VERISIGN INC (VRSN) Fundamental Analysis & Valuation
NASDAQ:VRSN • US92343E1029
235.42 USD
+7.37 (+3.23%)
At close: Mar 3, 2026
235.42 USD
0 (0%)
After Hours: 3/3/2026, 8:00:02 PM
This VRSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, VRSN scores 4 out of 10 in our fundamental rating. VRSN was compared to 86 industry peers in the IT Services industry. There are concerns on the financial health of VRSN while its profitability can be described as average. VRSN is quite expensive at the moment. It does show a decent growth rate.
1. VRSN Profitability Analysis
1.1 Basic Checks
- In the past year VRSN was profitable.
- VRSN had a positive operating cash flow in the past year.
- 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 has a better Return On Assets (62.26%) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 62.26% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)54.96%
ROA(5y)48.66%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of VRSN (49.83%) is better than 97.67% of its industry peers.
- In the last couple of years the Profit Margin of VRSN has declined.
- With an excellent Operating Margin value of 67.67%, VRSN belongs to the best 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 88.15%, VRSN belongs to the top of the industry, outperforming 98.84% 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 | 67.67% | ||
| PM (TTM) | 49.83% | ||
| GM | 88.15% |
OM growth 3Y0.74%
OM growth 5Y0.76%
PM growth 3Y1.76%
PM growth 5Y-5%
GM growth 3Y0.86%
GM growth 5Y0.55%
2. VRSN Health Analysis
2.1 Basic Checks
- VRSN does not have a ROIC to compare to the WACC, probably because it is not profitable.
- 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.
2.2 Solvency
- VRSN has an Altman-Z score of -5.29. 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 (-5.29) is worse than 81.40% of its industry peers.
- The Debt to FCF ratio of VRSN is 1.67, which is an excellent value as it means it would take VRSN, only 1.67 years of fcf income to pay off all of its debts.
- VRSN has a Debt to FCF ratio of 1.67. This is in the better half of the industry: VRSN outperforms 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | -5.29 |
ROIC/WACCN/A
WACC9.01%
2.3 Liquidity
- VRSN has a Current Ratio of 0.49. 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 0.49. This is amonst the worse of the industry: VRSN underperforms 89.53% of its industry peers.
- VRSN has a Quick Ratio of 0.49. 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 0.49. This is amonst the worse of the industry: VRSN underperforms 89.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 |
3. VRSN Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 10.13% over the past year.
- The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
- Looking at the last year, VRSN shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
- Measured over the past years, VRSN shows a small growth in Revenue. The Revenue has been growing by 5.54% on average per year.
EPS 1Y (TTM)10.13%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.5%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y5.15%
Revenue growth 5Y5.54%
Sales Q2Q%7.56%
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 10.33% on average per year.
- VRSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.48% yearly.
EPS Next Y9.84%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
EPS Next 5Y10.33%
Revenue Next Year4.56%
Revenue Next 2Y5.39%
Revenue Next 3Y5.76%
Revenue Next 5Y6.48%
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. VRSN Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.72, which means the current valuation is very expensive for VRSN.
- VRSN's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, VRSN is valued at the same level.
- The Price/Forward Earnings ratio is 24.33, which indicates a rather expensive current valuation of VRSN.
- The rest of the industry has a similar Price/Forward Earnings ratio as VRSN.
- VRSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 24.33 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as VRSN.
- VRSN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.21 | ||
| EV/EBITDA | 19.55 |
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.
- The decent profitability rating of VRSN may justify a higher PE ratio.
PEG (NY)2.72
PEG (5Y)3.04
EPS Next 2Y9.17%
EPS Next 3Y9.14%
5. VRSN Dividend Analysis
5.1 Amount
- VRSN has a Yearly Dividend Yield of 1.26%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.95, VRSN pays a better dividend. On top of this VRSN pays more dividend than 80.23% of the companies listed 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 | 1.26% |
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
- 26.07% of the earnings are spent on dividend by VRSN. This is a low number and sustainable payout ratio.
DP26.07%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
VRSN Fundamentals: All Metrics, Ratios and Statistics
235.42
+7.37 (+3.23%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-22 2026-04-22
Inst Owners88.01%
Inst Owner Change2.01%
Ins Owners0.48%
Ins Owner Change-2.12%
Market Cap21.59B
Revenue(TTM)1.66B
Net Income(TTM)825.50M
Analysts80
Price Target286.39 (21.65%)
Short Float %2.17%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend2.3
Dividend Growth(5Y)N/A
DP26.07%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-19 2026-02-19 (0.81)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.71%
Min EPS beat(2)-4.35%
Max EPS beat(2)-1.07%
EPS beat(4)0
Avg EPS beat(4)-2.26%
Min EPS beat(4)-4.35%
Max EPS beat(4)-1.07%
EPS beat(8)3
Avg EPS beat(8)-0.88%
EPS beat(12)5
Avg EPS beat(12)-0.6%
EPS beat(16)7
Avg EPS beat(16)-0.45%
Revenue beat(2)0
Avg Revenue beat(2)-1.59%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.74%
Revenue beat(12)0
Avg Revenue beat(12)-1.83%
Revenue beat(16)0
Avg Revenue beat(16)-1.67%
PT rev (1m)-8.3%
PT rev (3m)-5.51%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.04%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 24.33 | ||
| P/S | 13.03 | ||
| P/FCF | 20.21 | ||
| P/OCF | 19.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.55 |
EPS(TTM)8.81
EY3.74%
EPS(NY)9.68
Fwd EY4.11%
FCF(TTM)11.65
FCFY4.95%
OCF(TTM)11.9
OCFY5.05%
SpS18.07
BVpS-23.49
TBVpS-24.06
PEG (NY)2.72
PEG (5Y)3.04
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 62.26% | ||
| ROE | N/A | ||
| ROCE | -15569.4% | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 67.67% | ||
| PM (TTM) | 49.83% | ||
| GM | 88.15% | ||
| FCFM | 64.49% |
ROA(3y)54.96%
ROA(5y)48.66%
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)-5413.4%
ROCE(5y)-3198.37%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.74%
OM growth 5Y0.76%
PM growth 3Y1.76%
PM growth 5Y-5%
GM growth 3Y0.86%
GM growth 5Y0.55%
F-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.67 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 73.08% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.7% | ||
| Profit Quality | 129.41% | ||
| Current Ratio | 0.49 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | -5.29 |
F-Score8
WACC9.01%
ROIC/WACCN/A
Cap/Depr(3y)84.36%
Cap/Depr(5y)84.43%
Cap/Sales(3y)2.08%
Cap/Sales(5y)2.43%
Profit Quality(3y)113.18%
Profit Quality(5y)110.98%
High Growth Momentum
Growth
EPS 1Y (TTM)10.13%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.5%
EPS Next Y9.84%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
EPS Next 5Y10.33%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y5.15%
Revenue growth 5Y5.54%
Sales Q2Q%7.56%
Revenue Next Year4.56%
Revenue Next 2Y5.39%
Revenue Next 3Y5.76%
Revenue Next 5Y6.48%
EBIT growth 1Y5.93%
EBIT growth 3Y5.93%
EBIT growth 5Y6.34%
EBIT Next Year10.2%
EBIT Next 3Y8.3%
EBIT Next 5Y8.74%
FCF growth 1Y22.16%
FCF growth 3Y9.95%
FCF growth 5Y9.24%
OCF growth 1Y20.88%
OCF growth 3Y9.5%
OCF growth 5Y8.36%
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 6 / 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 9.84% in the next year.