VERISIGN INC (VRSN) Fundamental Analysis & Valuation

NASDAQ:VRSN • US92343E1029

Current stock price

272.6 USD
+2.2 (+0.81%)
At close:
268.96 USD
-3.64 (-1.34%)
After Hours:

This VRSN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. VRSN Profitability Analysis

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.
  • 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

  • With an excellent Return On Assets value of 64.81%, VRSN belongs to the best of the industry, outperforming 98.88% of the companies in the same industry.
Industry RankSector Rank
ROA 64.81%
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

  • VRSN has a Profit Margin of 49.95%. This is amongst the best in the industry. VRSN outperforms 98.88% of its industry peers.
  • In the last couple of years the Profit Margin of VRSN has declined.
  • VRSN has a Operating Margin of 67.93%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
  • VRSN's Operating Margin has been stable in the last couple of years.
  • VRSN has a better Gross Margin (88.35%) than 98.88% 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 67.93%
PM (TTM) 49.95%
GM 88.35%
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

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3

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.
  • The number of shares outstanding for VRSN has been reduced compared to 1 year ago.
  • Compared to 5 years ago, VRSN has less shares outstanding
  • Compared to 1 year ago, VRSN has a worse debt to assets ratio.
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

  • Based on the Altman-Z score of -4.73, we must say that VRSN is in the distress zone and has some risk of bankruptcy.
  • With a Altman-Z score value of -4.73, VRSN is not doing good in the industry: 85.39% of the companies in the same industry are doing better.
  • The Debt to FCF ratio of VRSN is 1.71, which is an excellent value as it means it would take VRSN, only 1.71 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 1.71, VRSN is doing good in the industry, outperforming 77.53% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.71
Altman-Z -4.73
ROIC/WACCN/A
WACC10.44%
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 0.46. 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 Current ratio of 0.46. This is amonst the worse of the industry: VRSN underperforms 89.89% of its industry peers.
  • A Quick Ratio of 0.46 indicates that VRSN may have some problems paying its short term obligations.
  • VRSN has a Quick ratio of 0.46. This is amonst the worse of the industry: VRSN underperforms 89.89% of its industry peers.
Industry RankSector Rank
Current Ratio 0.46
Quick Ratio 0.46
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. VRSN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 10.64% 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 6.84% in the last year.
  • The Revenue has been growing slightly by 5.54% on average over the past years.
EPS 1Y (TTM)10.64%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.43%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y5.15%
Revenue growth 5Y5.54%
Sales Q2Q%6.61%

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 10.33% yearly.
  • The Revenue is expected to grow by 6.48% on average over the next years.
EPS Next Y7.7%
EPS Next 2Y8.59%
EPS Next 3Y10.17%
EPS Next 5Y10.33%
Revenue Next Year4.74%
Revenue Next 2Y5.05%
Revenue Next 3Y5.92%
Revenue Next 5Y6.48%

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.
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

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2

4. VRSN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 30.12, the valuation of VRSN can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as VRSN.
  • VRSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.54.
  • VRSN is valuated quite expensively with a Price/Forward Earnings ratio of 26.24.
  • VRSN's Price/Forward Earnings is on the same level as the industry average.
  • VRSN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.68.
Industry RankSector Rank
PE 30.12
Fwd PE 26.24
VRSN Price Earnings VS Forward Price EarningsVRSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • VRSN's Enterprise Value to EBITDA is on the same level as the industry average.
  • VRSN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 23.7
EV/EBITDA 22
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.
  • VRSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.91
PEG (5Y)3.42
EPS Next 2Y8.59%
EPS Next 3Y10.17%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. VRSN Dividend Analysis

5.1 Amount

  • VRSN has a Yearly Dividend Yield of 1.17%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.21, VRSN pays a better dividend. On top of this VRSN pays more dividend than 80.90% of the companies listed in the same industry.
  • VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.17%

