Verisk Analytics (VRSK) presents a bullish thesis with a market capitalization of $23.87 billion, a trailing P/E ratio of 27.77, EPS of $6.56, and TTM revenue of $3.10 billion showing 3.9% quarterly revenue growth year-over-year. The stock trades at a forward P/E of 23.87 with a PEG ratio of 1.77, indicating reasonable valuation relative to growth in its data analytics and risk assessment niche. Strong profitability metrics including a 29.3% profit margin and 43.8% return on equity support continued investor interest amid steady demand for predictive analytics.
Key catalysts include robust analyst support with 4 strong buy and 6 buy ratings alongside a $220.47 target price, earnings momentum from the latest quarter ending March 31 2026, and expansion in insurance, financial services, and government sectors through proprietary datasets. Verisk's focus on fraud prevention, catastrophe modeling, and actuarial services positions it for growth as clients seek data-driven risk mitigation, with recent quarterly earnings growth of 4.8% providing positive momentum.
Risks encompass competitive pressures from larger data providers, potential regulatory scrutiny on data privacy in the US and EU, and macro headwinds from economic slowdowns affecting insurance and financial clients. Mitigations include Verisk's entrenched market position with high switching costs, diversified revenue across industries, and ongoing investments in AI-enhanced analytics to maintain differentiation and resilience against cyclical downturns.
Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.
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Verisk Analytics, Inc. is an American data analytics and risk assessment firm based in Jersey City, New Jersey, with customers in insurance, natural resources, financial services, government, and risk management sectors. The company uses proprietary data sets and industry expertise to provide predictive analytics and decision support consultations in areas including fraud prevention, actuarial science, insurance coverage, fire protection, catastrophe and weather risk, and data management.
Fundamental Snapshot
Revenue
3.1023B
EBITDA
1.5081B
Gross Profit
2.171B
Operating Margin
45.0%
Profit Margin
29.3%
ROE
43.8%
Book Value
$2.233
Beta
0.695
52-Wk High
$311.97
52-Wk Low
$155.52
Avg Volume
4.2069M
PEG Ratio
1.716
Trading Data
Open
$177.63
Previous Close
$177.04
Day Range
$177.63 – $183.78
Volume
4.6594M
Shares Outstanding
131.022M
Analyst Target
$220.47
Frequently Asked Questions
What is Verisk Analytics' business model?
Verisk Analytics operates a data analytics and risk assessment business model, leveraging proprietary datasets to deliver predictive analytics and decision support primarily to insurance, financial services, and government clients. It generates recurring revenue through subscriptions and consulting services focused on fraud prevention, actuarial science, and catastrophe modeling.
What are Verisk Analytics' main revenue sources?
The company's TTM revenue of $3.10 billion primarily comes from insurance risk analytics, with additional contributions from financial services, natural resources, and government sectors. Key offerings include catastrophe modeling, fraud detection, and data management services that drive high-margin recurring subscriptions.
What competitive advantages does Verisk Analytics have?
Verisk benefits from extensive proprietary data moats, deep industry expertise, and high client switching costs in risk assessment. Its 29.3% profit margin and 43.8% ROE reflect strong positioning, supported by a 27.77 P/E ratio that balances growth with established market leadership.
What are the key risks for Verisk Analytics stock?
Key risks include data privacy regulations, competition from larger analytics firms, and macro sensitivity in insurance markets. The 1.04% dividend yield and upcoming ex-dividend date of June 15 2026 provide some income stability, while a beta of 0.695 offers relative resilience to broader market volatility.
What is the growth outlook for Verisk Analytics?
Growth outlook remains positive with 3.9% quarterly revenue growth, 4.8% earnings growth, and analyst target of $220.47. Expansion in AI-driven analytics and new market penetration support continued EPS growth around the current $6.56 level, with the next earnings likely following the March 2026 quarter.
