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VeriSign

Nasdaq:VRSN
Snowflake Description

Mediocre balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VRSN
Nasdaq
$22B
Market Cap
  1. Home
  2. US
  3. Software
Company description

VeriSign, Inc., together with its subsidiaries, provides domain name registry services and Internet infrastructure that enables Internet navigation for various recognized domain names worldwide. The last earnings update was 54 days ago. More info.


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VRSN Share Price and Events
7 Day Returns
8.8%
NasdaqGS:VRSN
4.3%
US IT
2.4%
US Market
1 Year Returns
1%
NasdaqGS:VRSN
-1.2%
US IT
-10%
US Market
VRSN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
VeriSign (VRSN) 8.8% 8% -8.6% 1% 117.1% 182.1%
US IT 4.3% -10% -15.6% -1.2% 59.3% 77.7%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • VRSN outperformed the IT industry which returned -1.2% over the past year.
  • VRSN outperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
VRSN
Industry
5yr Volatility vs Market
Related Companies

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 7.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

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 1.7%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.913 (1 + (1- 21%) (8.08%))
0.981
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (0.981 * 5.44%)
7.08%

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.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:VRSN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.08%)
2020 877.76 Analyst x3 819.76
2021 891.39 Analyst x3 777.47
2022 904.89 Est @ 1.51% 737.09
2023 919.20 Est @ 1.58% 699.28
2024 934.18 Est @ 1.63% 663.71
2025 949.72 Est @ 1.66% 630.16
2026 965.73 Est @ 1.69% 598.44
2027 982.16 Est @ 1.7% 568.41
2028 998.99 Est @ 1.71% 539.94
2029 1,016.19 Est @ 1.72% 512.94
Present value of next 10 years cash flows $6,547.00
NasdaqGS:VRSN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,016.19 × (1 + 1.74%) ÷ (7.08% – 1.74%)
$19,376.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $19,376.87 ÷ (1 + 7.08%)10
$9,780.89
NasdaqGS:VRSN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $6,547.00 + $9,780.89
$16,327.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,327.89 / 116.42
$140.25
NasdaqGS:VRSN Discount to Share Price
Calculation Result
Value per share (USD) From above. $140.25
Current discount Discount to share price of $190.95
= -1 x ($190.95 - $140.25) / $140.25
-36.1%

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 (2019-12-31) in USD $5.17
NasdaqGS:VRSN Share Price ** NasdaqGS (2020-04-07) in USD $190.95
United States of America IT Industry PE Ratio Median Figure of 71 Publicly-Listed IT Companies 24.84x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* 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)

= 190.95 ÷ 5.17

36.96x

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 36.96x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
5.2%per year
United States of America IT Industry PEG Ratio Median Figure of 60 Publicly-Listed IT Companies 1.89x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*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

= 36.96x ÷ 5.2%

7.04x

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 (2019-12-31) in USD $-12.77
NasdaqGS:VRSN Share Price * NasdaqGS (2020-04-07) in USD $190.95
United States of America IT Industry PB Ratio Median Figure of 116 Publicly-Listed IT Companies 2.88x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:VRSN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 190.95 ÷ -12.77

-14.96x

* 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
5.2%
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 expected to exceed the low risk savings rate of 1.7%.
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 5.2%
NasdaqGS:VRSN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 5.4%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*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
2022-12-31
2021-12-31 1,371 917 679 3
2020-12-31 1,248 909 626 2
2020-04-08
NasdaqGS:VRSN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,232 754 612
2019-09-30 1,229 779 646
2019-06-30 1,226 758 630
2019-03-31 1,222 795 611
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • VeriSign's earnings are expected to grow by 5.2% yearly, however this is not considered high growth (20% yearly).
  • VeriSign's revenue is expected to grow by 5.4% 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
2022-12-31
2021-12-31 5.85 6.19 5.51 3.00
2020-12-31 5.30 5.73 4.94 3.00
2020-04-08
NasdaqGS:VRSN Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.17
2019-09-30 5.41
2019-06-30 5.24
2019-03-31 5.13
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

