VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
USA - NASDAQ:VRSK - US92345Y1064 - Common Stock
220 USD
+4.6 (+2.14%)
220 USD
0 (0%)
Taking everything into account, VRSK scores 6 out of 10 in our fundamental rating. VRSK was compared to 87 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. VRSK is quite expensive at the moment. It does show a decent growth rate.
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.
In the past 5 years VRSK has always been profitable.
VRSK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 14.76%, VRSK belongs to the best of the industry, outperforming 94.25% of the companies in the same industry.
VRSK's Return On Equity of 244.62% is amongst the best of the industry. VRSK outperforms 100.00% of its industry peers.
The Return On Invested Capital of VRSK (25.82%) is better than 95.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for VRSK is significantly above the industry average of 13.25%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 244.62% | ||
| ROIC | 25.82% |
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 30.42%. This is amongst the best in the industry. VRSK outperforms 98.85% of its industry peers.
VRSK's Profit Margin has improved in the last couple of years.
VRSK has a better Operating Margin (44.61%) than 100.00% of its industry peers.
VRSK's Operating Margin has improved in the last couple of years.
The Gross Margin of VRSK (69.62%) is better than 86.21% of its industry peers.
VRSK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.61% | ||
| PM (TTM) | 30.42% | ||
| GM | 69.62% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), VRSK is creating value.
Compared to 1 year ago, VRSK has less shares outstanding
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 6.15. This indicates that VRSK is financially healthy and has little risk of bankruptcy at the moment.
VRSK's Altman-Z score of 6.15 is amongst the best of the industry. VRSK outperforms 89.66% of its industry peers.
The Debt to FCF ratio of VRSK is 4.23, which is a neutral value as it means it would take VRSK, 4.23 years of fcf income to pay off all of its debts.
VRSK's Debt to FCF ratio of 4.23 is in line compared to the rest of the industry. VRSK outperforms 58.62% of its industry peers.
A Debt/Equity ratio of 8.57 is on the high side and indicates that VRSK has dependencies on debt financing.
VRSK's Debt to Equity ratio of 8.57 is on the low side compared to the rest of the industry. VRSK is outperformed by 86.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.57 | ||
| Debt/FCF | 4.23 | ||
| Altman-Z | 6.15 |
ROIC/WACC3.11
WACC8.3%
2.3 Liquidity
VRSK has a Current Ratio of 1.19. 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 1.19. This is in the lower half of the industry: VRSK underperforms 60.92% of its industry peers.
VRSK has a Quick Ratio of 1.19. This is a normal value and indicates that VRSK is financially healthy and should not expect problems in meeting its short term obligations.
VRSK's Quick ratio of 1.19 is on the low side compared to the rest of the industry. VRSK is outperformed by 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
VRSK shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.76%.
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.
Looking at the last year, VRSK shows a small growth in Revenue. The Revenue has grown by 7.30% in the last 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)7.76%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%2.99%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%5.93%
3.2 Future
Based on estimates for the next years, VRSK will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.98% on average per year.
Based on estimates for the next years, VRSK will show a quite strong growth in Revenue. The Revenue will grow by 8.19% on average per year.
EPS Next Y6.33%
EPS Next 2Y8.43%
EPS Next 3Y9.51%
EPS Next 5Y11.98%
Revenue Next Year7.01%
Revenue Next 2Y8.05%
Revenue Next 3Y7.64%
Revenue Next 5Y8.19%
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
A Price/Earnings ratio of 31.70 indicates a quite expensive valuation of VRSK.
VRSK's Price/Earnings ratio is in line with the industry average.
VRSK's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 28.14, the valuation of VRSK can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of VRSK is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.27. VRSK is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 28.14 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as VRSK.
VRSK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.55 | ||
| EV/EBITDA | 19.9 |
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)5.01
PEG (5Y)3.64
EPS Next 2Y8.43%
EPS Next 3Y9.51%
5. Dividend
5.1 Amount
VRSK has a yearly dividend return of 0.84%, which is pretty low.
VRSK's Dividend Yield is a higher than the industry average which is at 4.45.
With a Dividend Yield of 0.84, VRSK pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
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
26.40% 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.
