Verisk Analytics (VRSK) AI Stock Analysis

• Market Cap: $30.54B
• Dividend Yield: 0.84%
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.32
• Revenue Growth: 7.30%
• EPS Growth: 2.03%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 1.72
• Shares Outstanding: 139,372,570
• 10 Day Avg. Volume: 1,404,041
• 30 Day Avg. Volume: 1,547,495
• PEG Ratio: 0.67
• Price to Book (P/B): 391.15
• Price to Sales (P/S): 13.59
• P/FCF Ratio: 42.55
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 12.54
• Enterprise Value/Gross Profit: 18.01
• Enterprise Value/Ebitda: 22.93
• 1Y Price Target: $266.33
• Price Target Upside: 18.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 6.95
• Revenue Forecast (FY): $3.07B

• Rating: 70 Outperform
• Price Target: $229.00 ▲(1.84% Upside)

Verisk Analytics demonstrates strong financial performance and positive earnings call sentiment, driven by subscription growth and strategic initiatives. However, high leverage and bearish technical indicators pose risks. The valuation is relatively high, which could limit upside potential.

Positive Factors

Strong Subscription Revenue Growth

The robust growth in subscription revenue indicates a stable and recurring income stream, enhancing financial predictability and supporting long-term business sustainability.

AI Enhancements and Client Adoption

Adoption of AI solutions reflects Verisk's innovation and ability to meet client needs, strengthening its competitive edge and market position in the analytics industry.

Positive Free Cash Flow Growth

Strong free cash flow growth enhances Verisk's ability to invest in future opportunities, reduce debt, and return capital to shareholders, supporting long-term financial health.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, potentially impacting Verisk's ability to invest in growth or weather economic downturns.

Transactional Revenue Decline

Declining transactional revenue suggests vulnerability to external factors, which could affect overall revenue stability and growth potential if not addressed.

Delays in AccuLynx Acquisition

Delays in strategic acquisitions like AccuLynx can hinder Verisk's growth plans and integration of new capabilities, impacting its competitive positioning and market expansion.

Verisk Analytics Business Overview & Revenue Model

Company Description

Verisk Analytics (VRSK) is a leading data analytics provider serving the insurance, energy, and specialized markets. The company offers a broad range of solutions that leverage data and technology to help organizations improve decision-making, manage risk, and enhance operational efficiency. Its core products include predictive analytics, risk assessment solutions, and data management services, which are designed to meet the specific needs of clients in various sectors, including insurance underwriting, claims management, and regulatory compliance.

How the Company Makes Money

Verisk Analytics generates revenue primarily through the sale of data analytics and risk assessment services. The company operates on a subscription-based model, where clients pay ongoing fees for access to its data and analytical tools. Key revenue streams include fees from insurance companies for claims and underwriting analytics, as well as services provided to energy and natural resources sectors for risk management and operational insights. Verisk also benefits from strategic partnerships with various industry stakeholders, enhancing its data offerings and expanding its market reach. Additionally, the company invests in new technologies and acquisitions to diversify its product portfolio and strengthen its competitive position, further contributing to its earnings.

Verisk Analytics Financial Statement Overview

Summary

Verisk Analytics shows strong profitability with high gross and net profit margins, steady revenue growth, and robust cash flow generation. However, high leverage on the balance sheet poses a financial risk, and there is slight pressure on operational efficiency.

Income Statement

Verisk Analytics demonstrates strong profitability with a consistent increase in gross profit margin and net profit margin over the years. The TTM data shows a gross profit margin of 69.62% and a net profit margin of 30.41%, indicating efficient cost management and strong bottom-line performance. Revenue growth has been steady, with a TTM growth rate of 1.44%, reflecting resilience in revenue generation. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, suggesting potential pressure on operational efficiency.

Balance Sheet

The company exhibits a high debt-to-equity ratio of 12.98 in the TTM period, indicating significant leverage, which could pose financial risk. However, the return on equity has improved to 4.04%, showing better utilization of equity to generate profits. The equity ratio remains low, reflecting a heavy reliance on debt financing. Overall, while profitability from equity is improving, the high leverage remains a concern.

