VERISIGN INC (VRS.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:VRS - US92343E1029 - Common Stock
219 EUR
+0.9 (+0.41%)
Overall VRS gets a fundamental rating of 4 out of 10. We evaluated VRS against 76 industry peers in the IT Services industry. While VRS has a great profitability rating, there are quite some concerns on its financial health. VRS is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- VRS had positive earnings in the past year.
- In the past year VRS had a positive cash flow from operations.
- VRS had positive earnings in each of the past 5 years.
- VRS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 57.78%, VRS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 914.47%, VRS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 57.78% | ||
| ROE | N/A | ||
| ROIC | 914.47% |
ROA(3y)47.16%
ROA(5y)45.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- VRS has a better Profit Margin (49.86%) than 98.68% of its industry peers.
- VRS's Profit Margin has been stable in the last couple of years.
- VRS's Operating Margin of 67.62% is amongst the best of the industry. VRS outperforms 98.68% of its industry peers.
- In the last couple of years the Operating Margin of VRS has remained more or less at the same level.
- Looking at the Gross Margin, with a value of 87.97%, VRS belongs to the top of the industry, outperforming 80.26% of the companies in the same industry.
- VRS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 67.62% | ||
| PM (TTM) | 49.86% | ||
| GM | 87.97% |
OM growth 3Y1.34%
OM growth 5Y0.75%
PM growth 3Y-5.15%
PM growth 5Y0.3%
GM growth 3Y0.84%
GM growth 5Y0.55%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRS is creating value.
- VRS has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, VRS has less shares outstanding
- The debt/assets ratio for VRS is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of -4.61, we must say that VRS is in the distress zone and has some risk of bankruptcy.
- VRS has a worse Altman-Z score (-4.61) than 90.79% of its industry peers.
- VRS has a debt to FCF ratio of 1.78. This is a very positive value and a sign of high solvency as it would only need 1.78 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.78, VRS is doing good in the industry, outperforming 73.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.61 |
ROIC/WACC102.06
WACC8.96%
2.3 Liquidity
- VRS has a Current Ratio of 0.53. This is a bad value and indicates that VRS is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Current ratio value of 0.53, VRS is not doing good in the industry: 90.79% of the companies in the same industry are doing better.
- VRS has a Quick Ratio of 0.53. This is a bad value and indicates that VRS is not financially healthy enough and could expect problems in meeting its short term obligations.
- VRS's Quick ratio of 0.53 is on the low side compared to the rest of the industry. VRS is outperformed by 90.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- VRS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
- Measured over the past years, VRS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.54% on average per year.
- Looking at the last year, VRS shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
- Measured over the past years, VRS shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.
EPS 1Y (TTM)8.33%
EPS 3Y13.17%
EPS 5Y8.54%
EPS Q2Q%9.66%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%7.3%
3.2 Future
- The Earnings Per Share is expected to grow by 9.45% on average over the next years. This is quite good.
- The Revenue is expected to grow by 5.20% on average over the next years.
EPS Next Y12.97%
EPS Next 2Y9.81%
EPS Next 3Y9.49%
EPS Next 5Y9.45%
Revenue Next Year6.29%
Revenue Next 2Y5.09%
Revenue Next 3Y5.48%
Revenue Next 5Y5.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 29.88 indicates a quite expensive valuation of VRS.
- VRS's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.21. VRS is around the same levels.
- A Price/Forward Earnings ratio of 26.58 indicates a quite expensive valuation of VRS.
- Based on the Price/Forward Earnings ratio, VRS is valued a bit more expensive than the industry average as 64.47% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, VRS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.88 | ||
| Fwd PE | 26.58 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, VRS is valued a bit more expensive than 77.63% of the companies in the same industry.
- VRS's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. VRS is more expensive than 60.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.64 | ||
| EV/EBITDA | 21.66 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRS does not grow enough to justify the current Price/Earnings ratio.
- VRS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.3
PEG (5Y)3.5
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- VRS has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.10, VRS has a dividend in line with its industry peers.
- VRS's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.81%
EPS Next 3Y9.49%
VERISIGN INC / VRS.DE FAQ
Can you provide the ChartMill fundamental rating for VERISIGN INC?
ChartMill assigns a fundamental rating of 4 / 10 to VRS.DE.
What is the valuation status for VRS stock?
ChartMill assigns a valuation rating of 1 / 10 to VERISIGN INC (VRS.DE). This can be considered as Overvalued.
How profitable is VERISIGN INC (VRS.DE) stock?
VERISIGN INC (VRS.DE) has a profitability rating of 7 / 10.
What is the financial health of VERISIGN INC (VRS.DE) stock?
The financial health rating of VERISIGN INC (VRS.DE) is 3 / 10.
What is the expected EPS growth for VERISIGN INC (VRS.DE) stock?
The Earnings per Share (EPS) of VERISIGN INC (VRS.DE) is expected to grow by 12.97% in the next year.