DP26.4%
EPS Next 2Y8.43%
EPS Next 3Y9.51%
220
+4.6 (+2.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners95.57%
Inst Owner Change-0.85%
Ins Owners0.24%
Ins Owner Change0.64%
Market Cap30.74B
Revenue(TTM)3.03B
Net Income(TTM)921.50M
Analysts75.38
Price Target297.31 (35.14%)
Short Float %1.89%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.84% |
Yearly Dividend1.56
Dividend Growth(5Y)9.31%
DP26.4%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.54%
Min EPS beat(2)-0.97%
Max EPS beat(2)4.04%
EPS beat(4)2
Avg EPS beat(4)0.67%
Min EPS beat(4)-1.16%
Max EPS beat(4)4.04%
EPS beat(8)5
Avg EPS beat(8)1.1%
EPS beat(12)9
Avg EPS beat(12)3.34%
EPS beat(16)11
Avg EPS beat(16)2.55%
Revenue beat(2)0
Avg Revenue beat(2)-2.21%
Min Revenue beat(2)-2.95%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.92%
Min Revenue beat(4)-2.95%
Max Revenue beat(4)-1.47%
Revenue beat(8)0
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-6.31%
Revenue beat(16)3
Avg Revenue beat(16)-9.59%
PT rev (1m)-4.86%
PT rev (3m)-5.62%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-3.71%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-1.01%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.06%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.7 | ||
| Fwd PE | 28.14 | ||
| P/S | 10.15 | ||
| P/FCF | 27.55 | ||
| P/OCF | 22.8 | ||
| P/B | 81.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.9 |
EPS(TTM)6.94
EY3.15%
EPS(NY)7.82
Fwd EY3.55%
FCF(TTM)7.99
FCFY3.63%
OCF(TTM)9.65
OCFY4.39%
SpS21.68
BVpS2.7
TBVpS-13.95
PEG (NY)5.01
PEG (5Y)3.64
Graham Number20.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.76% | ||
| ROE | 244.62% | ||
| ROCE | 33.93% | ||
| ROIC | 25.82% | ||
| ROICexc | 54.84% | ||
| ROICexgc | N/A | ||
| OM | 44.61% | ||
| PM (TTM) | 30.42% | ||
| GM | 69.62% | ||
| FCFM | 36.83% |
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%
ROICexgc growth 3Y-34.19%
ROICexgc 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-Score7
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.57 | ||
| Debt/FCF | 4.23 | ||
| Debt/EBITDA | 1.93 | ||
| Cap/Depr | 71.65% | ||
| Cap/Sales | 7.67% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 80.45% | ||
| Profit Quality | 121.09% | ||
| Current Ratio | 1.19 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 6.15 |
F-Score7
WACC8.3%
ROIC/WACC3.11
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)7.76%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%2.99%
EPS Next Y6.33%
EPS Next 2Y8.43%
EPS Next 3Y9.51%
EPS Next 5Y11.98%
Revenue 1Y (TTM)7.3%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%5.93%
Revenue Next Year7.01%
Revenue Next 2Y8.05%
Revenue Next 3Y7.64%
Revenue Next 5Y8.19%
EBIT growth 1Y13.67%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year37.91%
EBIT Next 3Y18.64%
EBIT Next 5Y15.6%
FCF growth 1Y38.8%
FCF growth 3Y1.22%
FCF growth 5Y4.48%
OCF growth 1Y27.5%
OCF growth 3Y-0.34%
OCF growth 5Y3.66%
VERISK ANALYTICS INC / VRSK FAQ
What is the fundamental rating for VRSK stock?
ChartMill assigns a fundamental rating of 6 / 10 to VRSK.
Can you provide the valuation status for VERISK ANALYTICS INC?
ChartMill assigns a valuation rating of 2 / 10 to VERISK ANALYTICS INC (VRSK). This can be considered as Overvalued.
What is the profitability of VRSK stock?
VERISK ANALYTICS INC (VRSK) has a profitability rating of 9 / 10.
What are the PE and PB ratios of VERISK ANALYTICS INC (VRSK) stock?
The Price/Earnings (PE) ratio for VERISK ANALYTICS INC (VRSK) is 31.7 and the Price/Book (PB) ratio is 81.59.
What is the earnings growth outlook for VERISK ANALYTICS INC?
The Earnings per Share (EPS) of VERISK ANALYTICS INC (VRSK) is expected to grow by 6.33% in the next year.