Deferred Tax 0.0
5Y Average of Maintenance Capital Expenditure 24.8
Change In Working Capital -27.7
Shares Outstanding (Diluted Average) 64.0

1. Start with "Net Income" from income statement. Verint Systems's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was $38.6 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Verint Systems's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Jan. 2024 was $71.5 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Verint Systems's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jan. 2024 was $0.0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $24.8 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Verint Systems's 5-Year Average Maintenance Capital Expenditure = $24.8 Mil

5. "Change In Working Capital" is from cashflow statement. Verint Systems's Change In Working Capital for the trailing twelve months (TTM) ended in Jan. 2024 was $-27.7 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Verint Systems's Shares Outstanding (Diluted Average) for the months ended in Jan. 2024 was 64.039 Mil.

Verint Systems's Onwer Earnings Per Share for Jan. 2024 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 38.61 +71.485+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-24.804613747591+-27.747)/64.039
=0.90

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=33.01/0.90
=36.68

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Verint Systems Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Verint Systems's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Verint Systems (Verint Systems) Business Description

Industry
Traded in Other Exchanges
Address
175 Broadhollow Road, Suite 100, Melville, NY, USA, 11747
Verint Systems Inc with its subsidiaries helps brands provide Boundless Customer Engagement. The company's solutions help iconic brands close the gap created when it lacks the resources required to deliver experiences that fulfill customer expectations. The operating business segments are Customer Engagement. Geographically, it derives a majority of its revenue from the United States.
Executives
Grant A Highlander officer: Chief Financial Officer C/O VERINT SYSTEMS INC., 175 BROADHOLLOW ROAD, SUITE 100, MELVILLE NY 11747
William Kurtz director NOVELLUS SYSTEMS, INC., 4000 NORTH FIRST STREET, SAN JOSE CA 95134
Elan Moriah officer: President, Contact Center Div.
Dan Bodner director, officer: President & CEO Verint Systems
Peter Fante officer: General Counsel
Richard N Nottenburg director 1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Yvette H Smith director 175 BROADHOLLOW ROAD, MELVILLE NY 11747
Douglas Robinson officer: Chief Financial Officer C/O VERINT SYSTEMS INC., 330 SOUTH SERVICE ROAD, MELVILLE NY 11747
John R Egan director 176 SOUTH ST., HOPKINTON MA 01748
Kristen Robinson director 2101 WEBSTER STREET #1650, OAKLAND CA 94612
French R Reid Jr director C/O INTERGRAPH CORP, 288 DUNLOP BLVD, HUNTSVILLE AL 35824
Linda M. Crawford director 3365 CLAY STREET, SAN FRANCISCO CA 94118
Apax Guernsey (holdco) Pcc Ltd 10 percent owner THIRD FLOOR, ROYAL BANK PLACE, 1 GLATEGNY ESPLANADE, ST. PETER PORT, GUERNSEY X0 GY1 2HJ
Valor Buyer Lp 10 percent owner C/O APAX PARTNERS, LP, 601 LEXINGTON AVENUE, 53RD FLOOR, NEW YORK NY 10022
Apax X Gp Co. Ltd 10 percent owner THIRD FLOOR, ROYAL BANK PLACE, 1 GLATEGNY ESPLANADE, ST. PETER PORT Y7 GY1 2HJ