Provide domain name registry services for .com and .net domains. Ensure the security, stability, and resiliency of internet infrastructure. Now — the numbers.
This is an established company with proven profits.
Average growth of 6% a year over the last 4 years. Every year shown ended in profit.
The gap is $1.2B. In times of high interest rates, a gap like that can squeeze a company.
Executive selling isn’t always bad news; people sell for personal reasons too. Still, the thin buying side is worth noting.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Profit power and business quality lead the class.
A solid grade overall — yet the debt outweighs the cash. The strength here comes from earnings power.
Clearly below the class average.
This grade is a blend: the profit side is strong, the sales tempo slow.
Clearly above the class average — a step short of the very top.
Valuation: The stock trades at a price that looks expensive next to its earnings; that can cap future returns.
The stock trades near its peak today. For long-term holders the ride has paid off so far — though past performance guarantees nothing about the future.
The net profit margin is 50% — still a thick cushion, though costs have been eating into it lately.
It pays out $3.20 per share each year — regular cash for whoever holds the stock.
The company’s market value is 32 times its annual profit. Even a small disappointment could hit the price hard.
Over the last 12 months, executives reported 258 sells against just 22 buys. Not an alarm bell by itself, but a number worth watching.
On our five-subject report card, VRSN sits behind the class. A low grade doesn’t mean “doomed” — it means “big claim, small proof.”
The takeaway: VRSN does earn real profits — but on our report card it still sits behind its class. The real debate isn’t the quality of the business — it’s whether the price paid for the stock is too high.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.
Analysts’ average target sits above today’s price, yet the valuation grade (44/100) says the stock isn’t cheap.
Not covered, because the filings we hold do not carry it: the revenue breakdown.