VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
USA - NASDAQ:VRSK - US92345Y1064 - Common Stock
242.3 USD
-1.88 (-0.77%)
242.3 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to VRSK. VRSK was compared to 81 industry peers in the Professional Services industry. While VRSK belongs to the best of the industry regarding profitability, 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.
VRSK had positive earnings in each of the past 5 years.
VRSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
VRSK's Return On Assets of 19.11% is amongst the best of the industry. VRSK outperforms 95.06% of its industry peers.
VRSK has a better Return On Equity (293.90%) than 100.00% of its industry peers.
VRSK's Return On Invested Capital of 25.65% 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 12.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.11% | ||
| ROE | 293.9% | ||
| ROIC | 25.65% |
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 30.67%. This is amongst the best in the industry. VRSK outperforms 97.53% of its industry peers.
VRSK's Profit Margin has improved in the last couple of years.
VRSK has a Operating Margin of 43.97%. This is amongst the best in 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 Gross Margin of 69.39%. This is amongst the best in the industry. VRSK outperforms 85.19% of its industry peers.
In the last couple of years the Gross Margin of VRSK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.97% | ||
| PM (TTM) | 30.67% | ||
| GM | 69.39% |
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.
The number of shares outstanding for VRSK has been reduced compared to 5 years ago.
The debt/assets ratio for VRSK is higher compared to a year ago.
2.2 Solvency
VRSK has an Altman-Z score of 8.41. This indicates that VRSK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of VRSK (8.41) is better than 92.59% of its industry peers.
VRSK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as VRSK would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of VRSK (3.19) is better than 62.96% of its industry peers.
VRSK has a Debt/Equity ratio of 10.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 10.37, VRSK is doing worse than 87.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.37 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 8.41 |
ROIC/WACC3.07
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.53 indicates that VRSK should not have too much problems paying its short term obligations.
VRSK has a Current ratio (1.53) which is comparable to the rest of the industry.
VRSK has a Quick Ratio of 1.53. This is a normal value and indicates that VRSK is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of VRSK (1.53) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.54% over the past year.
The Earnings Per Share has been growing by 8.71% on average over the past years. This is quite good.
VRSK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.60%.
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)9.54%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%8.05%
Revenue 1Y (TTM)7.6%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%7.78%
3.2 Future
The Earnings Per Share is expected to grow by 11.98% on average over the next years. This is quite good.
Based on estimates for the next years, VRSK will show a quite strong growth in Revenue. The Revenue will grow by 8.37% on average per year.
EPS Next Y7.27%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
EPS Next 5Y11.98%
Revenue Next Year8.34%
Revenue Next 2Y9.58%
Revenue Next 3Y8.76%
Revenue Next 5Y8.37%
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
Based on the Price/Earnings ratio of 35.17, the valuation of VRSK can be described as expensive.
VRSK's Price/Earnings ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 62.96% of the companies in the same industry.
VRSK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.41.
Based on the Price/Forward Earnings ratio of 30.47, the valuation of VRSK can be described as expensive.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than 60.49% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of VRSK to the average of the S&P500 Index (22.87), we can say VRSK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 30.47 |
4.2 Price Multiples
VRSK's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of VRSK is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.17 | ||
| EV/EBITDA | 22.52 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of VRSK may justify a higher PE ratio.
PEG (NY)4.84
PEG (5Y)4.04
EPS Next 2Y9.35%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.73%, VRSK is not a good candidate for dividend investing.
The stock price of VRSK dropped by -21.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
VRSK's Dividend Yield is a higher than the industry average which is at 3.09.
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 | 0.73% |
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
VRSK pays out 25.76% of its income as dividend. This is a sustainable payout ratio.
The dividend of VRSK is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.76%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
242.3
-1.88 (-0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.86%
Inst Owner Change-1.41%
Ins Owners0.25%
Ins Owner Change0.63%
Market Cap33.85B
Analysts74.17
Price Target312.49 (28.97%)
Short Float %1.93%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.73% |
Yearly Dividend1.56
Dividend Growth(5Y)9.31%
DP25.76%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.41%
Min EPS beat(2)0.77%
Max EPS beat(2)4.04%
EPS beat(4)3
Avg EPS beat(4)1.44%
Min EPS beat(4)-1.16%
Max EPS beat(4)4.04%
EPS beat(8)6
Avg EPS beat(8)1.39%
EPS beat(12)9
Avg EPS beat(12)3.22%
EPS beat(16)12
Avg EPS beat(16)2.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.51%
Min Revenue beat(2)-1.54%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.56%
Min Revenue beat(4)-1.7%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.42%
Revenue beat(12)3
Avg Revenue beat(12)-6.33%
Revenue beat(16)3
Avg Revenue beat(16)-9.51%
PT rev (1m)0.32%
PT rev (3m)-0.8%
EPS NQ rev (1m)-0.7%
EPS NQ rev (3m)-4.41%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.17 | ||
| Fwd PE | 30.47 | ||
| P/S | 11.33 | ||
| P/FCF | 33.17 | ||
| P/OCF | 27.28 | ||
| P/B | 108.6 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.52 |
EPS(TTM)6.89
EY2.84%
EPS(NY)7.95
Fwd EY3.28%
FCF(TTM)7.3
FCFY3.01%
OCF(TTM)8.88
OCFY3.67%
SpS21.38
BVpS2.23
TBVpS-13.5
PEG (NY)4.84
PEG (5Y)4.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.11% | ||
| ROE | 293.9% | ||
| ROCE | 33.71% | ||
| ROIC | 25.65% | ||
| ROICexc | 30.59% | ||
| ROICexgc | 93.44% | ||
| OM | 43.97% | ||
| PM (TTM) | 30.67% | ||
| GM | 69.39% | ||
| FCFM | 34.17% |
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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.37 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 1.98 | ||
| Cap/Depr | 69.24% | ||
| Cap/Sales | 7.38% | ||
| Interest Coverage | 9.63 | ||
| Cash Conversion | 76.05% | ||
| Profit Quality | 111.39% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 8.41 |
F-Score8
WACC8.35%
ROIC/WACC3.07
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)9.54%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%8.05%
EPS Next Y7.27%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
EPS Next 5Y11.98%
Revenue 1Y (TTM)7.6%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%7.78%
Revenue Next Year8.34%
Revenue Next 2Y9.58%
Revenue Next 3Y8.76%
Revenue Next 5Y8.37%
EBIT growth 1Y13.37%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year37.44%
EBIT Next 3Y18.05%
EBIT Next 5Y15.7%
FCF growth 1Y24.06%
FCF growth 3Y1.22%
FCF growth 5Y4.48%
OCF growth 1Y14.11%
OCF growth 3Y-0.34%
OCF growth 5Y3.66%