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
| Profile Item | VRSN |
|---|---|
| Name | VeriSign, Inc. |
| Country/Region | United States |
| GICS Sector | Information Technology |
| GICS Industry Group | Software & Services |
| GICS Industry | IT Services |
| GICS Sub-Industry | Internet Services & Infrastructure |
| Market Capitalization | 27.69 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | January 30, 1998 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: VRSN | Industry 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
Return Distribution
Risk Metrics
| Metric | Current stock: VRSN | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 28.25% | 61.69% |
| Beta (5Y) | 0.67 | 1.06 |
| Max Drawdown (5Y) | -38.85% | -76.52% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: VRSN | Industry 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
- --
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%
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%
Profitability Metrics
| Metric | Current stock: VRSN | Industry 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.
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.
Growth Metrics
| Metric | Current stock: VRSN | Industry 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
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
- --
Financial Strength Metrics
| Metric | Current stock: VRSN | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 0.42 | 1.67 |
| Debt / Equity (MRQ) | -- | 0.40 |
| Net Debt / EBITDA | 1.09 | 0.17 |
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%
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%
Dividend Metrics
| Metric | Current stock: VRSN | Industry 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
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
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
Valuation Metrics
| Metric | Current stock: VRSN | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 33.23 | 32.91 |
| P/S Ratio (TTM) | 15.99 | 4.25 |
| P/B Ratio (MRQ) | -12.13 | 4.30 |
| Free Cash Flow Yield (TTM) | 2.89% | 3.98% |