Buy or Sell Verisk Analytics Stock?

We believe there is not much to fear in VRSK stock given its overall strong operating performance and financial condition. This is aligned with the stock’s high valuation because of which we think it is fairly priced.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $26 Bil in market cap, Verisk Analytics provides predictive analytics and decision support for insurance, energy, and financial services, offering benchmarking, decision algorithms, and customized analytics to enhance risk assessment and business intelligence.

[1] Valuation Looks High

This table highlights how VRSK is valued vs broader market. For more details see: VRSK Valuation Ratios

[2] Growth Is Moderate

• Verisk Analytics has seen its top line grow at an average rate of 7.2% over the last 3 years
• Its revenues have grown 6.6% from $2.9 Bil to $3.1 Bil in the last 12 months
• Also, its quarterly revenues grew 5.9% to $779 Mil in the most recent quarter from $736 Mil a year ago.

This table highlights how VRSK is growing vs broader market. For more details see: VRSK Revenue Comparison

[3] Profitability Appears Very Strong

• VRSK last 12 month operating income was $1.3 Bil representing operating margin of 43.7%
• With cash flow margin of 46.7%, it generated nearly $1.4 Bil in operating cash flow over this period
• For the same period, VRSK generated nearly $908 Mil in net income, suggesting net margin of about 29.6%

This table highlights how VRSK profitability vs broader market. For more details see: VRSK Operating Income Comparison

[4] Financial Stability Looks Very Strong

• VRSK Debt was $4.9 Bil at the end of the most recent quarter, while its current Market Cap is $26 Bil. This implies Debt-to-Equity Ratio of 19.0%
• VRSK Cash (including cash equivalents) makes up $2.2 Bil of $6.2 Bil in total Assets. This yields a Cash-to-Assets Ratio of 35.2%

[5] Downturn Resilience Is Strong

VRSK has been more resilient than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• VRSK stock fell 31.2% from a high of $230.03 on 19 November 2021 to $158.23 on 14 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 July 2023
• Since then, the stock increased to a high of $321.33 on 4 June 2025 , and currently trades at $185.05

 
2020 Covid Pandemic

• VRSK stock fell 29.4% from a high of $171.56 on 18 February 2020 to $121.18 on 23 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 29 May 2020

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