VERISK ANALYTICS INC (VRSK)
US92345Y1064 - Common Stock
Taking everything into account, VRSK scores 6 out of 10 in our fundamental rating. VRSK was compared to 79 industry peers in the Professional Services industry. VRSK has an excellent profitability rating, 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.
VRSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of VRSK (20.20%) is better than 94.74% of its industry peers.
VRSK's Return On Equity of 307.68% is amongst the best of the industry. VRSK outperforms 98.68% of its industry peers.
With an excellent Return On Invested Capital value of 28.98%, VRSK belongs to the best of the industry, outperforming 96.05% of the companies in the same industry.
VRSK had an Average Return On Invested Capital over the past 3 years of 20.23%. This is above the industry average of 18.15%.
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 has a better Profit Margin (32.65%) than 98.68% of its industry peers.
VRSK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 42.11%, VRSK belongs to the top 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's Gross Margin of 68.24% is fine compared to the rest of the industry. VRSK outperforms 78.95% 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
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.
VRSK has less shares outstanding than it did 5 years ago.
VRSK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.99 indicates that VRSK is not in any danger for bankruptcy at the moment.
The Altman-Z score of VRSK (8.99) is better than 97.37% of its industry peers.
VRSK has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as VRSK would need 3.34 years to pay back of all of its debts.
The Debt to FCF ratio of VRSK (3.34) is better than 60.53% 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.
Looking at the Debt to Equity ratio, with a value of 8.50, VRSK is doing worse than 94.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.5 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | 8.99 |
ROIC/WACC3.13
WACC9.25%
2.3 Liquidity
A Current Ratio of 0.82 indicates that VRSK may have some problems paying its short term obligations.
The Current ratio of VRSK (0.82) is worse than 84.21% of its industry peers.
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.
The Quick ratio of VRSK (0.82) is worse than 84.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.82 |
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.
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 14.49% yearly.
The Revenue is expected to grow by 8.69% on average over the next years. This is quite good.
EPS Next Y17.74%
EPS Next 2Y14.03%
EPS Next 3Y13.13%
EPS Next 5Y14.49%
Revenue Next Year7.54%
Revenue Next 2Y7.53%
Revenue Next 3Y7.46%
Revenue Next 5Y8.69%
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
With a Price/Earnings ratio of 42.90, VRSK can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 73.68% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, VRSK is valued quite expensively.
Based on the Price/Forward Earnings ratio of 37.14, the valuation of VRSK can be described as expensive.
69.74% of the companies in the same industry are cheaper than VRSK, based on the Price/Forward Earnings ratio.
VRSK is valuated expensively when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.9 | ||
| Fwd PE | 37.14 |
4.2 Price Multiples
VRSK's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 72.37% of the companies in the same industry.
61.84% of the companies in the same industry are cheaper than VRSK, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.58 | ||
| EV/EBITDA | 27.4 |
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.
A more expensive valuation may be justified as VRSK's earnings are expected to grow with 13.13% in the coming years.
PEG (NY)2.42
PEG (5Y)6.33
EPS Next 2Y14.03%
EPS Next 3Y13.13%
5. Dividend
5.1 Amount
VRSK has a yearly dividend return of 0.57%, which is pretty low.
VRSK's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to an average S&P500 Dividend Yield of 2.33, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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.
As VRSK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.43%
Div Incr Years5
Div Non Decr Years5
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 2Y14.03%
EPS Next 3Y13.13%
VERISK ANALYTICS INC
NASDAQ:VRSK (1/3/2025, 8:09:22 PM)
After market: 276.28 0 (0%)276.28
+2.89 (+1.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.19%
Inst Owner Change0.22%
Ins Owners0.2%
Ins Owner Change-0.42%
Market Cap39.01B
Analysts75.83
Price Target296.61 (7.36%)
Short Float %1.68%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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)0.39%
PT rev (3m)5.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.36%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.9 | ||
| Fwd PE | 37.14 | ||
| P/S | 13.82 | ||
| P/FCF | 42.58 | ||
| P/OCF | 34.19 | ||
| P/B | 130.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.4 |
EPS(TTM)6.44
EY2.33%
EPS(NY)7.44
Fwd EY2.69%
FCF(TTM)6.49
FCFY2.35%
OCF(TTM)8.08
OCFY2.92%
SpS19.99
BVpS2.12
TBVpS-13.57
PEG (NY)2.42
PEG (5Y)6.33
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 8.99 |
F-Score7
WACC9.25%
ROIC/WACC3.13
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 Y17.74%
EPS Next 2Y14.03%
EPS Next 3Y13.13%
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 3Y7.46%
Revenue Next 5Y8.69%
EBIT growth 1Y7.94%
EBIT growth 3Y3%
EBIT growth 5Y6.34%
EBIT Next Year34.36%
EBIT Next 3Y16.5%
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%