Verisign
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 2/2
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Owner earnings | $834.10m | positive | ✓ |
| Return on equity | — | median 11.7% | — |
| Debt to equity | — | median 0.79x | — |
| Operating margin | 67.7% | median 15.0% | ✓ |
Passes 2 of 2. To be clear: Warren Buffett has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 1/2
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Cash conversion | 1.32x | median 1.78x | ✗ |
| Operating margin | 67.7% | median 15.0% | ✓ |
| Debt to equity | — | median 0.79x | — |
Passes 1 of 2. To be clear: Terry Smith has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 1/1
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Return on capital employed | — | median 10.1% | — |
| Return on equity | — | median 11.7% | — |
| Operating margin | 67.7% | median 15.0% | ✓ |
Passes 1 of 1. To be clear: Charlie Munger has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 0/1
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Return on equity | — | median 11.7% | — |
| Debt to equity | — | median 0.79x | — |
| Cash conversion | 1.32x | median 1.78x | ✗ |
Passes 0 of 1. To be clear: Chuck Akre has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 3/3
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Operating margin | 67.7% | median 15.0% | ✓ |
| Net margin | 49.8% | median 10.2% | ✓ |
| Return on capital employed | — | median 10.1% | — |
| Operating margin, held or improving | 67.7% | 10-yr median 65.3% | ✓ |
Passes 3 of 3. To be clear: Philip Fisher has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 0/1
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Current ratio | 0.49x | median 1.25x | ✗ |
| Debt to equity | — | median 0.79x | — |
Passes 0 of 1. To be clear: Walter Schloss has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/2
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Current ratio | 0.49x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 2. To be clear: Benjamin Graham has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/1
| Measure | VRSN | Checked against | |
|---|---|---|---|
| Debt to equity | — | median 0.79x | — |
| Net margin | 49.8% | median 10.2% | ✓ |
Passes 1 of 1. To be clear: Peter Lynch has never said anything about Verisign. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 26.2% | whyThe figure most screeners publish. |
| Operating cash flow | 19.7% | whyBefore capital spending. |
| Free cash flow | 20.1% | whyAfter maintaining the business. |
Spread between highest and lowest: 6.5 percentage points. Same filings, different denominators.
Coverage rating 63 / 100 — Adequate. ? Peer standing 33/50Direction 30/30Stability 0/20
Free cash flow payout, last 4 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 20.1% |
| 2012-12-31 | 95.6% |
| 2011-12-31 | 323.6% |
| 2010-12-31 | 384.8% |
Coverage has improved three years running, 384.8% to 20.1%.
67% of the 42 technology here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $2.31 ÷ diluted EPS $8.81
- Operating cash flow — dividends paid $215m ÷ operating cash flow $1,091m
- Free cash flow — dividends paid $215m ÷ (operating cash flow $1,091m − capex $22.8m)
Where the figures came from
- 10-K filed 2026-02-05 · accession 0001014473-26-000006
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Verisign files. The monthly letter carries what filed, what moved, and one finding computed across every company here.