Breaking Down Verisk Analytics, Inc. (VRSK) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? Understanding the financial stability of a company is crucial, especially in today's dynamic market. Let's dive into Verisk Analytics, Inc. (VRSK), a leading global data analytics and technology provider, and dissect its financial health to equip you with key insights for informed investment decisions.

For the full year 2024, Verisk reported consolidated revenues of $2,882 million, marking a 7.5% increase. The company's income from continuing operations reached $951 million, a substantial 23.7% increase, with adjusted EBITDA at $1,576 million, up by 9.9%. Diluted GAAP earnings per share from continuing operations were reported at $6.66, a 27.6% increase. Furthermore, the company's free cash flow hit a record $920 million, demonstrating the strong cash flow generation of its subscription-based business model.

Verisk Analytics, Inc. (VRSK) Revenue Analysis

Verisk Analytics, Inc. (VRSK) operates as a data analytics and risk assessment firm. Understanding its revenue streams involves examining its various products, services, and geographic regions, as well as their contributions to the company’s financial performance.

Here’s a breakdown:

• Primary Revenue Sources: Verisk's revenue is derived from several key areas, including predictive analytics, data-driven insights, and software solutions. These are tailored for a diverse clientele across insurance, energy, financial services, and supply chain sectors.
• Year-Over-Year Revenue Growth: Monitoring the historical revenue growth rate provides insights into Verisk’s performance and market position. Analyzing percentage increases or decreases helps to identify trends and potential areas of concern or opportunity.
• Contribution of Business Segments: A detailed look at how each business segment contributes to the overall revenue is essential. This includes assessing the performance of specific divisions and their impact on the company’s total earnings.
• Significant Changes in Revenue Streams: Evaluating any notable shifts in revenue streams is crucial for understanding Verisk’s strategic direction and adaptability to market changes.

To provide a clearer picture, let's consider a hypothetical scenario based on available information and industry trends:

In this hypothetical breakdown for the fiscal year 2024, Insurance Solutions contributes the largest portion of revenue at $2.0 billion, showing a 5% growth rate. The Financial Services segment demonstrates a higher growth rate at 7%, contributing $500 million. Overall, the total revenue is $3.5 billion, with a combined growth rate of 4.5%.

Understanding these revenue dynamics is crucial for investors. It allows them to assess Verisk’s stability, growth potential, and strategic focus areas, which are vital for making informed investment decisions. For further insights, you might find this resource helpful: Breaking Down Verisk Analytics, Inc. (VRSK) Financial Health: Key Insights for Investors

Verisk Analytics, Inc. (VRSK) Profitability Metrics

Assessing the financial health of Verisk Analytics, Inc. (VRSK) requires a detailed examination of its profitability metrics. Profitability measures, including gross profit, operating profit, and net profit margins, provide insights into the company's efficiency in generating earnings relative to its revenue, operating expenses, and other costs.

Here's a breakdown of Verisk Analytics, Inc.'s profitability, incorporating available data from its financial reports:

• Gross Profit: Gross profit is the revenue a company retains after deducting the costs associated with producing its goods and services.
• Operating Profit: Operating profit is calculated by deducting operating expenses, such as salaries, depreciation, and other administrative costs, from gross profit.
• Net Profit: Net profit represents a company's profit after all operating expenses, interest, taxes, and other costs have been subtracted from total revenue.

Unfortunately, specific figures for gross profit, operating profit, and net profit margins, as well as detailed trends in profitability over time and comparisons with industry averages for the fiscal year 2024, are not available in the provided search results. Accessing Verisk Analytics, Inc.'s 2024 financial statements, including their 10-K filing, would provide the necessary data for this analysis.

To provide a comprehensive analysis, it is important to compare Verisk Analytics, Inc.'s profitability ratios with those of its industry peers. This comparative analysis helps to benchmark the company's performance and identify areas of strength and weakness.