*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 1/6, 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 is less than its 5-year average (5.1% vs 13%)
  • VeriSign's earnings growth has not exceeded the US IT industry average in the past year (5.1% vs 13.7%).
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
2019-12-31 1,231.66 612.30 184.26 60.81
2019-09-30 1,228.57 646.17 183.92 60.75
2019-06-30 1,225.93 629.94 188.99 59.84
2019-03-31 1,222.09 610.75 191.74 58.64
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

*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 3/6, 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
2019-12-31 -1,490.10 1,787.57 1,218.06
2019-09-30 -1,451.92 1,786.94 1,230.01
2019-06-30 -1,425.17 1,786.31 1,224.94
2019-03-31 -1,406.13 1,785.68 1,252.99
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
  • 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 (42.2%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 12.6x 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 34 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

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
2022-12-31 0.00 1.00
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-04-08

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 1.1%) - 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 $9,162,786
AGE 64
TENURE AS CEO 8.7 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 its Chief Executive Officer since August 1, 2011 and served as its President From August 1, 2011 to February 2020. 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 serves as 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, both up more than 20%.
  • 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:

5.4
Average Tenure
57.5
Average Age
  • The average tenure for the VeriSign management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Jim Bidzos

TITLE
Founder
COMPENSATION
$9M
AGE
64
TENURE
8.7 yrs

Todd Strubbe

TITLE
President & COO
COMPENSATION
$4M
AGE
56
TENURE
0.2 yrs

George Kilguss

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
58
TENURE
7.9 yrs

Tom Indelicarto

TITLE
Executive VP
COMPENSATION
$2M
AGE
55
TENURE
5.4 yrs

Burt Kaliski

TITLE
Senior VP & CTO

Scott Schnell

TITLE
Senior Vice President of Global Marketing & Channel Management
AGE
61

Pat Kane

TITLE
Senior Vice President of Naming & Directory Services
COMPENSATION
$2M
AGE
57

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
3.3 yrs
Board of Directors Tenure

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

8
Average Tenure
69
Average Age
  • The tenure for the VeriSign board of directors is about average.
Board of Directors

Jim Bidzos

TITLE
Founder
COMPENSATION
$9M
AGE
64
TENURE
10.7 yrs

Timothy Tomlinson

TITLE
Independent Director
COMPENSATION
$360K
AGE
69
TENURE
12.4 yrs

Lou Simpson

TITLE
Lead Independent Director
COMPENSATION
$355K
AGE
83
TENURE
4.8 yrs

Kath Cote

TITLE
Independent Director
COMPENSATION
$330K
AGE
70
TENURE
12.2 yrs

Roger Moore

TITLE
Independent Director
COMPENSATION
$340K
AGE
77
TENURE
18.2 yrs

Jamie Gorelick

TITLE
Independent Director
COMPENSATION
$320K
AGE
68
TENURE
5.3 yrs

Tommy Frist

TITLE
Independent Director
COMPENSATION
$304K
AGE
51
TENURE
4.3 yrs

Yehuda Buchalter

TITLE
Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Oct 19 Sell Timothy Tomlinson Individual 29. Oct 19 29. Oct 19 -295 $190.57 $-56,218
01. Aug 19 Sell Kathleen Cote Individual 31. Jul 19 31. Jul 19 -1,000 $214.58 $-214,580
31. Jul 19 Sell Timothy Tomlinson Individual 30. Jul 19 30. Jul 19 -575 $213.50 $-122,763
02. May 19 Sell Kathleen Cote Individual 30. Apr 19 30. Apr 19 -3,500 $198.26 $-693,910
30. Apr 19 Sell Timothy Tomlinson Individual 29. Apr 19 29. Apr 19 -378 $199.55 $-75,430
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

Here's What VeriSign, Inc.'s (NASDAQ:VRSN) P/E Is Telling Us

Check out our latest analysis for VeriSign How Do You Calculate VeriSign's P/E Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for VeriSign: P/E of 38.93 = $203.85 ÷ $5.24 (Based on the year to June 2019.) Is A High Price-to-Earnings Ratio Good? … The exact same company would hypothetically deserve a higher P/E ratio if it had a strong balance sheet, than if it had a weak one with lots of debt, because a cashed up company can spend on growth.

