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VRSN Stock Analysis: Hold (Score 56.0/100) | Blank Capital Research | Blank Capital Research
VRSN
VERISIGN INC/CA
$259.78
-10.10 (-3.74%)
Score56.0
Data as of Apr 6, 2026
VRSN
VERISIGN INC/CA
TechnologyComputer Software
$259.78
-10.10 (-3.74%)
Open $269.85High $270.10Low $258.78Prev $269.88Vol ---52W: $208.86 – $310.60
Catalyst IntelligenceBearish Factor
Downward pressure identified in VRSN. The 3.7% decline correlates with broader sector weakness.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#127
Percentile
Top 3%
Business quality
79th
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 79.2GRADE B+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-41.0%
Sector: -1.4%
Dividend Analysis audit
GROWTH
0.55%
Trailing Yield
$0.55
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
17%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, VERISIGN INC/CA (VRSN) receives a "Hold" rating with a composite score of 56.0/100, ranked #127 out of 4446 stocks. Key factor scores: Quality 79/100, Value 59/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
VERISIGN INC/CA (VRSN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does VERISIGN INC/CA Do?
VeriSign, Inc., together with its subsidiaries, provides domain name registry services and internet infrastructure that enables internet navigation for various recognized domain names worldwide. It enables the security, stability, and resiliency of internet infrastructure and services, including providing root zone maintainer services, operating two of the 13 internet root servers; and offering registration services and authoritative resolution for the .com and .net domains, which support global e-commerce. The company also back-end systems for .cc, .gov, .edu, and .name domain names, as well as operates distributed servers, networking, security, and data integrity services. VeriSign, Inc. was incorporated in 1995 and is headquartered in Reston, Virginia. VERISIGN INC/CA (VRSN) is classified as a large-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO D. James Bidzos and employs approximately 920 people, headquartered in Reston, Virginia. With a market capitalization of $23.0B, VRSN is one of the prominent companies in the Technology sector.
VERISIGN INC/CA (VRSN) Stock Rating — Hold (April 2026)
As of April 2026, VERISIGN INC/CA receives a Hold rating with a composite score of 56.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.VRSN ranks #127 out of 4,446 stocks in our coverage universe. Within the Technology sector, VERISIGN INC/CA ranks #2 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
VRSN Stock Price and 52-Week Range
VERISIGN INC/CA (VRSN) currently trades at $259.78. The stock lost $10.10 (3.7%) in the most recent trading session. The 52-week high for VRSN is $310.60, which means the stock is currently trading -16.4% from its annual peak. The 52-week low is $208.86, putting the stock 24.4% above its annual trough. Recent trading volume was 855K shares, suggesting relatively thin trading activity.
Is VRSN Overvalued or Undervalued? — Valuation Analysis
VERISIGN INC/CA (VRSN) carries a value factor score of 59/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.27x, compared to the Technology sector average of 45.27x — a discount of 33%. The price-to-sales ratio is 15.32x, compared to 1.06x for the average Technology stock. On an enterprise value basis, VRSN trades at 21.81x EV/EBITDA, versus 12.79x for the sector.
Overall, VRSN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
VERISIGN INC/CA Profitability — ROE, Margins, and Quality Score
VERISIGN INC/CA (VRSN) earns a quality factor score of 79/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is -41.0%, compared to the Technology sector average of -1.4%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at 61.9% versus the sector average of -1.0%.
On a margin basis, VERISIGN INC/CA reports gross margins of 88.0%, compared to 50.9% for the sector. The operating margin is 68.2% (sector: -0.5%). Net profit margin stands at 50.6%, versus -1.5% for the average Technology stock. Revenue growth is running at 8.3% on a trailing basis, compared to 14.2% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
VRSN Debt, Balance Sheet, and Financial Health
VERISIGN INC/CA has a debt-to-equity ratio of -87.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.49x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $1.79B. Cash and equivalents stand at $235M.
VRSN has a beta of 0.33, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for VERISIGN INC/CA is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
VERISIGN INC/CA Revenue and Earnings History — Quarterly Trend
In TTM 2026, VERISIGN INC/CA reported revenue of $1.62B. Net income for the quarter was $821M. Gross margin was 88.0%. Operating income came in at $1.11B.
