Verisk Analytics, Inc. Fundamental Analysis (NASDAQ: VRSK)
Verisk Analytics, Inc. (NASDAQ: VRSK) shows moderate financial fundamentals with a PE ratio of 30.99, profit margin of 27.68%, and ROE of -1.11%. The company generates $3.2B 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 -47.7/100 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
WeakVRSK trades at a premium to fair value.
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 30.99 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, VRSK's PEG of 204.22 indicates potential overvaluation.
Price to Book
The market values Verisk Analytics, Inc. at -23.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 15.65 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 $27.68 as profit after all expenses.
Operating Margin
Core operations generate 44.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.11 in profit for every $100 of shareholder equity.
ROA
Verisk Analytics, Inc. generates $19.36 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 $1.36B, 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 $8.52 in free cash annually.
FCF Yield
VRSK converts 4.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
204.22
vs 25 benchmark
P/B Ratio
Price to book value ratio
-23.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-0.38
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.11
vs 25 benchmark
ROA
Return on assets percentage
0.19
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 | 30.99 | 32.70 | Neutral |
| ROE | -111.25% | 758.00% | Weak |
| Net Margin | 27.68% | -4312.00% (disorted) | Strong |
| Debt/Equity | -0.38 | 0.96 | Strong (Low Leverage) |
| Current Ratio | 1.07 | 12.15 | Neutral |
| ROA | 19.36% | 1067467.00% | Weak |
VRSK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, 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