249.47 USD
+0.25 (+0.1%)
249.47 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to VRSN. VRSN was compared to 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. While showing a medium growth rate, VRSN is valued expensive at the moment.
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.
- VRSN had positive earnings in each of the past 5 years.
- VRSN had a positive operating cash flow in each of the past 5 years.
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
- VRSN has a better Profit Margin (49.86%) than 97.73% of its industry peers.
- In the last couple of years the Profit Margin of VRSN has remained more or less at the same level.
- The Operating Margin of VRSN (67.62%) is better than 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 has a better Gross Margin (87.97%) than 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
- 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 -4.72. 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 -4.72, VRSN is doing worse than 86.36% of the companies in the same industry.
- 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.
- 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 | -4.72 |
ROIC/WACC103.8
WACC8.81%
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 has a worse Current ratio (0.53) than 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
- 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.
- VRSN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.54% yearly.
- Looking at the last year, VRSN shows a small growth in Revenue. The Revenue has grown by 5.47% in the last year.
- VRSN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.80% yearly.
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.
- Based on estimates for the next years, VRSN will show a small growth in Revenue. The Revenue will grow by 5.20% on average per year.
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.
- 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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.08, VRSN can be considered very expensive at the moment.
- 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 27.47, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 25.86, VRSN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSN is on the same level as its industry peers.
- VRSN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.08 | ||
| Fwd PE | 25.86 |
4.2 Price Multiples
- VRSN's Enterprise Value to EBITDA is on the same level as the industry average.
- 61.36% of the companies in the same industry are more expensive than VRSN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.01 | ||
| EV/EBITDA | 21.08 |
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)2.24
PEG (5Y)3.4
EPS Next 2Y9.81%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
- VRSN has a Yearly Dividend Yield of 1.25%. 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 0.43. VRSN pays more dividend than 84.09% of the companies in the same industry.
- VRSN's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 2Y9.81%
EPS Next 3Y9.49%
249.47
+0.25 (+0.1%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners88.01%
Inst Owner Change0.33%
Ins Owners0.48%
Ins Owner Change-9.18%
Market Cap23.13B
Revenue(TTM)1.63B
Net Income(TTM)811.00M
Analysts80
Price Target303.08 (21.49%)
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 | 29.08 | ||
| Fwd PE | 25.86 | ||
| P/S | 14.22 | ||
| P/FCF | 23.01 | ||
| P/OCF | 22.39 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.08 |
EPS(TTM)8.58
EY3.44%
EPS(NY)9.65
Fwd EY3.87%
FCF(TTM)10.84
FCFY4.35%
OCF(TTM)11.14
OCFY4.47%
SpS17.55
BVpS-22.12
TBVpS-22.69
PEG (NY)2.24
PEG (5Y)3.4
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 | -4.72 |
F-Score7
WACC8.81%
ROIC/WACC103.8
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.