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VeriSign (VRSN) Stock Analysis

This is a peer-relative look at VeriSign (VRSN): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Software & Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for VeriSign (VRSN)
Profile ItemVRSN
NameVeriSign, Inc.
Country/RegionUnited States
GICS SectorInformation Technology
GICS Industry GroupSoftware & Services
GICS IndustryIT Services
GICS Sub-IndustryInternet Services & Infrastructure
Market Capitalization27.69 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateJanuary 30, 1998
Security TypeCommon Stock

Price Performance

Cumulative Growth

VRSN
GSPC
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VeriSign (VRSN) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for VeriSign (VRSN) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for VeriSign (VRSN) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Total Return (1Y)28.37%-3.00%
Total Return (3Y, Annualized)15.25%8.28%
Total Return (5Y, Annualized)5.98%-7.91%

Risk Profile

Drawdown History

VRSN
GSPC
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VeriSign (VRSN) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for VeriSign (VRSN) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Volatility (1Y, Annualized)28.25%61.69%
Beta (5Y)0.671.06
Max Drawdown (5Y)-38.85%-76.52%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. VRSN is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Sharpe Ratio (1Y)0.85-0.13
Sortino Ratio (1Y)1.24-0.19

Profitability

ROE (TTM)

No usable ROE is available for VeriSign (VRSN) this period, so the shareholder-equity return read is skipped.

VRSN

Software & Services industry group

--

Group distribution
Max
53.85%
Q3
17.90%
Median
6.59%
Q1
-9.59%
Min
-50.52%
VRSN
--
Largest peers
ORCL
41.19%
PLTR
40.91%
IBM
34.77%
MSFT
34.22%
SAP
18.18%
PANW
1.74%
VRSN
--
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VeriSign (VRSN) doesn’t report ROE this period; the box shows the Software & Services group’s distribution and the dots its largest members.

Net Margin (TTM)

VeriSign (VRSN) keeps 49.07% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

VRSN

Software & Services industry group

49.07%

Group distribution
VRSN
49.07%
Max
41.17%
Q3
15.28%
Median
4.63%
Q1
-5.42%
Min
-33.17%
Largest peers
PLTR
50.34%
VRSN
49.07%
MSFT
41.17%
ORCL
26.36%
SAP
20.41%
IBM
15.99%
PANW
2.67%
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Where VeriSign (VRSN) stands on net margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

VeriSign (VRSN) turns 68.62% of revenue into operating profit on operating margin, above the industry benchmark range. Core operations are retaining an unusually large share before interest and taxes, which points to pricing power or tight cost control if the margin is sustainable.

VRSN

Software & Services industry group

68.62%

Group distribution
VRSN
68.62%
Max
46.89%
Q3
17.64%
Median
8.73%
Q1
-2.13%
Min
-30.45%
Largest peers
VRSN
68.62%
MSFT
49.76%
PLTR
46.89%
ORCL
35.63%
SAP
29.50%
IBM
16.97%
PANW
5.40%
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Where VeriSign (VRSN) stands on operating margin within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
ROE (TTM)--6.59%
ROA (TTM)54.90%2.45%
Net Margin (TTM)49.07%4.63%
Operating Margin (TTM)68.62%8.73%
Gross Margin (TTM)88.57%70.07%

Growth

Revenue Growth

VeriSign (VRSN) grew revenue 6.37%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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VeriSign (VRSN): Revenue Growth across different time periods, set against Software & Services industry-group medians.

EPS Growth

VeriSign (VRSN) grew earnings per share 10.13%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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VeriSign (VRSN): EPS Growth across different time periods, set against Software & Services industry-group medians.

Growth Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Revenue Growth (YoY)6.37%14.22%
Revenue Growth (3Y CAGR)5.15%13.52%
EPS Growth (YoY)10.13%7.85%
EPS Growth (3Y CAGR)12.18%18.19%

Financial Strength

Current Ratio (MRQ)

VeriSign (VRSN) has current ratio of 0.42, in the tighter-liquidity quartile for its industry. The short-term cushion is thinner than most peers carry, even if the absolute comfort level still depends on the business model.

