251.5 USD
-1.27 (-0.5%)
251.73 USD
+0.23 (+0.09%)
We assign a fundamental rating of 4 out of 10 to VRSN. VRSN was compared to 88 industry peers in the IT Services industry. VRSN has an excellent profitability rating, but there are concerns on its financial health. VRSN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- VRSN had positive earnings in the past year.
- In the past year VRSN had a positive cash flow from operations.
- In the past 5 years VRSN has always been profitable.
- In the past 5 years VRSN always reported a positive cash flow from operatings.
1.2 Ratios
- VRSN's Return On Assets of 57.78% is amongst the best of the industry. VRSN outperforms 100.00% of its industry peers.
- VRSN has a Return On Invested Capital of 914.47%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
| 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
- Looking at the Profit Margin, with a value of 49.86%, VRSN belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
- VRSN's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 67.62%, VRSN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- VRSN's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 87.97%, VRSN belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
- In the last couple of years the Gross Margin of VRSN has remained more or less at the same level.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRSN is creating value.
- VRSN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for VRSN has been reduced compared to 5 years ago.
- Compared to 1 year ago, VRSN has a worse debt to assets ratio.
2.2 Solvency
- VRSN has an Altman-Z score of -4.66. This is a bad value and indicates that VRSN is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of VRSN (-4.66) is worse than 86.36% of its industry peers.
- VRSN 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.
- VRSN's Debt to FCF ratio of 1.78 is fine compared to the rest of the industry. VRSN outperforms 73.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.66 |
ROIC/WACC102.06
WACC8.96%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that VRSN may have some problems paying its short term obligations.
- VRSN has a Current ratio of 0.53. This is amonst the worse of the industry: VRSN underperforms 88.64% of its industry peers.
- VRSN has a Quick Ratio of 0.53. This is a bad value and indicates that VRSN is not financially healthy enough and could expect problems in meeting its short term obligations.
- VRSN has a Quick ratio of 0.53. This is amonst the worse of the industry: VRSN underperforms 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
- VRSN 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, VRSN 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, VRSN shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
- Measured over the past years, VRSN 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
- Based on estimates for the next years, VRSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.45% on average per year.
- 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
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 29.31, the valuation of VRSN can be described as expensive.
- VRSN's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of VRSN to the average of the S&P500 Index (27.32), we can say VRSN is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 26.07, the valuation of VRSN can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as VRSN.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, VRSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 26.07 |
4.2 Price Multiples
- VRSN's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as VRSN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.19 | ||
| EV/EBITDA | 21.37 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of VRSN may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)3.43
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- VRSN has a Yearly Dividend Yield of 1.24%.
- Compared to an average industry Dividend Yield of 0.43, VRSN pays a better dividend. On top of this VRSN pays more dividend than 82.95% of the companies listed in the same industry.
- VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- VRSN is new to the dividend game and has less than 3 years of track record.
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%
251.5
-1.27 (-0.5%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners88.01%
Inst Owner Change0.41%
Ins Owners0.48%
Ins Owner Change-9.33%
Market Cap23.31B
Revenue(TTM)1.63B
Net Income(TTM)811.00M
Analysts80
Price Target312.3 (24.17%)
Short Float %2.94%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-1.38%
Max EPS beat(2)-1.07%
EPS beat(4)0
Avg EPS beat(4)-1.7%
Min EPS beat(4)-2.26%
Max EPS beat(4)-1.07%
EPS beat(8)4
Avg EPS beat(8)-0.2%
EPS beat(12)6
Avg EPS beat(12)0.04%
EPS beat(16)8
Avg EPS beat(16)0%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)3.04%
PT rev (3m)-1.63%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 26.07 | ||
| P/S | 14.33 | ||
| P/FCF | 23.19 | ||
| P/OCF | 22.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.37 |
EPS(TTM)8.58
EY3.41%
EPS(NY)9.65
Fwd EY3.84%
FCF(TTM)10.84
FCFY4.31%
OCF(TTM)11.14
OCFY4.43%
SpS17.55
BVpS-22.12
TBVpS-22.69
PEG (NY)2.26
PEG (5Y)3.43
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 57.78% | ||
| ROE | N/A | ||
| ROCE | 1138.72% | ||
| ROIC | 914.47% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 67.62% | ||
| PM (TTM) | 49.86% | ||
| GM | 87.97% | ||
| FCFM | 61.79% |
ROA(3y)47.16%
ROA(5y)45.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)-172.55%
ROCE(5y)-63.29%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score7
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 83.48% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 123.95% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | -4.66 |
F-Score7
WACC8.96%
ROIC/WACC102.06
Cap/Depr(3y)79.48%
Cap/Depr(5y)88.52%
Cap/Sales(3y)2.26%
Cap/Sales(5y)2.84%
Profit Quality(3y)109.8%
Profit Quality(5y)101.96%
High Growth Momentum
Growth
EPS 1Y (TTM)8.33%
EPS 3Y13.17%
EPS 5Y8.54%
EPS Q2Q%9.66%
EPS Next Y12.97%
EPS Next 2Y9.81%
EPS Next 3Y9.49%
EPS Next 5Y9.45%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%7.3%
Revenue Next Year6.29%
Revenue Next 2Y5.09%
Revenue Next 3Y5.48%
Revenue Next 5Y5.2%
EBIT growth 1Y4.69%
EBIT growth 3Y6.88%
EBIT growth 5Y5.59%
EBIT Next Year13.06%
EBIT Next 3Y8.64%
EBIT Next 5Y8.42%
FCF growth 1Y22.89%
FCF growth 3Y5.06%
FCF growth 5Y4.15%
OCF growth 1Y19.22%
OCF growth 3Y3.79%
OCF growth 5Y3.67%
VERISIGN INC / VRSN FAQ
Can you provide the ChartMill fundamental rating for VERISIGN INC?
ChartMill assigns a fundamental rating of 4 / 10 to VRSN.
What is the valuation status of VERISIGN INC (VRSN) stock?
ChartMill assigns a valuation rating of 2 / 10 to VERISIGN INC (VRSN). This can be considered as Overvalued.
How profitable is VERISIGN INC (VRSN) stock?
VERISIGN INC (VRSN) has a profitability rating of 7 / 10.
Can you provide the financial health for VRSN stock?
The financial health rating of VERISIGN INC (VRSN) is 3 / 10.
Can you provide the expected EPS growth for VRSN stock?
The Earnings per Share (EPS) of VERISIGN INC (VRSN) is expected to grow by 12.97% in the next year.