250.6 USD
-0.9 (-0.36%)
250.6 USD
0 (0%)
Taking everything into account, VRSN scores 4 out of 10 in our fundamental rating. VRSN was compared to 88 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.
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.
- Each year in the past 5 years VRSN has 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.
- The Return On Invested Capital of VRSN (914.47%) is better than 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
- VRSN has a Profit Margin of 49.86%. This is amongst the best in the industry. VRSN outperforms 97.73% 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 has a Operating Margin of 67.62%. This is amongst the best in 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 Gross Margin of 87.97%. This is amongst the best in the industry. VRSN outperforms 98.86% of its industry peers.
- 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
- VRSN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for VRSN has been reduced compared to 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
- Based on the Altman-Z score of -4.68, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
- VRSN has a Altman-Z score of -4.68. This is amonst the worse of the industry: VRSN underperforms 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.
- The Debt to FCF ratio of VRSN (1.78) is better than 73.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.68 |
ROIC/WACC101.95
WACC8.97%
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.
- Looking at the Quick ratio, with a value of 0.53, VRSN is doing worse than 88.64% of the companies in the same industry.
| 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.
- The Revenue has been growing slightly by 5.47% in the past year.
- The Revenue has been growing slightly by 4.80% on average over the past years.
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
- The Earnings Per Share is expected to grow by 9.45% 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 5.20% yearly.
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
- A Price/Earnings ratio of 29.21 indicates a quite expensive valuation of VRSN.
- VRSN's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of VRSN to the average of the S&P500 Index (27.21), we can say VRSN is valued inline with the index average.
- With a Price/Forward Earnings ratio of 25.98, VRSN can be considered very expensive at the moment.
- VRSN's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, VRSN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 25.98 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.11 | ||
| EV/EBITDA | 21.27 |
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)2.25
PEG (5Y)3.42
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- VRSN has a Yearly Dividend Yield of 1.24%.
- VRSN's Dividend Yield is rather good when compared to the industry average which is at 0.43. 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 | 1.24% |
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 2Y9.81%
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 12.97% in the next year.