VeriSign (BUE:VRSN) Beneish M-Score

: -1.94 (As of Today)

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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.94 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for VeriSign's Beneish M-Score or its related term are showing as below:

BUE:VRSN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71 Med: -2.69 Max: -1.83
Current: -1.94

During the past 13 years, the highest Beneish M-Score of VeriSign was -1.83. The lowest was -3.71. And the median was -2.69.

VeriSign Beneish M-Score Historical Data

The historical data trend for VeriSign's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

VeriSign Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.31

-2.78

-1.83

-3.22

-1.94

VeriSign Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-3.22	-3.84	-3.26	-3.42	-1.94

Competitive Comparison

For the Software - Infrastructure subindustry, VeriSign's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

VeriSign Beneish M-Score Distribution

For the Software industry and Technology sector, VeriSign's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where VeriSign's Beneish M-Score falls into.

VeriSign Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of VeriSign for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.6055

0.528 * 0.9895

0.404 * 1.1316

0.892 * 2.2518

0.115 * 1.0697

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9981

4.679 * -0.009163

0.327 * 1.0165

-0.80

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was ARS4,910 Mil.
Revenue was 137324.4 + 131686.189 + 89279.999 + 71987.222 = ARS430,278 Mil.
Gross Profit was 119815.9 + 114678.618 + 77207.999 + 62129.476 = ARS373,832 Mil.
Total Current Assets was ARS356,776 Mil.
Total Assets was ARS631,389 Mil.
Property, Plant and Equipment(Net PPE) was ARS86,857 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS12,537 Mil.
Selling, General, & Admin. Expense(SGA) was ARS58,989 Mil.
Total Current Liabilities was ARS429,049 Mil.
Long-Term Debt & Capital Lease Obligation was ARS647,056 Mil.
Net Income was 95556.7 + 65965.577 + 44568 + 35302.186 = ARS241,392 Mil.
Non Operating Income was 649.8 + 524.925 + 288 + 118.53 = ARS1,581 Mil.
Cash Flow from Operations was 73716.2 + 85842.737 + 34872 + 51165.451 = ARS245,596 Mil.

Total Receivables was ARS1,358 Mil.
Revenue was 61896.378 + 49591.254 + 42344.128 + 37247.366 = ARS191,079 Mil.
Gross Profit was 53430.054 + 42643.754 + 36387.793 + 31803.603 = ARS164,265 Mil.
Total Current Assets was ARS174,138 Mil.
Total Assets was ARS290,605 Mil.
Property, Plant and Equipment(Net PPE) was ARS40,102 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS6,255 Mil.
Selling, General, & Admin. Expense(SGA) was ARS26,245 Mil.
Total Current Liabilities was ARS187,248 Mil.
Long-Term Debt & Capital Lease Obligation was ARS300,010 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(4909.6 / 430277.81)	/	(1357.965 / 191079.126)
	=	0.01141	/	0.007107
	=	1.6055

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(164265.204 / 191079.126)	/	(373831.993 / 430277.81)
	=	0.859671	/	0.868815
	=	0.9895

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (356776.3 + 86856.6) / 631389.001)	/	(1 - (174138.05 + 40101.879) / 290604.502)
	=	0.29737	/	0.262778
	=	1.1316

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	430277.81	/	191079.126
	=	2.2518

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(6255.189 / (6255.189 + 40101.879))	/	(12537.44 / (12537.44 + 86856.6))
	=	0.134935	/	0.126139
	=	1.0697

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(58989.065 / 430277.81)	/	(26244.708 / 191079.126)
	=	0.137095	/	0.13735
	=	0.9981

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((647056.401 + 429048.5) / 631389.001)	/	((300009.667 + 187248.28) / 290604.502)
	=	1.704345	/	1.676705
	=	1.0165

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(241392.463 - 1581.255	-	245596.388)	/	631389.001
	=	-0.009163

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

VeriSign has a M-score of -0.80 signals that the company is likely to be a manipulator.

VeriSign Beneish M-Score Related Terms

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VeriSign (BUE:VRSN) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

VRSN:USA VRSN:Mexico VRS:Germany VRSN34:Brazil

Address

12061 Bluemont Way, Reston, VA, USA, 20190

Website

https://www.verisign.com

Verisign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. The company operates critical internet infrastructure to support the domain name system, including operating two of the world's 13 root servers that are used to route internet traffic. In 2018, the firm sold off its Security Services business, signalling a renewed focus on the core registry business.