VERISK ANALYTICS INC (VRSK) Stock Fundamental Analysis
NASDAQ:VRSK - US92345Y1064 - Common Stock
267.7 USD
-0.61 (-0.23%)
267.7 USD
0 (0%)
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. While VRSK belongs to the best of the industry regarding profitability, 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
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.
Each year in the past 5 years VRSK had a positive operating cash flow.
1.2 Ratios
VRSK has a better Return On Assets (19.11%) than 95.06% of its industry peers.
With an excellent Return On Equity value of 293.90%, VRSK belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 25.65%, VRSK belongs to the top of the industry, outperforming 96.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VRSK is significantly above the industry average of 12.68%.
| 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
With an excellent Profit Margin value of 30.67%, VRSK belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
VRSK's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 43.97%, 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.
Looking at the Gross Margin, with a value of 69.39%, VRSK belongs to the top of the industry, outperforming 86.42% 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 | 43.97% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for VRSK is higher compared to a year ago.
2.2 Solvency
VRSK has an Altman-Z score of 8.86. This indicates that VRSK is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.86, VRSK belongs to the best of the industry, outperforming 95.06% of the companies in the same industry.
VRSK has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as VRSK would need 3.19 years to pay back of all of its debts.
VRSK has a Debt to FCF ratio of 3.19. This is in the better half of the industry: VRSK outperforms 62.96% of its industry peers.
VRSK has a Debt/Equity ratio of 10.37. This is a high value indicating a heavy dependency on external financing.
VRSK's Debt to Equity ratio of 10.37 is on the low side compared to the rest of the industry. VRSK is outperformed by 91.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 10.37 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | 8.86 |
ROIC/WACC3.02
WACC8.49%
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.
VRSK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.71% yearly.
The Revenue has been growing slightly by 7.60% in the past year.
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
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.
VRSK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.00% yearly.
EPS Next Y7.27%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
EPS Next 5Y11.98%
Revenue Next Year8.31%
Revenue Next 2Y9.55%
Revenue Next 3Y8.73%
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
The Price/Earnings ratio is 38.85, which means the current valuation is very expensive for VRSK.
VRSK's Price/Earnings ratio is a bit more expensive when compared to the industry. VRSK is more expensive than 67.90% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.14, VRSK is valued a bit more expensive.
With a Price/Forward Earnings ratio of 33.66, VRSK can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, VRSK is valued a bit more expensive than 65.43% of the companies in the same industry.
VRSK is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.80, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.85 | ||
| Fwd PE | 33.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, VRSK is valued a bit more expensive than the industry average as 61.73% of the companies are valued more cheaply.
VRSK's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.65 | ||
| EV/EBITDA | 24.58 |
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)5.35
PEG (5Y)4.46
EPS Next 2Y9.35%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, VRSK is not a good candidate for dividend investing.
VRSK's Dividend Yield is a higher than the industry average which is at 2.25.
With a Dividend Yield of 0.66, VRSK pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
VRSK pays out 25.76% 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.
DP25.76%
EPS Next 2Y9.35%
EPS Next 3Y10.45%
267.7
-0.61 (-0.23%)
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 Change0.56%
Market Cap37.40B
Analysts74.17
Price Target311.49 (16.36%)
Short Float %1.79%
Short Ratio2.45
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)-1.11%
PT rev (3m)3.05%
EPS NQ rev (1m)-3.81%
EPS NQ rev (3m)-6.25%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)-0.48%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.85 | ||
| Fwd PE | 33.66 | ||
| P/S | 12.52 | ||
| P/FCF | 36.65 | ||
| P/OCF | 30.14 | ||
| P/B | 119.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.58 |
EPS(TTM)6.89
EY2.57%
EPS(NY)7.95
Fwd EY2.97%
FCF(TTM)7.3
FCFY2.73%
OCF(TTM)8.88
OCFY3.32%
SpS21.38
BVpS2.23
TBVpS-13.5
PEG (NY)5.35
PEG (5Y)4.46
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 | 8.86 |
F-Score8
WACC8.49%
ROIC/WACC3.02
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 Year8.31%
Revenue Next 2Y9.55%
Revenue Next 3Y8.73%
Revenue Next 5Y7%
EBIT growth 1Y13.37%
EBIT growth 3Y11.23%
EBIT growth 5Y11.24%
EBIT Next Year37.44%
EBIT Next 3Y18.05%
EBIT Next 5Y13.35%
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%