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1. Company Snapshot

1.a. Company Description

Verisk Analytics, Inc.provides data analytics solutions in the United States and internationally.The company provides predictive analytics and decision support solutions to customers in rating, underwriting, claims, catastrophe and weather risk, global risk analytics, natural resources intelligence, economic forecasting, commercial banking and finance, and various other fields.


It operates in three segments: Insurance, Energy and Specialized Markets, and Financial Services.The Insurance segment focuses on the prediction of loss, selection and pricing of risk, and compliance with their reporting requirements for property and casualty customers, as well as develops machine learned and artificially intelligent models to forecast scenarios and produce standard and customized analytics that help its customers to manage their businesses, including detecting fraud before and after a loss event, and quantifying losses.The Energy and Specialized Markets segment provides data analytics for the natural resources value chain, including energy, chemicals, metals, mining, power, and renewables sectors; research and consulting services focusing on supporting customer capital allocation decisions, asset valuation and benchmarking, commodity markets, and corporate analysis; and consultancy services in the areas of business environment, business improvement, business strategies, commercial advisory, and transaction support, as well as analysis and advice on assets, companies, governments, and markets.


The Financial Services segment offers benchmarking, decisioning algorithms, business intelligence, and customized analytic services to financial institutions, payment networks and processors, alternative lenders, regulators, and merchants.The company was founded in 1971 and is headquartered in Jersey City, New Jersey.

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1.b. Last Insights on VRSK

Verisk Analytics faces challenges due to high debt, security risks, and rising costs, which may hinder its expansion outlook. The company's recent earnings release showed a 6.2% decrease in net income, despite a 5.9% increase in revenue. Additionally, institutional investor Aberdeen Group plc reduced its stake in Verisk by 13.6% during the fourth quarter, potentially indicating a lack of confidence. Furthermore, the company's fiscal 2026 revenue and EPS guidance fell short of consensus estimates, which may weigh on investor sentiment.

1.c. Company Highlights

2. Verisk Analytics' Strong 2025 Performance and Promising 2026 Outlook

Verisk Analytics, Inc. reported robust financial results for 2025, with organic constant currency revenue growth of 6.6% and organic constant currency adjusted EBITDA growth of 8.5%. The company's revenue was $779 million in the fourth quarter, up 5.9% versus the prior year, while net income was $197 million, a 6.2% decrease. Diluted GAAP earnings per share were $1.42, down 1% versus the prior year, whereas adjusted EPS rose to $1.82, beating estimates of $1.6. The adjusted EBITDA margin was 56.1% in the fourth quarter, up 200 basis points from the prior-year period.

Publication Date: Feb -23

📋 Highlights
  • Revenue and EBITDA Growth:: Organic constant currency revenue growth of 6.6% in 2025, with adjusted EBITDA up 8.5% to $1.79B–$1.83B in 2026 guidance.
  • Margin Expansion:: Q4 2025 adjusted EBITDA margin rose 200 bps to 56.1%, driven by operating leverage and cost efficiencies.
  • Strategic Moves:: Sale of Verisk Marketing Solutions and termination of AccuLinks acquisition to focus on core data and analytics, with $2.5B share repurchase authorization.
  • AI and Data Innovation:: 35+ AI-powered projects launched, including ExactGen, leveraging data connectivity for analytics differentiation in the insurance sector.
  • Cash Flow and Dividends:: $276M free cash flow in Q4 2025, 11% dividend hike to $2/share annually, and $343M net operating cash flow.

Segment Performance and Growth Drivers

In 2025, subscription revenues grew 7.7% on an organic constant currency basis, while transactional revenues declined 6.5%. The company is focusing on data analytics and technology solutions for the global insurance industry, with over 35 AI-powered projects and solutions in use today. The recent introduction of new products, such as ExactGen, which applies agentic AI to handle content gathering from various sources, is expected to drive growth.

Outlook and Guidance

For 2026, Verisk Analytics expects consolidated revenue of $3,190,000,000 to $3,240,000,000, adjusted EBITDA of $1,790,000,000 to $1,830,000,000, and adjusted EPS of $7.45 to $7.75. The company anticipates a healthy insurance industry with solid mid-single-digit net written premium growth and consistently better year-over-year combined ratios. Analysts estimate revenue growth at 6.8% for the next year.

Valuation and Metrics

With a P/E Ratio of 27.94 and an EV/EBITDA of 16.76, the market appears to have priced in a certain level of growth. The company's ROE is 324.28%, indicating high profitability, while its ROIC is 19.56%, showing efficient use of capital. The Dividend Yield is 0.99%, and the Free Cash Flow Yield is 4.69%, providing a relatively attractive return for investors.

