NasdaqGS:VRSN

Stock Analysis Report

Executive Summary

VeriSign, Inc. provides domain name registry services and Internet infrastructure that enables Internet navigation for various recognized domain names worldwide.

Snowflake

Fundamentals

Solid track record with imperfect balance sheet.


Similar Companies

Share Price & News

How has VeriSign's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRSN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.1%

VRSN

1.8%

US IT

0.9%

US Market


1 Year Return

27.1%

VRSN

33.3%

US IT

15.5%

US Market

Return vs Industry: VRSN underperformed the US IT industry which returned 33.3% over the past year.

Return vs Market: VRSN exceeded the US Market which returned 15.5% over the past year.


Shareholder returns

VRSNIndustryMarket
7 Day2.1%1.8%0.9%
30 Day2.2%4.1%4.7%
90 Day-8.4%-0.2%6.6%
1 Year27.1%27.1%34.7%33.3%18.1%15.5%
3 Year135.0%135.0%96.2%87.9%48.0%38.5%
5 Year214.7%214.7%132.3%111.6%62.1%44.2%

Price Volatility Vs. Market

How volatile is VeriSign's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VeriSign undervalued compared to its fair value and its price relative to the market?

35.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRSN ($189.56) is trading above our estimate of fair value ($146.17)

Significantly Below Fair Value: VRSN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VRSN is poor value based on its PE Ratio (35x) compared to the IT industry average (31.3x).

PE vs Market: VRSN is poor value based on its PE Ratio (35x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VRSN is poor value based on its PEG Ratio (7.9x)


Price to Book Ratio

PB vs Industry: VRSN has negative assets, so we can't compare its PB Ratio to the US IT industry average.


Next Steps

Future Growth

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

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRSN's forecast earnings growth (4.4% per year) is above the savings rate (2.7%).

Earnings vs Market: VRSN's earnings (4.4% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: VRSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: VRSN's revenue (6.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: VRSN's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if VRSN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has VeriSign performed over the past 5 years?

9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRSN has high quality earnings.

Growing Profit Margin: VRSN's current net profit margins (52.6%) are higher than last year (41.8%).


Past Earnings Growth Analysis

Earnings Trend: VRSN's earnings have grown by 9.9% per year over the past 5 years.

Accelerating Growth: VRSN's earnings growth over the past year (28.4%) exceeds its 5-year average (9.9% per year).

Earnings vs Industry: VRSN earnings growth over the past year (28.4%) exceeded the IT industry 17%.


Return on Equity

High ROE: VRSN's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VeriSign's financial position?


Financial Position Analysis

Short Term Liabilities: VRSN has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: VRSN has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: VRSN has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: VRSN's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: VRSN's debt is well covered by operating cash flow (43.6%).

Interest Coverage: VRSN's interest payments on its debt are well covered by EBIT (12.7x coverage).


Balance Sheet

Inventory Level: VRSN has a low level of unsold assets or inventory.

Debt Coverage by Assets: VRSN has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate VRSN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate VRSN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if VRSN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if VRSN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRSN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Jim Bidzos (64yo)

8.3yrs

Tenure

US$9,162,786

Compensation

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. M ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD9.16M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.0yrs

Average Tenure

57.5yo

Average Age

Experienced Management: VRSN's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

69yo

Average Age

Experienced Board: VRSN's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: VRSN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$56,21830 Oct 19
Timothy Tomlinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares295
Max PriceUS$190.57
SellUS$214,58001 Aug 19
Kathleen Cote
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$214.58
SellUS$122,76331 Jul 19
Timothy Tomlinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares575
Max PriceUS$213.50
SellUS$693,91002 May 19
Kathleen Cote
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$198.26
SellUS$75,43030 Apr 19
Timothy Tomlinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares378
Max PriceUS$199.55
SellUS$101,57020 Feb 19
Timothy Tomlinson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares580
Max PriceUS$175.12
SellUS$497,67310 Dec 18
Thomas Indelicarto
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,300
Max PriceUS$150.81

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.7%.


Management Team

  • Jim Bidzos (64yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$9.16m
  • Scott Schnell (61yo)

    Senior Vice President of Global Marketing & Channel Management

    • Tenure: 0yrs
  • Todd Strubbe (56yo)

    Executive VP & COO

    • Tenure: 4.6yrs
    • Compensation: US$3.79m
  • Burt Kaliski

    Senior VP & CTO

    • Tenure: 0yrs
  • George Kilguss (58yo)

    Executive VP & CFO

    • Tenure: 7.5yrs
    • Compensation: US$3.11m
  • Pat Kane (57yo)

    Senior Vice President of Naming & Directory Services

    • Tenure: 0yrs
    • Compensation: US$1.57m
  • Dave Pool

    Senior Vice President of Technology Services

    • Tenure: 0yrs
  • Tom Indelicarto (55yo)

    Executive VP

    • Tenure: 5yrs
    • Compensation: US$2.25m
  • Danny McPherson

    Executive VP & Chief Security Officer

    • Tenure: 0yrs
  • Ebrahim Keshavarz

    Senior Vice President of Product Management

    • Tenure: 2.8yrs

Board Members

  • Roger Moore (77yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$339.96k
  • Jim Bidzos (64yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$9.16m
  • Timothy Tomlinson (69yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$359.96k
  • Jamie Gorelick (68yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$319.96k
  • Lou Simpson (83yo)

    Lead Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$354.96k
  • Kath Cote (70yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$329.96k
  • Tommy Frist (51yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$303.76k
  • Yehuda Buchalter

    Director

    • Tenure: 0.3yrs

Company Information

VeriSign, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VeriSign, Inc.
  • Ticker: VRSN
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Internet Services and Infrastructure
  • Sector: Software
  • Market Cap: US$22.256b
  • Shares outstanding: 117.41m
  • Website: https://www.verisign.com

Number of Employees


Location

  • VeriSign, Inc.
  • 12061 Bluemont Way
  • Reston
  • Virginia
  • 20190
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRSNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1998
VRSDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1998
0LOZLSE (London Stock Exchange)YesCommon StockGBUSDJan 1998
VRSN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1998
VRSNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REP 1 COM USD0.001ARARSApr 2019
VRSN34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.25 COM USD0.001BRBRLMay 2019

Biography

VeriSign, Inc. provides domain name registry services and Internet infrastructure that enables Internet navigation for various recognized domain names worldwide. It enables the security, stability, and res ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 23:47
End of Day Share Price2019/11/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.