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 83 industry peers in the Professional Services industry. VRSK scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, VRSK is valued expensive at the moment.
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.
In the past 5 years VRSK always reported a positive cash flow from operatings.
1.2 Ratios
VRSK has a Return On Assets of 22.47%. This is amongst the best in the industry. VRSK outperforms 93.98% of its industry peers.
VRSK has a Return On Equity of 957.24%. This is amongst the best in the industry. VRSK outperforms 98.80% of its industry peers.
VRSK has a Return On Invested Capital of 31.54%. This is amongst the best in the industry. VRSK outperforms 96.39% of its industry peers.
VRSK had an Average Return On Invested Capital over the past 3 years of 26.20%. This is significantly above the industry average of 13.57%.
The 3 year average ROIC (26.20%) for VRSK is below the current ROIC(31.54%), indicating increased profibility in the last year.
| 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
VRSK has a better Profit Margin (33.25%) than 98.80% of its industry peers.
VRSK's Profit Margin has improved in the last couple of years.
VRSK has a better Operating Margin (43.52%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of VRSK has grown nicely.
VRSK has a better Gross Margin (68.73%) than 83.13% of its industry peers.
In the last couple of years the Gross Margin of VRSK has grown nicely.
| 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
VRSK has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
VRSK has less shares outstanding than it did 1 year ago.
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 9.81 indicates that VRSK is not in any danger for bankruptcy at the moment.
The Altman-Z score of VRSK (9.81) is better than 98.80% of its industry peers.
The Debt to FCF ratio of VRSK is 3.33, which is a good value as it means it would take VRSK, 3.33 years of fcf income to pay off all of its debts.
VRSK has a better Debt to FCF ratio (3.33) than 62.65% 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.
VRSK has a Debt to Equity ratio of 25.44. This is amonst the worse of the industry: VRSK underperforms 91.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.44 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 9.81 |
ROIC/WACC3.67
WACC8.6%
2.3 Liquidity
A Current Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
The Current ratio of VRSK (0.74) is worse than 84.34% of its industry peers.
VRSK has a Quick Ratio of 0.74. This is a bad value and indicates that VRSK is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, VRSK is not doing good in the industry: 83.13% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
VRSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.26%, which is quite good.
The Earnings Per Share has been growing by 8.71% on average over the past years. This is quite good.
The Revenue has been growing slightly by 7.47% in the past year.
VRSK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.02% yearly.
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
VRSK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.84% yearly.
Based on estimates for the next years, VRSK will show a small growth in Revenue. The Revenue will grow by 7.00% on average per year.
EPS Next Y7.82%
EPS Next 2Y10.03%
EPS Next 3Y10.66%
EPS Next 5Y11.84%
Revenue Next Year6.57%
Revenue Next 2Y6.86%
Revenue Next 3Y7.1%
Revenue Next 5Y7%
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
VRSK is valuated quite expensively with a Price/Earnings ratio of 44.06.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than 73.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.29, VRSK is valued quite expensively.
Based on the Price/Forward Earnings ratio of 40.87, the valuation of VRSK can be described as expensive.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
VRSK is valuated expensively when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.06 | ||
| Fwd PE | 40.87 |
4.2 Price Multiples
65.06% 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 ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.57 | ||
| EV/EBITDA | 28.06 |
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)5.63
PEG (5Y)5.06
EPS Next 2Y10.03%
EPS Next 3Y10.66%
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 2.24.
Compared to an average S&P500 Dividend Yield of 2.57, VRSK's dividend is way lower than the S&P500 average.
| 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.
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
23.10% 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.
DP23.1%
EPS Next 2Y10.03%
EPS Next 3Y10.66%
293.02
+0.79 (+0.27%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change0.01%
Ins Owners0.22%
Ins Owner Change0.59%
Market Cap41.01B
Analysts74.17
Price Target303.55 (3.59%)
Short Float %1.43%
Short Ratio2.58
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)0.51%
PT rev (3m)2.34%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-3.27%
EPS NY rev (1m)-3.84%
EPS NY rev (3m)-3.6%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.95%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.06 | ||
| Fwd PE | 40.87 | ||
| P/S | 14.23 | ||
| P/FCF | 44.57 | ||
| P/OCF | 35.84 | ||
| P/B | 409.64 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.06 |
EPS(TTM)6.65
EY2.27%
EPS(NY)7.17
Fwd EY2.45%
FCF(TTM)6.57
FCFY2.24%
OCF(TTM)8.17
OCFY2.79%
SpS20.59
BVpS0.72
TBVpS-14.43
PEG (NY)5.63
PEG (5Y)5.06
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 | 9.81 |
F-Score8
WACC8.6%
ROIC/WACC3.67
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 Y7.82%
EPS Next 2Y10.03%
EPS Next 3Y10.66%
EPS Next 5Y11.84%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%8.62%
Revenue Next Year6.57%
Revenue Next 2Y6.86%
Revenue Next 3Y7.1%
Revenue Next 5Y7%
EBIT growth 1Y10.58%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.34%
EBIT Next 3Y16.65%
EBIT Next 5Y13.25%
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%