Verisk Analytics Inc (VRSK, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $224.66, Verisk Analytics Inc has witnessed a daily gain of 1.08%, marked against a three-month change of -5.22%. A thorough analysis, underlined by the GF Score, suggests that Verisk Analytics Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 9/10
- Growth rank: 9/10
- GF Value rank: 7/10
- Momentum rank: 8/10
Each one of these components is ranked and the ranks also have positive correlation with the long-term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability and growth rank, and a slightly lower financial strength rank, GuruFocus assigned Verisk Analytics Inc the GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Verisk Analytics Inc's Business
Verisk Analytics Inc, with a market cap of $32.07 billion and sales of $2.68 billion, operates at the forefront of data analytics for the U.S. property and casualty insurance industry. The company boasts an impressive operating margin of 42.21%, reflecting its efficiency and profitability. Verisk Analytics leverages a vast contributory database and proprietary data assets to develop analytical tools that help insurance providers better assess and price risk, achieve operational efficiency, and optimize claim settlement processes. The company's expansion into life insurance, marketing, and non-U.S. operations signals its ambition to grow beyond its traditional markets.
Profitability Rank Breakdown
The Profitability Rank of Verisk Analytics Inc is a testament to its superior ability to generate profits compared to its peers. The company's Operating Margin has shown a significant increase over the past five years, with the latest figure standing at 42.21%. This upward trend is mirrored in the company's Gross Margin, which has consistently risen, reaching 67.31% in 2023. These margins highlight Verisk Analytics Inc's growing efficiency in converting revenue into profit.
The company's financial health is further reinforced by a solid Piotroski F-Score, indicating a strong financial situation, and a Predictability Rank of 4.0 stars, which underscores its consistent operational performance and reliability for investors.
Growth Rank Breakdown
Verisk Analytics Inc's high Growth Rank reflects its commitment to expanding its business and enhancing shareholder value. The company's 3-Year Revenue Growth Rate of 9.9% outperforms 58.67% of companies in the Business Services industry. Additionally, Verisk Analytics Inc's EBITDA has experienced a robust growth, with a three-year growth rate of 6.7 and a five-year rate of 10.5, showcasing the company's ability to sustain growth and profitability.
Next Steps
Considering Verisk Analytics Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking to capitalize on such robust financial health and promising growth prospects may find Verisk Analytics Inc an attractive addition to their portfolios.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