In FY 2025, VERISIGN INC/CA reported revenue of $1.66B. Net income for the quarter was $826M. Gross margin was 88.1%. Revenue grew 6.4% year-over-year compared to FY 2024. Operating income came in at $1.12B.
In Q3 2025, VERISIGN INC/CA reported revenue of $419M. Net income for the quarter was $213M. Gross margin was 88.4%. Revenue grew 7.3% year-over-year compared to Q3 2024. Operating income came in at $284M.
In Q2 2025, VERISIGN INC/CA reported revenue of $410M. Net income for the quarter was $207M. Gross margin was 88.0%. Revenue grew 5.9% year-over-year compared to Q2 2024. Operating income came in at $281M.
Over the past 8 quarters, VERISIGN INC/CA has demonstrated a growth trajectory, with revenue expanding from $387M to $1.62B. Investors analyzing VRSN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
VRSN Dividend Yield and Income Analysis
VERISIGN INC/CA (VRSN) currently pays a dividend yield of 0.5%. At this yield, a $10,000 investment in VRSN stock would generate approximately $$55.00 in annual dividend income. With a net margin of 50.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
VRSN Momentum and Technical Analysis Profile
VERISIGN INC/CA (VRSN) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 30/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 24/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
VRSN vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing VRSN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full VRSN vs S&P 500 (SPY) comparison to assess how VERISIGN INC/CA stacks up against the broader market across all factor dimensions.
VRSN Next Earnings Date
No upcoming earnings date has been announced for VERISIGN INC/CA (VRSN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy VRSN? — Investment Thesis Summary
VERISIGN INC/CA presents a balanced picture with arguments on both sides. The quality score of 79/100 indicates above-average profitability and business fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, VERISIGN INC/CA (VRSN) earns a Hold rating with a composite score of 56.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on VRSN stock.
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Institutional Research Dossier
VERISIGN INC/CA (VRSN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Verisign's 'Hold' rating, underpinned by a composite score of 55.2/100, reflects a balanced view of the company's strengths and weaknesses. While Verisign benefits from a near-monopoly in the .com and .net domain registry, providing a wide economic moat and consistent profitability, its growth prospects are limited by the mature nature of the domain registration market and regulatory oversight. The current valuation appears fair, but not compelling enough to warrant a more bullish stance given the moderate growth outlook and potential risks associated with its concentrated revenue stream.
The most critical takeaway is that Verisign represents a stable, cash-generating business with a strong competitive position, but its future returns are likely to be driven more by capital allocation decisions, such as share repurchases, than by organic revenue growth. Investors should closely monitor regulatory developments and the company's ability to diversify its revenue streams to assess the long-term investment potential.
Business Strategy & Overview
Verisign operates primarily as the exclusive registry for .com and .net domain names, a position granted through agreements with ICANN (Internet Corporation for Assigned Names and Numbers). This core business involves maintaining the database of domain names and ensuring the stability and security of the DNS (Domain Name System) infrastructure for these top-level domains. Revenue is generated primarily through registration fees charged to registrars for each domain name. The company also provides back-end systems for other domain names, including .cc, .gov, .edu, and .name, but these contribute a smaller portion of overall revenue.
Verisign's strategic positioning is centered on maintaining its role as a trusted and reliable operator of critical internet infrastructure. This involves significant investment in cybersecurity and infrastructure resilience to protect against potential threats. The company also focuses on maintaining strong relationships with ICANN and other key stakeholders to ensure the continuation of its agreements. Given the limited opportunities for organic growth in the core domain registration business, Verisign's strategy also includes returning capital to shareholders through share repurchases and, potentially, dividends.
The company's product pipeline is not characterized by the development of new, innovative products in the traditional sense. Instead, Verisign's focus is on enhancing the security and stability of its existing infrastructure and exploring potential new services related to domain name management and internet security. This includes initiatives to combat domain name abuse and improve the overall security of the DNS ecosystem. However, the company's reliance on a single core product (domain name registration) presents a strategic risk, as any disruption to this business could have a significant impact on its financial performance.
