VERISIGN INC (VRSN) Fundamental Analysis & Valuation

NASDAQ:VRSN • US92343E1029

238.4 USD
+2.67 (+1.13%)
Last: Mar 12, 2026, 11:01 AM

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

Fundamental Rating

4

Taking everything into account, VRSN scores 4 out of 10 in our fundamental rating. VRSN was compared to 87 industry peers in the IT Services industry. VRSN has a medium profitability rating, but doesn't score so well on its financial health evaluation. VRSN is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

1. VRSN Profitability Analysis

1.1 Basic Checks

  • In the past year VRSN was profitable.
  • In the past year VRSN had a positive cash flow from operations.
  • VRSN had positive earnings in each of the past 5 years.
  • 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

  • VRSN has a better Return On Assets (62.26%) than 100.00% of its industry peers.
Industry RankSector 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
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's Profit Margin of 49.83% is amongst the best of the industry. VRSN outperforms 97.70% 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.
  • VRSN's Operating Margin has been stable in the last couple of years.
  • VRSN has a better Gross Margin (88.15%) than 98.85% of its industry peers.
  • VRSN's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
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

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.
  • 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.
  • VRSN has a worse debt/assets ratio than last year.
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

  • VRSN has an Altman-Z score of -5.28. 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 -5.28, VRSN is doing worse than 82.76% of the companies in the same industry.
  • 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.
  • VRSN has a better Debt to FCF ratio (1.67) than 74.71% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 1.67
Altman-Z -5.28
ROIC/WACCN/A
WACC8.68%
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

  • A Current Ratio of 0.49 indicates that VRSN may have some problems paying its short term obligations.
  • The Current ratio of VRSN (0.49) is worse than 89.66% of its industry peers.
  • VRSN has a Quick Ratio of 0.49. This is a bad value and indicates that VRSN is not financially healthy enough and could expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 0.49, VRSN is doing worse than 89.66% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.49
Quick Ratio 0.49
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

5

3. VRSN Growth Analysis

3.1 Past

  • VRSN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.13%, which is quite good.
  • VRSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.80% yearly.
  • The Revenue has been growing slightly by 6.37% in the past 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 Year4.56%
Revenue Next 2Y5.39%
Revenue Next 3Y5.76%
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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
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

2

4. VRSN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 27.06, which means the current valuation is very expensive for VRSN.
  • VRSN's Price/Earnings ratio is in line with the industry average.
  • VRSN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
  • VRSN is valuated quite expensively with a Price/Forward Earnings ratio of 25.17.
  • 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 24.27, VRSN is valued at the same level.
Industry RankSector Rank
PE 27.06
Fwd PE 25.17
VRSN Price Earnings VS Forward Price EarningsVRSN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • VRSN's Enterprise Value to EBITDA ratio is in line with the industry average.
  • VRSN's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 20.46
EV/EBITDA 19.57
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 an expensive valuation of the company.
  • The decent profitability rating of VRSN may justify a higher PE ratio.
PEG (NY)3.61
PEG (5Y)3.08
EPS Next 2Y8.54%
EPS Next 3Y9.83%

3

5. VRSN Dividend Analysis

5.1 Amount

  • VRSN has a Yearly Dividend Yield of 1.26%.
  • Compared to an average industry Dividend Yield of 0.92, VRSN pays a better dividend. On top of this VRSN pays more dividend than 80.46% of the companies listed in the same industry.
  • Compared to the average S&P500 Dividend Yield of 1.82, VRSN is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.26%

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

5.3 Sustainability

  • 26.07% of the earnings are spent on dividend by VRSN. This is a low number and sustainable payout ratio.
DP26.07%
EPS Next 2Y8.54%
EPS Next 3Y9.83%
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

VRSN Fundamentals: All Metrics, Ratios and Statistics

VERISIGN INC

NASDAQ:VRSN (3/12/2026, 11:01:50 AM)

238.4

+2.67 (+1.13%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-05
Earnings (Next)04-22
Inst Owners90.46%
Inst Owner Change2%
Ins Owners0.53%
Ins Owner Change-2.13%
Market Cap21.86B
Revenue(TTM)1.66B
Net Income(TTM)825.50M
Analysts80
Price Target286.39 (20.13%)
Short Float %2.17%
Short Ratio2.36
Dividend
Industry RankSector 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
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)-6.26%
PT rev (3m)-5.51%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.32%
EPS NY rev (1m)-2.13%
EPS NY rev (3m)-3.15%
Revenue NQ rev (1m)0.49%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)-0.06%
Valuation
Industry RankSector Rank
PE 27.06
Fwd PE 25.17
P/S 13.2
P/FCF 20.46
P/OCF 20.04
P/B N/A
P/tB N/A
EV/EBITDA 19.57
EPS(TTM)8.81
EY3.7%
EPS(NY)9.47
Fwd EY3.97%
FCF(TTM)11.65
FCFY4.89%
OCF(TTM)11.9
OCFY4.99%
SpS18.07
BVpS-23.49
TBVpS-24.06
PEG (NY)3.61
PEG (5Y)3.08
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 -5.28
F-Score8
WACC8.68%
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 Year4.56%
Revenue Next 2Y5.39%
Revenue Next 3Y5.76%
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 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.


How profitable is VERISIGN INC (VRSN) stock?

VERISIGN INC (VRSN) has a profitability rating of 6 / 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 7.5% in the next year.