One-glance verdict
Undervalued
$246.16 our estimate vs market $190.71
Wall Street consensus: $226.47 (-8.0% lower than our fair-value estimate)
23% below our estimate, below the bear case
Fundamentals snapshot
Verisk Analytics, Inc.
VRSK · NMS · Industrials · Consulting Services
Current price
$190.71
52-week range
$155.94 - $227.16
Market cap
$24.82B
Balance sheet
Distressed
7.86x Adequate
Net debt $4.06B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 1.0% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Operating margin compressed from 56.3% to 45.1% over 3 years.
- Risk Insider ownership is only 0.3% (peer median: 2.7%).
What this company does
Verisk Analytics, Inc.
Verisk Analytics provides the essential data and software that insurance companies need to run their businesses, helping them decide how to price policies and how to handle claims after an accident. The company's money comes almost entirely from selling subscriptions for this critical information, which creates highly predictable recurring revenue (income that is likely to continue because customers pay on a regular basis). This is important because Verisk's tools are deeply integrated into how its insurance customers operate, making them very loyal and long-term clients.
How the company got here
Verisk began its life in 1971 as the Insurance Services Office (ISO), a non-profit organization created by insurance companies to pool data for things like setting rates and creating standard insurance policy forms. After decades as a trusted industry utility, it transformed into a for-profit company and went public in a large 2009 IPO (Initial Public Offering, the first time a private company sells its shares to the public). For a while, the company expanded into other areas like energy and financial services, but recently made a key strategic shift. Between 2020 and 2022, it sold off those other businesses to focus entirely on providing data and analytics to the global insurance industry.
What it actually does
Think of Verisk as a data brain for the insurance industry. The company gathers and analyzes billions of records—from property details to past insurance claims—to help insurance companies make smarter decisions. For example, it helps insurers price a car insurance policy, predict the risk of a hurricane hitting a certain coastline, and spot fraudulent claims. Essentially, Verisk provides the critical data and technology that helps insurers decide who and what to insure, how much to charge, and how to handle payments for losses.
Underwriting
This is Verisk's largest business, making up most of its revenue. It provides the tools for underwriting (the process insurers use to evaluate risks and decide whether to offer a policy and at what price). Insurers pay Verisk for access to massive datasets and analytical software that help them price risk for everything from homes and cars to businesses. This segment also includes sophisticated catastrophe modeling, which helps insurers prepare for the financial impact of major disasters like earthquakes and wildfires.
Claims
This part of the business focuses on what happens after a customer files a claim (a request for payment after an incident like a car accident or property damage). Verisk provides software that helps insurers estimate repair costs and manage the entire claims process more efficiently. A key service here is fraud detection, where Verisk uses its vast data to identify suspicious patterns that might indicate a fraudulent claim. Insurers use these tools to pay legitimate claims quickly and accurately while protecting themselves from fraud.
What management is betting on now
Management's main strategy is to be the essential data and technology partner for the global insurance industry. A major focus is on innovation, using artificial intelligence (AI) and machine learning to develop new products and find deeper insights from their unique data. The company aims to embed its tools so deeply into its customers' daily work that they become indispensable. Verisk is also committed to returning capital (cash) to its shareholders through dividends (a share of the profits) and share buybacks (when the company buys its own stock to make the remaining shares more valuable).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$153.90M
FY2024 Q3
$240.70M
FY2024 Q4
$208.50M
FY2025 Q1
$391.00M
FY2025 Q2
$188.70M
FY2025 Q3
$336.10M
FY2025 Q4
$276.10M
FY2026 Q1
$326.40M
Revenue
$782.60M
Net income
$234.20M
Diluted EPS
1.73
Operating cash flow
$390.40M
Free cash flow
$326.40M
Fetching…
Sources
Revenue
$778.80M
Net income
$197.20M
Diluted EPS
1.41
Operating cash flow
$343.30M
Free cash flow
$276.10M
Fetching…
Sources
Revenue
$768.30M
Net income
$225.50M
Diluted EPS
1.61
Operating cash flow
$403.50M
Free cash flow
$336.10M
Fetching…
Sources
Revenue
$772.60M
Net income
$253.30M
Diluted EPS
1.81
Operating cash flow
$244.50M
Free cash flow
$188.70M
Fetching…
Sources
Revenue
$753.00M
Net income
$232.30M
Diluted EPS
1.65
Operating cash flow
$444.70M
Free cash flow
$391.00M
Fetching…
Sources
Revenue
$735.60M
Net income
$210.40M
Diluted EPS
1.50
Operating cash flow
$263.90M
Free cash flow
$208.50M
Fetching…
Sources
Revenue
$725.30M
Net income
$220.10M
Diluted EPS
1.54
Operating cash flow
$296.20M
Free cash flow
$240.70M
Fetching…
Sources
Revenue
$716.80M
Net income
$308.10M
Diluted EPS
2.15
Operating cash flow
$211.70M
Free cash flow
$153.90M
Fetching…
Sources
Is it cheap or expensive?
Fair value $246.16 vs current price $190.71
Wall Street consensus is the average analyst price target: $226.47 (-8.0% lower than our fair-value estimate).
Our most-likely fair value is $246.16 a share — about 29.1% above today's price of $190.71, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $4.1B. Interest coverage 7.9x.
Net debt
$4.06B
Interest coverage
7.86x
Verisk Analytics, Inc.'s profit covers its interest bill about 7.9 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
VRSK
BASELINE
Verisk Analytics, Inc.
Total debt $4.62B Interest coverage 7.86x This is the baseline the peer rows are being compared against.
Total debt $7.62B Interest coverage 12.32x +57% vs VRSK Carries about 1.6x more debt cushion than VRSK.
Total debt $6.89B Interest coverage 8.16x +4% vs VRSK Has roughly the same debt cushion as VRSK.
Total debt $13.46B Interest coverage 21.52x +174% vs VRSK Carries about 2.7x more debt cushion than VRSK.
Total debt $3.33B Interest coverage 9.38x +19% vs VRSK Carries about 1.2x more debt cushion than VRSK.
Total debt $1.22B Interest coverage -0.65x -100% vs VRSK This peer has almost no interest-payment cushion compared with VRSK.
What you should know
The case for and against VRSK
3 Rewards
2 Risks
Rewards
-
Revenue grew 1.0% last year.
-
Free cash flow was positive in 10/10 years.
-
Trades at 29.3x P/E vs peer median 29.8x (1.8% cheaper).
Risks
-
Operating margin compressed from 56.3% to 45.1% over 3 years.
-
Insider ownership is only 0.3% (peer median: 2.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
29.29x
Forward P/E
21.93x
P/B
-20.87x
P/S
7.92x
EV/EBITDA
19.05x
PEG ratio
1.60x
Profitability
How much profit each dollar creates
Gross margin
70.2%
Operating margin
45.1%
Net margin
28.2%
ROE
—
ROA
19.0%
Health
Liquidity and balance-sheet strength
Debt / equity
—
Current ratio
1.00x
Quick ratio
0.90x
Total debt
$4.62B
Total cash
$552.20M
Growth
How the business has been compounding
Revenue TTM
$3.10B
Revenue 5Y CAGR
5.7%
EPS TTM
6.51
EPS 5Y CAGR
2.6%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.38B
Free CF TTM
$1.19B
FCF margin
38.4%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
29.2%
Last ex-div date
2026-09-15