VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
USA - NASDAQ:VRSK - US92345Y1064 - Common Stock
243.47 USD
-1.86 (-0.76%)
243.47 USD
0 (0%)
Overall VRSK gets a fundamental rating of 6 out of 10. We evaluated VRSK against 82 industry peers in the Professional Services industry. VRSK has an excellent profitability rating, but 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
In the past year VRSK was profitable.
In the past year VRSK had a positive cash flow from operations.
In the past 5 years VRSK has always been profitable.
In the past 5 years VRSK always reported a positive cash flow from operatings.
1.2 Ratios
VRSK's Return On Assets of 19.11% is amongst the best of the industry. VRSK outperforms 95.12% of its industry peers.
VRSK has a better Return On Equity (293.90%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 25.65%, VRSK belongs to the best of the industry, outperforming 96.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for VRSK is significantly above the industry average of 12.76%.
| 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 better Profit Margin (30.67%) than 97.56% of its industry peers.
In the last couple of years the Profit Margin of VRSK has grown nicely.
The Operating Margin of VRSK (43.97%) is better than 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 85.37% 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
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.
VRSK has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, VRSK has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.39 indicates that VRSK is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.39, VRSK belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
The Debt to FCF ratio of VRSK is 3.19, which is a good value as it means it would take VRSK, 3.19 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.19, VRSK is in the better half of the industry, outperforming 62.20% of the companies in the same industry.
A Debt/Equity ratio of 10.37 is on the high side and indicates that VRSK has dependencies on debt financing.
The Debt to Equity ratio of VRSK (10.37) is worse than 87.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.37 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 8.39 |
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 in line with its industry peers.
A Quick Ratio of 1.53 indicates that VRSK should not have too much problems paying its short term obligations.
VRSK has a Quick ratio (1.53) which 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%.
The Revenue has been growing slightly by 2.02% on average over the past years.
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
VRSK is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.98% yearly.
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
With a Price/Earnings ratio of 35.34, VRSK can be considered very expensive at the moment.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 63.41% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of VRSK to the average of the S&P500 Index (27.38), we can say VRSK is valued slightly more expensively.
The Price/Forward Earnings ratio is 30.62, which means the current valuation is very expensive for VRSK.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of VRSK to the average of the S&P500 Index (22.86), we can say VRSK is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.34 | ||
| Fwd PE | 30.62 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of VRSK is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as VRSK.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.34 | ||
| EV/EBITDA | 22.45 |
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)4.86
PEG (5Y)4.06
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 -20.44% 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 3.06.
With a Dividend Yield of 0.73, VRSK pays less dividend than the S&P500 average, which is at 2.38.
| 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
25.76% 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.
DP25.76%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
243.47
-1.86 (-0.76%)
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 Cap34.02B
Analysts74.17
Price Target312.49 (28.35%)
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 | 35.34 | ||
| Fwd PE | 30.62 | ||
| P/S | 11.39 | ||
| P/FCF | 33.34 | ||
| P/OCF | 27.41 | ||
| P/B | 109.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.45 |
EPS(TTM)6.89
EY2.83%
EPS(NY)7.95
Fwd EY3.27%
FCF(TTM)7.3
FCFY3%
OCF(TTM)8.88
OCFY3.65%
SpS21.38
BVpS2.23
TBVpS-13.5
PEG (NY)4.86
PEG (5Y)4.06
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 | 8.39 |
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%