VERISIGN INC (VRSN) Stock Fundamental Analysis
USA - NASDAQ:VRSN - US92343E1029 - Common Stock
244.78 USD
-2.3 (-0.93%)
We assign a fundamental rating of 5 out of 10 to VRSN. VRSN was compared to 85 industry peers in the IT Services industry. While VRSN belongs to the best of the industry regarding profitability, 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.
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
With an excellent Return On Assets value of 56.79%, VRSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
VRSN has a Return On Invested Capital of 587.94%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 56.79% | ||
| ROE | N/A | ||
| ROIC | 587.94% |
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
VRSN's Profit Margin of 50.03% 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.
With an excellent Operating Margin value of 67.89%, 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.
VRSN has a better Gross Margin (87.88%) than 98.82% of its industry peers.
VRSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 67.89% | ||
| PM (TTM) | 50.03% | ||
| GM | 87.88% |
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.
The number of shares outstanding for VRSN has been reduced compared to 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
VRSN has an Altman-Z score of -4.87. This is a bad value and indicates that VRSN is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -4.87, VRSN is not doing good in the industry: 88.24% of the companies in the same industry are doing better.
VRSN has a debt to FCF ratio of 1.88. This is a very positive value and a sign of high solvency as it would only need 1.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.88, VRSN is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.88 | ||
| Altman-Z | -4.87 |
ROIC/WACC65.18
WACC9.02%
2.3 Liquidity
VRSN has a Current Ratio of 0.54. 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 worse Current ratio (0.54) than 91.76% of its industry peers.
VRSN has a Quick Ratio of 0.54. This is a bad value and indicates that VRSN is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.54, VRSN is not doing good in the industry: 91.76% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
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.
Looking at the last year, VRSN shows a small growth in Revenue. The Revenue has grown by 4.31% in the last year.
VRSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.80% yearly.
EPS 1Y (TTM)8.33%
EPS 3Y13.17%
EPS 5Y8.54%
EPS Q2Q%9.66%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%7.3%
3.2 Future
The Earnings Per Share is expected to grow by 13.94% on average over the next years. This is quite good.
VRSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.78% yearly.
EPS Next Y13.43%
EPS Next 2Y10.1%
EPS Next 3Y12.17%
EPS Next 5Y13.94%
Revenue Next Year5.98%
Revenue Next 2Y4.46%
Revenue Next 3Y5.88%
Revenue Next 5Y6.78%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.53, VRSN can be considered very expensive at the moment.
VRSN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.89, VRSN is valued at the same level.
With a Price/Forward Earnings ratio of 25.24, VRSN can be considered very expensive at the moment.
VRSN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.99. VRSN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.24 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.07 | ||
| EV/EBITDA | 21.42 |
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.
A more expensive valuation may be justified as VRSN's earnings are expected to grow with 12.17% in the coming years.
PEG (NY)2.12
PEG (5Y)3.34
EPS Next 2Y10.1%
EPS Next 3Y12.17%
5. Dividend
5.1 Amount
VRSN has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 2.51, VRSN pays a better dividend. On top of this VRSN pays more dividend than 81.18% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, VRSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 2Y10.1%
EPS Next 3Y12.17%
NASDAQ:VRSN (10/27/2025, 1:39:01 PM)
244.78
-2.3 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.72%
Inst Owner Change-0.67%
Ins Owners0.56%
Ins Owner Change-9.11%
Market Cap22.86B
Revenue(TTM)1.56B
Net Income(TTM)799.50M
Analysts82
Price Target317.48 (29.7%)
Short Float %2.02%
Short Ratio2.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.82%
Min EPS beat(2)-2.26%
Max EPS beat(2)-1.38%
EPS beat(4)1
Avg EPS beat(4)-1.2%
Min EPS beat(4)-2.26%
Max EPS beat(4)0.97%
EPS beat(8)4
Avg EPS beat(8)-0.16%
EPS beat(12)7
Avg EPS beat(12)0.18%
EPS beat(16)9
Avg EPS beat(16)0.1%
Revenue beat(2)0
Avg Revenue beat(2)-2.03%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.84%
Revenue beat(4)0
Avg Revenue beat(4)-1.94%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-1.84%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)0
Avg Revenue beat(12)-1.81%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)0%
PT rev (3m)9.3%
EPS NQ rev (1m)0.04%
EPS NQ rev (3m)0.58%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 25.24 | ||
| P/S | 14.31 | ||
| P/FCF | 24.07 | ||
| P/OCF | 23.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.42 |
EPS(TTM)8.58
EY3.51%
EPS(NY)9.7
Fwd EY3.96%
FCF(TTM)10.17
FCFY4.15%
OCF(TTM)10.48
OCFY4.28%
SpS17.11
BVpS-21.34
TBVpS-21.91
PEG (NY)2.12
PEG (5Y)3.34
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 56.79% | ||
| ROE | N/A | ||
| ROCE | 732.12% | ||
| ROIC | 587.94% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 67.89% | ||
| PM (TTM) | 50.03% | ||
| GM | 87.88% | ||
| FCFM | 59.44% |
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 Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.88 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 82% | ||
| Cap/Sales | 1.8% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.38% | ||
| Profit Quality | 118.82% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | -4.87 |
F-Score7
WACC9.02%
ROIC/WACC65.18
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 Y13.43%
EPS Next 2Y10.1%
EPS Next 3Y12.17%
EPS Next 5Y13.94%
Revenue 1Y (TTM)4.31%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%7.3%
Revenue Next Year5.98%
Revenue Next 2Y4.46%
Revenue Next 3Y5.88%
Revenue Next 5Y6.78%
EBIT growth 1Y4.76%
EBIT growth 3Y6.88%
EBIT growth 5Y5.59%
EBIT Next Year12.78%
EBIT Next 3Y8.22%
EBIT Next 5Y8.42%
FCF growth 1Y10.9%
FCF growth 3Y5.06%
FCF growth 5Y4.15%
OCF growth 1Y10.79%
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 5 / 10 to VRSN.
Can you provide the valuation status for VERISIGN INC?
ChartMill assigns a valuation rating of 3 / 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.
What is the valuation of VERISIGN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERISIGN INC (VRSN) is 28.53 and the Price/Book (PB) ratio is -11.47.
How financially healthy is VERISIGN INC?
The financial health rating of VERISIGN INC (VRSN) is 3 / 10.