In the broader industry context, Verisign operates in a relatively concentrated market with high barriers to entry. The company's exclusive agreements with ICANN provide a significant competitive advantage, making it difficult for new players to enter the market. However, Verisign is subject to regulatory oversight and must comply with ICANN's policies and procedures. The company also faces competition from other domain name registries, but none have the same scale and market share as Verisign in the .com and .net domains.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
8.3%
Sector: 14.2%
-42% VS SCTR
Economic Moat Analysis
Verisign possesses a wide economic moat primarily due to its exclusive agreements with ICANN to operate the .com and .net domain registries. This creates a near-monopoly position, as these are the most widely recognized and used top-level domains globally. The moat is further reinforced by high switching costs for end-users. Changing a domain name involves significant disruption and potential loss of brand recognition, making it unlikely that businesses will switch away from .com or .net even if alternative options become available.
The network effect also contributes to Verisign's moat. As the most widely used domain names, .com and .net benefit from a strong network effect, with more users and businesses preferring these domains due to their familiarity and widespread recognition. This creates a virtuous cycle, where the dominance of .com and .net attracts even more users, further strengthening Verisign's competitive position. The intangible asset of brand recognition associated with .com and .net is also a significant advantage, as these domains are synonymous with the internet for many users.
While Verisign does not have significant cost advantages in the traditional sense, its efficient scale allows it to operate its infrastructure at a relatively low cost per domain name. The company has invested heavily in its infrastructure to ensure the stability and security of the DNS, and these investments provide a competitive advantage over potential new entrants who would need to replicate this infrastructure. The regulatory environment also creates a barrier to entry, as any new registry would need to obtain approval from ICANN, a process that is both complex and uncertain.
However, it's crucial to acknowledge that the width of Verisign's moat is not static. Regulatory risks, such as potential changes in ICANN's policies or the introduction of new top-level domains, could erode the company's competitive advantage. Additionally, the emergence of alternative technologies or platforms could reduce the importance of traditional domain names, although this is a longer-term risk. Despite these potential challenges, Verisign's current moat remains substantial, providing a significant barrier to entry and protecting its dominant market position.
Financial Health & Profitability
Verisign exhibits strong financial health, characterized by high margins and consistent profitability. The company's gross margin consistently hovers around 88%, reflecting the low cost of providing domain registry services. Operating margins are also exceptionally high, around 68%, indicating efficient cost management. These margins are significantly higher than the sector averages, which stand at 51.2% and -0.5% for gross and operating margins, respectively. The net margin of 50.6% further underscores Verisign's profitability, dwarfing the sector's negative average.
Revenue growth has been steady, albeit not spectacular, with an 8.3% increase in the most recent year. While this is lower than the sector's 14.0% growth rate, it reflects the mature nature of the domain registration market. The quarterly financial history shows consistent revenue growth, indicating a stable and predictable revenue stream. Net income has also remained strong, consistently above $780 million annually, demonstrating the company's ability to generate substantial profits from its core business.
Verisign's balance sheet presents a mixed picture. The company has a relatively low current ratio of 0.49, suggesting potential liquidity concerns. However, this is mitigated by the company's consistent cash flow generation and the predictable nature of its revenue stream. Total debt stands at $1.79 billion, which is significant but manageable given the company's strong EBITDA of $1.15 billion. The debt-to-equity ratio is negative (-87.00), which is unusual and likely due to accumulated retained earnings and share repurchases impacting the equity portion of the calculation. This should be interpreted with caution, as it doesn't necessarily indicate financial distress but rather a specific capital structure.
Free cash flow generation is a key strength for Verisign, with $349.67 million generated in the trailing twelve months. This cash flow provides the company with the flexibility to invest in its infrastructure, return capital to shareholders through share repurchases, and pursue potential acquisitions. The company's high return on equity (ROE) of -41.1% is misleading due to the negative equity value resulting from share repurchases. A more relevant metric would be return on invested capital (ROIC), which is likely to be significantly higher and more indicative of the company's profitability.
