VeriSign, Inc. (VRSN) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: VeriSign, Inc.

Updated on October 23, 2026 · accounts published on October 22, 2026

An exceptionally profitable business that turns most of its revenue into cash

VeriSign trades at a P/E of 32.9, 6 % above its ten-year median, with a 68 % operating margin over the last 12 months.

• Is VeriSign expensive or cheap? VeriSign's P/E of 32.9 sits 6 % above its ten-year median and 3 % above the median of its sector.
• How is the business doing? Operating margin of 68 % over the last 12 months, above the 64 % average of fiscal years 2014 to 2025.
• How strong is the balance sheet? Net debt of $14.01 per share in fiscal 2025, just 4.6 % of the share price and 1.3× EBITDA.
• What to expect from the next earnings? Analysts expect EPS of $2.52 on February 11, 2027, after a 2.0 % miss in the October 22 report.
• Does it grow with real cash or by diluting shareholders? Free cash flow equals 65 % of revenue in fiscal 2025, while stock-based pay costs just 4.2 % of revenue.

Is VeriSign expensive or cheap?

Over the last 12 months VeriSign trades at a P/E of 32.9, against a ten-year median of 31.1 and a sector median of 32.0 across 314 companies. It has traded at a lower multiple 62 % of the time over the past decade, within a range of 20.9 to 46.2. EV/EBITDA of 24.0 stays within 10 % of its five-year average of 23.4, so neither measure points to a bargain or an excess. The free cash flow yield of 5.2 % beats the 4.0 % earnings yield, which means cash generation runs ahead of reported profit.

How is the business doing?

Revenue grew 6.4 % over the last 12 months while EPS rose 10.1 %, so profits are growing faster than sales. The operating margin of 68 % compares with a 64 % average across fiscal 2014 to 2025 and matches fiscal 2025, which puts current profitability at the top of its own history. A net margin of 49 % means about half of every dollar of revenue ends up as profit. ROIC stayed above 10 % in each of the ten fiscal years from 2014 to 2023. The ROE of −42 % alongside profits this high can only reflect negative book equity.

How strong is the balance sheet?

Debt is modest next to earnings power: net debt equals 1.3× EBITDA in fiscal 2025, inside the 1.5× tolerance for software, and only 4.6 % of the current price. The warnings come from accounting ratios. An Altman Z of −5.1 over the last 12 months lands in the danger zone, and a current ratio of 0.42 means short-term liabilities exceed short-term assets more than twice over. A Piotroski score of 8 out of 9 points to solid fundamentals. The dividend yields 1.0 % and takes 26 % of fiscal 2025 profit, which leaves ample room.

What to expect from the next earnings?

On October 22, 2026, VeriSign reported EPS of $2.41 against $2.46 expected, a 2.0 % shortfall, and it has beaten estimates in only 3 of the last 8 quarters. Analysts barely reacted: the 2026 EPS consensus moved from $9.79 to $9.80 over the last 30 days, and the revenue estimate hardly changed. For the quarter due February 11, 2027, they expect EPS of $2.52, about 5 % above the latest result. Of the 15 analysts covering the stock, 9 rate it a buy, 5 a hold and 1 a sell.

Does it grow with real cash or by diluting shareholders?

In technology, generic ratios fall short: what matters is growth, pricing power and dilution from stock-based pay. VeriSign scores 75 on the Rule of 40 for fiscal 2025, far above the 40-point elite line, and its 88 % gross margin clears the 70 % healthy bar for software. Stock compensation at 4.2 % of revenue sits well under the 10 % ceiling. The weak spot is pace: revenue per share grew 10.7 % a year over fiscal 2022 to 2025, short of the 15 % healthy threshold. The fiscal 2025 ROIC of −61,876 % fails the test, though a negative capital base makes that figure meaningless.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.