Varonis Systems, Inc. (VRNS) — Stock Score Summary

Varonis Systems, Inc. (VRNS) has a MoatMap StockRank of 24/100 based on Quality (32/100), Value (46/100), and Momentum (32/100) factor scores. The current signal is SELL. As AI deployment scales, data security posture management (DSPM) becomes critical because LLMs expose unstructured data risks. Varonis is transitioning to a SaaS model with high recurring revenue and strong customer lock-in, making it a prime beneficiary of the AI infrastructure buildout's second-order effects. However, the current valuation is demanding and the path to GAAP profitability remains slow.

Varonis Systems, Inc. develops and markets data security, governance, and analytics software to protect sensitive corporate data from insider threats and cyberattacks. Its specialized focus on unstructured data security and a comprehensive platform provides a strong competitive edge in a critical cybersecurity niche. Varonis is a pioneer and leader in data security and analytics, helping organizations manage and protect their human-generated data.

Key Financial Metrics

Price$32.48
Market Cap$3.7B
P/E (Forward)86.99
Price/Book6.53
Return on Equity-31.8%
Return on Invested Capital-9.7%
Debt/Equity115.14
Gross Margin78.1%
Operating Margin-25.7%
Revenue Growth26.9%
Free Cash Flow$179M

Varonis Systems, Inc. operates in the Software - Infrastructure industry, part of the Technology sector (United States).

Frequently Asked Questions

What is Varonis Systems, Inc.’s (VRNS) StockRank?
MoatMap’s StockRank for Varonis Systems, Inc. (VRNS) is 24/100, with a Sell signal. It is a composite of Quality (32), Value (46), and Momentum (32) factor ranks across MoatMap’s 19,000+ stock universe.
Does Varonis Systems, Inc. have an economic moat?
Varonis Systems, Inc. (VRNS) has a Quality factor score of 32/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Varonis Systems, Inc. a buy, hold, or sell?
MoatMap’s current signal for Varonis Systems, Inc. (VRNS) is Sell, based on a StockRank of 24/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Varonis Systems, Inc. in?
Varonis Systems, Inc. (VRNS) operates in the Technology sector, specifically the Software - Infrastructure industry (United States).