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Verisk Analytics (VRSK)
NASDAQ:VRSK
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Verisk Analytics
(NASDAQ:VRSK)
Rating:74Outperform
Price Target:
$338.00
▲(7.89%Upside)
Positive Factors
Earnings
Adjusted EPS beat expectations given margin strength.
Growth
Verisk's first-quarter results exceeded expectations across key metrics such as revenue, growth, and margins, indicating strong business performance.
Technological Advancements
Verisk upgraded its tech infrastructure and may be a gen AI beneficiary, while insurance companies have also been modernizing their tech stacks.
Negative Factors
Economic Environment
Prolonged macroeconomic weakness could negatively impact certain aspects of the company's performance.
Growth Challenges
Risks include challenges in achieving the company's organic growth goals and margin expansion targets.
Valuation
Valuation somewhat limits upside potential in shares.
Verisk Analytics (VRSK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.71B
Dividend Yield0.51%
Average Volume (3M)756.71K
Price to Earnings (P/E)46.8
Beta (1Y)0.41
Revenue Growth7.20%
EPS Growth27.36%
CountryUS
Employees7,800
SectorIndustrials
Sector Strength90
IndustryConsulting Services
Share Statistics
EPS (TTM)1.73
Shares Outstanding139,884,080
10 Day Avg. Volume700,384
30 Day Avg. Volume756,706
Financial Highlights & Ratios
PEG Ratio23.44
Price to Book (P/B)357.32
Price to Sales (P/S)0.00
P/FCF Ratio44.08
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue4.09
Enterprise Value/Gross Profit23.93
Enterprise Value/Ebitda7.57
Forecast
1Y Price Target
$318.80Price Target Upside1.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Verisk Analytics Business Overview & Revenue Model
Company DescriptionVerisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, commercial banking and finance, and various other fields. It operates in three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on supporting customer capital allocation decisions, asset valuation and benchmarking, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.
How the Company Makes MoneyVerisk Analytics primarily generates revenue through subscription-based services and licensing fees for its data analytics products and services. The company's key revenue streams come from providing risk assessment solutions to the insurance industry, where it offers underwriting and claims analytics, catastrophe modeling, and fraud detection tools. Verisk also serves the energy sector by providing data-driven insights for exploration, production, and compliance. Additionally, the company earns income from consulting services and custom analytics projects tailored to specific client needs. Strategic partnerships and collaborations with industry leaders further enhance its market presence and contribute to its earnings.
Verisk Analytics Key Performance Indicators (KPIs)
Any
Insurance Revenue by Segment
Breaks down revenue from different insurance segments, highlighting areas of strength and potential growth within the insurance industry. This reveals how well Verisk Analytics is capitalizing on various insurance markets and its strategic focus.
Breaks down revenue from different insurance segments, highlighting areas of strength and potential growth within the insurance industry. This reveals how well Verisk Analytics is capitalizing on various insurance markets and its strategic focus.
Data provided by:
Main Street Data
Main Street DataVerisk Analytics Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 5.77%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue and subscription growth, margin expansion, and strategic initiatives driving value. However, challenges in transactional revenue, marketing solutions, and severe weather impacts present some concerns.Q1-2025 Updates
Positive Updates
Strong Revenue and Subscription Growth
First quarter revenue was $753 million, up 7% year-over-year, with organic constant currency revenue growth of 7.9% driven by 10.6% subscription growth.
Margin Expansion
Adjusted EBITDA margin increased by 130 basis points to 55.3%, reflecting strong sales leverage and cost discipline.
Insurance Industry Profitability
The insurance industry returned to profitability in 2024 with an underwriting gain of $25 billion, marking the first gain in 4 years.
Advanced Data and Analytics Initiatives
Introduction of new tools such as the Actuarial Hub and Verisk Synergy Studio, enhancing data insights and connectivity for clients.
Successful Strategic Acquisition
Acquisition of Simplitium from NASDAQ, adding over 300 third-party models to the Extreme Events business.
Negative Updates
Transactional Revenue Decline
Transactional revenues, comprising 17% of total revenues, declined 4% on an organic constant currency basis.
Challenges in Marketing Solutions
Headwinds in economically sensitive client segments, particularly financial services and mortgages, impacting Marketing Solutions.
Impact of Severe Weather Events
Second worst year for catastrophic losses since 1950, with wildfires estimated to result in $28 billion to $35 billion in insurance losses.
Higher Interest Expenses
Net interest expense increased to $36 million from $29 million in the prior year due to higher debt balances and interest rates.