Operational efficiency is critical to Verisk Analytics, Inc.'s profitability. Efficient cost management and positive gross margin trends can significantly impact the bottom line. By controlling costs and optimizing pricing strategies, Verisk Analytics, Inc. can improve its profitability and create value for shareholders.

Without the specific 2024 figures, a detailed year-over-year trend analysis and industry benchmarking cannot be accurately provided. Investors and analysts should refer to Verisk Analytics, Inc.'s official financial releases for the most accurate and up-to-date information.

For more insights into Verisk Analytics, Inc.'s financial health, you can check: Breaking Down Verisk Analytics, Inc. (VRSK) Financial Health: Key Insights for Investors

Verisk Analytics, Inc. (VRSK) Debt vs. Equity Structure

Understanding how Verisk Analytics, Inc. (VRSK) finances its operations and growth is crucial for investors. This involves analyzing its debt levels, comparing its debt-to-equity ratio to industry standards, and examining any recent financing activities.

As of December 31, 2023, Verisk Analytics, Inc. (VRSK) reported the following debt figures:

• Total long-term debt: $3.29 billion
• Short-term debt: $180.1 million

The company's balance sheet also shows total equity of $3.64 billion as of December 31, 2023.

The debt-to-equity ratio is a key metric for assessing financial leverage. For Verisk Analytics, Inc. (VRSK), this ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Debt / Total Equity = (Long-term Debt + Short-term Debt) / Total Equity

Using the figures from December 31, 2023:

Debt-to-Equity Ratio = ($3.29 billion + $180.1 million) / $3.64 billion ≈ 0.95

A debt-to-equity ratio of approximately 0.95 indicates that Verisk Analytics, Inc. (VRSK) has nearly equal amounts of debt and equity financing. This level suggests a balanced approach to funding, but it's important to compare this to industry standards to determine if it's high or low.

Unfortunately, specific industry average data for debt-to-equity ratios can fluctuate and requires real-time data updates. However, generally, a ratio below 1.0 is often seen as moderate, while higher ratios might indicate greater financial risk.

Recent financial activities provide insights into Verisk Analytics, Inc. (VRSK)'s debt management. For instance, in February 2024, S&P Global Ratings affirmed its BBB long-term issuer credit rating on Verisk Analytics, Inc. (VRSK), with a stable outlook. This indicates that S&P believes Verisk Analytics, Inc. (VRSK) has a good capacity to meet its financial commitments. At the same time, they affirmed the BBB rating on the company's senior unsecured debt and the A-3 short-term rating. Also, Moody's affirmed Verisk's Baa2 senior unsecured rating and maintained a stable outlook in February 2024. These ratings reflect the credit rating agencies' assessment of Verisk Analytics, Inc. (VRSK)'s financial health and ability to manage its debt.

Verisk Analytics, Inc. (VRSK) strategically balances debt and equity to fund its growth and operations. While specific details on recent debt issuances or refinancing activities would provide a clearer picture, the available data suggests a measured approach to leverage, aligning with its credit ratings and overall financial strategy.

Understanding Verisk Analytics, Inc. (VRSK)'s approach to financing is essential for assessing its long-term financial stability and investment potential. For further insights into the company's investors, check out: Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who’s Buying and Why?

Verisk Analytics, Inc. (VRSK) Liquidity and Solvency

Assessing Verisk Analytics, Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its capacity to meet long-term debts.

To assess Verisk Analytics, Inc.'s liquidity, we can look at the following:

• Current and Quick Ratios: These ratios provide insights into the company's ability to cover its short-term liabilities with its short-term assets.
• Analysis of Working Capital Trends: Monitoring the trends in working capital (current assets minus current liabilities) helps to understand the company's operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A review of the cash flow statements, specifically operating, investing, and financing cash flow trends, offers a clear picture of how the company generates and uses cash.

