VeriSign Inc.

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VRSN : NASDAQ : Technology Services
$120.55 | %
Today's Range: 116.23 - 121.61
Avg. Daily Volume: 910800.0
02/16/18 - 4:00 PM ET

Financial Analysis

VERISIGN INC's gross profit margin for the fourth quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 4.97% from the same quarter last year.

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Income Statement Q4 FY17 Q4 FY16
Net Sales ($mil)295.5286.27
EBITDA ($mil)188.65182.82
EBIT ($mil)176.43168.76
Net Income ($mil)102.84105.55

Balance Sheet Q4 FY17 Q4 FY16
Cash & Equiv. ($mil)2414.751797.91
Total Assets ($mil)2941.192334.57
Total Debt ($mil)2410.151866.95
Equity ($mil)-1260.27-1200.6

Profitability Q4 FY17 Q4 FY16
Gross Profit Margin88.087.76
EBITDA Margin63.8363.86
Operating Margin59.7158.95
Sales Turnover0.40.49
Return on Assets15.5418.87
Return on Equity0.00.0
Debt Q4 FY17 Q4 FY16
Current Ratio1.571.21
Interest Expense40.4728.98
Interest Coverage4.365.82

Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)97.59103.09
Div / share0.00.0
Book value / share-12.91-11.65
Institutional Own % n/a n/a
Avg Daily Volume937068.0757599.0


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 54.38 for the Internet Software & Services industry and a premium compared to the S&P 500 average of 25.51. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The current price-to-sales ratio is well above the S&P 500 average and above the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, VERISIGN INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
VRSN 31.53 Peers 54.38   VRSN 16.16 Peers 25.71

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

VRSN is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

VRSN is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
VRSN 23.70 Peers 21.24   VRSN 1.12 Peers 0.32

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

VRSN is trading at a significant premium to its peers.


Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

VRSN trades at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
VRSN NM Peers 7.78   VRSN 7.58 Peers 22.11

Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

VRSN's P/B is negative making this valuation measure meaningless.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, VRSN is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
VRSN 9.75 Peers 9.46   VRSN 2.00 Peers 35.76

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

VRSN is trading at a valuation on par with its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

VRSN significantly trails its peers on the basis of sales growth



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