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VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis

NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD

291.77  +2.57 (+0.89%)

Fundamental Rating

6

Overall VRSK gets a fundamental rating of 6 out of 10. We evaluated VRSK against 82 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 quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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9

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.
In the past 5 years VRSK has always been profitable.
VRSK had a positive operating cash flow in each of the past 5 years.
VRSK Yearly Net Income VS EBIT VS OCF VS FCFVRSK Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B

1.2 Ratios

Looking at the Return On Assets, with a value of 20.20%, VRSK belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
VRSK has a better Return On Equity (307.68%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 28.98%, VRSK belongs to the top of the industry, outperforming 94.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRSK is significantly above the industry average of 13.77%.
The 3 year average ROIC (20.23%) for VRSK is below the current ROIC(28.98%), indicating increased profibility in the last year.
Industry RankSector 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%
VRSK Yearly ROA, ROE, ROICVRSK Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 50 100 150

1.3 Margins

VRSK has a Profit Margin of 32.65%. This is amongst the best in the industry. VRSK outperforms 98.73% 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.
VRSK's Operating Margin has improved in the last couple of years.
VRSK has a Gross Margin of 68.24%. This is in the better half of the industry: VRSK outperforms 78.48% of its industry peers.
In the last couple of years the Gross Margin of VRSK has remained more or less at the same level.
Industry RankSector 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%
VRSK Yearly Profit, Operating, Gross MarginsVRSK Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 20 40 60

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5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRSK is creating value.
Compared to 1 year ago, VRSK has less shares outstanding
Compared to 5 years ago, VRSK has less shares outstanding
VRSK has a worse debt/assets ratio than last year.
VRSK Yearly Shares OutstandingVRSK Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M
VRSK Yearly Total Debt VS Total AssetsVRSK Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

VRSK has an Altman-Z score of 9.31. This indicates that VRSK is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.31, VRSK belongs to the top of the industry, outperforming 97.47% 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 62.03% of its industry peers.
VRSK has a Debt/Equity ratio of 8.50. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 8.50, VRSK is doing worse than 93.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 8.5
Debt/FCF 3.34
Altman-Z 9.31
ROIC/WACC3.2
WACC9.06%
VRSK Yearly LT Debt VS Equity VS FCFVRSK Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 0.82 indicates that VRSK may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.82, VRSK is doing worse than 86.08% of the companies in the same industry.
VRSK has a Quick 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.
VRSK has a Quick ratio of 0.82. This is amonst the worse of the industry: VRSK underperforms 84.81% of its industry peers.
Industry RankSector Rank
Current Ratio 0.82
Quick Ratio 0.82
VRSK Yearly Current Assets VS Current LiabilitesVRSK Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

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6

3. Growth

3.1 Past

VRSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.00%, which is quite good.
Measured over the past 5 years, VRSK shows a small growth in Earnings Per Share. The EPS has been growing by 6.78% on average per year.
The Revenue has grown by 26.37% in the past year. This is a very strong growth!
VRSK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.28% yearly.
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

Based on estimates for the next years, VRSK will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.49% on average per year.
Based on estimates for the next years, VRSK will show a quite strong growth in Revenue. The Revenue will grow by 8.69% on average per year.
EPS Next Y18.26%
EPS Next 2Y14.24%
EPS Next 3Y13.29%
EPS Next 5Y14.49%
Revenue Next Year7.54%
Revenue Next 2Y7.53%
Revenue Next 3Y7.51%
Revenue Next 5Y8.69%

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.
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.
VRSK Yearly Revenue VS EstimatesVRSK Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
VRSK Yearly EPS VS EstimatesVRSK Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5 10 15

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2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 45.31 indicates a quite expensive valuation of VRSK.
VRSK's Price/Earnings ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 73.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. VRSK is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 39.08, VRSK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 68.35% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, VRSK is valued rather cheaply.
Industry RankSector Rank
PE 45.31
Fwd PE 39.08
VRSK Price Earnings VS Forward Price EarningsVRSK Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

69.62% of the companies in the same industry are cheaper than VRSK, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRSK is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 44.97
EV/EBITDA 28.88
VRSK Per share dataVRSK EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10

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.
The excellent profitability rating of VRSK may justify a higher PE ratio.
VRSK's earnings are expected to grow with 13.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.48
PEG (5Y)6.68
EPS Next 2Y14.24%
EPS Next 3Y13.29%

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5

5. Dividend

5.1 Amount

VRSK has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 1.82, VRSK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, VRSK's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.54%

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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.43%
Div Incr Years5
Div Non Decr Years5
VRSK Yearly Dividends per shareVRSK Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.5 1 1.5

5.3 Sustainability

23.38% of the earnings are spent on dividend by VRSK. This is a low number and sustainable payout ratio.
The dividend of VRSK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP23.38%
EPS Next 2Y14.24%
EPS Next 3Y13.29%
VRSK Yearly Income VS Free CF VS DividendVRSK Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M
VRSK Dividend Payout.VRSK Dividend Payout, showing the Payout Ratio.VRSK Dividend Payout.PayoutRetained Earnings

