Verisign (VRSN) AI Stock Analysis

• Market Cap: $25.68B
• Dividend Yield: 0.56%
• Average Volume (3M): 732.51K
• Price to Earnings (P/E): 32.8
• Beta (1Y): 0.58
• Revenue Growth: 4.59%
• EPS Growth: 0.26%
• Country: US
• Employees: 929
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 2.21
• Shares Outstanding: 93,408,590
• 10 Day Avg. Volume: 826,534
• 30 Day Avg. Volume: 732,515
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 17.74
• Enterprise Value/Gross Profit: 20.18
• Enterprise Value/Ebitda: 24.72
• 1Y Price Target: $338.50
• Price Target Upside: 22.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $294.00 ▲(6.74% Upside)

Verisign's overall stock score is driven by strong financial performance and positive earnings call sentiment. However, high leverage and valuation concerns, along with bearish technical indicators, temper the outlook. The company's ability to maintain profitability and cash flow amidst economic uncertainties is a key strength, but financial risks and market volatility warrant caution.

Positive Factors

Strong Cash Flow Generation

Verisign's robust cash flow growth and efficient profit conversion into cash highlight its ability to support operations and manage debt, ensuring long-term financial health.

Market Position and Domain Growth

Verisign's growth in domain registrations strengthens its market position, ensuring a steady revenue stream and reinforcing its leadership in the domain registry sector.

High Profit Margins

High profit margins indicate efficient operations and cost management, providing Verisign with a competitive edge and financial flexibility to invest in growth opportunities.

Negative Factors

High Leverage and Negative Equity

High leverage and negative equity pose financial risks, potentially limiting Verisign's ability to raise capital or invest in new opportunities, impacting long-term stability.

Economic and Geopolitical Uncertainty

Ongoing economic and geopolitical uncertainties could affect Verisign's growth prospects and operational stability, necessitating cautious financial planning and risk management.

Volatility in Key Markets

Volatility in key markets like China can impact Verisign's revenue and growth, requiring strategic adjustments to mitigate risks and maintain market presence.

Verisign Business Overview & Revenue Model

Company Description

Verisign, Inc. (VRSN) is a global leader in domain name registry services and internet infrastructure. The company operates a diverse range of services across the internet ecosystem, primarily focusing on the management of the authoritative registry for .com, .net, and other top-level domains (TLDs). Verisign provides various security services and solutions, including DNS services, DDoS protection, and other cybersecurity offerings, which are essential for the reliable operation of online businesses and services.

How the Company Makes Money

Verisign generates revenue primarily through domain name registration and renewal fees, focusing on the .com and .net TLDs, which constitute its core revenue stream. The company earns recurring revenue as domain names are registered and renewed, with most registrations occurring on an annual basis. Additionally, Verisign offers various internet security services, including Managed DNS and DDoS mitigation services, which contribute to its revenue. The company benefits from exclusive contracts with the Internet Corporation for Assigned Names and Numbers (ICANN) to manage these TLDs, ensuring a steady demand for its services. Partnerships with registrars and resellers further enhance its distribution and market reach, allowing Verisign to capture a significant share of the domain registration market.

Verisign Financial Statement Overview

Summary

Verisign demonstrates strong profitability and cash flow generation, with high-profit margins and efficient cash conversion. However, the balance sheet shows high leverage and negative equity, posing financial risks despite stable assets and cash reserves.

Income Statement

Verisign demonstrates strong profitability with a robust gross profit margin of 87.9% and a net profit margin of 50.0% in the TTM. The company shows healthy revenue growth, with a 2.6% increase from the previous year, and maintains solid EBIT and EBITDA margins of 67.9% and 70.9%, respectively. These metrics indicate a well-managed cost structure and efficient operations, although the net income has slightly fluctuated over recent years.

