NasdaqGS:VRSK

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet with limited growth.


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

-0.03%

VRSK

1.7%

US Professional Services

0.09%

US Market


1 Year Return

14.6%

VRSK

10.0%

US Professional Services

12.6%

US Market

Return vs Industry: VRSK exceeded the US Professional Services industry which returned 10% over the past year.

Return vs Market: VRSK exceeded the US Market which returned 12.6% over the past year.


Shareholder returns

VRSKIndustryMarket
7 Day-0.03%1.7%0.09%
30 Day-2.2%-2.5%-1.6%
90 Day8.6%7.8%7.9%
1 Year15.4%14.6%10.9%10.0%15.2%12.6%
3 Year123.2%120.6%51.6%47.1%38.9%29.6%
5 Year149.1%146.1%97.5%86.8%87.6%66.5%

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?

57.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRSK ($181.58) is trading above our estimate of fair value ($127.43)

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 (57.4x) compared to the US Professional Services industry average (19.9x).

PE vs Market: VRSK is poor value based on its PE Ratio (57.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: VRSK is poor value based on its PEG Ratio (5.1x)


Price to Book Ratio

PB vs Industry: VRSK is overvalued based on its PB Ratio (13.6x) compared to the US Professional Services industry average (2.5x).


Next Steps

Future Growth

How is Verisk Analytics forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRSK's forecast earnings growth (11.2% per year) is above the savings rate (2.2%).

Earnings vs Market: VRSK's earnings (11.2% per year) are forecast to grow slower than the US market (23.2% per year).

High Growth Earnings: VRSK's earnings are forecast to grow, but not significantly.

Revenue vs Market: VRSK's revenue (6.2% per year) is forecast to grow slower than the US market (9.7% per year).

High Growth Revenue: VRSK's revenue (6.2% 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 (32.4%)


Next Steps

Past Performance

How has Verisk Analytics performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VRSK has high quality earnings.

Growing Profit Margin: VRSK's current net profit margins (19.1%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: VRSK's earnings have grown by 3.4% 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 (-13.4%) over the past year, making it difficult to compare to the Professional Services industry average (-1.7%).


Return on Equity

High ROE: Whilst VRSK's Return on Equity (23.7%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Verisk Analytics's financial position?


Financial Position Analysis

Short Term Liabilities: VRSK's short term assets ($878.7M) do not cover its short term liabilities ($1.5B).

Long Term Liabilities: VRSK's short term assets ($878.7M) do not cover its long term liabilities ($3.3B).


Debt to Equity History and Analysis

Debt Level: VRSK's debt to equity ratio (144.2%) is considered high.

Reducing Debt: VRSK's debt to equity ratio has reduced from 265.5% to 144.2% over the past 5 years.

Debt Coverage: VRSK's debt is well covered by operating cash flow (31.9%).

Interest Coverage: VRSK's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet


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 (1.66%).

High Dividend: VRSK's dividend (0.59%) is low compared to the top 25% of dividend payers in the US market (4.7%).


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?

3.1yrs

Average management tenure


CEO

Scott Stephenson (63 yo)

7.42yrs

Tenure

US$9,050,882

Compensation

Mr. Scott G. Stephenson has been Independent Director at Public Service Enterprise Group Incorporated since February 18, 2020. He has been President and Chief Executive Officer at Verisk Analytics, Inc. (a ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD9.05M) is about average for companies of similar size in the US market ($USD11.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Scott Stephenson
Chairman7.42yrsUS$9.05m0.51%
$ 150.4m
Lee Shavel
Executive VP & CFO2.83yrsUS$3.22m0.021%
$ 6.2m
Mark Anquillare
Executive VP & COO4.25yrsUS$4.01m0.038%
$ 11.2m
Kenneth Thompson
Executive VP14.67yrsUS$2.36m0.027%
$ 7.9m
Vincent de McCarthy
Executive Vice President2.08yrsUS$2.19m0.020%
$ 6.0m
David Grover
VP, Controller & Chief Accounting Officer3.33yrsno data0.0048%
$ 1.4m
Eric Schneider
Chief Technology Officerno datano datano data
Nicholas Daffan
Executive VP & Chief Information Officerno datano data0.011%
$ 3.4m
Stacey Brodbar
Head of Investor Relationsno datano datano data
Mark Magath
Senior Vice President of Risk & Complianceno datano datano data
Yang Chen
Head of Corporate Development & Strategy2.67yrsno datano data
Melissa Hendricks
Senior VP & Chief Marketing Officer1.67yrsno datano data

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: VRSK's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Scott Stephenson
Chairman7.42yrsUS$9.05m0.51%
$ 150.4m
Andrew Mills
Independent Director18.67yrsUS$255.01k0.056%
$ 16.4m
Bruce Hansen
Independent Director5.33yrsUS$274.99k0%
$ 0
David Wright
Independent Director21.67yrsUS$255.06k0.010%
$ 3.0m
Constantine Iordanou
Independent Director19.67yrsUS$255.01k0.15%
$ 45.1m
Samuel Liss
Independent Director15.67yrsUS$270.02k0.027%
$ 8.1m
Kathleen Hogenson
Independent Director4.08yrsUS$255.01k0%
$ 0
Annell Bay
Independent Director4.08yrsUS$275.01k0.00019%
$ 56.0k
Therese Vaughan
Independent Director7.58yrsUS$270.01k0%
$ 0
Christopher Foskett
Lead Independent Director1.33yrsUS$304.96k0.0086%
$ 2.5m
Laura Ipsen
Independent Director1.67yrsno data0%
$ 0

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: VRSK's board of directors are considered experienced (5.3 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.


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$29.486b
  • Shares outstanding: 162.39m
  • Website: https://www.verisk.com

Number of Employees


Location

  • Verisk Analytics, Inc.
  • 545 Washington Boulevard
  • Jersey City
  • New Jersey
  • 07310-1686
  • 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, clai ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 05:32
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.