Verisk Analytics, Inc. Fundamental Analysis
Verisk Analytics, Inc. (VRSK) shows moderate financial fundamentals with a PE ratio of 27.01, profit margin of 29.34%, and ROE of -21.38%. The company generates $3.0B in annual revenue with moderate year-over-year growth of 6.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -2039.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F 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
ModerateVRSK shows steady but slowing expansion.
Financial Health Score
ExcellentVRSK maintains a strong and stable balance sheet.
Profitability Score
ModerateVRSK maintains healthy but balanced margins.
Key Financial Metrics
Is VRSK Expensive or Cheap?
P/E Ratio
VRSK trades at 27.01 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VRSK's PEG of -6.40 indicates potential undervaluation.
Price to Book
The market values Verisk Analytics, Inc. at -21.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.56 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 $29.34 as profit after all expenses.
Operating Margin
Core operations generate 44.87 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-21.38 in profit for every $100 of shareholder equity.
ROA
Verisk Analytics, Inc. generates $19.79 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 $1.34B, reflecting robust business health.
Free Cash Flow
Verisk Analytics, Inc. generates strong free cash flow of $1.09B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.35 in free cash annually.
FCF Yield
VRSK converts 4.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.006
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
-21.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-21.38
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.41
vs 25 benchmark
How VRSK Stacks Against Its Sector Peers
| Metric | VRSK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.01 | 36.36 | Better (Cheaper) |
| ROE | -2137.87% | 980.00% | Weak |
| Net Margin | 29.34% | 5969454258.00% | Weak |
| Debt/Equity | -3.96 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 1.02 | 5.04 | Neutral |
| ROA | 19.79% | -298400.00% (disorted) | Strong |
VRSK outperforms its industry in 3 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
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
58.34%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
49.04%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
57.21%
Industry Style: Growth, Innovation, High Beta
High Growth