VERISIGN INC (VRSN)
US92343E1029 - Common Stock
Taking everything into account, VRSN scores 5 out of 10 in our fundamental rating. VRSN was compared to 83 industry peers in the IT Services industry. VRSN scores excellent on profitability, but there are concerns on its financial health. VRSN has a decent growth rate and is not valued too expensively.
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.
VRSN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRSN has a Return On Assets of 58.75%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRSN is significantly above the industry average of 9.36%.
The 3 year average ROIC (114.03%) for VRSN is well above the current ROIC(%ROIC%%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 58.75% | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)41.73%
ROA(5y)40.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)114.03%
ROIC(5y)99.93%
1.3 Margins
VRSN has a better Profit Margin (55.69%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of VRSN has grown nicely.
VRSN has a better Operating Margin (68.12%) 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.
With an excellent Gross Margin value of 87.58%, VRSN belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
VRSN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 68.12% | ||
| PM (TTM) | 55.69% | ||
| GM | 87.58% |
OM growth 3Y0.95%
OM growth 5Y1.19%
PM growth 3Y-5.27%
PM growth 5Y2.69%
GM growth 3Y0.4%
GM growth 5Y0.61%
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.
VRSN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRSN has been reduced compared to 5 years ago.
The debt/assets ratio for VRSN has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -5.96, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -5.96, VRSN is doing worse than 91.36% of the companies in the same industry.
VRSN has a debt to FCF ratio of 2.10. This is a good value and a sign of high solvency as VRSN would need 2.10 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.10, VRSN is doing good in the industry, outperforming 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.1 | ||
| Altman-Z | -5.96 |
ROIC/WACCN/A
WACC11.24%
2.3 Liquidity
VRSN has a Current Ratio of 0.47. 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 (0.47) than 92.59% of its industry peers.
A Quick Ratio of 0.47 indicates that VRSN may have some problems paying its short term obligations.
VRSN's Quick ratio of 0.47 is on the low side compared to the rest of the industry. VRSN is outperformed by 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.82% over the past year.
The Earnings Per Share has been growing slightly by 7.43% on average over the past years.
Looking at the last year, VRSN shows a small growth in Revenue. The Revenue has grown by 4.08% in the last year.
Measured over the past years, VRSN shows a small growth in Revenue. The Revenue has been growing by 4.21% on average per year.
EPS 1Y (TTM)12.82%
EPS 3Y7.8%
EPS 5Y7.43%
EPS Q2Q%13.11%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y5.68%
Revenue growth 5Y4.21%
Sales Q2Q%3.8%
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 10.17% yearly.
VRSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.54% yearly.
EPS Next Y12.99%
EPS Next 2Y10.4%
EPS Next 3Y8.71%
EPS Next 5Y10.17%
Revenue Next Year4.4%
Revenue Next 2Y3.93%
Revenue Next 3Y3.22%
Revenue Next 5Y4.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
VRSN is valuated quite expensively with a Price/Earnings ratio of 26.60.
Based on the Price/Earnings ratio, VRSN is valued a bit cheaper than 60.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.48, VRSN is valued at the same level.
With a Price/Forward Earnings ratio of 23.88, VRSN is valued on the expensive side.
Based on the Price/Forward Earnings ratio, VRSN is valued a bit cheaper than the industry average as 64.20% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.73. VRSN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 23.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRSN is valued a bit cheaper than 62.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, VRSN is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.77 | ||
| EV/EBITDA | 18.85 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.05
PEG (5Y)3.58
EPS Next 2Y10.4%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
No dividends for VRSN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
VERISIGN INC
NASDAQ:VRSN (1/6/2025, 4:44:07 PM)
After market: 212.7 +2.02 (+0.96%)210.68
+5.06 (+2.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.68%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change-0.73%
Market Cap20.25B
Analysts82
Price Target223.08 (5.89%)
Short Float %2.08%
Short Ratio2.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.46%
Min EPS beat(2)0.97%
Max EPS beat(2)1.94%
EPS beat(4)4
Avg EPS beat(4)1.3%
Min EPS beat(4)0.97%
Max EPS beat(4)1.94%
EPS beat(8)6
Avg EPS beat(8)0.92%
EPS beat(12)8
Avg EPS beat(12)0.57%
EPS beat(16)11
Avg EPS beat(16)0.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.74%
Min Revenue beat(2)-1.85%
Max Revenue beat(2)-1.63%
Revenue beat(4)0
Avg Revenue beat(4)-1.53%
Min Revenue beat(4)-1.85%
Max Revenue beat(4)-1.31%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.63%
Revenue beat(16)0
Avg Revenue beat(16)-1.67%
PT rev (1m)8.25%
PT rev (3m)6.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.65%
EPS NY rev (1m)0%
EPS NY rev (3m)0.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.6 | ||
| Fwd PE | 23.88 | ||
| P/S | 13.13 | ||
| P/FCF | 23.77 | ||
| P/OCF | 23.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 18.85 |
EPS(TTM)7.92
EY3.76%
EPS(NY)8.82
Fwd EY4.19%
FCF(TTM)8.86
FCFY4.21%
OCF(TTM)9.11
OCFY4.32%
SpS16.05
BVpS-19.78
TBVpS-20.32
PEG (NY)2.05
PEG (5Y)3.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 58.75% | ||
| ROE | N/A | ||
| ROCE | -1636.6% | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 68.12% | ||
| PM (TTM) | 55.69% | ||
| GM | 87.58% | ||
| FCFM | 55.22% |
ROA(3y)41.73%
ROA(5y)40.87%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)114.03%
ROIC(5y)99.93%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)142.29%
ROCE(5y)124.7%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y0.95%
OM growth 5Y1.19%
PM growth 3Y-5.27%
PM growth 5Y2.69%
GM growth 3Y0.4%
GM growth 5Y0.61%
F-Score8
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 2.1 | ||
| Debt/EBITDA | 1.37 | ||
| Cap/Depr | 61.3% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.36% | ||
| Profit Quality | 99.16% | ||
| Current Ratio | 0.47 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z | -5.96 |
F-Score8
WACC11.24%
ROIC/WACCN/A
Cap/Depr(3y)90.97%
Cap/Depr(5y)90.7%
Cap/Sales(3y)2.99%
Cap/Sales(5y)3.14%
Profit Quality(3y)104.74%
Profit Quality(5y)103.01%
High Growth Momentum
Growth
EPS 1Y (TTM)12.82%
EPS 3Y7.8%
EPS 5Y7.43%
EPS Q2Q%13.11%
EPS Next Y12.99%
EPS Next 2Y10.4%
EPS Next 3Y8.71%
EPS Next 5Y10.17%
Revenue 1Y (TTM)4.08%
Revenue growth 3Y5.68%
Revenue growth 5Y4.21%
Sales Q2Q%3.8%
Revenue Next Year4.4%
Revenue Next 2Y3.93%
Revenue Next 3Y3.22%
Revenue Next 5Y4.54%
EBIT growth 1Y6.15%
EBIT growth 3Y6.68%
EBIT growth 5Y5.45%
EBIT Next Year8.29%
EBIT Next 3Y4.98%
EBIT Next 5Y5.44%
FCF growth 1Y8.18%
FCF growth 3Y5.57%
FCF growth 5Y4.1%
OCF growth 1Y6.68%
OCF growth 3Y5.35%
OCF growth 5Y4.12%