Market Cap : 21.92 B | Enterprise Value : 22.71 B | PE Ratio : 27.84 | PB Ratio : |
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VeriSign has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Warning Sign:
VeriSign Inc displays poor financial strength. Usually, this is caused by too much debt for the company.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.VeriSign's Interest Coverage for the quarter that ended in Jun. 2022 was 12.49. VeriSign's debt to revenue ratio for the quarter that ended in Jun. 2022 was 1.27. As of today, VeriSign's Altman Z-Score is -5.00.
For the Software - Infrastructure subindustry, VeriSign's Financial Strength, along with its competitors' market caps and Financial Strength 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.
For the Software industry and Technology sector, VeriSign's Financial Strength distribution charts can be found below:
* The bar in red indicates where VeriSign's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
VeriSign's Interest Expense for the months ended in Jun. 2022 was $-19 Mil. Its Operating Income for the months ended in Jun. 2022 was $236 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,789 Mil.
VeriSign's Interest Coverage for the quarter that ended in Jun. 2022 is
Interest Coverage | = | -1 | * | Operating Income (Q: Jun. 2022 ) | / | Interest Expense (Q: Jun. 2022 ) |
= | -1 | * | 236 | / | -18.9 | |
= | 12.49 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
VeriSign's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is
Debt to Revenue Ratio | = | Total Debt (Q: Jun. 2022 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (0 | + | 1789) | / | 1407.6 | |
= | 1.27 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
VeriSign has a Z-score of -5.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -5 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
VeriSign has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.
Thank you for viewing the detailed overview of VeriSign's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Armstrong Courtney D | director | 12061 BLUEMONT WAY RESTON VA 20190 |
Buchalter Yehuda Ari | director | 12061 BLUEMONT WAY RESTON VA 20190 |
Strubbe Todd B | officer: EVP and COO | VERISIGN 12061 BLUEMONT WAY RESTON VA 20190 |
Kilguss George E Iii | officer: EVP and CFO | C/O VERISIGN, INC. 12061 BLUEMONT WAY RESTON VA 20190 |
Frist Thomas F Iii | director | 3100 WEST END AVENUE SUITE 1225 NASHVILLE TN 37203 |
Indelicarto Thomas C | officer: SVP, Gen Counsel & Secretary | 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190 |
Gorelick Jamie S | director | 12061 BLUEMONT WAY RESTON VA 20190 |
Berkshire Hathaway Inc | 10 percent owner | 3555 FARNAM STREET OMAHA NE 68131 |
Buffett Warren E | 10 percent owner | 3555 FARNAM ST STE 1440 OMAHA NE 68131 |
Calys John | officer: VP, Interim CFO | 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190 |
Kane Patrick S | officer: Senior Vice President | 12061 BLUEMONT WAY ATTN: OFFICE OF GENERAL COUNSEL RESTON VA 20190 |
Brennan Christine | officer: SVP Global HR | 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166 |
Robins Brian G | officer: ACTING CHIEF FINANCIAL OFFICER | 21355 RIDGETOP CIRCLE ATTN: GENERAL COUNSEL DULLES VA 20166 |
Cote Kathleen A | director | 12061 BLUEMONT WAY RESTON VA 20190 |
Tomlinson Timothy | director | 12061 BLUEMONT WAY ATTN: GENERAL COUNSEL RESTON VA 20190 |
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