VERISIGN INC (VRSN) Fundamental Analysis & Valuation
NASDAQ:VRSN • US92343E1029
Current stock price
274.75 USD
+0.24 (+0.09%)
At close:
274.75 USD
0 (0%)
After Hours:
This VRSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
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.
- Each year in the past 5 years VRSN has been profitable.
- In the past 5 years VRSN always reported a positive cash flow from operatings.
1.2 Ratios
- VRSN's Return On Assets of 62.26% is amongst the best of the industry. VRSN outperforms 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 98.86% of its industry peers.
- In the last couple of years the Profit Margin of VRSN has declined.
- VRSN has a better Operating Margin (67.67%) than 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.
- Looking at the Gross Margin, with a value of 88.15%, VRSN belongs to the top of the industry, outperforming 98.86% of the companies in the same industry.
- 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 | 67.67% | ||
| 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.
- Compared to 1 year ago, VRSN has less shares outstanding
- 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
- VRSN has an Altman-Z score of -4.67. 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 -4.67, VRSN is not doing good in the industry: 84.09% of the companies in the same industry are doing better.
- 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.
- With a decent Debt to FCF ratio value of 1.67, VRSN is doing good in the industry, outperforming 76.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.67 | ||
| Altman-Z | -4.67 |
ROIC/WACCN/A
WACC9.27%
2.3 Liquidity
- A Current Ratio of 0.49 indicates that VRSN may have some problems paying its short term obligations.
- VRSN has a worse Current ratio (0.49) than 88.64% of its industry peers.
- A Quick Ratio of 0.49 indicates that VRSN may have some problems paying its short term obligations.
- VRSN's Quick ratio of 0.49 is on the low side compared to the rest of the industry. VRSN is outperformed by 88.64% 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.
- Measured over the past years, VRSN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.80% on average per year.
- Looking at the last year, VRSN shows a small growth in Revenue. The Revenue has grown by 6.37% in the last year.
- 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 Y7.5%
EPS Next 2Y8.54%
EPS Next 3Y9.83%
EPS Next 5Y10.33%
Revenue Next Year4.74%
Revenue Next 2Y5.05%
Revenue Next 3Y5.92%
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
- A Price/Earnings ratio of 31.19 indicates a quite expensive valuation of VRSN.
- 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 (26.21), we can say VRSN is valued inline with the index average.
- A Price/Forward Earnings ratio of 29.01 indicates a quite expensive valuation of VRSN.
- VRSN's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of VRSN to the average of the S&P500 Index (23.10), we can say VRSN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 29.01 |
4.2 Price Multiples
- VRSN's Enterprise Value to EBITDA is on the same level as the industry average.
- 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 | 23.58 | ||
| EV/EBITDA | 22.66 |
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.
PEG (NY)4.16
PEG (5Y)3.55
EPS Next 2Y8.54%
EPS Next 3Y9.83%
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 1.18, VRSN pays a better dividend. On top of this VRSN pays more dividend than 80.68% of the companies listed in the same industry.
- VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
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
- VRSN pays out 26.07% of its income as dividend. This is a sustainable payout ratio.
DP26.07%
EPS Next 2Y8.54%
EPS Next 3Y9.83%
VRSN Fundamentals: All Metrics, Ratios and Statistics
274.75
+0.24 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)04-23 2026-04-23
Inst Owners90.46%
Inst Owner Change0%
Ins Owners0.53%
Ins Owner Change-0.42%
Market Cap25.19B
Revenue(TTM)1.66B
Net Income(TTM)825.50M
Analysts80
Price Target286.39 (4.24%)
Short Float %2.2%
Short Ratio2.17
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)0%
PT rev (3m)-5.51%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.82%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.19 | ||
| Fwd PE | 29.01 | ||
| P/S | 15.21 | ||
| P/FCF | 23.58 | ||
| P/OCF | 23.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.66 |
EPS(TTM)8.81
EY3.21%
EPS(NY)9.47
Fwd EY3.45%
FCF(TTM)11.65
FCFY4.24%
OCF(TTM)11.9
OCFY4.33%
SpS18.07
BVpS-23.49
TBVpS-24.06
PEG (NY)4.16
PEG (5Y)3.55
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 | -4.67 |
F-Score8
WACC9.27%
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 Y7.5%
EPS Next 2Y8.54%
EPS Next 3Y9.83%
EPS Next 5Y10.33%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y5.15%
Revenue growth 5Y5.54%
Sales Q2Q%7.56%
Revenue Next Year4.74%
Revenue Next 2Y5.05%
Revenue Next 3Y5.92%
Revenue Next 5Y6.48%
EBIT growth 1Y5.93%
EBIT growth 3Y5.93%
EBIT growth 5Y6.34%
EBIT Next Year10.29%
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 Fundamental Analysis 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.
Can you provide the profitability details for VERISIGN INC?
VERISIGN INC (VRSN) has a profitability rating of 6 / 10.
What are the PE and PB ratios of VERISIGN INC (VRSN) stock?
The Price/Earnings (PE) ratio for VERISIGN INC (VRSN) is 31.19 and the Price/Book (PB) ratio is -11.7.
Can you provide the dividend sustainability for VRSN stock?
The dividend rating of VERISIGN INC (VRSN) is 3 / 10 and the dividend payout ratio is 26.07%.