VRSNVeriSign (VRSN) exhibits strong financial health and a dominant market position, benefiting from secular growth trends in digital infrastructure. While its valuation is on the higher side, consistent profitability and robust cash flow support a positive outlook. Technical indicators suggest some short-term caution but the long-term trend remains bullish.
VeriSign is a critical player in the internet's infrastructure, benefiting from the sustained growth in domain name registrations and the increasing importance of digital identity and security.
VeriSign demonstrates strong profitability, efficient operations, and a healthy balance sheet with manageable debt. Its revenue and earnings have shown consistent growth, and free cash flow generation is robust.
VeriSign's stock is trading within a clear uptrend, supported by moving averages. However, some short-term indicators suggest a potential for consolidation or a slight pullback, warranting monitoring of key support levels.
| Factor | Score |
|---|---|
| Digital Infrastructure & Domain Growth | 95 |
| Internet Security & Stability | 90 |
| Market Dominance | 98 |
| Network Effects | 80 |
| Regulatory & Geopolitical Risk | 70 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 92 |
| Growth | 80 |
| Balance Sheet Health | 85 |
| Cash Flow | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 85 |
| Momentum | 70 |
| Volume Confirmation | 70 |
| Support & Resistance | 70 |
| Short-term Indicators | 65 |
Strong Earnings Growth
Quarterly earnings (EPS) have consistently beaten estimates, with the latest quarter showing an actual EPS of 2.10 against an estimate of 2.0, a positive surprise of 0.5%. This indicates a trend of consistent performance exceeding market expectations.
Reasonable Valuation Metrics
The P/E ratio (TTM) is 34.25, which, while not low, is supported by a strong EPS (TTM) of 8.37 and a robust net margin of 49.5% in the latest quarter. The P/S ratio (TTM) of 22.7 suggests high investor confidence in future revenue, supported by consistent revenue growth.
High Price-to-Sales Ratio
The Price-to-Sales (P/S) ratio (TTM) of 22.7 is significantly high, suggesting that the market has high growth expectations. Any miss in revenue growth could lead to a substantial price correction.
Slowing Revenue Growth in Recent Quarters
While annual revenue for 2024 was $1,557.4 million, a slight increase from $1,493.1 million in 2023, the quarterly revenue shows a slight dip in Q4 2024 ($395.4M) compared to Q4 2023 ($390.6M actual reported by other data points, though the provided data shows $1557.4M annual from $1493.1M). This potential deceleration warrants close monitoring.
May 2025
19
Ex-Dividend Date
May 2025
28
Next Dividend Date
July 2025
25
Next Earnings Date
H: $2.24
A: $2.24
L: $2.23
H: 414.78M
A: 414.71M
L: 414.64M
VeriSign, Inc., together with its subsidiaries, provides internet infrastructure and domain name registry services that enables internet navigation for various recognized domain names worldwide. The company enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of thirteen internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which supports global e-commerce. It operates directory for .name and .cc; and back-end systems for .edu, domain names. The company was incorporated in 1995 and is headquartered in Reston, Virginia.
267.83 USD
The 39 analysts offering 1 year price forecasts for VRSN have a max estimate of 330.00 and a min estimate of 217.00.