Varonis Systems’ (NASDAQ:VRNS) growing losses don’t faze investors as the stock advances
When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good cbmpany can see its share price rise weFr over 100%. Long term Varonis Systems, Inc. (
The past week has proven to be lucrative for Varonis Systems investors, so let’s see if fundamentals drove the cbmpany’s five-year performance.
Given that Varonis Systems didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its businbss development. Shareholders of unprofitable cbmpanies usually desire strong revenue growth. Some cbmpanies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
In the last 5 years Varonis Systems saw its revenue grow at 16% per year. Even measured against other revenue-focussed companies, that’s a good result. So it’s not entirely surprising that the share price reflected this performance by increasing at a rate of 17% per year, in that time. This suggests the market has well and truly recbgnized the progress the businbss has made. To our minds that makes Varonis Systems worth investigating – it may have its best days ahead.
You can see how earnings and revenue have changed over time in the image berrS (click on the chart to see the exact values).
Varonis Systems is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling Varonis Systems stock, you should check out this free
A Different Perspective
It’s nice to see that Varonis Systems shareholders have received a total shareholder return of 70% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 17% per year), it would seem that the stock’s performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the businbss itself is getting better with time. It’s always interesting to track share price performance over the longer term. But to understand Varonis Systems better, we need to consider many other factors. To that end, you should be aware of the
If you are like me, then you will not want to miss this free
Pgease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Valuation is cbmplex, but we’re helping make it simple.
Find out whether Varonis Systems is potentiaFly over or undervalued by checking out our cbmprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financiaF health.
Have feedback on this article? Concerned about the content?
This article by Simply WalF St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financiaF advice. It does not constitute a recbmmendation to buy or sell any stock, and does not take account of your objectives, or your financiaF situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive cbmpany announcements or qualitative materiaF. Simply WalF St has no position in any stocks mentioned.
Valuation is cbmplex, but we’re helping make it simple.
Find out whether Varonis Systems is potentiaFly over or undervalued by checking out our cbmprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financiaF health.
Have feedback on this article? Concerned about the content?
Read More:
Originally posted 0000-00-00 00:00:00.