VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD
VRSK gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. While VRSK has a great profitability rating, 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
VRSK had positive earnings in the past year.
VRSK had a positive operating cash flow in the past year.
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
The Return On Assets of VRSK (22.47%) is better than 93.90% of its industry peers.
The Return On Equity of VRSK (957.24%) is better than 98.78% of its industry peers.
The Return On Invested Capital of VRSK (31.54%) is better than 96.34% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRSK is significantly above the industry average of 13.34%.
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 has a Profit Margin of 33.25%. This is amongst the best in the industry. VRSK outperforms 98.78% of its industry peers.
In the last couple of years the Profit Margin of VRSK has grown nicely.
The Operating Margin of VRSK (43.52%) is better than 100.00% of its industry peers.
VRSK's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 68.73%, VRSK belongs to the best of the industry, outperforming 81.71% 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 | 43.52% | ||
| 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.
Compared to 1 year ago, VRSK has less shares outstanding
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 9.84 indicates that VRSK is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 9.84, VRSK belongs to the best of the industry, outperforming 98.78% of the companies in the same industry.
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.
The Debt to FCF ratio of VRSK (3.33) is better than 63.41% of its industry peers.
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: 91.46% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 25.44 | ||
| Debt/FCF | 3.33 | ||
| Altman-Z | 9.84 |
ROIC/WACC3.66
WACC8.62%
2.3 Liquidity
A Current Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
VRSK has a worse Current ratio (0.74) than 85.37% of its industry peers.
A Quick Ratio of 0.74 indicates that VRSK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, VRSK is doing worse than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.26% over the past year.
VRSK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.71% yearly.
VRSK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.47%.
VRSK shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.02% yearly.
EPS 1Y (TTM)16.26%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%15%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%8.62%
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 Y7.81%
EPS Next 2Y10.02%
EPS Next 3Y10.67%
EPS Next 5Y11.84%
Revenue Next Year6.57%
Revenue Next 2Y6.86%
Revenue Next 3Y7.1%
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.
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 44.54.
71.95% of the companies in the same industry are cheaper than VRSK, based on the Price/Earnings ratio.
VRSK's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.29.
The Price/Forward Earnings ratio is 41.31, which means the current valuation is very expensive for VRSK.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSK indicates a slightly more expensive valuation: VRSK is more expensive than 63.41% of the companies listed in the same industry.
VRSK is valuated expensively when we compare the Price/Forward Earnings ratio to 20.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.54 | ||
| Fwd PE | 41.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRSK is valued a bit more expensive than 67.07% 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 | 45.05 | ||
| EV/EBITDA | 28.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
VRSK has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.7
PEG (5Y)5.11
EPS Next 2Y10.02%
EPS Next 3Y10.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, VRSK is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.38, VRSK pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.43, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
23.10% 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.
DP23.1%
EPS Next 2Y10.02%
EPS Next 3Y10.67%
296.19
+1.44 (+0.49%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.62%
Inst Owner Change0.11%
Ins Owners0.22%
Ins Owner Change0.59%
Market Cap41.45B
Analysts72.8
Price Target302.29 (2.06%)
Short Float %1.37%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)-0.39%
PT rev (3m)2.31%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-3.96%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.54 | ||
| Fwd PE | 41.31 | ||
| P/S | 14.38 | ||
| P/FCF | 45.05 | ||
| P/OCF | 36.23 | ||
| P/B | 414.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.21 |
EPS(TTM)6.65
EY2.25%
EPS(NY)7.17
Fwd EY2.42%
FCF(TTM)6.57
FCFY2.22%
OCF(TTM)8.17
OCFY2.76%
SpS20.59
BVpS0.72
TBVpS-14.43
PEG (NY)5.7
PEG (5Y)5.11
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 | 9.84 |
F-Score8
WACC8.62%
ROIC/WACC3.66
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)16.26%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%15%
EPS Next Y7.81%
EPS Next 2Y10.02%
EPS Next 3Y10.67%
EPS Next 5Y11.84%
Revenue 1Y (TTM)7.47%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%8.62%
Revenue Next Year6.57%
Revenue Next 2Y6.86%
Revenue Next 3Y7.1%
Revenue Next 5Y7%
EBIT growth 1Y10.58%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.34%
EBIT Next 3Y16.65%
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%