Loading...

VeriSign

Nasdaq:VRSN
Snowflake Description

Solid track record with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VRSN
Nasdaq
$23B
Market Cap
  1. Home
  2. US
  3. Software
Company description

VeriSign, Inc. provides domain name registry services and Internet infrastructure in the United States and internationally. The last earnings update was 67 days ago. More info.


Add to Portfolio Compare Print
VRSN Share Price and Events
7 Day Returns
0.3%
NasdaqGS:VRSN
-0.5%
US IT
-0.1%
US Market
1 Year Returns
60.4%
NasdaqGS:VRSN
25.4%
US IT
7.6%
US Market
VRSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
VeriSign (VRSN) 0.3% 4.2% 16.1% 60.4% 112.3% 302.4%
US IT -0.5% 3.9% 17.7% 25.4% 80.6% 106.1%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • VRSN outperformed the IT industry which returned 25.4% over the past year.
  • VRSN outperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
VRSN
Industry
5yr Volatility vs Market

VRSN Value

 Is VeriSign undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of VeriSign to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for VeriSign.

NasdaqGS:VRSN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:VRSN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (7.9%))
1.086
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.086 * 5.96%)
9.2%

Discounted Cash Flow Calculation for NasdaqGS:VRSN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for VeriSign is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:VRSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.2%)
2019 729.86 Analyst x3 668.34
2020 783.30 Analyst x3 656.82
2021 822.56 Est @ 5.01% 631.61
2022 858.16 Est @ 4.33% 603.40
2023 891.18 Est @ 3.85% 573.81
2024 922.49 Est @ 3.51% 543.90
2025 952.72 Est @ 3.28% 514.38
2026 982.39 Est @ 3.11% 485.70
2027 1,011.84 Est @ 3% 458.09
2028 1,041.37 Est @ 2.92% 431.72
Present value of next 10 years cash flows $5,567.78
NasdaqGS:VRSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,041.37 × (1 + 2.73%) ÷ (9.2% – 2.73%)
$16,523.70
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,523.70 ÷ (1 + 9.2%)10
$6,850.29
NasdaqGS:VRSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,567.78 + $6,850.29
$12,418.07
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,418.07 / 119.41
$104
NasdaqGS:VRSN Discount to Share Price
Calculation Result
Value per share (USD) From above. $104.00
Current discount Discount to share price of $189.29
= -1 x ($189.29 - $104.00) / $104.00
-82%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of VeriSign is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for VeriSign's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are VeriSign's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:VRSN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $5.13
NasdaqGS:VRSN Share Price ** NasdaqGS (2019-04-23) in USD $189.29
United States of America IT Industry PE Ratio Median Figure of 77 Publicly-Listed IT Companies 31.79x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of VeriSign.

NasdaqGS:VRSN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:VRSN Share Price ÷ EPS (both in USD)

= 189.29 ÷ 5.13

36.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VeriSign is overvalued based on earnings compared to the US IT industry average.
  • VeriSign is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does VeriSign's expected growth come at a high price?
Raw Data
NasdaqGS:VRSN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
1.2%per year
United States of America IT Industry PEG Ratio Median Figure of 65 Publicly-Listed IT Companies 2.63x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

NasdaqGS:VRSN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36.87x ÷ 1.2%

30.2x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VeriSign is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on VeriSign's assets?
Raw Data
NasdaqGS:VRSN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $-11.54
NasdaqGS:VRSN Share Price * NasdaqGS (2019-04-23) in USD $189.29
United States of America IT Industry PB Ratio Median Figure of 124 Publicly-Listed IT Companies 4.5x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NasdaqGS:VRSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:VRSN Share Price ÷ Book Value per Share (both in USD)

= 189.29 ÷ -11.54

-16.4x

* Primary Listing of VeriSign.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • VeriSign has negative assets, we can't compare the value of its assets to the US IT industry average.
X
Value checks
We assess VeriSign's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. VeriSign has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

VRSN Future Performance

 How is VeriSign expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is VeriSign expected to grow at an attractive rate?
  • VeriSign's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • VeriSign's earnings growth is positive but not above the United States of America market average.
  • VeriSign's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:VRSN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:VRSN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 1.2%
NasdaqGS:VRSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.6%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 15.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:VRSN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:VRSN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 1,281 809 597 3
2019-12-31 1,229 760 580 3
NasdaqGS:VRSN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,215 698 582
2018-09-30 1,203 678 503
2018-06-30 1,190 666 480
2018-03-31 1,176 645 475
2017-12-31 1,165 703 457
2017-09-30 1,156 709 460
2017-06-30 1,151 705 459
2017-03-31 1,149 692 450
2016-12-31 1,142 693 441
2016-09-30 1,129 677 437
2016-06-30 1,107 661 415
2016-03-31 1,083 668 394

