Verisk Analytics (VRSK)

Industrials · $25.8B market cap · SEC CIK 0001442145

Next reports on Feb 16, 2027, after the close, with analysts expecting $2.00 in earnings per share.

52-week range $155.94 to $227.16. 10% below its 52-week high and 31% above its low.

The case for VRSK

• Generated $1.2B of free cash flow in FY2025, 39% of revenue.
• 28% of revenue drops through to net profit.
• Earns 18% a year on everything it owns (return on assets).
• Gross margin of 70% absorbs cost shocks.
• Moves less than the market (beta 0.67).

The case against

• Expensive for its growth: 29.3× earnings, where 5% a year of growth plus a 0.6% dividend would justify about 17×.
• Priced at 8.1× sales with revenue growing only 4.9%.
• Growth is weak (28/100): revenue +4.9%, EPS +0.7%, +2.0% a year over five years.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Equity is a sliver of assets, so return on assets stands in for return on equity, and price-to-book and debt-to-equity are left out.
• Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.

The financials

The financials, five years deep

Pulled from Verisk Analytics's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

What Verisk Analytics says it does

Our Company Verisk is a leading data, analytics, and technology provider serving clients in the insurance ecosystem. Using advanced technologies to collect and analyze billions of records, we draw on unique data assets, insurance industry knowledge, and technological expertise to provide valuable solutions that are integrated into client workflows. We offer predictive analytics and decision support solutions to clients in rating, underwriting, claims, catastrophe, weather risk, and many other fields. In the United States (“U.S.”) and around the world, we help clients protect individuals, communities, and businesses. We completed the sale of our Energy business on February 1, 2023. Our clients use our solutions to make better decisions about risk and improve operating efficiency. We refer to these products and services as solutions due to the integration among our services and the flexibility that enables our clients to purchase…

Risk factors VRSK lists in its 10-K

• Strategic and Operational Risks Related to Our Business
• We are subject to competition in many of the markets in which we operate and we may not be able to compete effectively
• We could lose our access to data from external sources, which could prevent us from providing our solutions
• To the extent the availability of free or relatively inexpensive information increases, the demand for some of our solutions may decrease
• If we are unable to develop successful new solutions or if we experience defects, failures and delays associated with the introduction of new solutions, our business could suffer serious harm
• We typically face a long selling cycle to secure new contracts that require significant resource commitments, which result in a long lead time before we receive revenues from new relationships
• We derive a substantial portion of our revenues from U.S. P&C primary insurers. If there is a downturn in the U.S. insurance industry or that industry does not continue to accept our solutions, our revenues will decline
• We may incur substantial additional indebtedness in connection with future acquisitions
• There may be consolidation in our end customer market, which could reduce the use of our services
• Financial and Economic Risks Related to Our Business
• General economic, political and market forces and dislocations beyond our control could reduce demand for our solutions and harm our business
• Our financial position may be impacted by tax audits or changes in tax laws or tax ruling
• Cybersecurity and Product/Technology Risks Related to Our Business
• Fraudulent or unpermitted data access and other cyber-security or privacy breaches may negatively impact our business and harm our reputation
• A technology vendor that provides critical services, such as cloud-based infrastructure, creates a single point of failure resulting in pricing or contract lock-in risk
• AI use by our customers or other third parties could result in the replacement of our existing products and/or solutions or the reduction of their relevance
• Our own use of AI to enhance our products could lead to unanticipated consequences such as ethical, compliance, privacy-observing, bias-reducing, and/or intellectual property issues
• We use analytical models to assist our customers in key areas, such as underwriting, claims, reserving, and catastrophe risks, but actual results could differ materially from the model outputs and related analyses
• Legal, Regulatory and Compliance Risks Related to Our Business
• We will continue to rely upon proprietary technology rights, and if we are unable to protect them, our business could be harmed
• Regulatory developments could negatively impact our business
• We could face claims for intellectual property infringement, which if successful could restrict us from using and providing our technologies and solutions to our customers
• Our operations are subject to additional risks inherent in international operations
• We may fail to attract and retain enough qualified employees to support our operations, which could have an adverse effect on our ability to expand our business and service our customers
• Physical and transition risks associated with climate change and its consequences could disrupt operations, threaten the safety of employees, or negatively impact our financial performance
• If there are substantial sales of our common stock, our stock price could decline

Filings

Other Industrials companies