VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD
VRSK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 80 industry peers in the Professional Services industry. While VRSK has a great profitability rating, there are some minor concerns on its financial health. VRSK is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VRSK was profitable.
In the past year VRSK had a positive cash flow from operations.
VRSK had positive earnings in each of the past 5 years.
In the past 5 years VRSK always reported a positive cash flow from operatings.
1.2 Ratios
VRSK has a better Return On Assets (22.47%) than 93.75% of its industry peers.
VRSK has a better Return On Equity (957.24%) than 98.75% of its industry peers.
With an excellent Return On Invested Capital value of 31.54%, VRSK belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRSK is significantly above the industry average of 13.48%.
The last Return On Invested Capital (31.54%) for VRSK is above the 3 year average (26.20%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.47% | ||
| ROE | 957.24% | ||
| ROIC | 31.54% |
ROA(3y)16.75%
ROA(5y)13.64%
ROE(3y)403.34%
ROE(5y)252.02%
ROIC(3y)26.2%
ROIC(5y)20.62%
1.3 Margins
The Profit Margin of VRSK (33.25%) is better than 98.75% of its industry peers.
In the last couple of years the Profit Margin of VRSK has grown nicely.
The Operating Margin of VRSK (43.52%) is better than 100.00% of its industry peers.
VRSK's Operating Margin has improved in the last couple of years.
The Gross Margin of VRSK (68.73%) is better than 82.50% of its industry peers.
VRSK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.52% | ||
| PM (TTM) | 33.25% | ||
| GM | 68.73% |
OM growth 3Y5.55%
OM growth 5Y9.03%
PM growth 3Y7.12%
PM growth 5Y14.02%
GM growth 3Y1.7%
GM growth 5Y1.91%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRSK is creating value.
Compared to 1 year ago, VRSK has less shares outstanding
Compared to 5 years ago, VRSK has less shares outstanding
The debt/assets ratio for VRSK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 9.98 indicates that VRSK is not in any danger for bankruptcy at the moment.
The Altman-Z score of VRSK (9.98) is better than 98.75% of its industry peers.
VRSK has a debt to FCF ratio of 3.33. This is a good value and a sign of high solvency as VRSK would need 3.33 years to pay back of all of its debts.
VRSK's Debt to FCF ratio of 3.33 is fine compared to the rest of the industry. VRSK outperforms 61.25% of its industry peers.
A Debt/Equity ratio of 25.44 is on the high side and indicates that VRSK has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 25.44, VRSK is doing worse than 95.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.44 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 9.98 |
ROIC/WACC3.6
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
VRSK has a worse Current ratio (0.74) than 87.50% of its industry peers.
A Quick Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
The Quick ratio of VRSK (0.74) is worse than 86.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.26% over the past year.
The Earnings Per Share has been growing by 8.71% on average over the past years. This is quite good.
Looking at the last year, VRSK shows a small growth in Revenue. The Revenue has grown by 7.47% in the last year.
Measured over the past years, VRSK shows a small growth in Revenue. The Revenue has been growing by 2.02% on average per year.
EPS 1Y (TTM)16.26%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%15%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%8.62%
3.2 Future
Based on estimates for the next years, VRSK will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.68% on average per year.
VRSK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.89% yearly.
EPS Next Y12.12%
EPS Next 2Y11.66%
EPS Next 3Y12.88%
EPS Next 5Y13.68%
Revenue Next Year6.64%
Revenue Next 2Y6.94%
Revenue Next 3Y7.07%
Revenue Next 5Y8.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 45.18, which means the current valuation is very expensive for VRSK.
VRSK's Price/Earnings ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 72.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, VRSK is valued quite expensively.
A Price/Forward Earnings ratio of 40.30 indicates a quite expensive valuation of VRSK.
66.25% of the companies in the same industry are cheaper than VRSK, based on the Price/Forward Earnings ratio.
VRSK's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.18 | ||
| Fwd PE | 40.3 |
4.2 Price Multiples
66.25% of the companies in the same industry are cheaper than VRSK, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, VRSK is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.81 | ||
| EV/EBITDA | 28.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VRSK may justify a higher PE ratio.
A more expensive valuation may be justified as VRSK's earnings are expected to grow with 12.88% in the coming years.
PEG (NY)3.73
PEG (5Y)5.19
EPS Next 2Y11.66%
EPS Next 3Y12.88%
5. Dividend
5.1 Amount
VRSK has a yearly dividend return of 0.61%, which is pretty low.
VRSK's Dividend Yield is a higher than the industry average which is at 1.97.