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • VeriSign's earnings are expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
  • VeriSign's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:VRSN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from VeriSign Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:VRSN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 5.09 5.18 5.00 2.00
2019-12-31 4.88 5.01 4.75 2.00
NasdaqGS:VRSN Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 5.13
2018-09-30 4.67
2018-06-30 4.70
2018-03-31 4.80
2017-12-31 4.56
2017-09-30 4.52
2017-06-30 4.44
2017-03-31 4.27
2016-12-31 4.12
2016-09-30 4.02
2016-06-30 3.76
2016-03-31 3.51

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if VeriSign will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess VeriSign's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
VeriSign has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

VRSN Past Performance

  How has VeriSign performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare VeriSign's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • VeriSign's year on year earnings growth rate has been positive over the past 5 years.
  • VeriSign's 1-year earnings growth exceeds its 5-year average (27.4% vs 0.7%)
  • VeriSign's earnings growth has exceeded the US IT industry average in the past year (27.4% vs 12.7%).
Earnings and Revenue History
VeriSign's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from VeriSign Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:VRSN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,214.97 582.49 197.56 57.88
2018-09-30 1,203.02 503.13 206.10 55.62
2018-06-30 1,189.67 480.35 208.60 54.62
2018-03-31 1,175.77 475.10 212.72 54.37
2017-12-31 1,165.10 457.25 211.71 52.34
2017-09-30 1,155.87 459.96 207.75 53.31
2017-06-30 1,150.99 459.49 205.08 54.92
2017-03-31 1,148.91 449.60 199.80 55.70
2016-12-31 1,142.17 440.65 198.25 59.10
2016-09-30 1,128.52 436.62 193.74 60.56
2016-06-30 1,106.75 414.65 194.17 61.25
2016-03-31 1,082.82 394.45 196.02 63.31
2015-12-31 1,059.37 375.24 196.91 63.72
2015-09-30 1,042.66 339.18 195.66 65.84
2015-06-30 1,031.90 341.91 198.85 67.14
2015-03-31 1,019.74 349.08 195.42 66.49
2014-12-31 1,010.12 355.26 189.49 67.78
2014-09-30 999.83 581.94 191.71 68.22
2014-06-30 988.49 567.65 186.39 69.36
2014-03-31 977.44 554.36 184.54 70.56
2013-12-31 965.09 544.45 179.55 70.30
2013-09-30 949.65 353.39 165.21 68.59
2013-06-30 929.50 349.31 168.85 66.54
2013-03-31 904.31 330.89 174.17 65.11
2012-12-31 873.59 312.49 186.97 61.69
2012-09-30 847.04 256.73 203.24 58.76
2012-06-30 820.48 238.52 202.51 56.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if VeriSign has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • VeriSign used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • VeriSign has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess VeriSign's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
VeriSign has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

VRSN Health

 How is VeriSign's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up VeriSign's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • VeriSign is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • VeriSign's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of VeriSign's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • VeriSign has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from VeriSign Company Filings, last reported 3 months ago.

NasdaqGS:VRSN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 -1,385.47 1,785.05 1,269.67
2018-09-30 -1,401.10 1,784.42 1,178.97
2018-06-30 -1,380.99 1,783.79 1,171.28
2018-03-31 -1,234.73 2,413.98 2,356.46
2017-12-31 -1,260.27 2,410.15 2,414.75
2017-09-30 -1,229.94 2,406.39 2,365.73
2017-06-30 -1,203.16 1,867.02 1,808.44
2017-03-31 -1,187.75 1,863.54 1,786.37
2016-12-31 -1,200.60 1,866.95 1,797.91
2016-09-30 -1,169.24 1,863.59 1,757.71
2016-06-30 -1,127.33 1,868.58 1,907.00
2016-03-31 -1,108.02 1,865.25 1,895.83
2015-12-31 -1,070.45 1,869.68 1,915.43
2015-09-30 -1,031.41 1,861.48 1,890.96
2015-06-30 -994.32 1,859.14 1,884.81
2015-03-31 -947.88 1,885.45 1,871.32
2014-12-31 -883.47 1,360.80 1,424.68
2014-09-30 -748.75 1,377.07 1,474.72
2014-06-30 -632.85 1,368.14 1,545.47
2014-03-31 -457.62 1,371.06 1,717.21
2013-12-31 -423.56 1,374.06 1,723.29
2013-09-30 -493.82 1,363.75 1,806.81
2013-06-30 -273.93 1,356.28 1,997.46
2013-03-31 -39.14 706.14 1,562.45
2012-12-31 -9.32 697.61 1,556.44
2012-09-30 -26.61 703.11 1,492.25
2012-06-30 -59.20 697.94 1,438.02
  • VeriSign has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if VeriSign's debt level has increased considering it has negative shareholder equity.
  • Debt is well covered by operating cash flow (39.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.7x coverage).
X
Financial health checks
We assess VeriSign's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. VeriSign has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

