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 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 quite expensive at the moment. 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.
Each year in the past 5 years VRSK has been profitable.
Each year in the past 5 years VRSK had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 18.96%, VRSK belongs to the top of the industry, outperforming 95.06% of the companies in the same industry.
With an excellent Return On Equity value of 789.35%, VRSK belongs to the best of the industry, outperforming 98.77% 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 97.53% 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 12.53%.
| 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
VRSK has a Profit Margin of 33.13%. This is amongst the best in the industry. VRSK outperforms 98.77% of its industry peers.
In the last couple of years the Profit Margin of VRSK has grown nicely.
Looking at the Operating Margin, with a value of 43.59%, VRSK belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
VRSK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 69.15%, VRSK belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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
VRSK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.59 indicates that VRSK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.59, VRSK belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
VRSK has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as VRSK would need 3.77 years to pay back of all of its debts.
VRSK has a Debt to FCF ratio (3.77) which is comparable to the rest of the industry.
A Debt/Equity ratio of 26.30 is on the high side and indicates that VRSK has dependencies on debt financing.
VRSK has a Debt to Equity ratio of 26.30. This is amonst the worse of the industry: VRSK underperforms 92.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.3 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 8.59 |
ROIC/WACC3.03
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.27 indicates that VRSK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.27, VRSK perfoms like the industry average, outperforming 43.21% of the companies in the same 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.
VRSK has a Quick ratio (1.27) which 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.
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 7.20% in the past year.
The Revenue has been growing slightly by 2.02% on average over the past years.
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
VRSK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% 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 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
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.
4. Valuation
4.1 Price/Earnings Ratio
VRSK is valuated quite expensively with a Price/Earnings ratio of 45.05.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 66.67% 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 27.45.
VRSK is valuated quite expensively with a Price/Forward Earnings ratio of 37.78.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than the industry average as 64.20% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.90, VRSK is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 45.05 | ||
| Fwd PE | 37.78 |
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 65.43% of the companies 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 | 42.78 | ||
| EV/EBITDA | 28.4 |
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.
PEG (NY)5.59
PEG (5Y)5.17
EPS Next 2Y10.02%
EPS Next 3Y10.59%
5. Dividend
5.1 Amount
VRSK has a yearly dividend return of 0.59%, which is pretty low.
VRSK's Dividend Yield is a higher than the industry average which is at 2.05.
Compared to an average S&P500 Dividend Yield of 2.38, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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.
As VRSK did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
23.53% 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.
DP23.53%
EPS Next 2Y10.02%
EPS Next 3Y10.59%
304.06
+2.85 (+0.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.14%
Inst Owner Change-48.49%
Ins Owners0.25%
Ins Owner Change1.67%
Market Cap42.53B
Analysts72.8
Price Target315 (3.6%)
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 | 45.05 | ||
| Fwd PE | 37.78 | ||
| P/S | 14.51 | ||
| P/FCF | 42.78 | ||
| P/OCF | 34.96 | ||
| P/B | 345.79 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.4 |
EPS(TTM)6.75
EY2.22%
EPS(NY)8.05
Fwd EY2.65%
FCF(TTM)7.11
FCFY2.34%
OCF(TTM)8.7
OCFY2.86%
SpS20.95
BVpS0.88
TBVpS-14.35
PEG (NY)5.59
PEG (5Y)5.17
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 | 8.59 |
F-Score8
WACC8.62%
ROIC/WACC3.03
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%