246.34 USD
-2.32 (-0.93%)
246.34 USD
0 (0%)
Overall VRSN gets a fundamental rating of 5 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. VRSN is quite expensive at the moment. It does show a decent growth rate.
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.
Each year in the past 5 years VRSN has been profitable.
Each year in the past 5 years VRSN had a positive operating cash flow.
1.2 Ratios
VRSN has a Return On Assets of 57.78%. This is amongst the best in the industry. VRSN outperforms 100.00% of its industry peers.
VRSN has a Return On Invested Capital of 914.47%. This is amongst the best in the industry. VRSN outperforms 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.
VRSN's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 67.62%, VRSN belongs to the best 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.
VRSN's Gross Margin of 87.97% is amongst the best of the industry. VRSN outperforms 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRSN is creating value.
Compared to 1 year ago, VRSN has less shares outstanding
VRSN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for VRSN is higher compared to a year ago.
2.2 Solvency
VRSN has an Altman-Z score of -4.73. This is a bad value and indicates that VRSN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -4.73, VRSN is doing worse than 86.36% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.78, VRSN is in the better half of the industry, outperforming 73.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.73 |
ROIC/WACC103.1
WACC8.87%
2.3 Liquidity
VRSN has a Current 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's Current ratio of 0.53 is on the low side compared to the rest of the industry. VRSN is outperformed by 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.
The Quick ratio of VRSN (0.53) is worse than 88.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.53 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.33% 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 8.54% on average per year.
The Revenue has been growing slightly by 5.47% in the past year.
Measured over the past years, VRSN shows a small growth in Revenue. The Revenue has been growing by 4.80% on average per year.
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
Based on estimates for the next years, VRSN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.45% on average per year.
The Revenue is expected to grow by 5.20% on average over the next years.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 28.71, the valuation of VRSN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as VRSN.
VRSN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
VRSN is valuated quite expensively with a Price/Forward Earnings ratio of 25.54.
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 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.71 | ||
| Fwd PE | 25.54 |
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 ratio is a bit cheaper when compared to the industry. VRSN is cheaper than 61.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.72 | ||
| EV/EBITDA | 21.03 |
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)2.21
PEG (5Y)3.36
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
VRSN has a Yearly Dividend Yield of 1.25%.
Compared to an average industry Dividend Yield of 0.42, VRSN pays a better dividend. On top of this VRSN pays more dividend than 84.09% of the companies listed in the same industry.
VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.92.
| 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%
246.34
-2.32 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners88.01%
Inst Owner Change0.33%
Ins Owners0.48%
Ins Owner Change-9.18%
Market Cap22.84B
Revenue(TTM)1.63B
Net Income(TTM)811.00M
Analysts80
Price Target303.08 (23.03%)
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 | 28.71 | ||
| Fwd PE | 25.54 | ||
| P/S | 14.04 | ||
| P/FCF | 22.72 | ||
| P/OCF | 22.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.03 |
EPS(TTM)8.58
EY3.48%
EPS(NY)9.65
Fwd EY3.92%
FCF(TTM)10.84
FCFY4.4%
OCF(TTM)11.14
OCFY4.52%
SpS17.55
BVpS-22.12
TBVpS-22.69
PEG (NY)2.21
PEG (5Y)3.36
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 | -4.73 |
F-Score7
WACC8.87%
ROIC/WACC103.1
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 5 / 10 to VRSN.
What is the valuation status of VERISIGN INC (VRSN) stock?
ChartMill assigns a valuation rating of 3 / 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.