Verisk Analytics (VRSK) AI Stock Analysis

• Market Cap: $29.62B
• Dividend Yield: 0.82%
• Average Volume (3M): 2.29M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.27
• Revenue Growth: 7.30%
• EPS Growth: 2.03%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 1.82
• Shares Outstanding: 137,941,900
• 10 Day Avg. Volume: 2,427,275
• 30 Day Avg. Volume: 2,292,754
• PEG Ratio: -10.03
• Price to Book (P/B): 100.66
• Price to Sales (P/S): 10.12
• P/FCF Ratio: 26.10
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 10.71
• Enterprise Value/Gross Profit: 15.90
• Enterprise Value/Ebitda: 19.48
• 1Y Price Target: $230.55
• Price Target Upside: 7.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 7.6
• Revenue Forecast (FY): $3.21B

• Rating: 62 Neutral
• Price Target: $208.00 ▼(-3.14% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid profitability and strong free cash flow, reinforced by constructive guidance and shareholder-return actions from the latest earnings call. Offsetting these positives are elevated balance-sheet leverage (thin equity cushion) and weak technical positioning with the stock below key long-term moving averages; valuation is also on the expensive side with a modest dividend yield.

Positive Factors

Strong free cash flow generation

Consistently high free cash flow and a 30% YoY increase in FCF provide durable financial flexibility. This supports reinvestment in product development, sizable shareholder returns (ASR/dividends), and debt management, reducing execution risk over a multi‑quarter horizon.

High and expanding margins

Sustained operating profitability and mid‑50s EBITDA margins reflect structural pricing power and scalable analytics software economics. Margin expansion supports cash generation and resilience to cyclical revenue swings, underpinning durable earnings power over coming quarters.

Recurring subscription mix and product leadership

A high recurring subscription mix (84%) combined with expanding AI/Exact product deployments drives predictable, sticky revenue. Deep proprietary data, strong insurer adoption and ongoing AI rollouts support durable retention and organic growth across 2–6 months and beyond.

Negative Factors

Elevated leverage and thin equity cushion

Material leverage and a shrunken equity base create structural balance‑sheet vulnerability. Higher interest costs and less capital flexibility reduce the company's margin for error if revenue or cash flow weaken, constraining strategic optionality over several quarters.

Sharp TTM revenue comparability decline

A pronounced TTM revenue drop raises questions on data comparability or one-off impacts. Even with strong margins, material top‑line volatility undermines visibility into sustainable growth and makes near‑term planning and multiple‑quarter forecasts less reliable.

Lost inorganic growth and regulatory overhang

The aborted AccuLynx deal removes a targeted scale/offerings bolt‑on and signals regulatory friction for future M&A. This limits near‑term inorganic growth options and creates potential legal/strategic distraction that can persist across multiple quarters.

Verisk Analytics Business Overview & Revenue Model

Company Description

Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, commercial banking and finance, and various other fields. It operates in three segments: Insurance, Energy and Specialized Markets, and Financial Services. The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses. The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on supporting customer capital allocation decisions, asset valuation and benchmarking, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets. The Financial Services segment offers benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants. The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

How the Company Makes Money

Verisk generates revenue primarily through subscription-based services and software solutions, which provide clients with access to its extensive databases and analytics tools. Key revenue streams include risk assessment, data analytics, and consulting services, with a significant portion of income coming from the insurance sector. The company also partners with various organizations and industry stakeholders to enhance its data offerings and expand its market reach. Additionally, Verisk leverages its proprietary data and technology to create value-added services, contributing to recurring revenue and long-term client relationships.

Verisk Analytics Financial Statement Overview

Summary

Strong profitability and free-cash-flow generation (high margins and solid cash conversion) support quality, but the balance sheet is a key risk with very high leverage and a thin/near-zero equity base. The TTM revenue decline noted in the statements is an additional durability concern despite resilient margins.

Income Statement

Profitability is a key strength, with consistently high gross and operating margins across the annual periods and solid net margins (generally in the mid‑20% to high‑30% range). Revenue growth was positive and steady from 2021–2024 (low- to mid‑single digits). The main concern is the sharp revenue decline shown in TTM (Trailing-Twelve-Months) (-74.6%), which raises questions about growth durability or data comparability versus the annual series, even though margins and earnings remain strong.

Balance Sheet

Leverage looks elevated: debt-to-equity is high in every period and spikes meaningfully in 2023–2024 as equity shrinks, implying a thinner equity cushion. Balance sheet risk is further highlighted by equity reported at or near zero in TTM (Trailing-Twelve-Months), which makes leverage indicators difficult to get comfortable with even as assets remain sizable. While the business is profitable, the capital structure appears aggressive and leaves less room for error if earnings soften.

