Verisk Analytics (VRSK) AI Stock Analysis

• Market Cap: $38.94B
• Dividend Yield: 0.6%
• Average Volume (3M): 983.83K
• Price to Earnings (P/E): 43.0
• Beta (1Y): 0.39
• Revenue Growth: 7.60%
• EPS Growth: 5.28%
• Country: US
• Employees: 7,800
• Sector: Industrials
• Sector Strength: 88
• Industry: Consulting Services
• EPS (TTM): 1.88
• Shares Outstanding: 139,714,970
• 10 Day Avg. Volume: 1,057,518
• 30 Day Avg. Volume: 983,826
• PEG Ratio: -8.24
• Price to Book (P/B): 123.57
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 37.76
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 3.81
• Enterprise Value/Gross Profit: 31.80
• Enterprise Value/Ebitda: 6.79
• 1Y Price Target: $312.64
• Price Target Upside: 14.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $295.00 ▲(8.50%Upside)

Verisk Analytics' overall stock score is driven by its strong earnings performance and strategic growth initiatives, including key acquisitions. However, technical analysis suggests current bearish trends, and high valuation metrics point to potential overvaluation. The company's financial leverage remains a significant risk factor.

Positive Factors

Financial Performance

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

Strategic Acquisition

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

Subscription Growth

Organic, constant-currency subscription growth was strong, reflecting strong renewals, new sales, and price realization across core lines and extreme events.

Negative Factors

Government Spending Cuts

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.

Interest Expenses

The top end of adjusted EPS guidance was lowered due to higher interest expense related to the AccuLynx acquisition.

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 Analytics primarily generates revenue through subscription-based services and licensing fees for its data analytics products and services. The company's key revenue streams come from providing risk assessment solutions to the insurance industry, where it offers underwriting and claims analytics, catastrophe modeling, and fraud detection tools. Verisk also serves the energy sector by providing data-driven insights for exploration, production, and compliance. Additionally, the company earns income from consulting services and custom analytics projects tailored to specific client needs. Strategic partnerships and collaborations with industry leaders further enhance its market presence and contribute 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	2.21B	2.88B	2.68B	2.50B	3.00B	2.78B
Gross Profit	1.30B	1.67B	1.80B	1.67B	1.94B	1.79B
EBITDA	1.40B	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: Negative
• Last Price: 271.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRSK, the sentiment is Negative. The current price of 271.89 is below the 20-day moving average (MA) of 296.66, below the 50-day MA of 305.59, and below the 200-day MA of 290.97, indicating a bearish trend. The MACD of -6.96 indicates Positive momentum. The RSI at 24.39 is Positive, neither overbought nor oversold. The STOCH value of 11.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRSK.

Verisk Analytics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TRU	80 Outperform	$18.54B	47.90	9.06%	0.48%	9.34%	―
BAH	76 Outperform	$13.23B	13.18	96.28%	1.93%	9.25%	75.69%
FCN	73 Outperform	$5.36B	23.27	12.33%	―	-0.89%	-23.72%
EFX	70 Outperform	$29.74B	46.98	13.06%	0.70%	6.86%	9.10%
VRSK	64 Neutral	$38.94B	42.99	245.09%	0.60%	7.60%	5.28%
Sector *	59 Neutral	AU$1.68B	10.77	10.98%	3.52%	7.20%	5.82%
EXPO	56 Neutral	$3.50B	33.73	25.05%	1.70%	3.47%	-2.16%

Verisk Analytics Corporate Events

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.

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.

The most recent analyst rating on (VRSK) stock is a Buy with a $290.00 price target. To see the full list of analyst forecasts on Verisk Analytics stock, see the VRSK Stock Forecast page.