VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD
Overall VRSK gets a fundamental rating of 6 out of 10. We evaluated VRSK against 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year VRSK was profitable.
In the past year VRSK had a positive cash flow from operations.
Each year in the past 5 years VRSK has 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 (22.47%) is better than 95.06% of its industry peers.
VRSK has a Return On Equity of 957.24%. This is amongst the best in the industry. VRSK outperforms 98.77% of its industry peers.
VRSK's Return On Invested Capital of 31.54% is amongst the best of the industry. VRSK outperforms 96.30% 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 12.78%.
The last Return On Invested Capital (31.54%) for VRSK is above the 3 year average (26.20%), which is a sign of increasing profitability.
| 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's Profit Margin of 33.25% is amongst the best of the industry. VRSK outperforms 98.77% of its industry peers.
VRSK's Profit Margin has improved in the last couple of years.
VRSK's Operating Margin of 43.52% is amongst the best of the industry. VRSK outperforms 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 83.95% of its industry peers.
VRSK's Gross Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRSK is creating value.
VRSK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for VRSK has been reduced compared to 5 years ago.
VRSK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.24 indicates that VRSK is not in any danger for bankruptcy at the moment.
VRSK has a better Altman-Z score (10.24) than 100.00% of its industry peers.
VRSK has a debt to FCF ratio of 3.33. This is a good value and a sign of high solvency as VRSK would need 3.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.33, VRSK is in the better half of the industry, outperforming 60.49% of the companies in the same industry.
A Debt/Equity ratio of 25.44 is on the high side and indicates that VRSK has dependencies on debt financing.
With a Debt to Equity ratio value of 25.44, VRSK is not doing good in the industry: 92.59% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.44 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 10.24 |
ROIC/WACC3.62
WACC8.71%
2.3 Liquidity
VRSK has a Current 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.
VRSK has a worse Current ratio (0.74) than 86.42% of its industry peers.
A Quick Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
VRSK's Quick ratio of 0.74 is on the low side compared to the rest of the industry. VRSK is outperformed by 85.19% of its industry peers.
| 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 11.39%, which is quite good.
Measured over the past years, VRSK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.71% on average per year.
The Revenue has been growing slightly by 7.47% in the past year.
Measured over the past years, VRSK shows a small growth in Revenue. The Revenue has been growing by 2.02% on average per year.
EPS 1Y (TTM)11.39%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%6.13%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
3.2 Future
The Earnings Per Share is expected to grow by 11.84% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y7.78%
EPS Next 2Y10.03%
EPS Next 3Y10.58%
EPS Next 5Y11.84%
Revenue Next Year6.88%
Revenue Next 2Y7.04%
Revenue Next 3Y7.09%
Revenue Next 5Y7%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 46.54, the valuation of VRSK can be described as expensive.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 72.84% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of VRSK to the average of the S&P500 Index (26.25), we can say VRSK is valued expensively.
Based on the Price/Forward Earnings ratio of 39.02, 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 66.67% of the companies are valued more cheaply.
VRSK is valuated expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.54 | ||
| Fwd PE | 39.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRSK is valued a bit more expensive than the industry average as 69.14% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, VRSK is valued a bit more expensive than 62.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.76 | ||
| EV/EBITDA | 29.96 |
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)5.98
PEG (5Y)5.34
EPS Next 2Y10.03%
EPS Next 3Y10.58%
5. Dividend
5.1 Amount
VRSK has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 2.09, VRSK pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.58, VRSK pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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
23.10% of the earnings are spent on dividend by VRSK. This is a low number and sustainable payout ratio.
VRSK's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP23.1%
EPS Next 2Y10.03%
EPS Next 3Y10.58%
314.14
-0.18 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change1.29%
Ins Owners0.22%
Ins Owner Change0.57%
Market Cap43.94B
Analysts72.8
Price Target302.29 (-3.77%)
Short Float %1.61%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)-0.42%
PT rev (3m)2.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.91%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-3.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.82%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.54 | ||
| Fwd PE | 39.02 | ||
| P/S | 15.25 | ||
| P/FCF | 47.76 | ||
| P/OCF | 38.41 | ||
| P/B | 438.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.96 |
EPS(TTM)6.75
EY2.15%
EPS(NY)8.05
Fwd EY2.56%
FCF(TTM)6.58
FCFY2.09%
OCF(TTM)8.18
OCFY2.6%
SpS20.6
BVpS0.72
TBVpS-14.43
PEG (NY)5.98
PEG (5Y)5.34
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 | 10.24 |
F-Score8
WACC8.71%
ROIC/WACC3.62
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 Y7.78%
EPS Next 2Y10.03%
EPS Next 3Y10.58%
EPS Next 5Y11.84%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
Revenue Next Year6.88%
Revenue Next 2Y7.04%
Revenue Next 3Y7.09%
Revenue Next 5Y7%
EBIT growth 1Y10.58%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.88%
EBIT Next 3Y16.77%
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%