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VERISK ANALYTICS INC

NASDAQ:VRSK (2/5/2025, 1:49:19 PM)

291.77

+2.57 (+0.89%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-26 2025-02-26/amc
Inst Owners94.19%
Inst Owner Change0.09%
Ins Owners0.2%
Ins Owner Change0.42%
Market Cap41.20B
Analysts75.83
Price Target295.47 (1.27%)
Short Float %1.64%
Short Ratio3.26
Dividend
Industry RankSector Rank
Dividend Yield 0.54%
Yearly Dividend1.32
Dividend Growth(5Y)7.43%
DP23.38%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.02%
Min EPS beat(2)2.11%
Max EPS beat(2)3.93%
EPS beat(4)3
Avg EPS beat(4)1.53%
Min EPS beat(4)-4.62%
Max EPS beat(4)4.69%
EPS beat(8)7
Avg EPS beat(8)4.67%
EPS beat(12)9
Avg EPS beat(12)3.17%
EPS beat(16)10
Avg EPS beat(16)1.27%
Revenue beat(2)0
Avg Revenue beat(2)-2.13%
Min Revenue beat(2)-2.72%
Max Revenue beat(2)-1.54%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-1.23%
Revenue beat(8)3
Avg Revenue beat(8)-8.51%
Revenue beat(12)3
Avg Revenue beat(12)-12.14%
Revenue beat(16)3
Avg Revenue beat(16)-9.52%
PT rev (1m)-0.38%
PT rev (3m)3.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)0.44%
EPS NY rev (3m)0.6%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.27%
Valuation
Industry RankSector Rank
PE 45.31
Fwd PE 39.08
P/S 14.59
P/FCF 44.97
P/OCF 36.11
P/B 137.52
P/tB N/A
EV/EBITDA 28.88
EPS(TTM)6.44
EY2.21%
EPS(NY)7.47
Fwd EY2.56%
FCF(TTM)6.49
FCFY2.22%
OCF(TTM)8.08
OCFY2.77%
SpS19.99
BVpS2.12
TBVpS-13.57
PEG (NY)2.48
PEG (5Y)6.68
Profitability
Industry RankSector Rank
ROA 20.2%
ROE 307.68%
ROCE 36.83%
ROIC 28.98%
ROICexc 33.77%
ROICexgc 168.63%
OM 42.11%
PM (TTM) 32.65%
GM 68.24%
FCFM 32.45%
ROA(3y)12.1%
ROA(5y)10.42%
ROE(3y)92.15%
ROE(5y)64.55%
ROIC(3y)20.23%
ROIC(5y)16.88%
ROICexc(3y)21.38%
ROICexc(5y)17.75%
ROICexgc(3y)231.25%
ROICexgc(5y)277.95%
ROCE(3y)25.71%
ROCE(5y)21.46%
ROICexcg growth 3Y-24.38%
ROICexcg growth 5YN/A
ROICexc growth 3Y25.19%
ROICexc growth 5Y12.88%
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%
F-Score7
Asset Turnover0.62
Health
Industry RankSector Rank
Debt/Equity 8.5
Debt/FCF 3.34
Debt/EBITDA 1.69
Cap/Depr 71.32%
Cap/Sales 7.96%
Interest Coverage 10.49
Cash Conversion 75.86%
Profit Quality 99.39%
Current Ratio 0.82
Quick Ratio 0.82
Altman-Z 9.31
F-Score7
WACC9.06%
ROIC/WACC3.2
Cap/Depr(3y)77.5%
Cap/Depr(5y)73.68%
Cap/Sales(3y)10.16%
Cap/Sales(5y)9.53%
Profit Quality(3y)116.86%
Profit Quality(5y)126.03%
High Growth Momentum
Growth
EPS 1Y (TTM)12%
EPS 3Y4.24%
EPS 5Y6.78%
EPS Q2Q%9.87%
EPS Next Y18.26%
EPS Next 2Y14.24%
EPS Next 3Y13.29%
EPS Next 5Y14.49%
Revenue 1Y (TTM)26.37%
Revenue growth 3Y-1.25%
Revenue growth 5Y2.28%
Sales Q2Q%7.04%
Revenue Next Year7.54%
Revenue Next 2Y7.53%
Revenue Next 3Y7.51%
Revenue Next 5Y8.69%
EBIT growth 1Y7.94%
EBIT growth 3Y3%
EBIT growth 5Y6.34%
EBIT Next Year34.62%
EBIT Next 3Y16.48%
EBIT Next 5Y13.98%
FCF growth 1Y27.55%
FCF growth 3Y0.36%
FCF growth 5Y3.38%
OCF growth 1Y14.26%
OCF growth 3Y-0.24%
OCF growth 5Y2.57%