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VERISIGN INC (VRSN) Stock Fundamental Analysis

NASDAQ:VRSN - Nasdaq - US92343E1029 - Common Stock - Currency: USD

281.16  -2.8 (-0.99%)

After market: 281.16 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to VRSN. VRSN was compared to 82 industry peers in the IT Services industry. While VRSN has a great profitability rating, there are quite some concerns on its financial health. VRSN is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year VRSN was profitable.
VRSN had a positive operating cash flow in the past year.
VRSN had positive earnings in each of the past 5 years.
Each year in the past 5 years VRSN had a positive operating cash flow.
VRSN Yearly Net Income VS EBIT VS OCF VS FCFVRSN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

1.2 Ratios

VRSN has a Return On Assets of 54.63%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 533.63%, VRSN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
ROA 54.63%
ROE N/A
ROIC 533.64%
ROA(3y)47.16%
ROA(5y)45.43%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
VRSN Yearly ROA, ROE, ROICVRSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600

1.3 Margins

VRSN's Profit Margin of 50.20% is amongst the best of the industry. VRSN outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of VRSN has remained more or less at the same level.
VRSN's Operating Margin of 67.95% is amongst the best of the industry. VRSN outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of VRSN has remained more or less at the same level.
VRSN has a better Gross Margin (87.83%) than 98.78% of its industry peers.
VRSN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 67.95%
PM (TTM) 50.2%
GM 87.83%
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%
VRSN Yearly Profit, Operating, Gross MarginsVRSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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3

2. Health

2.1 Basic Checks

VRSN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VRSN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRSN has less shares outstanding
The debt/assets ratio for VRSN is higher compared to a year ago.
VRSN Yearly Shares OutstandingVRSN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
VRSN Yearly Total Debt VS Total AssetsVRSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

Based on the Altman-Z score of -4.31, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
VRSN has a worse Altman-Z score (-4.31) than 90.24% of its industry peers.
The Debt to FCF ratio of VRSN is 1.97, which is an excellent value as it means it would take VRSN, only 1.97 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VRSN (1.97) is better than 71.95% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.97
Altman-Z -4.31
ROIC/WACC56.89
WACC9.38%
VRSN Yearly LT Debt VS Equity VS FCFVRSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B

2.3 Liquidity

VRSN has a Current Ratio of 0.56. 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 Current ratio of 0.56. This is amonst the worse of the industry: VRSN underperforms 92.68% of its industry peers.
A Quick Ratio of 0.56 indicates that VRSN may have some problems paying its short term obligations.
VRSN has a Quick ratio of 0.56. This is amonst the worse of the industry: VRSN underperforms 92.68% of its industry peers.
Industry RankSector Rank
Current Ratio 0.56
Quick Ratio 0.56
VRSN Yearly Current Assets VS Current LiabilitesVRSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.65% over the past year.
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 4.12% in the last year.
The Revenue has been growing slightly by 4.80% on average over the past years.
EPS 1Y (TTM)9.65%
EPS 3Y13.17%
EPS 5Y8.54%
EPS Q2Q%9.38%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%4.68%

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 13.72% on average per year.
The Revenue is expected to grow by 6.75% on average over the next years.
EPS Next Y12.17%
EPS Next 2Y9.15%
EPS Next 3Y11.02%
EPS Next 5Y13.73%
Revenue Next Year5.48%
Revenue Next 2Y3.68%
Revenue Next 3Y5.39%
Revenue Next 5Y6.75%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
VRSN Yearly Revenue VS EstimatesVRSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B 2B
VRSN Yearly EPS VS EstimatesVRSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15 20

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2

4. Valuation

4.1 Price/Earnings Ratio

VRSN is valuated quite expensively with a Price/Earnings ratio of 34.37.
VRSN's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.34. VRSN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.50, 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.
VRSN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 34.37
Fwd PE 29.5
VRSN Price Earnings VS Forward Price EarningsVRSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

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.
VRSN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 29.12
EV/EBITDA 24.82
VRSN Per share dataVRSN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 -20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VRSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)4.02
EPS Next 2Y9.15%
EPS Next 3Y11.02%

