Verisk Analytics (VRSK) AI Stock Analysis

• Market Cap: $37.99B
• Dividend Yield: 0.62%
• Average Volume (3M): 1.13M
• Price to Earnings (P/E): 41.9
• Beta (1Y): 0.42
• Revenue Growth: 7.60%
• EPS Growth: 5.28%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 76
• Industry: Consulting Services
• EPS (TTM): 1.88
• Shares Outstanding: 139,714,970
• 10 Day Avg. Volume: 1,122,794
• 30 Day Avg. Volume: 1,133,048
• 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: 1.22
• Enterprise Value/Revenue: 15.57
• Enterprise Value/Gross Profit: 22.45
• Enterprise Value/Ebitda: 28.34
• 1Y Price Target: $308.90
• Price Target Upside: 13.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 69 Neutral
• Price Target: $297.00 ▲(9.57% Upside)

Verisk Analytics shows strong financial performance and positive earnings call sentiment, driven by strategic acquisitions and organic growth. However, technical indicators suggest bearish momentum, and the high valuation limits upside potential. The company's high leverage also poses a risk, necessitating a focus on strengthening the balance sheet.

Positive Factors

Acquisitions

The acquisition of AccuLynx enhances Verisk's position at the center of the insurance ecosystem and is considered growth-accretive.

Earnings

Verisk's second-quarter results came in ahead of expectations across revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS.

Negative Factors

Government Spending

Management expects tough prior-year comparisons and federal government spending cuts to be headwinds to subscription growth in the second half of the year.

Growth Expectations

Shares traded lower by 6% due to moderating organic growth expectations for the back half of the year.

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 margins and efficient cash flow management, but a highly leveraged balance sheet poses financial stability risks. The company needs to address leverage to maintain robust financial health.

Income Statement

Verisk Analytics demonstrates strong profitability with a high gross profit margin of 66.5% and a solid net profit margin of 33.1% for TTM (Trailing-Twelve-Months). The company achieved a healthy revenue growth rate of 1.7% from the previous year, reflecting consistent growth. The EBIT and EBITDA margins of 43.5% and 54.3% respectively indicate robust operational efficiency. The company shows strength in maintaining stable and profitable operations.

Balance Sheet

The balance sheet presents a significant concern with a high debt-to-equity ratio of 31.99, indicating heavy reliance on debt financing. Return on equity is exceptionally high at 789.8%, driven largely by low equity levels rather than purely operational performance. The equity ratio of 2.4% underscores a heavily leveraged position, posing potential financial risks. While the company is profitable, its capital structure could pose challenges in adverse conditions.

Cash Flow

Verisk Analytics enjoys a strong operating cash flow to net income ratio of 1.25 and a favorable free cash flow to net income ratio of 1.02, highlighting efficient cash generation relative to profits. The free cash flow growth rate of 8.0% over the previous year further demonstrates the company's capability to generate surplus cash. Despite strong cash flows, the company's high leverage could affect future cash flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.99B	2.88B	2.68B	2.50B	3.00B	2.78B
Gross Profit	2.07B	1.67B	1.80B	1.67B	1.94B	1.79B
EBITDA	1.64B	1.66B	1.42B	1.64B	1.16B	1.39B
Net Income	916.00M	958.20M	614.60M	954.30M	666.30M	712.70M
Balance Sheet
Total Assets	4.79B	4.26B	4.37B	6.96B	7.81B	7.56B
Cash, Cash Equivalents and Short-Term Investments	628.70M	291.20M	303.90M	112.50M	280.30M	218.80M
Total Debt	3.43B	3.25B	3.10B	3.96B	3.61B	3.52B
Total Liabilities	4.48B	4.16B	4.04B	5.19B	4.97B	4.86B
Stockholders Equity	311.70M	100.10M	310.00M	1.75B	2.82B	2.70B
Cash Flow
Free Cash Flow	1.02B	920.10M	830.70M	784.30M	887.30M	821.40M
Operating Cash Flow	1.24B	1.14B	1.06B	1.06B	1.16B	1.07B
Investing Cash Flow	-239.40M	-124.80M	2.75B	301.40M	-592.00M	-595.80M
Financing Cash Flow	-1.02B	-1.03B	-3.79B	-1.33B	-498.90M	-445.20M

Verisk Analytics Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 271.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 271.06 is above the 20-day moving average (MA) of 270.98, below the 50-day MA of 291.14, and below the 200-day MA of 290.94, indicating a neutral trend. The MACD of -6.42 indicates Negative momentum. The RSI at 41.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.38 is Neutral, 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
BAH	76 Outperform	$13.43B	13.38	96.28%	1.96%	9.25%	75.69%
FCN	75 Outperform	$5.47B	23.68	12.33%	―	-0.89%	-23.72%
TRU	75 Outperform	$16.88B	43.60	9.06%	0.49%	9.34%	―
EFX	71 Outperform	$30.94B	48.87	13.06%	0.65%	6.86%	9.10%
VRSK	69 Neutral	$37.99B	41.94	245.09%	0.62%	7.60%	5.28%
Sector *	64 Neutral	$10.71B	16.03	7.42%	2.02%	2.57%	-16.39%
EXPO	56 Neutral	$3.56B	35.37	25.05%	1.60%	3.47%	-2.16%

Verisk Analytics Corporate Events

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.

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.

Verisk Analytics Amends Governance to Enhance Engagement

On May 20, 2025, Verisk Analytics, Inc. amended its Restated Certificate of Incorporation to replace supermajority voting standards with simple majority standards for certain amendments and business combinations, limit officers’ monetary liability, and allow shareholders with 25% voting power to request special meetings. These amendments, approved at the 2025 Annual Meeting, aim to streamline governance and enhance shareholder engagement. Additionally, the meeting included the election of board members, approval of executive compensation, and ratification of Deloitte & Touche LLP as auditors, while a shareholder proposal to lower the threshold for calling special meetings was rejected.