242.95 USD
-2.97 (-1.21%)
242.95 USD
0 (0%)
Overall VRSN gets a fundamental rating of 4 out of 10. We evaluated VRSN against 88 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. While showing a medium growth rate, VRSN is valued expensive at the moment.
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.
In the past 5 years VRSN has always been profitable.
Each year in the past 5 years VRSN had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 57.78%, VRSN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
The Profit Margin of VRSN (49.86%) is better than 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.
Looking at the Operating Margin, with a value of 67.62%, VRSN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of VRSN has remained more or less at the same level.
The Gross Margin of VRSN (87.97%) is better than 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 -4.82, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -4.82, VRSN is not doing good in the industry: 86.36% of the companies in the same industry are doing better.
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.
VRSN's Debt to FCF ratio of 1.78 is fine compared to the rest of the industry. VRSN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.82 |
ROIC/WACC103.21
WACC8.86%
2.3 Liquidity
A Current Ratio of 0.53 indicates that VRSN may have some problems paying its short term obligations.
The Current ratio of VRSN (0.53) is worse than 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.
VRSN has a Quick ratio of 0.53. This is amonst the worse of the industry: VRSN underperforms 88.64% of its industry peers.
| 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.
VRSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.54% yearly.
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
VRSN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.45% yearly.
Based on estimates for the next years, VRSN will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
EPS Next Y12.97%
EPS Next 2Y9.81%
EPS Next 3Y9.49%
EPS Next 5Y9.45%
Revenue Next Year6.29%
Revenue Next 2Y5.06%
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.
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.32, VRSN can be considered very expensive at the moment.
VRSN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of VRSN to the average of the S&P500 Index (26.51), we can say VRSN is valued inline with the index average.
VRSN is valuated quite expensively with a Price/Forward Earnings ratio of 25.19.
The rest of the industry has a similar Price/Forward Earnings ratio as VRSN.
When comparing the Price/Forward Earnings ratio of VRSN to the average of the S&P500 Index (23.13), we can say VRSN is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 25.19 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRSN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.4 | ||
| EV/EBITDA | 20.57 |
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.
VRSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)3.31
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
VRSN has a Yearly Dividend Yield of 1.25%.
VRSN's Dividend Yield is rather good when compared to the industry average which is at 0.43. VRSN pays more dividend than 84.09% of the companies in the same industry.
VRSN's Dividend Yield is slightly below the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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%
242.95
-2.97 (-1.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners87.93%
Inst Owner Change-1.65%
Ins Owners0.5%
Ins Owner Change-10.09%
Market Cap22.52B
Revenue(TTM)1.63B
Net Income(TTM)811.00M
Analysts80
Price Target303.08 (24.75%)
Short Float %2.81%
Short Ratio2.36
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-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-1.22%
Min EPS beat(2)-1.38%
Max EPS beat(2)-1.07%
EPS beat(4)0
Avg EPS beat(4)-1.7%
Min EPS beat(4)-2.26%
Max EPS beat(4)-1.07%
EPS beat(8)4
Avg EPS beat(8)-0.2%
EPS beat(12)6
Avg EPS beat(12)0.04%
EPS beat(16)8
Avg EPS beat(16)0%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-2.22%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.83%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-1.43%
Revenue beat(8)0
Avg Revenue beat(8)-1.68%
Revenue beat(12)0
Avg Revenue beat(12)-1.78%
Revenue beat(16)0
Avg Revenue beat(16)-1.68%
PT rev (1m)0%
PT rev (3m)-4.54%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)0.57%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)-0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.32 | ||
| Fwd PE | 25.19 | ||
| P/S | 13.84 | ||
| P/FCF | 22.4 | ||
| P/OCF | 21.8 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.57 |
EPS(TTM)8.58
EY3.53%
EPS(NY)9.65
Fwd EY3.97%
FCF(TTM)10.84
FCFY4.46%
OCF(TTM)11.14
OCFY4.59%
SpS17.55
BVpS-22.12
TBVpS-22.69
PEG (NY)2.18
PEG (5Y)3.31
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 57.78% | ||
| ROE | N/A | ||
| ROCE | 1138.72% | ||
| ROIC | 914.47% | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 67.62% | ||
| PM (TTM) | 49.86% | ||
| GM | 87.97% | ||
| FCFM | 61.79% |
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 Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 83.48% | ||
| Cap/Sales | 1.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 91.15% | ||
| Profit Quality | 123.95% | ||
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | -4.82 |
F-Score7
WACC8.86%
ROIC/WACC103.21
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 Y12.97%
EPS Next 2Y9.81%
EPS Next 3Y9.49%
EPS Next 5Y9.45%
Revenue 1Y (TTM)5.47%
Revenue growth 3Y5.47%
Revenue growth 5Y4.8%
Sales Q2Q%7.3%
Revenue Next Year6.29%
Revenue Next 2Y5.06%
Revenue Next 3Y5.48%
Revenue Next 5Y5.2%
EBIT growth 1Y4.69%
EBIT growth 3Y6.88%
EBIT growth 5Y5.59%
EBIT Next Year13.06%
EBIT Next 3Y8.64%
EBIT Next 5Y8.42%
FCF growth 1Y22.89%
FCF growth 3Y5.06%
FCF growth 5Y4.15%
OCF growth 1Y19.22%
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 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.