Verisk Analytics (VRSK) AI Stock Analysis

• Market Cap: $30.52B
• Dividend Yield: 0.81%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 33.4
• Beta (1Y): 0.29
• 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: 1,021,067
• 30 Day Avg. Volume: 1,650,453
• 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: $261.45
• Price Target Upside: 21.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $248.00 ▲(15.63% Upside)

Verisk Analytics' strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates a premium valuation. The company's high leverage is a risk factor that needs careful management.

Positive Factors

Subscription Revenue Growth

The strong growth in subscription revenue indicates a robust and recurring revenue stream, enhancing long-term financial stability and client retention.

AI Adoption

The adoption of AI solutions strengthens Verisk's competitive position by enhancing product offerings and operational efficiencies, driving future growth.

Free Cash Flow Growth

Strong free cash flow growth indicates efficient cash generation, providing the company with the flexibility to invest in growth opportunities and manage debt.

Negative Factors

High Leverage

High leverage can increase financial risk and limit the company's ability to invest in growth or weather economic downturns, impacting long-term stability.

Transactional Revenue Decline

The decline in transactional revenue suggests potential vulnerability to market fluctuations, which could affect overall revenue stability and growth.

Delayed Acquisition

Delays in strategic acquisitions can hinder growth plans and integration of new capabilities, impacting future revenue and competitive positioning.

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

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: Negative
• Last Price: 214.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 214.48 is below the 20-day moving average (MA) of 220.82, below the 50-day MA of 227.34, and below the 200-day MA of 273.22, indicating a bearish trend. The MACD of -2.12 indicates Positive momentum. The RSI at 36.98 is Neutral, neither overbought nor oversold. The STOCH value of 11.32 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
EXPO	78 Outperform	$3.62B	35.18	25.79%	1.69%	4.90%	-1.52%
FCN	76 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
TRU	73 Outperform	$15.93B	38.47	9.68%	0.57%	8.30%	86.97%
VRSK	71 Outperform	$30.52B	33.43	270.50%	0.81%	7.30%	2.03%
EFX	71 Outperform	$25.58B	39.62	13.38%	0.88%	6.35%	16.91%
BAH	65 Neutral	$11.08B	13.95	74.72%	2.37%	2.42%	3.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.