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
Debt/Capital2.12.8
Interest Expense40.4728.98
Interest Coverage4.365.82


Share Data Q4 FY17 Q4 FY16
Shares outstanding (mil)97.59103.09
Div / share0.00.0
EPS0.830.84
Book value / share-12.91-11.65
Institutional Own % n/a n/a
Avg Daily Volume937068.0757599.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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