Verisk Analytics (VRSK) presents a bullish thesis with a $23.37 billion market cap, trailing P/E of 27.18, EPS of $6.56, and TTM revenue of $3.10 billion growing 3.9% year-over-year alongside a robust 29.3% profit margin. The stock trades at a forward P/E of 24.1 with 4.8% quarterly EPS growth, supported by its dominant position in insurance and risk analytics.
Key catalysts include sustained demand for predictive analytics in insurance and financial services, expansion into government and natural resources sectors, and consistent earnings momentum from proprietary data platforms. Recent quarterly revenue growth of 3.9% and operating margin of 45% highlight operational leverage as clients adopt Verisk's catastrophe modeling and fraud prevention tools.
Risks encompass regulatory scrutiny on data privacy, competition from larger tech firms, and macro headwinds from insurance cycle volatility or economic slowdowns. These are mitigated by Verisk's irreplaceable proprietary datasets, 0.726 beta indicating lower volatility, and diversification across multiple end markets. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Verisk Analytics, Inc. is an American data analytics and risk assessment firm based in Jersey City, New Jersey, with customers in insurance, natural resources, financial services, government, and risk management sectors. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support consultations in areas including fraud prevention, actuarial science, insurance coverage, fire protection, catastrophe and weather risk, and data management.
Fundamental Snapshot
Revenue
3.1023B
EBITDA
1.5081B
Gross Profit
2.171B
Operating Margin
45.0%
Profit Margin
29.3%
ROE
43.8%
Book Value
$2.233
Beta
0.726
52-Wk High
$320.43
52-Wk Low
$155.94
Avg Volume
1.9168M
PEG Ratio
1.696
Frequently Asked Questions
What is Verisk Analytics' business model?
Verisk Analytics operates as a data analytics and risk assessment firm providing predictive analytics, decision support, and consulting services primarily to insurance, financial services, and government clients. It leverages proprietary datasets for fraud prevention, actuarial science, and catastrophe modeling, generating $3.10 billion in TTM revenue with a 29.3% profit margin.
What are Verisk's main revenue sources?
The majority of Verisk's revenue comes from insurance sector clients for risk assessment and analytics, followed by financial services, natural resources, and government. TTM revenue reached $3.10 billion with 3.9% year-over-year growth, supported by recurring subscriptions to its data platforms.
What are Verisk's key competitive advantages?
Verisk's advantages stem from its extensive proprietary datasets, deep industry expertise in actuarial science and catastrophe modeling, and established relationships across insurance and risk management. This moat supports a high 45% operating margin and 0.438 return on equity.
What are the main risks for Verisk stock?
Key risks include data privacy regulations, competition from tech giants, and exposure to insurance industry cycles. With a beta of 0.726 and P/E of 27.18, the stock offers some downside protection, though macro slowdowns could pressure 3.9% revenue growth.
What is the growth outlook for Verisk?
Verisk shows solid growth potential with 4.8% quarterly EPS growth, 3.9% revenue expansion, and an analyst target price of $220.47 versus its 50-day moving average of $176.86. The 1.03% dividend yield and forward P/E of 24.1 support continued expansion in analytics demand.