Here is an overview of Verisk Analytics, Inc.'s cash flow activities based on the 2024 fiscal year data:

From the 2024 data, Verisk Analytics, Inc. demonstrates strong net cash provided by operating activities at $971.8 million. However, it is important to note the net cash used for investing and financing activities, which amounted to $251.9 million and $690.8 million, respectively. These figures offer insights into the company's investments and capital structure management.

When evaluating liquidity, it is also essential to consider any potential concerns or strengths. For example, a high level of debt or significant upcoming debt maturities could pose liquidity challenges. Conversely, a large cash reserve or a strong track record of cash generation could be indicative of financial strength.

Explore more about Verisk Analytics, Inc. in our related article: Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who’s Buying and Why?

Verisk Analytics, Inc. (VRSK) Valuation Analysis

Determining whether Verisk Analytics, Inc. (VRSK) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

Here’s a breakdown of these factors:

• Price-to-Earnings (P/E) Ratio: As of April 12, 2025, Verisk Analytics's P/E ratio is 45.94. Historically, over the last ten years, the average P/E ratio has been around 38.59. For the trailing twelve months (TTM) ending in December 2024, the P/E ratio is 43.56, calculated using a share price of $291.88 and earnings per share of $6.70. Another calculation shows a trailing P/E ratio of 44.00 and a forward P/E ratio of 41.69.
• Price-to-Book (P/B) Ratio: As of April 2025, the P/B ratio is approximately 14.33. However, other sources list significantly higher P/B ratios, such as 87.99, 409.50, or even 413.36 depending on the specific date and data source.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is another critical valuation metric. Recent data indicates an EV/EBITDA ratio of 26.7 as of April 18, 2025. Other sources list the EV/EBITDA as 32.06.

To summarize the valuation ratios for Verisk Analytics, Inc. (VRSK):

Stock Price Trends: Over the past 52 weeks, Verisk Analytics (VRSK) shares have increased by 14.7%, which is less than the S&P 500 Index's 25.5% rise and the Industrial Select Sector SPDR Fund's 23.8% return during the same period. Over the last 12 months, the stock price has risen by approximately 30.97%.

Dividend Yield and Payout Ratios:

• Dividend Yield: Verisk Analytics has a dividend yield of approximately 0.62%. For every $100 invested, investors receive $0.62 in dividends annually.
• Annual Dividend: The annual dividend is $1.80 per share.
• Payout Ratio: The payout ratio is around 23.1%, indicating that 23.1% of the company's earnings are distributed as dividends.

Analyst Consensus on Stock Valuation:

• Rating: Wall Street analysts have a 'Moderate Buy' rating on Verisk Analytics's stock.
• Recommendations:
  • Strong Buy: 6 analysts
  • Moderate Buy: 2 analysts
  • Hold: 10 analysts
• Price Target: The average 12-month price target is $313.33.
• Potential Upside: The average price target suggests a potential upside of approximately 6.93% from the current levels.

Keep in mind that analyst ratings and price targets can vary. For example, one source indicates the average analyst price target is $297.40, with a high forecast of $321.00 and a low forecast of $279.00.

For more insights into Verisk Analytics, explore their Mission Statement, Vision, & Core Values of Verisk Analytics, Inc. (VRSK).

Verisk Analytics, Inc. (VRSK) Risk Factors

Verisk Analytics, Inc. (VRSK) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges.

Industry Competition: The markets in which Verisk operates are highly competitive and subject to rapid technological changes. Competitors may introduce new products or services that are superior to Verisk’s, or they may adopt more aggressive pricing strategies. Increased competition could lead to a loss of market share, reduced profitability, and slower growth.

Regulatory Changes: Verisk's business is subject to various federal, state, and international laws and regulations. Changes in these laws and regulations, or new interpretations of existing laws and regulations, could adversely affect Verisk's operations, increase compliance costs, and reduce profitability. For example, regulations related to data privacy and security are becoming increasingly stringent, which could require Verisk to invest more heavily in compliance measures.

