VERISIGN INC (VRSN) Stock Fundamental Analysis

NASDAQ:VRSN • US92343E1029

219.29 USD
+1.14 (+0.52%)
Last: Feb 13, 2026, 12:58 PM
Fundamental Rating

4

Overall VRSN gets a fundamental rating of 4 out of 10. We evaluated VRSN against 87 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
  • VRSN had positive earnings in each of the past 5 years.
  • In the past 5 years VRSN always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • VRSN has a better Return On Assets (62.26%) than 100.00% of its industry peers.
Industry RankSector 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
VRSN Yearly ROA, ROE, ROICVRSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -2K -4K -6K -8K -10K

1.3 Margins

  • Looking at the Profit Margin, with a value of 49.83%, VRSN belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
  • In the last couple of years the Profit Margin of VRSN has declined.
  • Looking at the Operating Margin, with a value of 67.67%, VRSN belongs to the top 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 Gross Margin of 88.15%. This is amongst the best in the industry. VRSN outperforms 98.85% 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 RankSector 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%
VRSN Yearly Profit, Operating, Gross MarginsVRSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

3

2. Health

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.
  • VRSN has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for VRSN is higher compared to a year ago.
VRSN Yearly Shares OutstandingVRSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
VRSN Yearly Total Debt VS Total AssetsVRSN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • VRSN has an Altman-Z score of -5.56. 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 (-5.56) is worse than 86.21% 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 73.56% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.67
Altman-Z -5.56
ROIC/WACCN/A
WACC8.95%
VRSN Yearly LT Debt VS Equity VS FCFVRSN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B -1B -2B

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.
  • The Current ratio of VRSN (0.49) is worse than 89.66% of its industry peers.
  • A Quick Ratio of 0.49 indicates that VRSN may have some problems paying its short term obligations.
  • With a Quick ratio value of 0.49, VRSN is not doing good in the industry: 89.66% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.49
VRSN Yearly Current Assets VS Current LiabilitesVRSN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

5

3. Growth

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.
  • VRSN shows a small growth in Revenue. In the last year, the Revenue has grown by 6.37%.
  • The Revenue has been growing slightly by 5.54% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 10.33% on average over the next years. This is quite good.
  • Based on estimates for the next years, VRSN will show a small growth in Revenue. The Revenue will grow by 6.48% on average per year.
EPS Next Y9.84%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
EPS Next 5Y10.33%
Revenue Next Year3.91%
Revenue Next 2Y5.08%
Revenue Next 3Y4.44%
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.
VRSN Yearly Revenue VS EstimatesVRSN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 500M 1B 1.5B 2B 2.5B
VRSN Yearly EPS VS EstimatesVRSN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 5 10 15 20

2

4. Valuation

4.1 Price/Earnings Ratio

  • VRSN is valuated rather expensively with a Price/Earnings ratio of 24.89.
  • VRSN's Price/Earnings ratio is in line with the industry average.
  • VRSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.67.
  • VRSN is valuated rather expensively with a Price/Forward Earnings ratio of 22.66.
  • VRSN's Price/Forward Earnings ratio is in line with the industry average.
  • VRSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.69, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 24.89
Fwd PE 22.66
VRSN Price Earnings VS Forward Price EarningsVRSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 18.82
EV/EBITDA 18.17
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 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)2.53
PEG (5Y)2.83
EPS Next 2Y9.17%
EPS Next 3Y9.14%

3

5. Dividend

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 0.50, VRSN pays a better dividend. On top of this VRSN pays more dividend than 82.76% of the companies listed in the same industry.
  • VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
Industry RankSector 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
VRSN Yearly Dividends per shareVRSN Yearly Dividends per shareYearly Dividends per share 2025 0.5 1 1.5 2

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 Yearly Income VS Free CF VS DividendVRSN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
VRSN Dividend Payout.VRSN Dividend Payout, showing the Payout Ratio.VRSN Dividend Payout.PayoutRetained Earnings

VERISIGN INC

NASDAQ:VRSN (2/13/2026, 12:58:56 PM)

219.29

+1.14 (+0.52%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-05
Earnings (Next)04-22
Inst Owners88.01%
Inst Owner Change-1.38%
Ins Owners0.48%
Ins Owner Change-3.16%
Market Cap20.11B
Revenue(TTM)1.66B
Net Income(TTM)825.50M
Analysts80
Price Target305.5 (39.31%)
Short Float %3.21%
Short Ratio3.46
Dividend
Industry RankSector Rank
Dividend Yield 1.26%
Yearly Dividend2.3
Dividend Growth(5Y)N/A
DP26.07%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)0.8%
PT rev (3m)-2.2%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 24.89
Fwd PE 22.66
P/S 12.14
P/FCF 18.82
P/OCF 18.43
P/B N/A
P/tB N/A
EV/EBITDA 18.17
EPS(TTM)8.81
EY4.02%
EPS(NY)9.68
Fwd EY4.41%
FCF(TTM)11.65
FCFY5.31%
OCF(TTM)11.9
OCFY5.43%
SpS18.07
BVpS-23.49
TBVpS-24.06
PEG (NY)2.53
PEG (5Y)2.83
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 -5.56
F-Score8
WACC8.95%
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 Year3.91%
Revenue Next 2Y5.08%
Revenue Next 3Y4.44%
Revenue Next 5Y6.48%
EBIT growth 1Y5.93%
EBIT growth 3Y5.93%
EBIT growth 5Y6.34%
EBIT Next Year12.03%
EBIT Next 3Y9.01%
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.