With a Dividend Yield of 0.61, VRSK pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of VRSK grows each year by 9.31%, which is quite nice.
VRSK has been paying a dividend for over 5 years, so it has already some track record.
As VRSK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
VRSK pays out 23.10% of its income as dividend. This is a sustainable payout ratio.
VRSK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.1%
EPS Next 2Y11.66%
EPS Next 3Y12.88%
300.48
+5.12 (+1.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change1.36%
Ins Owners0.22%
Ins Owner Change0.54%
Market Cap42.15B
Analysts75
Price Target302 (0.51%)
Short Float %1.75%
Short Ratio3.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend1.56
Dividend Growth(5Y)9.31%
DP23.1%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.47%
Min EPS beat(2)-1.16%
Max EPS beat(2)2.11%
EPS beat(4)3
Avg EPS beat(4)2.39%
Min EPS beat(4)-1.16%
Max EPS beat(4)4.69%
EPS beat(8)6
Avg EPS beat(8)2.2%
EPS beat(12)8
Avg EPS beat(12)2.89%
EPS beat(16)10
Avg EPS beat(16)1.47%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-1.7%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-1.26%
Revenue beat(8)3
Avg Revenue beat(8)-0.79%
Revenue beat(12)3
Avg Revenue beat(12)-6.39%
Revenue beat(16)3
Avg Revenue beat(16)-9.48%
PT rev (1m)2.21%
PT rev (3m)2.22%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.91%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0.23%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.22%
Revenue NY rev (1m)-0.76%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.18 | ||
| Fwd PE | 40.3 | ||
| P/S | 14.63 | ||
| P/FCF | 45.81 | ||
| P/OCF | 36.85 | ||
| P/B | 421.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.79 |
EPS(TTM)6.65
EY2.21%
EPS(NY)7.46
Fwd EY2.48%
FCF(TTM)6.56
FCFY2.18%
OCF(TTM)8.16
OCFY2.71%
SpS20.54
BVpS0.71
TBVpS-14.39
PEG (NY)3.73
PEG (5Y)5.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.47% | ||
| ROE | 957.24% | ||
| ROCE | 41.45% | ||
| ROIC | 31.54% | ||
| ROICexc | 34.9% | ||
| ROICexgc | 155.03% | ||
| OM | 43.52% | ||
| PM (TTM) | 33.25% | ||
| GM | 68.73% | ||
| FCFM | 31.93% |
ROA(3y)16.75%
ROA(5y)13.64%
ROE(3y)403.34%
ROE(5y)252.02%
ROIC(3y)26.2%
ROIC(5y)20.62%
ROICexc(3y)28.25%
ROICexc(5y)22.06%
ROICexgc(3y)94.02%
ROICexgc(5y)202.88%
ROCE(3y)34.43%
ROCE(5y)27.1%
ROICexcg growth 3Y-34.19%
ROICexcg growth 5Y-20.39%
ROICexc growth 3Y41.96%
ROICexc growth 5Y27.35%
OM growth 3Y5.55%
OM growth 5Y9.03%
PM growth 3Y7.12%
PM growth 5Y14.02%
GM growth 3Y1.7%
GM growth 5Y1.91%
F-Score8
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.44 | ||
| Debt/FCF | 3.33 | ||
| Debt/EBITDA | 1.63 | ||
| Cap/Depr | 73.19% | ||
| Cap/Sales | 7.77% | ||
| Interest Coverage | 9.53 | ||
| Cash Conversion | 73.33% | ||
| Profit Quality | 96.02% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 9.98 |
F-Score8
WACC8.75%
ROIC/WACC3.6
Cap/Depr(3y)78.57%
Cap/Depr(5y)74.92%
Cap/Sales(3y)9.12%
Cap/Sales(5y)9.42%
Profit Quality(3y)104.47%
Profit Quality(5y)112.38%
High Growth Momentum
Growth
EPS 1Y (TTM)16.26%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%15%
EPS Next Y12.12%
EPS Next 2Y11.66%
EPS Next 3Y12.88%
EPS Next 5Y13.68%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%8.62%
Revenue Next Year6.64%
Revenue Next 2Y6.94%
Revenue Next 3Y7.07%
Revenue Next 5Y8.89%
EBIT growth 1Y10.58%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.8%
EBIT Next 3Y17.11%
EBIT Next 5Y14.32%
FCF growth 1Y10.76%
FCF growth 3Y1.22%
FCF growth 5Y4.48%
OCF growth 1Y7.85%
OCF growth 3Y-0.34%
OCF growth 5Y3.66%