Market Conditions: Economic downturns, changes in interest rates, and other macroeconomic factors can impact Verisk's financial performance. For instance, a decrease in insurance claims during an economic downturn could reduce the demand for Verisk’s insurance-related services. Additionally, fluctuations in foreign currency exchange rates can affect Verisk's revenue and expenses, particularly since it operates globally.

Operational Risks: Operational risks include the potential for system failures, data breaches, and other disruptions to Verisk’s business. These types of events could result in financial losses, damage to Verisk’s reputation, and legal liabilities. Maintaining the security and integrity of Verisk’s data is particularly critical, as a data breach could have severe consequences.

Financial Risks: Financial risks include the potential for increased debt levels, difficulty accessing capital markets, and changes in accounting standards. Verisk's debt levels could impact its financial flexibility and ability to invest in growth opportunities. Changes in accounting standards could also affect how Verisk reports its financial results.

Strategic Risks: Strategic risks include the potential for unsuccessful acquisitions, failure to innovate, and inability to adapt to changing market conditions. Verisk relies on acquisitions to grow its business, and if these acquisitions are not successful, it could result in financial losses and damage to Verisk’s reputation. Additionally, Verisk must continue to innovate and develop new products and services to meet the evolving needs of its customers.

Mitigation strategies or plans, if available, may include:

• Investing in cybersecurity measures to protect against data breaches.
• Diversifying revenue streams to reduce reliance on any single market or customer.
• Continuously monitoring and adapting to changes in laws and regulations.
• Implementing robust risk management processes to identify and mitigate potential risks.
• Maintaining a strong balance sheet to provide financial flexibility.

For additional insights into Verisk Analytics, Inc. (VRSK) financial health, you can explore: Breaking Down Verisk Analytics, Inc. (VRSK) Financial Health: Key Insights for Investors

Verisk Analytics, Inc. (VRSK) Growth Opportunities

Verisk Analytics, Inc. possesses several key growth drivers that underpin its future prospects. These include product innovations, strategic market expansions, and acquisitions that enhance its service offerings. The company's focus on data analytics and technological advancements positions it favorably in a rapidly evolving market landscape.

Analysis of Verisk Analytics, Inc.'s growth prospects reveals several strategic initiatives that could drive future growth:

• Product Innovations: Verisk Analytics, Inc. consistently invests in developing new products and enhancing existing ones. This allows the company to meet emerging client needs and maintain a competitive edge.
• Market Expansion: Expanding into new geographic regions and industry verticals represents a significant growth opportunity. Verisk Analytics, Inc. can leverage its existing data and analytics capabilities to serve a broader customer base.
• Acquisitions: Strategic acquisitions enable Verisk Analytics, Inc. to acquire new technologies, data assets, and market share. These acquisitions can complement organic growth initiatives and accelerate the company's expansion.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, analysts generally expect Verisk Analytics, Inc. to maintain a steady growth trajectory. The company's strong market position and recurring revenue model provide a stable foundation for future growth.

Here's a look at some competitive advantages that position Verisk Analytics, Inc. for sustained growth:

• Proprietary Data Assets: Verisk Analytics, Inc. has accumulated vast proprietary data assets over many years. This data is difficult to replicate and provides a significant competitive advantage.
• Advanced Analytics Capabilities: The company's expertise in data analytics and modeling enables it to deliver valuable insights to clients. This analytical prowess enhances decision-making and drives customer loyalty.
• Established Customer Relationships: Verisk Analytics, Inc. has cultivated long-standing relationships with a diverse client base. These relationships provide a stable revenue stream and opportunities for cross-selling and upselling.

Investors interested in Verisk Analytics, Inc. should monitor the company's progress in executing its growth strategies and capitalizing on market opportunities. Successful execution will be critical to achieving long-term growth and creating shareholder value.

For more insights into Verisk Analytics, Inc., consider exploring this resource: Exploring Verisk Analytics, Inc. (VRSK) Investor Profile: Who’s Buying and Why?