top of page
Search

Verisign: A new world staple that we want to own

  • Writer: Abacus Research
    Abacus Research
  • Aug 21, 2019
  • 1 min read

Verisign is a monopoly compounder that is just about to have pricing power, after having none for the last 8 years. Incremental operating margins are ~85%, both on volume and price growth.

The business is relatively simple and has similar characteristics to AMT, CCI in terms of certainty of growth, and almost all costs are fixed. 

We think the market is missing the longevity of price increases, the power of compounding 5% price increases, and how low the risk to FCF growth is.


Potential Upside: $285 (+37%)

Sensible Downside: $171 (-17%), based on 1% volume growth, 8% cost of capital.


 
 
 

Recent Posts

See All
Axon:

Axon is shifting from selling individual tools to providing an interconnected ecosystem. Hardware like TASERs and cameras now act as "data generators" that feed directly into high-margin software modu

 
 
 
C.H. Robinson

CHRW has been going through significant change, They are retaking market share. The new CEO has transformed the company by bringing in a lean / AI, that has helped CHRW to grow earnings despite strugg

 
 
 
Brookfield (BN):

We initially wrote up BN in Jan 2024, it has increased 70%, so why mention it again? Firstly, we think the fundamentals are as good now as they were 2 yrs ago, with a >15% IRR on offer. BN is not a we

 
 
 

Comments

bottom of page