244.365 USD
+0.16 (+0.06%)
Last: Jan 30, 2026, 03:02 PM
Overall VRSN gets a fundamental rating of 4 out of 10. We evaluated VRSN against 88 industry peers in the IT Services industry. VRSN has an excellent profitability rating, but there are concerns on its financial health. While showing a medium growth rate, VRSN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- VRSN had positive earnings in the past year.
- VRSN had a positive operating cash flow in the past year.
- In the past 5 years VRSN has always been profitable.
- Each year in the past 5 years VRSN had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of VRSN (57.78%) is better than 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 914.47%, VRSN 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
- With an excellent Profit Margin value of 49.86%, VRSN belongs to the best 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.
- With an excellent Operating Margin value of 67.62%, VRSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of VRSN has remained more or less at the same level.
- With an excellent Gross Margin value of 87.97%, VRSN belongs to the best of the industry, outperforming 98.86% of the companies in the same industry.
- VRSN'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 VRSN is creating value.
- VRSN has less shares outstanding than it did 1 year ago.
- VRSN has less shares outstanding than it did 5 years ago.
- VRSN has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of -4.80, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
- VRSN's Altman-Z score of -4.80 is on the low side compared to the rest of the industry. VRSN is outperformed by 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 has a Debt to FCF ratio of 1.78. This is in the better half 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 | -4.8 |
ROIC/WACC99.72
WACC9.17%
2.3 Liquidity
- A Current Ratio of 0.53 indicates that VRSN may have some problems paying its short term obligations.
- VRSN has a worse Current ratio (0.53) than 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.
- The Earnings Per Share has been growing by 8.54% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 5.47% in the past 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 Y13.04%
EPS Next 2Y9.98%
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
- The Price/Earnings ratio is 28.48, which means the current valuation is very expensive for VRSN.
- The rest of the industry has a similar Price/Earnings ratio as VRSN.
- When comparing the Price/Earnings ratio of VRSN to the average of the S&P500 Index (28.39), we can say VRSN is valued inline with the index average.
- The Price/Forward Earnings ratio is 25.25, which means the current valuation is very expensive for VRSN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSN is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.72, VRSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.48 | ||
| Fwd PE | 25.25 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRSN is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRSN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.54 | ||
| EV/EBITDA | 20.67 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRSN does not grow enough to justify the current Price/Earnings ratio.
- VRSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)3.33
EPS Next 2Y9.98%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- VRSN has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
- VRSN's Dividend Yield is rather good when compared to the industry average which is at 0.44. VRSN pays more dividend than 82.95% of the companies in the same industry.
- VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
- VRSN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.98%
EPS Next 3Y9.49%
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 13.04% in the next year.