Is Verisign Stock Halal?
Table of Contents
How much of Verisign’s revenue comes from haram?
Verisign provides domain name registration and internet infrastructure services that enable internet navigation.
In addition, Verisign provides web security services.
Practical Islamic Finance concludes:
None of Verisign’s revenue comes from anything inherently haram.
Does Verisign rely on interest to operate?
| Year to Date for the period ending March 31, 2021 | Fiscal year ended December 31, 2020 | Fiscal year ended December 31, 2019 | |
|---|---|---|---|
| Interest Income | $216 | $7,815 | $26,596 |
| Total Revenue | $323,621 | $1,265,000 | $1,231,661 |
| Interest Expense | $22,534 | $90,144 | $90,611 |
| Total Expenses | $113,214 | $440,851 | $425,534 |
| Interest Income / Revenue | 0.07% | 0.62% | 2.16% |
| Interest Expense / Total Expense | 19.90% | 20.45% | 21.29% |
Practical Islamic Finance concludes:
From the consistently elevated levels of Interest Expense / Total Expense, Riba is relied upon in Verisign’s operations.
What is Verisign Environmental, Social, and Governance (ESG) impact?
Environment
No notable environmental highlights.
Social
According to Verisign, in 2020, the company made $3.5 million in charitable contributions.
In addition, Verisign doubled the maximum contribution limit the company will match employee donations in 2020.
Verisign has a high Glassdoor rating of 4.0 out of 5.0 from over 300 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.
Governance
No notable governance highlights.
Practical Islamic Finance concludes:
Verisign has a net positive ESG impact.
Comfort Rating
From Verisign’s business, financial, and ESG reviews, Practical Islamic Finance rates Verisign stock as:
Uncomfortable to invest in from a Halal perspective.
Justification for Our Rating
Verisign’s consistent elevated use of interest to run its operations suggest a systemic reliance on interest which causes Practical Islamic Finance to be uncomfortable investing in it.
Sources
ESG Highlights | VeriSign, Inc.
VERISIGN, INC. FORM 10-Q Q1 2021
VERISIGN, INC. FORM 10-K 2019