VRSN

Software & Services industry group

0.42

Group distribution
Max
5.11
Q3
2.77
Median
1.67
Q1
1.01
VRSN
0.42
Min
0.03
Largest peers
PLTR
7.10
MSFT
1.23
ORCL
1.17
SAP
1.16
PANW
0.87
IBM
0.86
VRSN
0.42
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Where VeriSign (VRSN) stands on current ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

No usable debt-to-equity ratio is available for VeriSign (VRSN) this period, so the balance-sheet leverage read is skipped.

VRSN

Software & Services industry group

--

Group distribution
Max
2.52
Q3
1.13
Median
0.40
Q1
0.07
Min
0.00
VRSN
--
Largest peers
ORCL
2.52
IBM
1.85
MSFT
0.28
SAP
0.23
PANW
0.09
PLTR
0.02
VRSN
--
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VeriSign (VRSN) doesn’t report debt-to-equity ratio this period; the box shows the Software & Services group’s distribution and the dots its largest members.

Financial Strength Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Current Ratio (MRQ)0.421.67
Debt / Equity (MRQ)--0.40
Net Debt / EBITDA1.090.17

Dividends

Dividend Yield (TTM)

VeriSign (VRSN) has dividend yield of 1.03%, above the entire industry range. That headline income is large, but yields this far above peers often come from a falling share price or an at-risk payout, so dividend safety matters more than the percentage itself.

VRSN

Software & Services industry group

1.03%

Group distribution
VRSN
1.03%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
2.73%
ORCL
1.74%
SAP
1.03%
VRSN
1.03%
MSFT
0.69%
PLTR
0.00%
PANW
0.00%
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Where VeriSign (VRSN) stands on dividend yield within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

VeriSign (VRSN) has payout ratio of 34.45%, above the peer distribution for its industry. The dividend consumes more reported earnings than peers normally do, leaving unusually thin earnings cover.

VRSN

Software & Services industry group

34.45%

Group distribution
VRSN
34.45%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
IBM
57.51%
SAP
36.45%
VRSN
34.45%
ORCL
31.35%
MSFT
19.00%
PLTR
0.00%
PANW
0.00%
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Where VeriSign (VRSN) stands on payout ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
Dividend Yield (TTM)1.03%0.00%
Dividend Payout Ratio (TTM)34.45%0.00%

Valuation

P/E Ratio (TTM)

VeriSign (VRSN) trades at P/E ratio of 33.23, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

VRSN

Software & Services industry group

33.23

Group distribution
Max
112.94
Q3
60.32
VRSN
33.23
Median
32.91
Q1
18.77
Min
6.69
Largest peers
PANW
784.60
PLTR
112.94
VRSN
33.23
SAP
29.07
MSFT
27.69
IBM
20.90
ORCL
18.20
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Where VeriSign (VRSN) stands on P/E ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

VeriSign (VRSN) trades at 15.99 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

VRSN

Software & Services industry group

15.99

Group distribution
Max
17.91
VRSN
15.99
Q3
8.78
Median
4.25
Q1
2.23
Min
0.02
Largest peers
PLTR
53.02
PANW
22.37
VRSN
15.99
MSFT
11.37
SAP
6.84
ORCL
5.04
IBM
3.31
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Where VeriSign (VRSN) stands on P/S ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

VeriSign (VRSN) has negative P/B ratio of -12.13, which means reported book equity is negative. Price-to-book breaks down in this situation and should not be used as a valuation signal.

VRSN

Software & Services industry group

-12.13

Group distribution
Max
16.63
Q3
8.50
Median
4.30
Q1
1.92
Min
-3.90
VRSN
-12.13
Largest peers
SAP
73.25
PLTR
34.41
PANW
9.30
MSFT
8.38
IBM
6.52
ORCL
5.68
VRSN
-12.13
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Where VeriSign (VRSN) stands on P/B ratio within its Software & Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

VeriSign (VRSN) metric values compared with Software & Services industry-group medians
MetricCurrent stock: VRSNIndustry group median
P/E Ratio (TTM)33.2332.91
P/S Ratio (TTM)15.994.25
P/B Ratio (MRQ)-12.134.30
Free Cash Flow Yield (TTM)2.89%3.98%