Verisk Analytics, Inc.
Verisk Analytics, Inc. Fundamental Analysis
Verisk Analytics, Inc. (VRSK) shows moderate financial fundamentals with a PE ratio of 29.94, profit margin of 29.56%, and ROE of 3.24%. The company generates $3.1B in annual revenue with moderate year-over-year growth of 7.47%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze VRSK's fundamental strength across five key dimensions:
Efficiency Score
ExcellentVRSK demonstrates superior asset utilization.
Valuation Score
ModerateVRSK shows balanced valuation metrics.
Growth Score
ExcellentVRSK delivers strong and consistent growth momentum.
Financial Health Score
ModerateVRSK shows balanced financial health with some risks.
Profitability Score
ModerateVRSK maintains healthy but balanced margins.
Key Financial Metrics
Is VRSK Expensive or Cheap?
P/E Ratio
VRSK trades at 29.94 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VRSK's PEG of -24.67 indicates potential undervaluation.
Price to Book
The market values Verisk Analytics, Inc. at 88.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.45 times EBITDA. This signals the market has high growth expectations.
How Well Does VRSK Make Money?
Net Profit Margin
For every $100 in sales, Verisk Analytics, Inc. keeps $29.56 as profit after all expenses.
Operating Margin
Core operations generate 44.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.24 in profit for every $100 of shareholder equity.
ROA
Verisk Analytics, Inc. generates $14.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Verisk Analytics, Inc. generates strong operating cash flow of $1.44B, reflecting robust business health.
Free Cash Flow
Verisk Analytics, Inc. generates strong free cash flow of $1.19B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.57 in free cash annually.
FCF Yield
VRSK converts 4.37% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.94
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-24.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
88.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
16.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.20
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
3.24
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How VRSK Stacks Against Its Sector Peers
| Metric | VRSK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.94 | 26.71 | Worse (Expensive) |
| ROE | 324.28% | 1311.00% | Weak |
| Net Margin | 29.56% | -29317.00% (disorted) | Strong |
| Debt/Equity | 16.30 | 0.75 | Weak (High Leverage) |
| Current Ratio | 1.20 | 10.53 | Neutral |
| ROA | 14.66% | -1537638.00% (disorted) | Strong |
VRSK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Verisk Analytics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
27.16%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
144.83%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
37.62%
Industry Style: Cyclical, Value, Infrastructure
High Growth