VRSN Dividends

 What is VeriSign's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from VeriSign dividends. Estimated to be 0% next year.
If you bought $2,000 of VeriSign shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate VeriSign's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate VeriSign's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:VRSN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:VRSN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as VeriSign has not reported any payouts.
  • Unable to verify if VeriSign's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of VeriSign's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as VeriSign has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of VeriSign's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess VeriSign's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can VeriSign afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. VeriSign has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

VRSN Management

 What is the CEO of VeriSign's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jim Bidzos
COMPENSATION $8,954,313
AGE 63
TENURE AS CEO 7.7 years
CEO Bio

Mr. D. James Bidzos, also known as Jim, is the Founder of VeriSign, Inc. and has been its Executive Chairman since August 17, 2009 and also its Chief Executive Officer and President since August 1, 2011. Mr. Bidzos served as the Interim Chief Executive Officer of VeriSign, Inc. from July 2008 to August 2009 and its Interim President from July 2008 to January 14, 2009. He served as an Executive Vice President of RSA Security LLC from July 1996 to February 1999 and later served as its President and Chief Executive Officer. He served as President and Chief Executive Officer of RSA Data Security from 1986 to February 1999. He served as Interim President of VeriSign, Inc. from July 2008 to January 14, 2009. Mr. Bidzos has been the Chairman of the Board at inCompass Wireless, Inc. since 2007. He served as the Executive Chairman of VeriSign, Inc. from August 21, 2007 to January 2009 and its Interim Chairman of VeriSign, Inc. since June 2008 to August 2009 and previously also served as its Chairman from April 1995 to December 2001 and Vice Chairman from December 2001 to July 2007. He served as Vice Chairman of RSA Security, from March 1999 to May 2002. He has been a Director of VeriSign, Inc. since April 1995. He served as a Director of Trintech Group plc since February 1999. Mr. Bidzos has served as a director of VeriSign Japan K.K. since March 2008 and served as Representative Director of VeriSign Japan K.K. from March 2008 to September 2008.

CEO Compensation
  • Jim's compensation has been consistent with company performance over the past year.
  • Jim's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the VeriSign management team in years:

4.4
Average Tenure
56.5
Average Age
  • The tenure for the VeriSign management team is about average.
Management Team

Jim Bidzos

TITLE
Founder
COMPENSATION
$9M
AGE
63
TENURE
7.7 yrs

George Kilguss

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
57
TENURE
6.9 yrs

Todd Strubbe

TITLE
Executive VP & COO
COMPENSATION
$4M
AGE
55
TENURE
4 yrs

Tom Indelicarto

TITLE
Executive VP
COMPENSATION
$2M
AGE
54
TENURE
4.4 yrs

Burt Kaliski

TITLE
Senior VP & CTO

Scott Schnell

TITLE
Senior Vice President of Global Marketing & Channel Management
AGE
60

Pat Kane

TITLE
Senior Vice President of Naming & Directory Services
COMPENSATION
$2M
AGE
56

Danny McPherson

TITLE
Executive VP & Chief Security Officer

Dave Pool

TITLE
Senior Vice President of Technology Services

Ebrahim Keshavarz

TITLE
Senior Vice President of Product Management
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the VeriSign board of directors in years:

9.7
Average Tenure
68
Average Age
  • The tenure for the VeriSign board of directors is about average.
Board of Directors

