Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.70, read 2026-10-28
Ethical does not pass the values gate
Price48.85 USD
Fair value29.12
Ethical score70.0/100
Our investment reviews on this name
2026-10-18Read Markup47.06+3.8% to today ✓Accumulation gives way to Markup first Markup read since October
2026-10-11Read Accumulation49.08-0.5% to today Markup gives way to Accumulation after a 47% rise in 14 weeks
2026-07-02Read Markup33.34+46.5% to today ✓First review on file: Markup
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
Varonis Systems, Inc. holds its Markup at $48.85. Consolidating, no directional conviction, held for 36 days.
As held on the ledger · 2026-10-30
Phase
Markup
Quantitative state
Consolidating, no directional conviction, held for 36 days
Price at the screen
$48.85
Valuation
N/A trailing · 119.77 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.77
The Workings
Five Screens, Shown in Full
Does not pass. Revenue purity
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
29.12%
Below 33%
Interest-bearing debt is just 29.1% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
10.45%
Below 33%
Cash held in interest-bearing accounts and securities is 10.4% of assets, under the one-third limit.
Pass
Receivables
24.85%
Below 49%
Money owed to the company is 24.9% of assets, under the 49% limit.
Pass
Revenue purity
8.01%
Below 5%
8.0% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
Varonis Systems, clears the business-activity screen, and its debt is inside the line. Where it falls short is income purity: around 8% of its income right now is non-operating interest income, against a roughly 5% ceiling, so it does not pass. That reflects what it earns today, not the business itself, and it could clear the screen if its operating revenue grows and the interest share falls.
Read as at 2026-11-01. It updates when the underlying figures move, and past reads are kept below.
Follow this verdict
Get an email when VRNS's ethical verdict changes
Today VRNS does not pass the screen. If new figures move it to a pass, we send you one short email with the before and after. Verdicts change rarely, so you may not hear from us for a long time.
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Fair value range in USD, drawn from the 2026-10-30 screen. The gold marker is the market price at the same screen. The price runs 40.4% above the base estimate.
Where our models see it going: fair-value estimate $29.12, with a range of $29.12 to $33.49, dated to the 2026-10-30 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Data security promise meets an eye-watering price tag
Picture a firm that maps every sensitive file across sprawling corporate networks. Varonis does exactly that with its AI-driven tools. Yet the shares trade at twice our fair value and a forward multiple of 124 times earnings while the business still posts a 20 percent loss margin and negative 32 percent return on equity. Growth at 27 percent revenue is respectable, but it does not justify the stretch.
We pass for straightforward valuation reasons. The market is paying a premium for a company that has yet to turn consistent profits, and analyst targets cluster well below the current quote. Ethical screening raises no flags, yet that alone cannot rescue a price that leaves no margin of safety.
High multiples on unprofitable operations leave little room for disappointment if growth slows or competition intensifies. Currency and sector swings add further volatility. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
VRNS trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-02Markup$48.85+0.0%Entry 16
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-01Markup$48.85-0.1%Entry 15
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-31Markup$48.88+0.0%Entry 14
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-30Markup$48.88+0.0%Entry 13
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-29Markup$48.880.0%Entry 12
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-28Markup$48.89+0.0%Entry 11
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-27Markup$48.89+0.0%Entry 10
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 42% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Markup$48.89+3.9%Entry 9
The analysis reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 3.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it C, carrying a low risk profile. Technically it is holding around 39% above its long-term trend line with momentum reading neutral. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36.
2026-10-18Markup · changed$47.06-4.1%Entry 8
The framework has shifted from accumulation to markup since the last review. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 4.1% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36.
The framework has shifted from markup to accumulation since the last review. Smart money appears to be quietly building positions. This typically precedes a markup phase. Price has moved up 3.2% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it A, carrying a low risk profile. Technically it is sitting below its long-term trend line with momentum reading bullish. Over the past year the shares are down 35%. Our forward projection puts the odds of a 10% gain over the next month near 26%. The street (22 analysts) rates it buy, with a mean price target of $36.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
