VERISK ANALYTICS INC (VRSK)
US92345Y1064 - Common Stock
We assign a fundamental rating of 6 out of 10 to VRSK. VRSK was compared to 81 industry peers in the Professional Services industry. VRSK has an excellent profitability rating, but 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.
In the past year VRSK had a positive cash flow from operations.
In the past 5 years VRSK has always been profitable.
Each year in the past 5 years VRSK had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.20%, VRSK belongs to the best of the industry, outperforming 96.10% of the companies in the same industry.
With an excellent Return On Equity value of 307.68%, VRSK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 28.98%, VRSK belongs to the best of the industry, outperforming 96.10% 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 12.35%.
The last Return On Invested Capital (28.98%) for VRSK is above the 3 year average (20.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.2% | ||
| ROE | 307.68% | ||
| ROIC | 28.98% |
ROA(3y)12.1%
ROA(5y)10.42%
ROE(3y)92.15%
ROE(5y)64.55%
ROIC(3y)20.23%
ROIC(5y)16.88%
1.3 Margins
VRSK's Profit Margin of 32.65% is amongst the best of the industry. VRSK outperforms 98.70% of its industry peers.
In the last couple of years the Profit Margin of VRSK has declined.
The Operating Margin of VRSK (42.11%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of VRSK has grown nicely.
VRSK has a Gross Margin of 68.24%. This is in the better half of the industry: VRSK outperforms 77.92% of its industry peers.
VRSK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.11% | ||
| PM (TTM) | 32.65% | ||
| GM | 68.24% |
OM growth 3Y4.3%
OM growth 5Y3.96%
PM growth 3Y-3.61%
PM growth 5Y-1.72%
GM growth 3Y1.53%
GM growth 5Y1.33%
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.
VRSK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, VRSK has less shares outstanding
Compared to 1 year ago, VRSK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 9.21 indicates that VRSK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.21, VRSK belongs to the best of the industry, outperforming 94.81% of the companies in the same industry.
The Debt to FCF ratio of VRSK is 3.34, which is a good value as it means it would take VRSK, 3.34 years of fcf income to pay off all of its debts.
VRSK's Debt to FCF ratio of 3.34 is fine compared to the rest of the industry. VRSK outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 8.50 is on the high side and indicates that VRSK has dependencies on debt financing.
VRSK has a worse Debt to Equity ratio (8.50) than 94.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 9.21 |
ROIC/WACC3.39
WACC8.55%
2.3 Liquidity
VRSK has a Current Ratio of 0.82. This is a bad value and indicates that VRSK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of VRSK (0.82) is worse than 87.01% of its industry peers.
A Quick Ratio of 0.82 indicates that VRSK may have some problems paying its short term obligations.
VRSK has a worse Quick ratio (0.82) than 87.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.00% over the past year.
VRSK shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.78% yearly.
Looking at the last year, VRSK shows a very strong growth in Revenue. The Revenue has grown by 26.37%.
The Revenue has been growing slightly by 2.28% on average over the past years.
EPS 1Y (TTM)12%
EPS 3Y4.24%
EPS 5Y6.78%
EPS Q2Q%9.87%
Revenue 1Y (TTM)26.37%
Revenue growth 3Y-1.25%
Revenue growth 5Y2.28%
Sales Q2Q%7.04%
3.2 Future
VRSK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.57% yearly.
Based on estimates for the next years, VRSK will show a quite strong growth in Revenue. The Revenue will grow by 8.85% on average per year.
EPS Next Y17.75%
EPS Next 2Y14.04%
EPS Next 3Y13.11%
EPS Next 5Y14.57%
Revenue Next Year7.54%
Revenue Next 2Y7.53%
Revenue Next 3Y7.46%
Revenue Next 5Y8.85%
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
VRSK is valuated quite expensively with a Price/Earnings ratio of 44.13.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 74.03% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 28.65, VRSK is valued quite expensively.
With a Price/Forward Earnings ratio of 38.20, VRSK can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRSK to the average of the S&P500 Index (23.56), we can say VRSK is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 38.2 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 68.83% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as VRSK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.8 | ||
| EV/EBITDA | 28.41 |
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.
VRSK's earnings are expected to grow with 13.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)6.51
EPS Next 2Y14.04%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, VRSK is not a good candidate for dividend investing.
VRSK's Dividend Yield is a higher than the industry average which is at 1.81.
Compared to an average S&P500 Dividend Yield of 2.23, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of VRSK grows each year by 7.43%, which is quite nice.
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 last 3 years.
Dividend Growth(5Y)7.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
VRSK pays out 23.38% 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.
DP23.38%
EPS Next 2Y14.04%
EPS Next 3Y13.11%
VERISK ANALYTICS INC
NASDAQ:VRSK (11/20/2024, 8:00:02 PM)
Premarket: 286.09 +1.89 (+0.67%)284.2
+2.56 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
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Market Cap40.13B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.13 | ||
| Fwd PE | 38.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.49
PEG (5Y)6.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.2% | ||
| ROE | 307.68% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.11% | ||
| PM (TTM) | 32.65% | ||
| GM | 68.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y4.24%
EPS 5Y
EPS Q2Q%
EPS Next Y17.75%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.37%
Revenue growth 3Y-1.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y