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 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
In the past year VRSK was profitable.
In the past year VRSK had a positive cash flow from operations.
VRSK had positive earnings in each of the past 5 years.
In the past 5 years VRSK always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 14.08%, VRSK belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 198.26%, VRSK belongs to the top of the industry, outperforming 98.75% of the companies in the same industry.
VRSK has a Return On Invested Capital of 24.82%. This is amongst the best in the industry. VRSK outperforms 92.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRSK is significantly above the industry average of 12.24%.
The 3 year average ROIC (20.23%) for VRSK is below the current ROIC(24.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 198.26% | ||
| ROIC | 24.82% |
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 (22.92%) than 93.75% of its industry peers.
In the last couple of years the Profit Margin of VRSK has declined.
With an excellent Operating Margin value of 42.30%, VRSK belongs to the best 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.
VRSK's Gross Margin of 67.31% is amongst the best of the industry. VRSK outperforms 82.50% of its industry peers.
VRSK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 42.3% | ||
| PM (TTM) | 22.92% | ||
| GM | 67.31% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so VRSK is creating value.
The number of shares outstanding for VRSK has been reduced compared to 1 year ago.
The number of shares outstanding for VRSK has been reduced compared to 5 years ago.
Compared to 1 year ago, VRSK has a worse debt to assets ratio.
2.2 Solvency
VRSK has an Altman-Z score of 8.14. This indicates that VRSK is financially healthy and has little risk of bankruptcy at the moment.
VRSK's Altman-Z score of 8.14 is amongst the best of the industry. VRSK outperforms 91.25% of its industry peers.
VRSK has a debt to FCF ratio of 3.45. This is a good value and a sign of high solvency as VRSK would need 3.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.45, VRSK is in line with its industry, outperforming 55.00% of the companies in the same industry.
VRSK has a Debt/Equity ratio of 9.20. This is a high value indicating a heavy dependency on external financing.
VRSK's Debt to Equity ratio of 9.20 is on the low side compared to the rest of the industry. VRSK is outperformed by 96.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.2 | ||
| Debt/FCF | 3.45 | ||
| Altman-Z | 8.14 |
ROIC/WACC2.87
WACC8.64%
2.3 Liquidity
VRSK has a Current Ratio of 1.05. 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 Current ratio of 1.05. This is in the lower half of the industry: VRSK underperforms 72.50% of its industry peers.
A Quick Ratio of 1.05 indicates that VRSK should not have too much problems paying its short term obligations.
VRSK has a Quick ratio of 1.05. This is in the lower half of the industry: VRSK underperforms 71.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The earnings per share for VRSK have decreased by -0.69% in the last year.
Measured over the past 5 years, VRSK shows a small growth in Earnings Per Share. The EPS has been growing by 6.78% on average per year.
The Revenue has been growing slightly by 7.38% in the past year.
Measured over the past years, VRSK shows a small growth in Revenue. The Revenue has been growing by 2.28% on average per year.
EPS 1Y (TTM)-0.69%
EPS 3Y4.24%
EPS 5Y6.78%
EPS growth Q2Q-2.1%
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-1.25%
Revenue growth 5Y2.28%
Revenue growth Q2Q194.56%
3.2 Future
The Earnings Per Share is expected to grow by 13.24% on average over the next years. This is quite good.
The Revenue is expected to grow by 8.82% on average over the next years. This is quite good.
EPS Next Y16%
EPS Next 2Y14.28%
EPS Next 3Y13.24%
EPS Next 5YN/A
Revenue Next Year7.62%
Revenue Next 2Y7.47%
Revenue Next 3Y7.63%
Revenue Next 5Y8.82%
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 40.90, the valuation of VRSK can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 70.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.67, VRSK is valued quite expensively.
The Price/Forward Earnings ratio is 35.26, which means the current valuation is very expensive for VRSK.
66.25% 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 21.02, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.9 | ||
| Fwd PE | 35.26 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 67.50% of the companies listed in the same industry.
VRSK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.2 | ||
| EV/EBITDA | 23.79 |
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.
VRSK's earnings are expected to grow with 13.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.56
PEG (5Y)6.03
EPS Next 2Y14.28%
EPS Next 3Y13.24%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, VRSK is not a good candidate for dividend investing.
VRSK's Dividend Yield is a higher than the industry average which is at 2.07.
Compared to an average S&P500 Dividend Yield of 2.40, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
The dividend of VRSK is nicely growing with an annual growth rate of 7.43%!
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 last 3 years.
Dividend Growth(5Y)7.43%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
VRSK pays out 32.02% 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.
DP32.02%
EPS Next 2Y14.28%
EPS Next 3Y13.24%
VERISK ANALYTICS INC
NASDAQ:VRSK (5/1/2024, 1:31:08 PM)
233.945
+15.98 (+7.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap33.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.9 | ||
| Fwd PE | 35.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.56
PEG (5Y)6.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.08% | ||
| ROE | 198.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 42.3% | ||
| PM (TTM) | 22.92% | ||
| GM | 67.31% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 9.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.69%
EPS 3Y4.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.38%
Revenue growth 3Y-1.25%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y