251.99 USD
-0.68 (-0.27%)
251.99 USD
0 (0%)
VRSN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. While VRSN has a great profitability rating, there are quite some concerns on its financial health. VRSN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
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.
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 better Return On Invested Capital (914.47%) 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
With an excellent Profit Margin value of 49.86%, VRSN belongs to the best of the industry, outperforming 98.84% of the companies in the same industry.
VRSN's Profit Margin has been stable in the last couple of years.
VRSN has a Operating Margin of 67.62%. This is amongst the best in the industry. VRSN outperforms 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.
VRSN's Gross Margin of 87.97% is amongst the best of the industry. VRSN outperforms 98.84% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRSN is creating value.
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.
The debt/assets ratio for VRSN is higher compared to a year ago.
2.2 Solvency
VRSN has an Altman-Z score of -4.63. This is a bad value and indicates that VRSN is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of VRSN (-4.63) is worse than 87.21% of its industry peers.
The Debt to FCF ratio of VRSN is 1.78, which is an excellent value as it means it would take VRSN, only 1.78 years of fcf income to pay off all of its debts.
VRSN has a Debt to FCF ratio of 1.78. This is in the better half of the industry: VRSN outperforms 73.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 1.78 | ||
| Altman-Z | -4.63 |
ROIC/WACC106.09
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.53 indicates that VRSN may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.53, VRSN is doing worse than 89.53% of the companies in the same industry.
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.
With a Quick ratio value of 0.53, VRSN is not doing good in the industry: 89.53% of the companies in the same industry are doing better.
| 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.
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.
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
The Earnings Per Share is expected to grow by 9.45% on average over the next years. This is quite good.
VRSN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.20% yearly.
EPS Next Y13.13%
EPS Next 2Y10.56%
EPS Next 3Y9.49%
EPS Next 5Y9.45%
Revenue Next Year6.29%
Revenue Next 2Y5.45%
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
A Price/Earnings ratio of 29.37 indicates a quite expensive valuation of VRSN.
VRSN's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. VRSN is around the same levels.
A Price/Forward Earnings ratio of 25.77 indicates a quite expensive valuation of VRSN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, VRSN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 25.77 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.42 | ||
| EV/EBITDA | 21.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of VRSN may justify a higher PE ratio.
PEG (NY)2.24
PEG (5Y)3.44
EPS Next 2Y10.56%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
VRSN has a Yearly Dividend Yield of 1.22%. Purely for dividend investing, there may be better candidates out there.
VRSN's Dividend Yield is rather good when compared to the industry average which is at 2.06. VRSN pays more dividend than 82.56% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, VRSN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
VRSN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y10.56%
EPS Next 3Y9.49%
251.99
-0.68 (-0.27%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners81.72%
Inst Owner Change-1.66%
Ins Owners0.56%
Ins Owner Change-9.66%
Market Cap23.36B
Revenue(TTM)1.63B
Net Income(TTM)811.00M
Analysts80
Price Target303.08 (20.27%)
Short Float %2.73%
Short Ratio2.6
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-4.54%
PT rev (3m)-4.54%
EPS NQ rev (1m)1.13%
EPS NQ rev (3m)1.31%
EPS NY rev (1m)-0.26%
EPS NY rev (3m)-0.23%
Revenue NQ rev (1m)0.42%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 25.77 | ||
| P/S | 14.47 | ||
| P/FCF | 23.42 | ||
| P/OCF | 22.79 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.52 |
EPS(TTM)8.58
EY3.4%
EPS(NY)9.78
Fwd EY3.88%
FCF(TTM)10.76
FCFY4.27%
OCF(TTM)11.06
OCFY4.39%
SpS17.41
BVpS-21.95
TBVpS-22.51
PEG (NY)2.24
PEG (5Y)3.44
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 | -4.63 |
F-Score7
WACC8.62%
ROIC/WACC106.09
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 Y13.13%
EPS Next 2Y10.56%
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 2Y5.45%
Revenue Next 3Y5.48%
Revenue Next 5Y5.2%
EBIT growth 1Y4.69%
EBIT growth 3Y6.88%
EBIT growth 5Y5.59%
EBIT Next Year12.78%
EBIT Next 3Y8.22%
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.
Can you provide the valuation status for VERISIGN INC?
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.
What is the valuation of VERISIGN INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VERISIGN INC (VRSN) is 29.37 and the Price/Book (PB) ratio is -11.48.
How financially healthy is VERISIGN INC?
The financial health rating of VERISIGN INC (VRSN) is 3 / 10.