One-glance verdict
Undervalued
$222.87 our estimate vs market $187.03
Wall Street consensus: $234.76 (5.3% higher than our fair-value estimate)
16% below our estimate, below the bear case
Fundamentals snapshot
Verisk Analytics, Inc.
VRSK · NMS · Industrials · Consulting Services
Current price
$187.03
52-week range
$155.94 - $263.67
Market cap
$24.34B
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: 3.6%).
What this company does
Verisk Analytics, Inc.
Verisk Analytics provides essential data and analytical tools to the insurance industry, helping them decide how much to charge for policies and how to handle claims after an event like a car accident or a hurricane. The company makes most of its money by selling subscriptions for this data, which creates predictable recurring revenue (income that is likely to continue in the future) because insurance companies rely on this information to manage their risks.
How the company got here
Verisk started in 1971 as the Insurance Services Office (ISO), a non-profit organization created by insurance companies to pool their data. This shared information helped them create standardized insurance policies and get better at predicting risks. Over the years, it acquired many other data and technology companies, expanding its expertise. In 2009, it became a public company named Verisk Analytics, and by 2022, it sold off its non-insurance businesses to focus solely on serving the global insurance industry.
What it actually does
Think of Verisk as a data detective and fortune teller for the insurance industry. It gathers and analyzes enormous amounts of information—billions of records—to help insurance companies make smarter decisions. For example, it helps them figure out how much to charge for a policy, how to spot fraudulent claims, and how to prepare for major disasters like hurricanes. You wouldn't buy their products directly, but the insurance companies you use rely on Verisk's data and tools to run their businesses.
Underwriting Solutions
This is Verisk's largest business area, where it helps insurers decide whether to offer a policy and how much to charge for it, a process called underwriting. It provides data on everything from a building's construction to the risk of a car accident, helping insurers accurately price their products. This segment also includes tools that model the financial impact of catastrophes like earthquakes and storms, which is crucial for insurers to manage their risk. This part of the company is the main driver of its revenue.
Claims Solutions
This part of the business helps insurance companies after a customer files a claim (a request for payment after an incident). Verisk provides software and data to make this process faster and more accurate, from the initial report of an accident to the final payment. A key service is helping to detect fraud by cross-referencing new claims against a massive database of past claims to find suspicious patterns. They also offer tools that help estimate the cost of repairs, for example, after a car crash or damage to a house.
What management is betting on now
Verisk is focused on being the go-to data partner for the global insurance industry. A major priority is using advanced technology like artificial intelligence (AI) and machine learning to analyze its vast data and create new, innovative products for its clients. The company also aims to grow by making strategic acquisitions of other data and technology firms. Management is committed to returning a significant portion of its free cash flow (the cash left over after paying for operating expenses and capital expenditures) to shareholders through dividends (a portion of profits paid out to shareholders) and share buybacks (when a company buys its own stock to reduce the number of shares available).
How the company got here
Verisk began in 1971 as a non-profit called the Insurance Services Office (ISO), which was formed by insurance companies to pool their data. This collaboration helped them standardize policy language and better understand risks. Over decades, the company acquired numerous data and technology businesses, expanding its capabilities significantly. In 2009, it became a publicly-traded company under the name Verisk Analytics and, in 2022, it sold its non-insurance divisions to focus exclusively on serving the global insurance industry.
What it actually does
Think of Verisk as a data library and risk consultant for insurance companies. It collects and analyzes billions of records to create tools that help insurers make smarter decisions. These tools help them decide how much to charge for a car or home insurance policy, identify potentially fraudulent claims, and estimate the financial impact of major disasters like hurricanes or earthquakes. While you wouldn't buy a product from Verisk directly, your insurance provider likely uses its services to manage its business and decide on your policy.
Underwriting Solutions
This is the company's largest business segment, focused on helping insurers with underwriting (the process of deciding whether to insure something and what the price should be). Verisk provides data and analytics on the risks associated with properties, vehicles, and businesses, allowing insurers to price policies more accurately. This division also creates sophisticated models that predict the potential losses from catastrophes, which is essential for insurers to manage their financial health. This segment is the primary source of Verisk's revenue.
Claims Solutions
This part of the business helps insurers manage the process after a customer files a claim (a request for payment for a loss covered by their policy). Verisk offers tools that streamline the entire lifecycle, from the first report of an incident to the final settlement. A major focus is on fighting fraud; Verisk maintains a massive database of past claims that helps insurers spot suspicious patterns and connections. They also provide software that helps estimate the cost of repairs for homes and vehicles, making the claims process faster and more consistent.
What management is betting on now
Verisk's main goal is to become the essential data and technology partner for the entire global insurance industry. A key part of this strategy is investing heavily in artificial intelligence (AI) and machine learning to uncover deeper insights from its vast data and create new tools for its clients. The company also continues to grow by making strategic acquisitions of other companies that can add to its data and capabilities. Management is also focused on returning value to investors, planning to give back at least 75% of its free cash flow (cash left after paying operating costs and equipment spending) through dividends (a share of the profits paid to stockholders) and share buybacks (when a 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 $222.87 vs current price $187.03
Wall Street consensus is the average analyst price target: $234.76 (5.3% higher than our fair-value estimate).
Our most-likely fair value is $222.87 a share — about 19.2% above today's price of $187.03, 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 $6.54B Interest coverage 8.16x +4% vs VRSK Has roughly the same debt cushion as VRSK.
Total debt $15.75B 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 $1.16B 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 28.8x P/E vs peer median 30.3x (4.9% cheaper).
Risks
-
Operating margin compressed from 56.3% to 45.1% over 3 years.
-
Insider ownership is only 0.3% (peer median: 3.6%).
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)
28.77x
Forward P/E
21.51x
P/B
-20.98x
P/S
7.76x
EV/EBITDA
18.74x
PEG ratio
1.49x
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
6.50
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