Balance Sheet

Verisign's balance sheet reflects high leverage with a negative stockholders' equity, leading to a challenging debt-to-equity ratio scenario. The equity ratio is negative due to the company's significant liabilities surpassing its assets, posing potential financial risk. However, the company has managed to maintain stable total assets and cash reserves over the years, indicating some balance sheet resilience despite the high debt levels.

Cash Flow

The company exhibits strong cash flow generation, with a 8.6% growth in free cash flow in the TTM. The operating cash flow to net income ratio is favorable at 1.22, indicating efficient conversion of profits into cash. Additionally, the free cash flow to net income ratio of 1.19 demonstrates robust cash flow management. These metrics highlight Verisign's ability to generate substantial cash flows to support its operations and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.56B	1.49B	1.42B	1.33B	1.27B
Gross Profit	1.40B	1.37B	1.30B	1.22B	1.14B	1.08B
EBITDA	1.15B	1.13B	1.10B	1.00B	913.41M	886.74M
Net Income	799.50M	785.70M	817.60M	673.80M	784.80M	814.89M
Balance Sheet
Total Assets	1.41B	1.41B	1.75B	1.73B	1.98B	1.77B
Cash, Cash Equivalents and Short-Term Investments	593.80M	599.90M	926.40M	980.40M	1.21B	1.17B
Total Debt	1.79B	1.80B	1.80B	1.79B	1.79B	1.80B
Total Liabilities	3.40B	3.36B	3.33B	3.30B	3.24B	3.16B
Stockholders Equity	-1.99B	-1.96B	-1.58B	-1.56B	-1.26B	-1.39B
Cash Flow
Free Cash Flow	950.00M	874.50M	808.00M	803.70M	754.12M	686.79M
Operating Cash Flow	978.70M	902.60M	853.80M	831.10M	807.15M	730.18M
Investing Cash Flow	144.40M	286.30M	-97.40M	355.70M	-269.25M	-72.26M
Financing Cash Flow	-1.06B	-1.22B	-889.80M	-1.04B	-719.13M	-764.88M

Verisign Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 275.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSN, the sentiment is Negative. The current price of 275.44 is below the 20-day moving average (MA) of 283.77, below the 50-day MA of 277.14, and above the 200-day MA of 255.33, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 41.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRSN.

Verisign Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTNT	78 Outperform	$65.27B	34.44	94.14%	―	14.46%	48.06%
CHKP	76 Outperform	$22.12B	26.72	―	―	6.27%	7.14%
ZS	67 Neutral	$48.21B	-1,146.83	-2.31%	―	23.31%	31.04%
VRSN	64 Neutral	$25.68B	32.81	-72.04%	0.56%	4.59%	0.26%
GDDY	59 Neutral	$18.30B	23.88	199.93%	―	8.09%	-54.94%
SAIL	53 Neutral	$12.69B	-19.86	5.65%	―	25.99%	-25.47%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Verisign Corporate Events

Verisign Enters Stock Sale Agreement with Berkshire Hathaway

On July 28, 2025, VeriSign, Inc. entered into an underwriting agreement with Berkshire Hathaway Consolidated Pension Plan Master Trust and Burlington Northern Santa Fe, LLC Master Retirement Trust for the sale of 4,300,000 shares of common stock at $285.00 per share. The offering aims to reduce Berkshire Hathaway Inc.’s ownership below the ten percent regulatory threshold, with the closing expected on July 30, 2025. VeriSign will not receive any proceeds from this transaction, and Berkshire Hathaway has agreed to a 365-day lock-up on remaining shares.

Verisign Expands Share Repurchase Program by $913.1 Million

On July 24, 2025, Verisign‘s Board of Directors approved an additional $913.1 million for the company’s share repurchase program, bringing the total authorization to $1.5 billion. The company reported a 5.9% increase in revenue for the second quarter of 2025 compared to the same period in 2024, with net income rising to $207 million. Verisign also declared a quarterly dividend and highlighted its 28-year record of 100% availability for its .com and .net domain name resolution system. The company ended the quarter with 170.5 million domain name registrations and processed 10.4 million new registrations, reflecting its strong market position.