VERISIGN INC (VRSN) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:VRSN • US92343E1029

216.88 USD
-25.74 (-10.61%)
Last: Feb 6, 2026, 12:05 PM
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to VRSN. VRSN was compared to 88 industry peers in the IT Services industry. There are concerns on the financial health of VRSN while its profitability can be described as average. VRSN is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

6

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.
  • Of the past 5 years VRSN 4 years were profitable.
  • Of the past 5 years VRSN 4 years had a positive operating cash flow.
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 200M 400M 600M 800M 1B

1.2 Ratios

  • The Return On Assets of VRSN (57.78%) is better than 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 RankSector 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
VRSN Yearly ROA, ROE, ROICVRSN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600

1.3 Margins

  • Looking at the Profit Margin, with a value of 49.86%, VRSN belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
  • In the last couple of years the Profit Margin of VRSN has remained more or less at the same level.
  • VRSN's Operating Margin of 67.62% is amongst the best of 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 98.86% 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 RankSector 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%
VRSN Yearly Profit, Operating, Gross MarginsVRSN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

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.
  • There is no outstanding debt for VRSN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
VRSN Yearly Shares OutstandingVRSN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B 2.5B

2.2 Solvency

  • Based on the Altman-Z score of -4.83, 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 -4.83, VRSN is doing worse than 85.23% 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 RankSector Rank
Debt/Equity N/A
Debt/FCF 1.78
Altman-Z -4.83
ROIC/WACC99.94
WACC9.15%
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 0 1B -1B

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 88.64% 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.
  • The Quick ratio of VRSN (0.53) is worse than 88.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.53
Quick Ratio 0.53
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 500M 1B 1.5B 2B

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

4

3. Growth

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.
  • The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
EPS 1Y (TTM)10.13%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.5%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.56%

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 14.86% on average per year.
  • The Revenue is expected to grow by 6.92% on average over the next years.
EPS Next Y9.84%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
EPS Next 5Y14.86%
Revenue Next Year3.91%
Revenue Next 2Y5.08%
Revenue Next 3Y4.44%
Revenue Next 5Y6.92%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better 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

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 24.62, the valuation of VRSN can be described as rather expensive.
  • VRSN's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, VRSN is valued at the same level.
  • A Price/Forward Earnings ratio of 22.41 indicates a rather expensive valuation of VRSN.
  • VRSN's Price/Forward Earnings is on the same level as the industry average.
  • When comparing the Price/Forward Earnings ratio of VRSN to the average of the S&P500 Index (27.20), we can say VRSN is valued inline with the index average.
Industry RankSector Rank
PE 24.62
Fwd PE 22.41
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
EV/EBITDA 20.54
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.
  • VRSN has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.5
PEG (5Y)2.8
EPS Next 2Y9.17%
EPS Next 3Y9.14%

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

2

5. Dividend

5.1 Amount

  • VRSN has a Yearly Dividend Yield of 1.26%.
  • VRSN's Dividend Yield is rather good when compared to the industry average which is at 0.46. VRSN pays more dividend than 82.95% of the companies 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 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 0.5 1 1.5 2

5.3 Sustainability

DPN/A
EPS Next 2Y9.17%
EPS Next 3Y9.14%
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 200M 400M 600M 800M

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VERISIGN INC

NASDAQ:VRSN (2/6/2026, 12:05:55 PM)

216.88

-25.74 (-10.61%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)02-05
Earnings (Next)04-22
Inst Owners88.01%
Inst Owner Change-1.52%
Ins Owners0.48%
Ins Owner Change-10.39%
Market Cap20.10B
Revenue(TTM)N/A
Net Income(TTM)811.00M
Analysts80
Price Target305.5 (40.86%)
Short Float %3.21%
Short Ratio3.46
Dividend
Industry RankSector Rank
Dividend Yield 1.26%
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)3.04%
PT rev (3m)-0.02%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)0.1%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-0.35%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.3%
Valuation
Industry RankSector Rank
PE 24.62
Fwd PE 22.41
P/S 12.36
P/FCF 20
P/OCF 19.46
P/B N/A
P/tB N/A
EV/EBITDA 20.54
EPS(TTM)8.81
EY4.06%
EPS(NY)9.68
Fwd EY4.46%
FCF(TTM)10.84
FCFY5%
OCF(TTM)11.14
OCFY5.14%
SpS17.55
BVpS-22.12
TBVpS-22.69
PEG (NY)2.5
PEG (5Y)2.8
Graham NumberN/A
Profitability
Industry RankSector 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 RankSector 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 -4.83
F-Score7
WACC9.15%
ROIC/WACC99.94
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)10.13%
EPS 3Y12.12%
EPS 5Y8.8%
EPS Q2Q%11.5%
EPS Next Y9.84%
EPS Next 2Y9.17%
EPS Next 3Y9.14%
EPS Next 5Y14.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%7.56%
Revenue Next Year3.91%
Revenue Next 2Y5.08%
Revenue Next 3Y4.44%
Revenue Next 5Y6.92%
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 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 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 9.84% in the next year.