Cash Flow

Cash generation is strong and consistent. Operating cash flow is robust and free cash flow is high, with free cash flow generally covering a large portion of reported earnings (roughly ~74%–83% across periods). Free cash flow growth is positive in most years and also positive in TTM (Trailing-Twelve-Months) (+6.8%), supporting financial flexibility. A watch item is that cash flow coverage versus earnings/debt service appears to fluctuate year to year, but overall conversion remains healthy.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.07B	2.88B	2.68B	2.50B	2.46B
Gross Profit	2.07B	1.98B	1.80B	1.67B	1.61B
EBITDA	1.69B	1.66B	1.42B	1.74B	1.30B
Net Income	908.30M	957.50M	614.40M	954.30M	666.30M
Balance Sheet
Total Assets	6.20B	4.26B	4.37B	6.96B	7.81B
Cash, Cash Equivalents and Short-Term Investments	2.18B	291.20M	302.70M	112.50M	111.90M
Total Debt	5.04B	3.25B	3.10B	3.96B	3.58B
Total Liabilities	5.89B	4.16B	4.04B	5.19B	4.97B
Stockholders Equity	309.00M	100.10M	310.00M	1.75B	2.82B
Cash Flow
Free Cash Flow	1.19B	920.10M	830.70M	784.30M	887.30M
Operating Cash Flow	1.44B	1.14B	1.06B	1.06B	1.16B
Investing Cash Flow	-358.10M	-124.80M	2.75B	301.40M	-592.00M
Financing Cash Flow	795.20M	-1.03B	-3.79B	-1.33B	-498.90M

Verisk Analytics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 214.75
• 50DMA: Positive
• 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 214.75 is above the 20-day moving average (MA) of 188.18, above the 50-day MA of 207.39, and below the 200-day MA of 249.70, indicating a neutral trend. The MACD of 0.40 indicates Negative momentum. The RSI at 65.37 is Neutral, neither overbought nor oversold. The STOCH value of 95.79 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	71 Outperform	$3.64B	35.70	26.13%	1.66%	4.90%	-1.52%
BAH	69 Neutral	$9.55B	11.77	74.53%	2.60%	2.42%	3.05%
FCN	68 Neutral	$5.09B	20.14	13.30%	―	-0.95%	-10.54%
EFX	67 Neutral	$24.83B	38.80	14.05%	0.86%	6.35%	16.91%
TRU	64 Neutral	$15.26B	34.20	10.52%	0.53%	8.30%	86.97%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VRSK	62 Neutral	$29.62B	33.12	444.05%	0.82%	7.30%	2.03%

Verisk Analytics Corporate Events

Verisk Analytics Issues $1 Billion in Senior Notes

On February 23, 2026, Verisk Analytics entered into an underwriting agreement with BofA Securities Inc. and Wells Fargo Securities LLC to issue $1 billion in senior notes, split evenly between 4.450% notes due 2031 and 5.125% notes due 2036, under its existing shelf registration. On February 26, 2026, Verisk executed a seventh supplemental indenture with Computershare Trust Company N.A. to govern the new securities, which include standard redemption options, change-of-control repurchase provisions and restrictions on liens, sale-leasebacks, and major corporate restructurings.

The company plans to use the net proceeds to repay $500 million outstanding on its 364-day term loan and $750 million drawn on its syndicated revolving credit facility, alongside $250 million of cash that helped fund prepayments for accelerated share repurchase agreements. This refinancing move is set to term out short-dated bank debt into longer-maturity capital markets funding while preserving balance sheet flexibility, potentially lowering liquidity risk and signaling disciplined capital management to bondholders and equity investors.

The most recent analyst rating on (VRSK) stock is a Buy with a $203.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.

Verisk Announces $1.5 Billion Accelerated Share Repurchase Program

On February 18, 2026, Verisk entered into a 364-day senior unsecured delayed-draw term loan facility of up to $500 million with a bank group led by Wells Fargo, setting covenants on interest coverage and leverage to preserve balance sheet discipline. The borrowing, alongside its existing revolving credit facility and cash on hand, is being used primarily to support a sizable capital return through accelerated share repurchases and general corporate purposes, signaling confidence in cash generation and a continued shareholder-friendly capital allocation strategy.

On February 20, 2026, the company signed accelerated share repurchase agreements with HSBC and Wells Fargo to buy back $1.5 billion of its common stock, initially receiving about 7 million shares and leaving roughly $1.0 billion available under its existing repurchase authorization. The final number of shares will be determined by volume-weighted average prices through no later than the third fiscal quarter ending September 30, 2026, positioning Verisk to reduce share count and potentially enhance earnings per share while retaining flexibility to continue open-market repurchases.

The most recent analyst rating on (VRSK) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.

Verisk Ends AccuLynx Deal, Redeems Acquisition Financing

On December 29, 2025, Verisk announced that it had terminated its definitive agreement to acquire roofing and construction software provider AccuLynx after the U.S. Federal Trade Commission failed to complete its review by the deal’s December 26, 2025 contractual deadline. The collapse of the transaction has already prompted a dispute, with AccuLynx asserting that Verisk’s termination is invalid and Verisk vowing to vigorously contest that claim, introducing potential legal and regulatory overhang around the abandoned deal. With the merger and a related $750 million term loan facility both ending on December 26, 2025, Verisk said it will redeem in full the $1.5 billion of senior notes issued to fund the planned acquisition at 101% of principal plus accrued interest, which would have left the company at 1.9 times last‑twelve‑month adjusted EBITDA as of September 30, 2025 and preserves balance-sheet flexibility, including $1.2 billion of remaining share repurchase authorization.

The most recent analyst rating on (VRSK) stock is a Hold with a $270.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.