Verisk Analytics, Inc. (VRSK) stock analysis

P/E below its 5-year median

Verisk Analytics's P/E of 31.5 is below its own 5-year median of 43.2.

P/E above the industry

Verisk Analytics's P/E of 31.5 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.3.

EV/EBITDA below its 5-year median

Verisk Analytics's EV/EBITDA of 18.6 is below its 5-year median of 27.1.

P/S above the industry

Verisk Analytics's price-to-sales of 8.51 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 2.79 (book value is negative, so we use sales).

Trading below fair value

The share price of $207.82 is below our fair value estimate of $219.92.

Margin of safety under 20%

The price is 5.5% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 7.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 2.6% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -4.6% over the last twelve months, against a 5-year average of 5.0% a year.

Growing slower than the industry

Revenue grew 4.9% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.

Guidance raised

Verisk Analytics raised its Full Year 2026 Interest expense outlook on Nov 5, 2026.

Gross margin improving

Gross margin was 70.2% over the last twelve months, against 69.6% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 36.6%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 5.0% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 27.7% over the last twelve months, against a 5-year average of 30.2%.

Net margin above the industry

Verisk Analytics's net margin of 27.7% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.7%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 30.4% of total debt.

Interest well covered

Operating income covers interest expense 6.8 times.

Short-term assets cover short-term debts

Current assets are 1.07 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.16; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Verisk Analytics paid dividends worth 0.9% of the share price over the last twelve months.

Yield below Treasuries

The 0.9% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Verisk Analytics yields 0.9%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 29.3% of net income.

Covered by free cash flow

Dividends take 23.4% of free cash flow.