Verisk Analytics, Inc. (VRSK)

Verisk Analytics, Inc. (VRSK) Industrial Operations Profile

Verisk Analytics provides data analytics and decision support solutions globally, serving industries like insurance, energy, and finance. With a focus on predictive analytics and risk assessment, Verisk leverages its proprietary data assets and expertise to help clients make informed decisions and manage risk effectively, maintaining a strong market presence.

What Is the Investment Thesis for VRSK?

Verisk Analytics presents a compelling investment thesis based on its strong market position, diversified revenue streams, and growth opportunities in key sectors. The company's focus on data analytics and decision support solutions aligns with the increasing demand for data-driven insights across industries. With a P/E ratio of 27.2 and a profit margin of 29.3%, Verisk demonstrates financial stability and profitability. Key growth catalysts include expanding its presence in the energy and financial services sectors, leveraging its data assets to develop new products and services, and capitalizing on the increasing demand for risk management solutions. However, potential risks include competition from other data analytics providers and the impact of economic downturns on customer spending. The company's dividend yield of 1.04% offers a modest return for investors.

Based on FMP financials and quantitative analysis

VRSK Key Highlights

• Market Cap of $24.68B reflects Verisk's significant presence and value in the data analytics market.
• P/E Ratio of 27.2 indicates investor confidence in Verisk's earnings potential relative to its stock price.
• Profit Margin of 29.3% demonstrates Verisk's ability to generate substantial profits from its revenue.
• Gross Margin of 67.4% highlights Verisk's efficient cost management and strong pricing power.
• Beta of 0.82 suggests that Verisk's stock price is less volatile than the overall market, indicating relative stability.

Who Are VRSK's Competitors?

VRSK is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are VRSK's Key Strengths?

• Strong market position in data analytics.
• Diversified revenue streams across multiple sectors.
• Extensive data assets and industry expertise.
• Advanced analytics capabilities.

What Are VRSK's Weaknesses?

• Dependence on data quality and accuracy.
• Potential impact of economic downturns on customer spending.
• Competition from other data analytics providers.
• Exposure to regulatory changes and compliance requirements.

What Could Drive VRSK Stock Higher?

• Expansion of data analytics solutions in the energy sector, driven by increasing demand for renewable energy and sustainable practices.
• Growth in the financial services market, fueled by the increasing adoption of digital payment technologies and personalized financial services.
• Launch of new predictive models and decision support tools leveraging advanced analytics techniques.
• Strategic acquisitions to expand product portfolio and enhance technological capabilities.

What Are the Key Risks for VRSK?

• Insider selling — insiders were net sellers of roughly $2.9M recently.
• Increasing competition in the data analytics industry, which could put pressure on pricing and margins.
• Cybersecurity threats and data breaches, which could damage Verisk's reputation and result in financial losses.
• Rapid technological advancements, which could render Verisk's products and services obsolete.
• Changes in customer preferences and demands, which could require Verisk to adapt its offerings and business model.
• Economic downturns could reduce customer spending on Verisk's solutions.

What Are the Growth Opportunities for VRSK?

• Expansion in the Energy Sector: Verisk has a significant opportunity to expand its presence in the energy sector by providing data analytics and consulting services to companies involved in the natural resources value chain. With increasing focus on renewable energy and sustainable practices, Verisk can leverage its expertise to help clients make informed decisions about capital allocation, asset valuation, and commodity markets. The global renewable energy market is projected to reach $2.15 trillion by 2030, presenting a substantial growth opportunity for Verisk.
• Growth in Financial Services: Verisk can further penetrate the financial services market by offering benchmarking, decisioning algorithms, and business intelligence solutions to financial institutions, payment networks, and alternative lenders. With the increasing adoption of digital payment technologies and the growing demand for personalized financial services, Verisk can help clients improve their operational efficiency, manage risk, and enhance customer experience. The global financial analytics market is expected to reach $14.1 billion by 2028, indicating a significant growth potential for Verisk.
• Leveraging Data Assets: Verisk can leverage its extensive data assets to develop new products and services that address the evolving needs of its customers. By combining its data with advanced analytics techniques, such as machine learning and artificial intelligence, Verisk can create predictive models and decision support tools that provide valuable insights and help clients make better decisions. The global big data and analytics market is projected to reach $274.3 billion by 2026, presenting a vast opportunity for Verisk to monetize its data assets.
• Geographic Expansion: Verisk can expand its geographic reach by entering new markets and establishing a presence in regions with high growth potential. By leveraging its existing products and services, Verisk can cater to the specific needs of customers in different regions and capitalize on the increasing demand for data analytics solutions worldwide. Emerging markets, such as Asia-Pacific and Latin America, offer significant growth opportunities for Verisk due to their rapidly growing economies and increasing adoption of digital technologies.
• Strategic Acquisitions: Verisk can pursue strategic acquisitions to expand its product portfolio, enhance its technological capabilities, and gain access to new markets. By acquiring companies with complementary offerings and expertise, Verisk can strengthen its competitive position and accelerate its growth trajectory. The mergers and acquisitions market in the data analytics industry is expected to remain active, providing Verisk with ample opportunities to acquire valuable assets and expand its business.

What Opportunities Does VRSK Have?