Cash Flow

Verisk Analytics shows a healthy free cash flow growth rate of 9.35% in the TTM period, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.60, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is robust at 82.77%, highlighting strong cash flow relative to net income. Despite these strengths, the operating cash flow coverage ratio has decreased, indicating potential challenges in covering operational expenses solely through cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.03B	2.88B	2.68B	2.50B	2.46B	2.27B
Gross Profit	2.11B	1.98B	1.80B	1.67B	1.61B	1.48B
EBITDA	1.66B	1.66B	1.42B	1.74B	1.30B	1.31B
Net Income	921.40M	957.50M	614.40M	954.30M	666.30M	712.70M
Balance Sheet
Total Assets	6.24B	4.26B	4.37B	6.96B	7.81B	7.56B
Cash, Cash Equivalents and Short-Term Investments	2.11B	291.20M	302.70M	112.50M	111.90M	218.80M
Total Debt	4.89B	3.25B	3.10B	3.96B	3.58B	3.52B
Total Liabilities	5.86B	4.16B	4.04B	5.19B	4.97B	4.86B
Stockholders Equity	376.70M	100.10M	310.00M	1.75B	2.82B	2.70B
Cash Flow
Free Cash Flow	1.12B	920.10M	830.70M	784.30M	887.30M	821.40M
Operating Cash Flow	1.35B	1.14B	1.06B	1.06B	1.16B	1.07B
Investing Cash Flow	-421.30M	-124.80M	2.75B	301.40M	-592.00M	-595.80M
Financing Cash Flow	709.30M	-1.03B	-3.79B	-1.33B	-498.90M	-445.20M

Verisk Analytics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 224.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSK, the sentiment is Neutral. The current price of 224.87 is above the 20-day moving average (MA) of 219.92, below the 50-day MA of 235.16, and below the 200-day MA of 278.23, indicating a neutral trend. The MACD of -4.83 indicates Negative momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 88.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRSK.

Verisk Analytics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPO	78 Outperform	$3.62B	35.18	25.79%	1.67%	4.90%	-1.52%
FCN	75 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
TRU	72 Outperform	$15.38B	37.16	9.68%	0.56%	8.30%	86.97%
VRSK	70 Outperform	$30.54B	33.45	270.50%	0.84%	7.30%	2.03%
EFX	68 Neutral	$25.07B	38.83	13.38%	0.86%	6.35%	16.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BAH	62 Neutral	$9.91B	12.47	74.72%	2.72%	2.42%	3.05%

Verisk Analytics Corporate Events

Verisk Analytics Reports Strong Q3 2025 Results

Verisk Analytics is a prominent global data analytics and technology provider, primarily serving the insurance industry by offering solutions to enhance efficiency, improve underwriting and claims outcomes, and address global risks. In its latest earnings report for the third quarter of 2025, Verisk reported a revenue increase of 5.9% to $768 million, with net income rising by 2.5% to $226 million. The company’s adjusted EBITDA saw a growth of 7.2%, reflecting strong operational performance despite higher interest expenses. Diluted GAAP earnings per share rose by 4.5% to $1.61, while the diluted adjusted EPS increased by 3.0% to $1.72. Key contributors to revenue growth included the underwriting segment, which grew by 6.9%, and claims revenues, which increased by 3.6%. The company also highlighted a significant increase in free cash flow by 39.6% compared to the previous year. Looking forward, Verisk remains confident in meeting its long-term growth targets, with strategic engagements opening new opportunities and expanding its client base. The management anticipates continued growth and efficiency improvements, aligning with their strategic goals for 2026 and beyond.

Verisk Analytics Secures Financing for AccuLynx Acquisition

On August 15, 2025, Verisk Analytics entered into new credit agreements, including a $750 million term loan and a $1.25 billion revolving credit facility, to finance its acquisition of Exactlogix, Inc., known as AccuLynx. Additionally, the company issued $1.5 billion in senior notes to further support the acquisition and related expenses, positioning Verisk for enhanced operational capacity and strategic growth in its market.

The most recent analyst rating on (VRSK) stock is a Hold with a $289.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.

Verisk Analytics Reports Strong Q2 2025 Earnings

Verisk Analytics is a prominent global data analytics and technology company that primarily serves the insurance industry, offering solutions to enhance operational efficiency, underwriting, claims outcomes, and risk management.

Verisk Analytics Earnings Call: Growth Amid Challenges

Verisk Analytics’ recent earnings call presented a balanced sentiment, highlighting both optimism and challenges. The company showcased strong organic revenue growth and strategic acquisitions, which promise future growth. However, there are concerns regarding a decline in net income, pressures in the auto business, and potential impacts from federal spending cuts. Overall, the sentiment is one of cautious optimism, with a focus on overcoming existing challenges to achieve future growth.

Verisk Analytics Acquires AccuLynx for $2.35 Billion

On July 29, 2025, Verisk Analytics announced its agreement to acquire AccuLynx for $2.35 billion, aiming to enhance its network capabilities within the insurance claims and restoration ecosystem. This acquisition is expected to boost Verisk’s revenue growth and adjusted EBITDA margin, while also being accretive to adjusted EPS by the end of 2026. The merger will streamline workflows and enhance interactions in the industry, benefiting insurers, contractors, and policyholders by improving information flow and reducing costs. The transaction is anticipated to close by the end of the third quarter of 2025, pending regulatory approvals.

The most recent analyst rating on (VRSK) stock is a Buy with a $300.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.