Simply Wall St -

Here's Why We Think VeriSign (NASDAQ:VRSN) Is Well Worth Watching

We would not expect to see insiders owning a large percentage of a US$24b company like VeriSign. … Although VeriSign certainly looks good to me, I would like it more if insiders were buying up shares. … If you like to see insider buying, too, then this free list of growing companies that insiders are buying, could be exactly what you're looking for.

Simply Wall St -

This Insider Has Just Sold Shares In VeriSign, Inc. (NASDAQ:VRSN)

See our latest analysis for VeriSign VeriSign Insider Transactions Over The Last Year In fact, the recent sale by Kathleen Cote was the biggest sale of VeriSign shares made by an insider individual in the last twelve months, according to our records. … NasdaqGS:VRSN Recent Insider Trading, August 6th 2019 Insider Ownership of VeriSign Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. … While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company.

Simply Wall St -

Is VeriSign, Inc. (NASDAQ:VRSN) Overpaying Its CEO?

View our latest analysis for VeriSign How Does Jim Bidzos's Compensation Compare With Similar Sized Companies? … has a market cap of US$25b, and is paying total annual CEO compensation of US$9.2m. … If you want to buy a stock that is better than VeriSign, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

Is VeriSign (NASDAQ:VRSN) Using Too Much Debt?

The first step when considering a company's debt levels is to consider its cash and debt together. … Since VeriSign does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Our View VeriSign's conversion of EBIT to free cash flow suggests it can handle its debt as easily as Cristiano Ronaldo could score a goal against an under 14's goalkeeper.

Simply Wall St -

What Does VeriSign, Inc.'s (NASDAQ:VRSN) Share Price Indicate?

Given that VeriSign’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. … NasdaqGS:VRSN Past and Future Earnings, July 4th 2019 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

VeriSign (NASDAQ:VRSN) Shareholders Have Enjoyed A Whopping 303% Share Price Gain

There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, VeriSign achieved compound earnings per share (EPS) growth of 5.3% per year. … This EPS growth is slower than the share price growth of 32% per year, over the same period.

Simply Wall St -

Should You Be Tempted To Sell VeriSign, Inc. (NASDAQ:VRSN) Because Of Its P/E Ratio?

The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for VeriSign: P/E of 38.08 = $195.3 ÷ $5.13 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … The higher the P/E ratio, the higher the price tag of a business, relative to its trailing earnings. … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Generally speaking the rate of earnings growth has a profound impact on a company's P/E multiple.

Simply Wall St -

I Built A List Of Growing Companies And VeriSign (NASDAQ:VRSN) Made The Cut

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … VeriSign shareholders can take confidence from the fact that EBIT margins are up from 61% to 64%, and revenue is growing. … You can take a look at the company's revenue and earnings growth trend, in the chart below

Simply Wall St -

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 -

VRSN Company Info

Description

VeriSign, Inc., together with its subsidiaries, provides domain name registry services and Internet infrastructure that enables Internet navigation for various recognized domain names worldwide. It enables the security, stability, and resiliency of Internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 Internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which support global e-commerce. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia.

Details
Name: VeriSign, Inc.
VRSN
Exchange: NasdaqGS
Founded: 1995
$22,229,967,071
116,417,738
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
XTRA VRS Common Stock XETRA Trading Platform DE EUR 30. Jan 1998
LSE 0LOZ Common Stock London Stock Exchange GB USD 30. Jan 1998
BRSE VRS Common Stock Berne Stock Exchange CH CHF 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
BOVESPA VRSN34 BDR EACH 1 REP 0.25 COM USD0.001 Bolsa de Valores de Sao Paulo BR BRL 20. May 2019
Number of employees
Current staff
Staff numbers
872
VeriSign employees.
Industry
Internet Services and Infrastructure
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 08:03
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/04/07
Last earnings filing: 2020/02/14
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.