NasdaqGS:VRSK

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.9%

VRSK

0.5%

US Professional Services

1.0%

US Market


1 Year Return

33.2%

VRSK

19.8%

US Professional Services

8.0%

US Market

Return vs Industry: VRSK exceeded the US Professional Services industry which returned 19.8% over the past year.

Return vs Market: VRSK exceeded the US Market which returned 8% over the past year.


Shareholder returns

VRSKIndustryMarket
7 Day-2.9%0.5%1.0%
30 Day-4.0%-0.1%-0.07%
90 Day0.5%-0.3%-1.0%
1 Year33.9%33.2%21.0%19.8%10.4%8.0%
3 Year86.4%85.5%55.5%50.3%46.2%36.7%
5 Year146.7%145.4%86.9%76.8%64.3%46.2%

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?

41.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VRSK ($151.02) is trading above our estimate of fair value ($129.79)

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 (41.5x) compared to the Professional Services industry average (20.8x).

PE vs Market: VRSK is poor value based on its PE Ratio (41.5x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: VRSK is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: VRSK is overvalued based on its PB Ratio (11.2x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

How is Verisk Analytics forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

13.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VRSK's forecast earnings growth (13.2% per year) is above the savings rate (2.7%).

Earnings vs Market: VRSK's earnings (13.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: VRSK's revenue (7.2% per year) is forecast to grow slower than the US market (7.2% 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 (32.9%)


Next Steps

Past Performance

How has Verisk Analytics performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: VRSK's earnings have grown by 10.7% 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 (-2.4%) over the past year, making it difficult to compare to the Professional Services industry average (36.8%).


Return on Equity

High ROE: Whilst VRSK's Return on Equity (27.01%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: VRSK has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: VRSK's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Verisk Analytics's financial position?


Financial Position Analysis

Short Term Liabilities: VRSK's short term assets ($710.3M) do not cover its short term liabilities ($920.8M)

Long Term Liabilities: VRSK's short term assets (710.3M) do not cover its long term liabilities (3.1B)


Debt to Equity History and Analysis

Debt Level: VRSK's debt to equity ratio (112.9%) is considered high

Reducing Debt: VRSK's debt to equity ratio has reduced from 187% to 112.9% over the past 5 years.

Debt Coverage: VRSK's debt is well covered by operating cash flow (38.7%).

Interest Coverage: VRSK's interest payments on its debt are well covered by EBIT (6.7x 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 0.3x debt).


Next Steps

Dividend

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

0.66%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: VRSK's dividend (0.66%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: VRSK's dividend (0.66%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

What is the CEO of Verisk Analytics's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Scott Stephenson (62yo)

6.5yrs

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 ($USD7.74M) is below average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: VRSK's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

10.7yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VRSK's board of directors are seasoned and experienced ( 10.7 years average tenure).


Insider Trading

Insider Buying: VRSK insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$213,61216 Sep 19
Vincent de McCarthy
EntityIndividual
Role
Senior Key Executive
Group President
Shares1,353
Max PriceUS$157.88

Ownership Breakdown


Management Team

  • Scott Stephenson (62yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$7.74m
  • Kenneth Thompson (59yo)

    Executive VP

    • Tenure: 13.8yrs
    • Compensation: US$2.15m
  • Mark Anquillare (53yo)

    Executive VP & COO

    • Tenure: 3.3yrs
    • Compensation: US$3.31m
  • Stacey Brodbar

    Head of Investor Relations

    • Tenure: 0yrs
  • Vince McCarthy (54yo)

    Group President

    • Tenure: 1.2yrs
    • Compensation: US$2.06m
  • Nick Daffan

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
  • Lee Shavel (52yo)

    Executive VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$2.65m
  • Mark Magath

    Senior Vice President of Risk & Compliance

    • Tenure: 0yrs
  • David Grover (47yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 2.4yrs
  • Yang Chen

    Head of Corporate Development & Strategy

    • Tenure: 1.8yrs

Board Members

  • Scott Stephenson (62yo)

    Chairman

    • Tenure: 6.5yrs
    • Compensation: US$7.74m
  • Andrew Mills (66yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$245.02k
  • Bruce Hansen (59yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$245.00k
  • David Wright (69yo)

    Independent Director

    • Tenure: 20.8yrs
    • Compensation: US$245.01k
  • Dinos Iordanou (69yo)

    Independent Director

    • Tenure: 18.8yrs
    • Compensation: US$245.02k
  • Frank Coyne (70yo)

    Independent Director

    • Tenure: 17.8yrs
    • Compensation: US$295.01k
  • Sam Liss (62yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$260.03k
  • Annell Bay (63yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$245.00k
  • Terri Vaughan (62yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$260.01k
  • Chris Foskett (61yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: US$265.02k

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$24.693b
  • Shares outstanding: 163.51m
  • 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

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 Analysis2019/10/23 00:14
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.