Operational Highlights and Future Plans

The company is seeing an improving sales cycle, with clients interested in using Verisk's data to create AI products. The software footprint is primarily related to data delivery and integration, with inherent operating leverage associated with data usage. Transactional growth is expected to recover, driven by strength in areas like securitization. The company will discuss its plans in more detail at its Investor Day on March 5.

3. NewsRoom

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Verisk to Announce Fiscal First-Quarter 2026 Results on April 29, 2026

Apr -08

Source: globenewswire.com

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Top 25 High-Growth Dividend Stocks For April 2026

Apr -07

Source: seekingalpha.com

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Verisk Analytics, Inc. $VRSK Shares Sold by Aberdeen Group plc

Apr -06

Source: defenseworld.net

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Recurring Subscription Revenues & Buyouts Aid Verisk Amid High Debt

Apr -02

Source: zacks.com

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3 Stocks to Watch From the Booming Business Information Industry

Mar -30

Source: zacks.com

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FDS vs. VRSK: Which Stock Is the Better Value Option?

Mar -26

Source: zacks.com

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Strong 2025 Underwriting Income Masks Persistent Property/Casualty Insurance Pressures

Mar -25

Source: globenewswire.com

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Flagship Verisk Insurance Conference Convenes Leaders to Explore the Future of Insurance, Data and AI

Mar -23

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Insurance

Expected Growth: 8.5%

Verisk Analytics’ data analytics solutions for insurance companies drive growth, fueled by increasing demand for data-driven decision making, expanding use of artificial intelligence, and rising need for risk management and compliance.

7. Detailed Products

ISO ClaimsSearch

A claims database that provides access to a vast repository of claims information, helping insurers to identify and prevent fraudulent activities.

AIR Worldwide

A catastrophe modeling platform that provides risk modeling and analytics solutions to help insurers and reinsurers manage their risk exposure.

Xactimate

A property estimation and claims management platform that helps insurers and contractors to estimate and manage property damage claims.

ISO Rating Service

A rating and underwriting platform that provides insurers with accurate and up-to-date rating information, enabling them to make informed underwriting decisions.

Verisk Maplecroft

A risk analytics platform that provides insights and analytics on political, economic, and environmental risks, helping organizations to manage their global risk exposure.

Wood Mackenzie

A research and analytics platform that provides insights and data on the energy, chemicals, and metals markets, helping organizations to make informed investment and operational decisions.

8. Verisk Analytics, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Verisk Analytics, Inc. operates in a niche market, providing data analytics and risk assessment services to the insurance industry. While there are some substitutes available, they are not as comprehensive or specialized as Verisk's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Verisk Analytics, Inc. has a diverse customer base, including many large insurance companies. While these customers have some bargaining power, Verisk's specialized services and strong brand reputation reduce their negotiating power.

Bargaining Power Of Suppliers

Verisk Analytics, Inc. has a diverse supplier base, and its suppliers have limited bargaining power. The company's strong financial position and long-term contracts with suppliers also reduce their negotiating power.

Threat Of New Entrants

The data analytics and risk assessment industry has high barriers to entry, including significant capital requirements and the need for specialized expertise. This reduces the threat of new entrants and allows Verisk Analytics, Inc. to maintain its market position.

Intensity Of Rivalry

The data analytics and risk assessment industry is moderately competitive, with several established players. However, Verisk Analytics, Inc.'s strong brand reputation, specialized services, and diversified customer base help it maintain a competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 90.90%
Debt Cost 4.99%
Equity Weight 9.10%
Equity Cost 7.86%
WACC 5.25%
Leverage 998.52%

11. Quality Control: Verisk Analytics, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
General Dynamics

A-Score: 6.3/10

Value: 4.1

Growth: 4.7

Quality: 5.9

Yield: 4.0

Momentum: 9.0

Volatility: 10.0

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Cummins

A-Score: 5.7/10

Value: 2.6

Growth: 5.6

Quality: 5.8

Yield: 4.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Caterpillar

A-Score: 5.7/10

Value: 2.0

Growth: 6.9

Quality: 6.2

Yield: 3.0

Momentum: 8.5

Volatility: 7.3

1-Year Total Return ->

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Verisk Analytics

A-Score: 4.6/10

Value: 1.6

Growth: 6.1

Quality: 7.3

Yield: 1.0

Momentum: 2.5

Volatility: 9.0

1-Year Total Return ->

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Resources Connection

A-Score: 4.3/10

Value: 7.4

Growth: 0.9

Quality: 3.5

Yield: 9.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Equifax

A-Score: 4.2/10

Value: 2.0

Growth: 5.8

Quality: 6.2

Yield: 1.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

175.43$

Current Price

175.43$

Potential

-0.00%

Expected Cash-Flows