Company Guidance
During Verisk's First Quarter 2025 Earnings Results Conference Call, the company provided guidance for the year, expecting consolidated revenue to range from $3.03 billion to $3.08 billion. Adjusted EBITDA is projected between $1.67 billion and $1.72 billion, with adjusted EBITDA margins anticipated between 55% and 55.8%. The effective tax rate is estimated to be between 23% and 25%, and adjusted earnings per share are forecasted to be in the range of $6.80 to $7.10. The company emphasized strong first-quarter performance with 7.9% organic constant currency revenue growth, driven by a 10.6% increase in subscription revenues and a 9.5% growth in OCC adjusted EBITDA. Additionally, Verisk noted a 130 basis point margin expansion, showcasing its focus on cost discipline and emphasizing its commitment to consistent and predictable growth.Verisk Analytics Financial Statement Overview
Summary
Verisk Analytics displays strong profitability with high margins and efficient cash flow management. However, the company’s balance sheet is highly leveraged, posing financial stability risks. The focus should be on reducing the leverage to mitigate potential risks.Income Statement
Verisk Analytics demonstrates strong profitability with a high gross profit margin of 66.5% and a solid net profit margin of 33.1% for TTM (Trailing-Twelve-Months). The company achieved a healthy revenue growth rate of 1.7% from the previous year, reflecting consistent growth. The EBIT and EBITDA margins of 43.5% and 54.3% respectively indicate robust operational efficiency. The company shows strength in maintaining stable and profitable operations.85
Very Positive
Balance Sheet
The balance sheet presents a significant concern with a high debt-to-equity ratio of 31.99, indicating heavy reliance on debt financing. Return on equity is exceptionally high at 789.8%, driven largely by low equity levels rather than purely operational performance. The equity ratio of 2.4% underscores a heavily leveraged position, posing potential financial risks. While the company is profitable, its capital structure could pose challenges in adverse conditions.65
Positive
Cash Flow
Verisk Analytics enjoys a strong operating cash flow to net income ratio of 1.25 and a favorable free cash flow to net income ratio of 1.02, highlighting efficient cash generation relative to profits. The free cash flow growth rate of 8.0% over the previous year further demonstrates the company's capability to generate surplus cash. Despite strong cash flows, the company's high leverage could affect future cash flexibility.75
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.93B | 2.88B | 2.68B | 2.50B | 3.00B | 2.78B | Gross Profit |
| 1.95B | 1.67B | 1.80B | 1.67B | 1.94B | 1.79B | EBIT |
| 1.28B | 1.27B | 1.13B | 1.41B | 1.00B | 1.04B | EBITDA |
| 1.59B | 1.66B | 1.42B | 1.64B | 1.16B | 1.39B | Net Income Common Stockholders |
| 970.80M | 958.20M | 614.60M | 954.30M | 666.30M | 712.70M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 204.40M | 291.20M | 303.90M | 112.50M | 280.30M | 218.80M | Total Assets |
| 6.93B | 4.26B | 4.37B | 6.96B | 7.81B | 7.56B | Total Debt |
| 3.33B | 3.25B | 3.10B | 3.96B | 3.61B | 3.52B | Net Debt |
| 3.13B | 2.95B | 2.79B | 3.84B | 3.33B | 3.31B | Total Liabilities |
| 4.85B | 4.16B | 4.04B | 5.19B | 4.97B | 4.86B | Stockholders Equity |
| 2.08B | 100.10M | 310.00M | 1.75B | 2.82B | 2.70B |
| Cash Flow | Free Cash Flow | ||||
| 994.10M | 920.10M | 830.70M | 784.30M | 887.30M | 821.40M | Operating Cash Flow |
| 1.22B | 1.14B | 1.06B | 1.06B | 1.16B | 1.07B | Investing Cash Flow |
| -102.70M | -124.80M | 2.75B | 301.40M | -592.00M | -595.80M | Financing Cash Flow |
| -352.70M | -1.03B | -3.79B | -1.33B | -498.90M | -445.20M |
Verisk Analytics Technical Analysis
Positive
313.27
Price Trends
301.29
Positive
295.51
Positive
285.06
Positive
Market Momentum
4.97
Positive
54.29
Neutral
57.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSK, the sentiment is Positive. The current price of 313.27 is above the 20-day moving average (MA) of 313.06, above the 50-day MA of 301.29, and above the 200-day MA of 285.06, indicating a bullish trend. The MACD of 4.97 indicates Positive momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 57.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRSK.
Verisk Analytics Risk Analysis
Verisk Analytics disclosed 27 risk factors in its most recent earnings report. Verisk Analytics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verisk Analytics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $12.82B | 14.24 | 90.74% | 2.01% | 14.07% | 116.33% | |
74 Outperform | $44.71B | 46.80 | 475.86% | 0.51% | 7.20% | 27.36% | |
73 Outperform | $33.32B | 54.79 | 12.83% | 0.62% | 7.12% | 9.05% | |
73 Outperform | $16.81B | 46.15 | 8.68% | 0.51% | 8.85% | ― | |
69 Neutral | $3.93B | 37.86 | 25.87% | 1.47% | 3.27% | 3.94% | |
68 Neutral | $5.62B | 21.86 | 12.46% | ― | 1.59% | -16.79% | |
66 Neutral | $4.50B | 12.29 | 5.40% | 248.66% | 4.13% | -12.33% |
* Industrials Sector Average
Performance Comparison
VRSK
Verisk Analytics
313.27
50.15
19.06%
BAH
Booz Allen
101.90
-46.58
-31.37%
EFX
Equifax
268.52
39.52
17.26%
EXPO
Exponent
77.39
-15.44
-16.63%
FCN
FTI Consulting
160.05
-51.16
-24.22%
TRU
TransUnion
87.36
15.64
21.81%
Verisk Analytics Corporate Events
Executive/Board ChangesShareholder Meetings
Verisk Analytics Amends Governance to Enhance Engagement
Neutral
May 27, 2025
On May 20, 2025, Verisk Analytics, Inc. amended its Restated Certificate of Incorporation to replace supermajority voting standards with simple majority standards for certain amendments and business combinations, limit officers’ monetary liability, and allow shareholders with 25% voting power to request special meetings. These amendments, approved at the 2025 Annual Meeting, aim to streamline governance and enhance shareholder engagement. Additionally, the meeting included the election of board members, approval of executive compensation, and ratification of Deloitte & Touche LLP as auditors, while a shareholder proposal to lower the threshold for calling special meetings was rejected.
The most recent analyst rating on (VRSK) stock is a Buy with a $290.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.