VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to VRSK. VRSK was compared to 82 industry peers in the Professional Services industry. While VRSK belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. VRSK is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
VRSK had positive earnings in the past year.
VRSK had a positive operating cash flow in the past year.
VRSK had positive earnings in each of the past 5 years.
VRSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRSK has a Return On Assets of 18.96%. This is amongst the best in the industry. VRSK outperforms 95.12% of its industry peers.
With an excellent Return On Equity value of 789.35%, VRSK belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 26.11%, VRSK belongs to the top of the industry, outperforming 97.56% 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 12.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.96% | ||
| ROE | 789.35% | ||
| ROIC | 26.11% |
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
Looking at the Profit Margin, with a value of 33.13%, VRSK belongs to the top of the industry, outperforming 98.78% of the companies in the same industry.
VRSK's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 43.59%, VRSK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of VRSK has grown nicely.
VRSK has a better Gross Margin (69.15%) than 85.37% of its industry peers.
In the last couple of years the Gross Margin of VRSK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.59% | ||
| PM (TTM) | 33.13% | ||
| GM | 69.15% |
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
VRSK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for VRSK has been reduced compared to 1 year ago.
The number of shares outstanding for VRSK has been reduced compared to 5 years ago.
VRSK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.66 indicates that VRSK is not in any danger for bankruptcy at the moment.
VRSK's Altman-Z score of 8.66 is amongst the best of the industry. VRSK outperforms 91.46% of its industry peers.
The Debt to FCF ratio of VRSK is 3.77, which is a good value as it means it would take VRSK, 3.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.77, VRSK is in line with its industry, outperforming 58.54% of the companies in the same industry.
VRSK has a Debt/Equity ratio of 26.30. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 26.30, VRSK is doing worse than 92.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.3 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 8.66 |
ROIC/WACC3.02
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.27 indicates that VRSK should not have too much problems paying its short term obligations.
The Current ratio of VRSK (1.27) is comparable to the rest of the industry.
VRSK has a Quick Ratio of 1.27. This is a normal value and indicates that VRSK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VRSK (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.39% over the past year.
Measured over the past years, VRSK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.71% on average per year.
VRSK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
VRSK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.02% yearly.
EPS 1Y (TTM)11.39%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%6.13%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
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 11.98% on average per year.
VRSK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y8.05%
EPS Next 2Y10.02%
EPS Next 3Y10.59%
EPS Next 5Y11.98%
Revenue Next Year6.88%
Revenue Next 2Y7.05%
Revenue Next 3Y7.11%
Revenue Next 5Y7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 45.65, the valuation of VRSK can be described as expensive.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 68.29% of the companies are valued more cheaply.
VRSK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.29.
With a Price/Forward Earnings ratio of 38.29, VRSK can be considered very expensive at the moment.
64.63% of the companies in the same industry are cheaper than VRSK, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of VRSK to the average of the S&P500 Index (21.74), we can say VRSK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.65 | ||
| Fwd PE | 38.29 |
4.2 Price Multiples
65.85% of the companies in the same industry are cheaper than VRSK, based on the Enterprise Value to EBITDA ratio.
VRSK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.36 | ||
| EV/EBITDA | 28.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates VRSK does not grow enough to justify the current Price/Earnings ratio.
VRSK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.67
PEG (5Y)5.24
EPS Next 2Y10.02%
EPS Next 3Y10.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, VRSK is not a good candidate for dividend investing.
VRSK's Dividend Yield is a higher than the industry average which is at 2.06.
With a Dividend Yield of 0.59, VRSK pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of VRSK is nicely growing with an annual growth rate of 9.31%!
VRSK has been paying a dividend for over 5 years, so it has already some track record.
VRSK has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
VRSK pays out 23.53% 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.
DP23.53%
EPS Next 2Y10.02%
EPS Next 3Y10.59%
308.17
+4.11 (+1.35%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.14%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change1.67%
Market Cap43.11B
Analysts72.8
Price Target315 (2.22%)
Short Float %2.03%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.56
Dividend Growth(5Y)9.31%
DP23.53%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-1.16%
Max EPS beat(2)0.77%
EPS beat(4)3
Avg EPS beat(4)1.41%
Min EPS beat(4)-1.16%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)1.51%
EPS beat(12)9
Avg EPS beat(12)3.41%
EPS beat(16)11
Avg EPS beat(16)1.74%
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)-1.88%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-1.54%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-6.36%
Revenue beat(16)3
Avg Revenue beat(16)-9.46%
PT rev (1m)4.21%
PT rev (3m)3.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.63%
EPS NY rev (1m)0.25%
EPS NY rev (3m)0.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.65 | ||
| Fwd PE | 38.29 | ||
| P/S | 14.71 | ||
| P/FCF | 43.36 | ||
| P/OCF | 35.44 | ||
| P/B | 350.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.76 |
EPS(TTM)6.75
EY2.19%
EPS(NY)8.05
Fwd EY2.61%
FCF(TTM)7.11
FCFY2.31%
OCF(TTM)8.7
OCFY2.82%
SpS20.95
BVpS0.88
TBVpS-14.35
PEG (NY)5.67
PEG (5Y)5.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.96% | ||
| ROE | 789.35% | ||
| ROCE | 34.31% | ||
| ROIC | 26.11% | ||
| ROICexc | 37.22% | ||
| ROICexgc | 201.86% | ||
| OM | 43.59% | ||
| PM (TTM) | 33.13% | ||
| GM | 69.15% | ||
| FCFM | 33.92% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.3 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 7.59% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 76.47% | ||
| Profit Quality | 102.39% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 8.66 |
F-Score8
WACC8.64%
ROIC/WACC3.02
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)11.39%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%6.13%
EPS Next Y8.05%
EPS Next 2Y10.02%
EPS Next 3Y10.59%
EPS Next 5Y11.98%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
Revenue Next Year6.88%
Revenue Next 2Y7.05%
Revenue Next 3Y7.11%
Revenue Next 5Y7%
EBIT growth 1Y11.43%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.88%
EBIT Next 3Y16.77%
EBIT Next 5Y13.35%
FCF growth 1Y32.76%
FCF growth 3Y1.22%
FCF growth 5Y4.48%
OCF growth 1Y18.72%
OCF growth 3Y-0.34%
OCF growth 5Y3.66%