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2

5. Dividend

5.1 Amount

VRSN has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
VRSN's Dividend Yield is a higher than the industry average which is at 2.52.
With a Dividend Yield of 1.09, VRSN pays less dividend than the S&P500 average, which is at 2.40.
Industry RankSector Rank
Dividend Yield 1.09%

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
VRSN Yearly Dividends per shareVRSN Yearly Dividends per shareYearly Dividends per share 2025 0.2 0.4 0.6

5.3 Sustainability

DP0%
EPS Next 2Y9.15%
EPS Next 3Y11.02%
VRSN Yearly Income VS Free CF VS DividendVRSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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VERISIGN INC

NASDAQ:VRSN (6/18/2025, 8:00:01 PM)

After market: 281.16 0 (0%)

281.16

-2.8 (-0.99%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)04-24 2025-04-24/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners82.53%
Inst Owner Change0.56%
Ins Owners0.64%
Ins Owner Change3%
Market Cap26.40B
Analysts80
Price Target271.44 (-3.46%)
Short Float %2.01%
Short Ratio1.74
Dividend
Industry RankSector Rank
Dividend Yield 1.09%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-Date05-19 2025-05-19 (0.77)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.19%
Min EPS beat(2)-2.26%
Max EPS beat(2)-2.11%
EPS beat(4)2
Avg EPS beat(4)-0.37%
Min EPS beat(4)-2.26%
Max EPS beat(4)1.94%
EPS beat(8)5
Avg EPS beat(8)0.02%
EPS beat(12)7
Avg EPS beat(12)0.24%
EPS beat(16)9
Avg EPS beat(16)-0.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.84%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)-1.63%
Revenue beat(8)0
Avg Revenue beat(8)-1.82%
Revenue beat(12)0
Avg Revenue beat(12)-1.72%
Revenue beat(16)0
Avg Revenue beat(16)-1.65%
PT rev (1m)3%
PT rev (3m)12.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)0%
EPS NY rev (3m)1.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
Industry RankSector Rank
PE 34.37
Fwd PE 29.5
P/S 16.76
P/FCF 29.12
P/OCF 28.19
P/B N/A
P/tB N/A
EV/EBITDA 24.82
EPS(TTM)8.18
EY2.91%
EPS(NY)9.53
Fwd EY3.39%
FCF(TTM)9.65
FCFY3.43%
OCF(TTM)9.97
OCFY3.55%
SpS16.78
BVpS-21.05
TBVpS-21.61
PEG (NY)2.82
PEG (5Y)4.02
Profitability
Industry RankSector Rank
ROA 54.63%
ROE N/A
ROCE 664.49%
ROIC 533.64%
ROICexc N/A
ROICexgc N/A
OM 67.95%
PM (TTM) 50.2%
GM 87.83%
FCFM 57.54%
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%
ROICexcg growth 3YN/A
ROICexcg 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 Turnover1.09
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.97
Debt/EBITDA 1.61
Cap/Depr 83.61%
Cap/Sales 1.91%
Interest Coverage 250
Cash Conversion 84.65%
Profit Quality 114.62%
Current Ratio 0.56
Quick Ratio 0.56
Altman-Z -4.31
F-Score7
WACC9.38%
ROIC/WACC56.89
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)9.65%
EPS 3Y13.17%
EPS 5Y8.54%
EPS Q2Q%9.38%
EPS Next Y12.17%
EPS Next 2Y9.15%
EPS Next 3Y11.02%
EPS Next 5Y13.73%
Revenue 1Y (TTM)4.12%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%4.68%
Revenue Next Year5.48%
Revenue Next 2Y3.68%
Revenue Next 3Y5.39%
Revenue Next 5Y6.75%
EBIT growth 1Y5.14%
EBIT growth 3Y6.88%
EBIT growth 5Y5.59%
EBIT Next Year12.59%
EBIT Next 3Y7.27%
EBIT Next 5Y8.55%
FCF growth 1Y5.84%
FCF growth 3Y5.06%
FCF growth 5Y4.15%
OCF growth 1Y6.07%
OCF growth 3Y3.79%
OCF growth 5Y3.67%