• Expansion in emerging markets.
• Development of new products and services.
• Strategic acquisitions to expand market share.
• Leveraging data assets to generate new revenue streams.

What Threats Does VRSK Face?

• Increasing competition in the data analytics industry.
• Cybersecurity threats and data breaches.
• Rapid technological advancements.
• Changes in customer preferences and demands.

What Are VRSK's Competitive Advantages?

• Proprietary Data Assets: Verisk has accumulated a vast amount of proprietary data over the years, which gives it a competitive advantage in providing accurate and reliable analytics solutions.
• Industry Expertise: Verisk has deep industry expertise in insurance, energy, and financial services, which allows it to develop customized solutions that meet the specific needs of its customers.
• Advanced Analytics Capabilities: Verisk has invested heavily in developing advanced analytics capabilities, such as machine learning and artificial intelligence, which enable it to provide predictive insights and decision support tools.
• Diversified Customer Base: Verisk has a diversified customer base across various industries, which reduces its reliance on any single customer or sector.

What Does VRSK Do?

Founded in 1971 and headquartered in Jersey City, New Jersey, Verisk Analytics, Inc. has evolved into a leading provider of data analytics solutions across various sectors. Initially focused on serving the insurance industry, Verisk has expanded its offerings to include energy, specialized markets, and financial services. The company's core business revolves around providing predictive analytics and decision support tools that help clients assess and manage risk, improve operational efficiency, and make strategic decisions. Verisk's Insurance segment offers solutions for predicting loss, pricing risk, and ensuring regulatory compliance. The Energy and Specialized Markets segment caters to the natural resources value chain, offering research, consulting, and data analytics services. The Financial Services segment provides benchmarking, decisioning algorithms, and business intelligence to financial institutions and payment networks. Verisk leverages its extensive data assets, advanced analytics capabilities, and industry expertise to deliver value to its diverse customer base, maintaining a competitive edge through innovation and strategic acquisitions.

What Products and Services Does VRSK Offer?

• Provides data analytics solutions to various industries.
• Offers predictive analytics and decision support tools.
• Serves customers in insurance, energy, and financial services.
• Helps clients assess and manage risk.
• Improves operational efficiency for its customers.
• Offers consulting services in various areas.

How Does VRSK Make Money?

• Generates revenue through subscription fees for its data analytics platforms.
• Provides consulting services on a project basis.
• Offers customized analytics solutions tailored to specific client needs.

What Industry Does VRSK Operate In?

Verisk Analytics operates within the consulting services industry, which is experiencing significant growth due to the increasing demand for data-driven insights and specialized expertise. The market is characterized by intense competition, with companies vying to provide innovative solutions and capture market share. Verisk differentiates itself through its focus on predictive analytics, its extensive data assets, and its diversified customer base. The company's presence in the insurance, energy, and financial services sectors positions it to capitalize on growth opportunities in these markets. The consulting services industry is expected to continue growing at a steady pace, driven by the increasing complexity of business operations and the need for specialized knowledge.

Who Are VRSK's Key Customers?

• Insurance companies seeking to predict loss and price risk.
• Energy companies involved in the natural resources value chain.
• Financial institutions looking for benchmarking and business intelligence.
• Payment networks and processors.
• Alternative lenders, regulators, and merchants.

Company Profile

Verisk Analytics, Inc. operates in the Software - Services industry within the Technology sector. It is headquartered in Jersey City, US. The company is led by CEO Lee Shavel. VRSK has traded publicly since 2009.

P/E 27.2Key Financial Metrics

Return on assets is 19.8%, showing how much profit it generates from its asset base. VRSK trades at a trailing price-to-earnings ratio of 27.17, roughly in line with the Industrials sector average of ~30x. Its free cash flow yield is 4.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.02 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.6%, the inverse of the P/E and a quick read on earnings relative to price.

VRSK Valuation & Market Position

With a $24.68B market cap, Verisk Analytics, Inc. sits in the large-cap segment of the market. Relative to its peer group, VRSK's quantitative score of 77/100 is roughly in line with the peer average of 80/100.

Quarterly Financial Performance: Verisk Analytics, Inc.

Revenue for Verisk Analytics, Inc. came in at $782.6M during Q1 2026. The company recorded net income of $234.2M, with diluted EPS of $1.73. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Industrials company. Across the four most recent quarters, VRSK averaged $1.64 in diluted EPS.

F-Score 6/9Financial Health

Verisk Analytics, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 6.65 places it in the safe zone, indicating low near-term bankruptcy risk.

7/8 beatsEarnings Track Record

Verisk Analytics, Inc. has beaten Wall Street's EPS estimate in 7 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.8% above estimates on average.

FY2026 estForward Outlook

Wall Street analysts project Verisk Analytics, Inc. revenue of about $3.22B for fiscal 2026, with EPS near $7.67. The estimate reflects 13 contributing analysts.

Net sellingInsider Activity

Over the past six months, Verisk Analytics, Inc. insiders filed 15 SEC Form 4 transactions — 9 sales and 6 purchases. On net that is roughly 14K shares disposed (about $2.9M), a signal worth weighing alongside the fundamentals.

VRSK Financials

VRSK Latest News

VRSK Analyst Consensus

VRSK MoonshotScore

VRSK Industrials Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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