VeriSign, Inc.(VRSN)Fundamental Analysis & Financials
NASDAQ

Valuation Snapshot

What the multiples imply about expectations

Market value is $27.69B, which makes it a large-cap company (market value of $10B to $200B). The trailing P/E is 33.23, above 30. EV/EBITDA is 24.07, above 20. 2 of 2 of these measures are above the level often used to mark a high valuation (P/E 30, price-to-book 5, EV/EBITDA 20).

Valuation Metrics

Ratios and multiples

Forward P/E
28.16
EV/Revenue (TTM)16.75
Price/FCF (TTM)27.04

Financial Health

Liquidity and leverage

ROA (TTM)54.90%

The company's financial health appears unknown. Moderate ROE and strong ROA reflect reasonably efficient capital use. Debt is manageable within acceptable ranges.

Valuation Multiples

Current valuation metrics

P/E Ratio33.23
P/S Ratio15.99
EV/EBITDA24.07

Quarterly Earnings History

Recent quarterly financial performance and trends

Latest Quarter
Quarter ended Sep 2026
Revenue
$443.00M
Net Income
$212.60M
EPS (Diluted)
$2.35
QuarterRevenueNet IncomeGross ProfitEPS (Basic)EPS (Diluted)Gross MarginNet Margin
Sep 2026(Latest)$443.00M$212.60M$393.20M$2.36$2.3588.8%48.0%
Jun 2026$434.60M$216.50M$384.60M$2.38$2.3888.5%49.8%
Mar 2026$428.90M$214.50M$379.70M$2.34$2.3488.5%50.0%
Dec 2025$425.30M$206.20M$376.30M$2.23$2.2388.5%48.5%
Sep 2025$419.10M$212.80M$370.30M$2.28$2.2788.4%50.8%

Key Insights:

  • Revenue increased by 1.9% from previous quarter
  • Net margin of 48.0% indicates strong profitability
  • EPS declined by 1.3% quarter-over-quarter

Financial Efficiency

Utilization and collections performance

Asset Turnover 1.31 indicates high efficiency. Receivables Turnover 224.91 and DSO 1.62 reflect excellent collections. Working Capital Turnover -2.54 is negative because working capital is negative (current liabilities are larger than current assets). ROIC -232.2% highlights weak capital returns.

Efficiency Metrics

Asset Turnover1.31
Receivables Turnover224.91
Working Capital Turnover-2.54
Days Sales Outstanding1.62
ROIC (TTM)-232.2%

* Negative working capital: current liabilities are larger than current assets.

Profitability & Growth

Margins and earnings power

Revenue (TTM)
$1.73B
+5.7% latest quarter vs year ago
Profit Margin (TTM)
49.07%
Operating Margin (TTM)
68.62%
Gross Profit (TTM)
$1.53B
Gross Margin 88.57%
EBITDA (TTM)
$1.21B
EBITDA Margin 69.59%
Net Income (TTM)
$849.80M
EPS +3.5% latest quarter vs year ago

Efficiency Performance Matrix

4-quadrant analysis of operational efficiency vs profitability

Efficiency vs Profitability Quadrants

High Efficiency
High Margin
High Efficiency
Low Margin
Low Efficiency
High Margin
Low Efficiency
Low Margin

Efficiency Analysis

Asset Turnover
Efficiency:1.31x
Margin:88.6%
Quadrant:Optimal
Receivables Turnover
Efficiency:224.91x
Margin:68.6%
Quadrant:Optimal
Working Capital
Efficiency:-2.54x(abs: 2.54x)
Margin:49.1%
Quadrant:Optimal
Overall Efficiency Score

Strong operational structure but poor capital returns - monitor ROIC trends

⚠️ Thresholds are benchmark-based heuristics derived from long-term industry averages, not strict valuation rules.

• Bubble size represents ROIC magnitude

• Green (Optimal): Excellent efficiency-profitability balance

• Blue (Efficiency-Driven): High turnover, room to improve margins

• Yellow (Margin-Driven): Strong margins, opportunity to improve efficiency

• Red (Weak Operations): Areas needing improvement on both dimensions

Market Data & Share Structure

Comprehensive valuation metrics and ownership breakdown

Market Data & Capitalization

Market Cap
$27.69B
Large-cap (market value of $10B to $200B)
Enterprise Value
$29.00B
EV ≈ Market Cap: Balanced capital structure
Next Earnings Date
N/A
Scheduled quarterly results announcement

Share Statistics & Ownership

Shares Outstanding
89.70M
Total shares issued and held by all shareholders
Shares Float
84.32M
94% float - good liquidity
Institutional Ownership
90.43%
Very high - strong institutional confidence
Insider Ownership
10.62%
High alignment - strong insider conviction
Shares Short
2.23M
2.6% of float - moderate shorting
Implied Shares Outstanding
89.70M
Matches reported shares - consistent data

Profitability Margin Pyramid

Hierarchical view of margin compression from revenue to net income

Margin Hierarchy by Profitability Level

100.0%
Revenue
$1.73B
88.6%
Gross Profit
$1.53B
69.6%
EBITDA
$1.21B
49.1%
Net Income
$849.80M
Margin Profile:
Revenue— 100.0% margin (Top line revenue generation)
Gross Profit— 88.6% margin (Revenue minus cost of goods sold)
EBITDA— 69.6% margin (Earnings before interest, taxes, depreciation, and amortization)
Net Income— 49.1% margin (Bottom line profitability after all expenses)

Margin Analysis

Total Revenue

Amount:$1.73B
Margin:100.0%
Top line revenue generation

Gross Profit

Amount:$1.53B
Margin:88.6%
Revenue minus cost of goods sold

EBITDA

Amount:$1.21B
Margin:69.6%
Earnings before interest, taxes, depreciation, and amortization

Net Income

Amount:$849.80M
Margin:49.1%
Bottom line profitability after all expenses

Margin Quality Assessment

Excellent margin structure with strong bottom-line profitability

• Larger circles represent higher dollar amounts

• Margin percentages show profitability at each level

• Blue: Revenue base

• Green: Gross profitability

• Yellow: Operating performance

• Red: Net profitability

Operating Cash & Liquidity

Core cash generation and short-term solvency

Cash Flow Analysis

Operating Cash Flow (TTM)

$1.06B

Cash from core operations

Free Cash Flow (TTM)

$1.02B

Available after capex

Financial Position & Liquidity

Current Ratio

0.42

Concerning

Quick Ratio

0.37

Weak

Net Cash

-$1.32B

Net debtor

Total Cash

$476.10M

Balance sheet cash

Total Debt

$1.79B

Outstanding borrowings

Cash Conversion Cycle

Working capital efficiency measurement

Days Sales Outstanding

1.6

days to collect payment

Insufficient cash cycle data.

Ownership & Shareholder Sentiment

Insider, institutional, and short interest positions

Insider Ownership

10.62%

Strong confidence

Institutional Ownership

90.43%

Majority backing

Short % of Float

2.49%

Minimal short

Short Ratio (Days)

2.5d

days to cover

Ownership structure shows strong insider confidence and institutional majority backing.

Dividends & Shareholder Returns

Policy stance and implications

The company maintains a very sustainable dividend policy with a payout ratio of 34.5% (FCF coverage: 3.6x). Free cash flow was 3.6 times the dividends paid.

Payout Ratio
34.45%
Trailing Dividend Rate
3.2
Trailing Dividend Yield
1.04%
Forward Annual Dividend Rate
3.24
Forward Annual Dividend Yield
1.05%
Ex-Dividend Date
11/17/2026
Last Split
12/07/1999 (2.00)