Valuation Assessment
Verisign's valuation presents a mixed picture. The company's price-to-earnings (P/E) ratio of 26.9x is lower than the sector average of 45.3x, suggesting that the stock may be undervalued relative to its peers. However, it's important to consider Verisign's slower growth rate compared to the broader technology sector. The EV/EBITDA multiple of 4.8x is also significantly lower than the sector average of 13.0x, further supporting the argument that the stock is undervalued based on earnings.
However, a more nuanced valuation approach is warranted. Verisign's unique business model and dominant market position justify a premium valuation compared to other companies with similar growth rates. The company's high margins, consistent cash flow generation, and wide economic moat should be factored into the valuation. A discounted cash flow (DCF) analysis, incorporating conservative growth assumptions and a reasonable discount rate, would provide a more accurate assessment of the company's intrinsic value.
Given the limited growth prospects, the valuation is heavily dependent on the company's capital allocation decisions. Share repurchases can provide a significant boost to earnings per share, but the effectiveness of this strategy depends on the price at which the shares are repurchased. Overpaying for shares would diminish the value created for shareholders. The company's ability to generate free cash flow is a key driver of its valuation, and any decline in cash flow would likely have a negative impact on the stock price.
Overall, the current valuation appears fair, but not compelling. The stock is not significantly undervalued, but it is also not excessively overvalued. The 'Hold' rating reflects this balanced view, suggesting that the stock is likely to provide reasonable returns in line with its growth rate and risk profile. Investors should closely monitor the company's financial performance and capital allocation decisions to assess the long-term investment potential.
Risk & Uncertainty
Verisign faces several specific risks that could impact its business and financial performance. The most significant risk is regulatory oversight. The company's agreements with ICANN are subject to renewal and modification, and any adverse changes to these agreements could have a material impact on its revenue and profitability. ICANN could potentially introduce new policies that limit Verisign's pricing power or allow for the introduction of competing registries.
Another risk is competition from alternative technologies. While traditional domain names remain the dominant form of internet navigation, the emergence of new technologies, such as blockchain-based domain names or decentralized web platforms, could potentially reduce the importance of .com and .net domains. This is a longer-term risk, but it is important to consider the potential for disruption in the internet infrastructure landscape.
Concentration risk is also a concern. Verisign's revenue is heavily concentrated in the .com and .net domain registries, making it vulnerable to any decline in demand for these domains. Economic downturns, changes in internet usage patterns, or the emergence of alternative top-level domains could all negatively impact the demand for .com and .net domains. The company's reliance on a single core product also increases its vulnerability to unforeseen events or disruptions.
Debt levels, while currently manageable, could become a concern if the company's financial performance deteriorates. High debt levels can limit the company's flexibility to invest in its business or return capital to shareholders. Additionally, the company's low current ratio raises some concerns about its short-term liquidity, although this is mitigated by its consistent cash flow generation.
Bulls Say / Bears Say
The Bull Case
BULL VIEWVerisign's near-monopoly on .com and .net domains provides a highly predictable and recurring revenue stream, making it a safe haven in uncertain economic times.
BULL VIEWThe company's consistent share repurchases enhance earnings per share and provide a steady tailwind for the stock price, rewarding patient investors.
BULL VIEWVerisign's strong balance sheet and free cash flow generation allow it to weather any potential regulatory challenges and continue to invest in its infrastructure.
The Bear Case
BEAR VIEWVerisign's limited growth prospects make it an unattractive investment in a rapidly evolving technology sector, offering little upside potential.
BEAR VIEWRegulatory risks pose a significant threat to Verisign's business model, as ICANN could potentially reduce its pricing power or introduce competing registries.
BEAR VIEWThe company's high debt levels and low current ratio raise concerns about its financial flexibility and ability to navigate potential economic downturns.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score VRSN and 4,400+ other equities.
VERISIGN INC/CA exhibits a 222% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
61.9%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
88.0%
Sector: 50.9%
Operating Margin
Core business profitability
68.2%
Sector: -0.5%
Net Margin
Bottom-line profitability
50.6%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $55 annually in dividends at the current trailing rate.
