VRSN - VeriSign: Hasn't Been This Cheap Since 2018
2024-05-22 14:12:14 ET
Summary
- VeriSign, a domain name registry services provider, has consistently high free cash flow margins and growing revenues for 16 years.
- Investor interest in VeriSign is low due to the focus on tech companies investing in AI and the perception of VeriSign's steady but not exciting revenue growth.
- VeriSign's competitive advantage lies in its management of globally recognized domains like .com, which grants trust and allows companies to operate in multiple markets.
How much would you be willing to pay a company with a free cash flow margin consistently above 50% and growing revenues for 16 years in a row? Probably a lot. What if I told you that the company in question has an NTM Market Cap / Free Cash Flow of only 18.65x? As you may have already guessed, this brief sketch refers to VeriSign ( VRSN ), a well-known provider of domain name registry services....
VeriSign: Hasn't Been This Cheap Since 2018