NasdaqGS:VRSK

Stock Analysis Report

Executive Summary

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally.


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Verisk Analytics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VRSK has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.5%

VRSK

0.06%

US Professional Services

0.06%

US Market


1 Year Return

36.3%

VRSK

29.6%

US Professional Services

19.3%

US Market

Return vs Industry: VRSK exceeded the US Professional Services industry which returned 31.4% over the past year.

Return vs Market: VRSK exceeded the US Market which returned 20.3% over the past year.


Shareholder returns

VRSKIndustryMarket
7 Day-0.5%0.06%0.06%
30 Day5.2%2.8%1.7%
90 Day16.3%13.6%9.0%
1 Year37.3%36.3%30.8%29.6%21.8%19.3%
3 Year106.3%104.9%62.8%57.6%49.5%39.9%
5 Year136.5%134.9%82.9%73.0%73.1%54.1%

Price Volatility Vs. Market

How volatile is Verisk Analytics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Verisk Analytics undervalued compared to its fair value and its price relative to the market?

61.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRSK ($169.74) is trading above our estimate of fair value ($123.04)

Significantly Below Fair Value: VRSK is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VRSK is poor value based on its PE Ratio (61.7x) compared to the Professional Services industry average (20.5x).

PE vs Market: VRSK is poor value based on its PE Ratio (61.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: VRSK is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: VRSK is overvalued based on its PB Ratio (12.3x) compared to the US Professional Services industry average (2.7x).


Next Steps

Future Growth

How is Verisk Analytics forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRSK's forecast earnings growth (27.1% per year) is above the savings rate (1.7%).

Earnings vs Market: VRSK's earnings (27.1% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VRSK's revenue (7.2% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: VRSK's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VRSK's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has Verisk Analytics performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRSK has high quality earnings.

Growing Profit Margin: VRSK's current net profit margins (17.3%) are lower than last year (25%).


Past Earnings Growth Analysis

Earnings Trend: VRSK's earnings have grown by 6.6% per year over the past 5 years.

Accelerating Growth: VRSK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VRSK had negative earnings growth (-24.9%) over the past year, making it difficult to compare to the Professional Services industry average (10.6%).


Return on Equity

High ROE: VRSK's Return on Equity (19.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Verisk Analytics's financial position?


Financial Position Analysis

Short Term Liabilities: VRSK's short term assets ($744.9M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: VRSK's short term assets ($744.9M) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: VRSK's debt to equity ratio (139.4%) is considered high.

Reducing Debt: VRSK's debt to equity ratio has reduced from 670.7% to 139.4% over the past 5 years.

Debt Coverage: VRSK's debt is well covered by operating cash flow (30.3%).

Interest Coverage: VRSK's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: VRSK has a low level of unsold assets or inventory.

Debt Coverage by Assets: VRSK's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Verisk Analytics's current dividend yield, its reliability and sustainability?

0.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VRSK's dividend (0.59%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VRSK's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: VRSK is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: VRSK is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: VRSK is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of VRSK's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Scott Stephenson (62yo)

6.8yrs

Tenure

US$7,743,757

Compensation

Mr. Scott G. Stephenson has been President and Chief Executive Officer at Verisk Analytics, Inc. (also known as Insurance Services Office, Inc.) since March 2011 and April 01, 2013 respectively. Mr. Stephe ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD7.74M) is about average for companies of similar size in the US market ($USD10.78M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Stephenson
Chairman6.8yrsUS$7.74m0.51% $141.8m
Lee Shavel
Executive VP & CFO2.3yrsUS$2.65m0.021% $5.9m
Mark Anquillare
Executive VP & COO3.7yrsUS$3.31m0.040% $11.0m
Kenneth Thompson
Executive VP14.1yrsUS$2.15m0.028% $7.8m
Vincent de McCarthy
Executive Vice President1.5yrsUS$2.06m0.020% $5.6m
David Grover
VP, Controller & Chief Accounting Officer2.8yrsno data0.0049% $1.4m
Nicholas Daffan
Executive VP & Chief Information Officer0yrsno datano data
Stacey Brodbar
Head of Investor Relations0yrsno datano data
Mark Magath
Senior Vice President of Risk & Compliance0yrsno datano data
Yang Chen
Head of Corporate Development & Strategy2.1yrsno datano data

2.8yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VRSK's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Stephenson
Chairman6.8yrsUS$7.74m0.51% $141.8m
Andrew Mills
Independent Director18.1yrsUS$245.02k0.041% $11.5m
Bruce Hansen
Independent Director4.8yrsUS$245.00k0.00069% $191.0k
David Wright
Independent Director21.1yrsUS$245.01k0.010% $2.8m
Constantine Iordanou
Independent Director19.1yrsUS$245.02k0.16% $45.1m
Frank Coyne
Independent Director18.1yrsUS$295.01k0.019% $5.3m
Samuel Liss
Independent Director15.1yrsUS$260.03k0.027% $7.5m
Annell Bay
Independent Director3.5yrsUS$245.00k0.00070% $193.8k
Therese Vaughan
Independent Director7yrsUS$260.01k0.00041% $113.5k
Christopher Foskett
Lead Independent Director0.8yrsUS$265.02k0.0076% $2.1m

11.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VRSK's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Verisk Analytics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Verisk Analytics, Inc.
  • Ticker: VRSK
  • Exchange: NasdaqGS
  • Founded: 1971
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$27.681b
  • Shares outstanding: 163.08m
  • Website: https://www.verisk.com

Number of Employees


Location

  • Verisk Analytics, Inc.
  • 545 Washington Boulevard
  • Jersey City
  • New Jersey
  • 7310
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VRSKNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDOct 2009
VA7ADB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2009
VRSK *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNOct 2009
VRSKWBAG (Wiener Boerse AG)YesClass A Common StockATEUROct 2009
0LP3LSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2009
VA7AETLX (Eurotlx)YesClass A Common StockITEUROct 2009
V1RS34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. It provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, natural resources intelligence, economic forecasting, and various other fields. The company operates through three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers. It also develops predictive models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on exploration strategies and screening, asset development and acquisition, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:48
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.