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
VRSN Yearly Dividends per shareVRSN Yearly Dividends per shareYearly Dividends per share 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • VRSN pays out 34.42% of its income as dividend. This is a sustainable payout ratio.
DP34.42%
EPS Next 2Y8.59%
EPS Next 3Y10.17%
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

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VRSN Fundamentals: All Metrics, Ratios and Statistics

VERISIGN INC

NASDAQ:VRSN (4/29/2026, 6:45:08 PM)

After market: 268.96 -3.64 (-1.34%)

272.6

+2.2 (+0.81%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Industry Strength70.19
Industry Growth77.64
Earnings (Last)04-23
Earnings (Next)07-22
Inst Owners90.21%
Inst Owner Change-0.04%
Ins Owners0.53%
Ins Owner Change1.27%
Market Cap24.84B
Revenue(TTM)1.68B
Net Income(TTM)840.70M
Analysts80
Price Target316.99 (16.28%)
Short Float %2.11%
Short Ratio2.03
Dividend
Industry RankSector Rank
Dividend Yield 1.17%
Yearly Dividend2.3
Dividend Growth(5Y)N/A
DP34.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-19
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.13%
Min EPS beat(2)-4.35%
Max EPS beat(2)2.1%
EPS beat(4)1
Avg EPS beat(4)-1.17%
Min EPS beat(4)-4.35%
Max EPS beat(4)2.1%
EPS beat(8)3
Avg EPS beat(8)-0.77%
EPS beat(12)6
Avg EPS beat(12)-0.38%
EPS beat(16)8
Avg EPS beat(16)-0.11%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-1.75%
Max Revenue beat(2)-1.27%
Revenue beat(4)0
Avg Revenue beat(4)-1.67%
Min Revenue beat(4)-2.22%
Max Revenue beat(4)-1.27%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)0
Avg Revenue beat(16)-1.7%
PT rev (1m)1.78%
PT rev (3m)-6.66%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-0.97%
EPS NY rev (1m)0.19%
EPS NY rev (3m)-1.95%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)0.9%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.8%
Valuation
Industry RankSector Rank
PE 30.12
Fwd PE 26.24
P/S 14.76
P/FCF 23.7
P/OCF 23.17
P/B N/A
P/tB N/A
EV/EBITDA 22
EPS(TTM)9.05
EY3.32%
EPS(NY)10.39
Fwd EY3.81%
FCF(TTM)11.5
FCFY4.22%
OCF(TTM)11.77
OCFY4.32%
SpS18.47
BVpS-24.29
TBVpS-24.87
PEG (NY)3.91
PEG (5Y)3.42
Graham Number0 (-100%)
Profitability
Industry RankSector Rank
ROA 64.81%
ROE N/A
ROCE -1974.78%
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 67.93%
PM (TTM) 49.95%
GM 88.35%
FCFM 62.26%
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-Score7
Asset Turnover1.3
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.71
Debt/EBITDA 1.53
Cap/Depr 84.32%
Cap/Sales 1.44%
Interest Coverage 250
Cash Conversion 91.48%
Profit Quality 124.66%
Current Ratio 0.46
Quick Ratio 0.46
Altman-Z -4.73
F-Score7
WACC10.44%
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)10.64%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.43%
EPS Next Y7.7%
EPS Next 2Y8.59%
EPS Next 3Y10.17%
EPS Next 5Y10.33%
Revenue 1Y (TTM)6.84%
Revenue growth 3Y5.15%
Revenue growth 5Y5.54%
Sales Q2Q%6.61%
Revenue Next Year4.74%
Revenue Next 2Y5.05%
Revenue Next 3Y5.92%
Revenue Next 5Y6.48%
EBIT growth 1Y6.81%
EBIT growth 3Y5.93%
EBIT growth 5Y6.34%
EBIT Next Year10.46%
EBIT Next 3Y8.5%
EBIT Next 5Y8.74%
FCF growth 1Y29.67%
FCF growth 3Y9.95%
FCF growth 5Y9.24%
OCF growth 1Y25.83%
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 30.12 and the Price/Book (PB) ratio is -11.22.


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 34.42%.