VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - Nasdaq - US92345Y1064 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to VRSK. VRSK was compared to 82 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.
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
Looking at the Return On Assets, with a value of 18.96%, VRSK belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
VRSK has a better Return On Equity (789.35%) than 98.78% of its industry peers.
The Return On Invested Capital of VRSK (26.11%) is better than 97.56% 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 12.28%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.96% | ||
| ROE | 789.35% | ||
| ROIC | 26.11% |
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's Profit Margin of 33.13% is amongst the best of the industry. VRSK outperforms 98.78% of its industry peers.
In the last couple of years the Profit Margin of VRSK has grown nicely.
With an excellent Operating Margin value of 43.59%, VRSK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of VRSK has grown nicely.
VRSK has a better Gross Margin (69.15%) than 84.15% of its industry peers.
In the last couple of years the Gross Margin of VRSK has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.59% | ||
| PM (TTM) | 33.13% | ||
| GM | 69.15% |
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.
VRSK has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.53 indicates that VRSK is not in any danger for bankruptcy at the moment.
VRSK's Altman-Z score of 8.53 is amongst the best of the industry. VRSK outperforms 90.24% of its industry peers.
VRSK has a debt to FCF ratio of 3.77. This is a good value and a sign of high solvency as VRSK would need 3.77 years to pay back of all of its debts.
VRSK has a Debt to FCF ratio (3.77) which is in line with its industry peers.
VRSK has a Debt/Equity ratio of 26.30. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 26.30, VRSK is not doing good in the industry: 92.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.3 | ||
| Debt/FCF | 3.77 | ||
| Altman-Z | 8.53 |
ROIC/WACC2.95
WACC8.86%
2.3 Liquidity
A Current Ratio of 1.27 indicates that VRSK should not have too much problems paying its short term obligations.
VRSK's Current ratio of 1.27 is in line compared to the rest of the industry. VRSK outperforms 42.68% of its industry peers.
A Quick Ratio of 1.27 indicates that VRSK should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.27, VRSK perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
VRSK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.39%, which is quite good.
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.
VRSK shows a small growth in Revenue. In the last year, the Revenue has grown by 7.20%.
The Revenue has been growing slightly by 2.02% on average over the past years.
EPS 1Y (TTM)11.39%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%6.13%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
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.
The Revenue is expected to grow by 7.00% on average over the next years.
EPS Next Y8.09%
EPS Next 2Y10.03%
EPS Next 3Y10.59%
EPS Next 5Y11.98%
Revenue Next Year6.91%
Revenue Next 2Y7.07%
Revenue Next 3Y7.12%
Revenue Next 5Y7%
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.
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 44.52.
Based on the Price/Earnings ratio, VRSK is valued a bit more expensive than the industry average as 67.07% of the companies are valued more cheaply.
VRSK is valuated expensively when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 37.33 indicates a quite expensive valuation of 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 65.85% of the companies listed in the same industry.
VRSK is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.52 | ||
| Fwd PE | 37.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRSK is valued a bit more expensive than 65.85% of the companies in the same industry.
VRSK's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.28 | ||
| EV/EBITDA | 28.08 |
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)5.5
PEG (5Y)5.11
EPS Next 2Y10.03%
EPS Next 3Y10.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, VRSK is not a good candidate for dividend investing.
VRSK's Dividend Yield is a higher than the industry average which is at 2.06.
Compared to an average S&P500 Dividend Yield of 2.35, VRSK's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of VRSK is nicely growing with an annual growth rate of 9.31%!
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 23.53% 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.
DP23.53%
EPS Next 2Y10.03%
EPS Next 3Y10.59%
300.51
-2.39 (-0.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.14%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change0.67%
Market Cap42.04B
Analysts72.8
Price Target315 (4.82%)
Short Float %2.03%
Short Ratio3.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend1.56
Dividend Growth(5Y)9.31%
DP23.53%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.19%
Min EPS beat(2)-1.16%
Max EPS beat(2)0.77%
EPS beat(4)3
Avg EPS beat(4)1.41%
Min EPS beat(4)-1.16%
Max EPS beat(4)3.93%
EPS beat(8)6
Avg EPS beat(8)1.51%
EPS beat(12)9
Avg EPS beat(12)3.41%
EPS beat(16)11
Avg EPS beat(16)1.74%
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)-1.88%
Min Revenue beat(4)-2.72%
Max Revenue beat(4)-1.54%
Revenue beat(8)2
Avg Revenue beat(8)-1.09%
Revenue beat(12)3
Avg Revenue beat(12)-6.36%
Revenue beat(16)3
Avg Revenue beat(16)-9.46%
PT rev (1m)0.41%
PT rev (3m)3.77%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-0.43%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.52 | ||
| Fwd PE | 37.33 | ||
| P/S | 14.34 | ||
| P/FCF | 42.28 | ||
| P/OCF | 34.55 | ||
| P/B | 341.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.08 |
EPS(TTM)6.75
EY2.25%
EPS(NY)8.05
Fwd EY2.68%
FCF(TTM)7.11
FCFY2.36%
OCF(TTM)8.7
OCFY2.89%
SpS20.95
BVpS0.88
TBVpS-14.35
PEG (NY)5.5
PEG (5Y)5.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.96% | ||
| ROE | 789.35% | ||
| ROCE | 34.31% | ||
| ROIC | 26.11% | ||
| ROICexc | 37.22% | ||
| ROICexgc | 201.86% | ||
| OM | 43.59% | ||
| PM (TTM) | 33.13% | ||
| GM | 69.15% | ||
| FCFM | 33.92% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 26.3 | ||
| Debt/FCF | 3.77 | ||
| Debt/EBITDA | 2.03 | ||
| Cap/Depr | 71.01% | ||
| Cap/Sales | 7.59% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 76.47% | ||
| Profit Quality | 102.39% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 8.53 |
F-Score8
WACC8.86%
ROIC/WACC2.95
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)11.39%
EPS 3Y7.79%
EPS 5Y8.71%
EPS Q2Q%6.13%
EPS Next Y8.09%
EPS Next 2Y10.03%
EPS Next 3Y10.59%
EPS Next 5Y11.98%
Revenue 1Y (TTM)7.2%
Revenue growth 3Y5.38%
Revenue growth 5Y2.02%
Sales Q2Q%6.96%
Revenue Next Year6.91%
Revenue Next 2Y7.07%
Revenue Next 3Y7.12%
Revenue Next 5Y7%
EBIT growth 1Y11.43%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year35.88%
EBIT Next 3Y16.77%
EBIT Next 5Y13.35%
FCF growth 1Y32.76%
FCF growth 3Y1.22%
FCF growth 5Y4.48%
OCF growth 1Y18.72%
OCF growth 3Y-0.34%
OCF growth 5Y3.66%