Timothy Tomlinson

TITLE
Independent Director
COMPENSATION
$360K
AGE
68
TENURE
11.4 yrs

Jim Bidzos

TITLE
Founder
COMPENSATION
$9M
AGE
63
TENURE
9.7 yrs

Lou Simpson

TITLE
Lead Independent Director
COMPENSATION
$355K
AGE
82
TENURE
3.8 yrs

Kath Cote

TITLE
Independent Director
COMPENSATION
$330K
AGE
69
TENURE
11.2 yrs

Roger Moore

TITLE
Independent Director
COMPENSATION
$340K
AGE
76
TENURE
17.2 yrs

Jamie Gorelick

TITLE
Independent Director
COMPENSATION
$320K
AGE
67
TENURE
4.3 yrs

Tommy Frist

TITLE
Independent Director
COMPENSATION
$300K
AGE
50
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • VeriSign insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Feb 19 Sell Timothy Tomlinson Individual 19. Feb 19 19. Feb 19 -580 $175.12 $-101,570
10. Dec 18 Sell Thomas Indelicarto Individual 06. Dec 18 06. Dec 18 -3,300 $150.81 $-497,673
06. Nov 18 Sell Timothy Tomlinson Individual 05. Nov 18 05. Nov 18 -384 $164.45 $-63,149
06. Nov 18 Sell Kathleen Cote Individual 05. Nov 18 05. Nov 18 -2,384 $160.50 $-382,632
X
Management checks
We assess VeriSign's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. VeriSign has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

VRSN News

Simply Wall St News

Have Insiders Been Selling VeriSign, Inc. (NASDAQ:VRSN) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in VeriSign, Inc. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign.

Simply Wall St -

Shareholders Are Thrilled That The VeriSign Share Price Increased 217%

But on a lighter note, a good company can see its share price rise well over 100%. … (NASDAQ:VRSN) share price has soared 217% in the last half decade. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Simply Wall St -

What Is VeriSign, Inc.'s (NASDAQ:VRSN) Share Price Doing?

As a large-cap stock, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … However, what if the stock is still a bargain. … Let’s examine VeriSign’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

Despite Its High P/E Ratio, Is VeriSign, Inc. (NASDAQ:VRSN) Still Undervalued?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … To keep it practical, we'll show how VeriSign, Inc.'s (NASDAQ:VRSN) P/E ratio could help you assess the value on offer. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Need To Know: VeriSign Inc (NASDAQ:VRSN) Insiders Have Been Selling Shares

So we'll take a look at whether insiders have been buying or selling shares in VeriSign Inc (NASDAQ:VRSN). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at around the current price of US$151.

Simply Wall St -

Does VeriSign Inc's (NASDAQ:VRSN) CEO Salary Reflect Performance?

This analysis aims first to contrast CEO compensation with other large companies. … How Does Jim Bidzos's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that VeriSign Inc has a market cap of US$19.0b, and is paying total annual CEO compensation of US$9m.

Simply Wall St -

Should You Be Tempted To Sell VeriSign Inc (NASDAQ:VRSN) Because Of Its PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While VRSN might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

Does VeriSign Inc's (NASDAQ:VRSN) CEO Pay Compare Well With Peers?

Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Should You Buy VeriSign Inc (NASDAQ:VRSN) At US$0135.72?

As a large-cap stock, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at VeriSign’s outlook and value based on the most recent financial data to see if the opportunity still exists

Simply Wall St -

Is VeriSign Inc's (NASDAQ:VRSN) PE Ratio A Signal To Buy For Investors?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for VRSN Price per share = $128.17 Earnings per share = $4.798 ∴ Price-Earnings Ratio = $128.17 ÷ $4.798 = 26.7x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with VRSN, then VRSN’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with VRSN, VRSN’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

VRSN Company Info

Description

VeriSign, Inc. provides domain name registry services and Internet infrastructure in the United States and internationally. The company offers registry services that operate the authoritative directory of and/or the back-end systems for .com, .net, .cc, .tv, .gov, .jobs, .edu, .name, and other domain names. Its registry services allow individuals and organizations to establish their online identities. The company also provides root zone maintainer services. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

Details
Name: VeriSign, Inc.
VRSN
Exchange: NasdaqGS
Founded: 1995
$22,602,816,603
119,408,403
Website: http://www.verisign.com
Address: VeriSign, Inc.
12061 Bluemont Way,
Reston,
Virginia, 20190,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS VRSN Common Stock Nasdaq Global Select US USD 30. Jan 1998
DB VRS Common Stock Deutsche Boerse AG DE EUR 30. Jan 1998
BMV VRSN * Common Stock Bolsa Mexicana de Valores MX MXN 30. Jan 1998
BASE VRSN CEDEAR EACH 6 REP 1 COM USD0.001 Buenos Aires Stock Exchange AR ARS 12. Apr 2019
Number of employees
Current staff
Staff numbers
900
VeriSign employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:47
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/05
Last earnings filing: 2019/02/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.