Verisk Analytics Inc (VRSK, Financial) has recently captured the attention of investors and financial analysts due to its strong financial performance. With its shares currently priced at $304.70, the company has experienced a daily gain of 1.66% and a three-month change of 10.46%. A detailed analysis, highlighted by the GF Score, indicates that Verisk Analytics Inc is well-positioned for significant growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus, which evaluates five aspects of valuation. This score has been shown to correlate closely with the long-term performance of stocks, based on backtesting from 2006 to 2021. Stocks with higher GF Scores tend to generate higher returns, making them attractive to investors. The GF Score ranges from 0 to 100, with 100 being the highest rank. Verisk Analytics Inc has been assigned a GF Score of 92 out of 100, indicating a strong potential for outperformance.
Company Overview
Verisk Analytics Inc is a leading provider of statistical, actuarial, and underwriting data for the U.S. property and casualty insurance industry. With a market cap of $42.74 billion and sales of $2.88 billion, the company boasts an operating margin of 43.51%. Verisk 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 is also expanding into adjacent markets, including life insurance, marketing, and non-U.S. operations.
Profitability Rank Breakdown
The Profitability Rank of Verisk Analytics Inc highlights its impressive ability to generate profit. The company's operating margin has increased by 3.26% over the past five years, with figures showing 42.14% in 2020, 37.01% in 2021, 56.33% in 2022, 42.21% in 2023, and 43.51% in 2024. Additionally, Verisk's gross margin has consistently risen, reaching 68.73% in 2024. The Piotroski F-Score further confirms the company's solid financial standing, while a Predictability Rank of 3.5 stars out of five underscores its consistent operational performance.
Growth Rank Breakdown
Verisk Analytics Inc's high Growth Rank reflects its strong commitment to business expansion. The company's 3-Year Revenue Growth Rate of 10.2% outperforms 56.41% of 959 companies in the Business Services industry. Furthermore, Verisk has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA), with a three-year growth rate of 13.5% and a five-year rate of 12.5%. This trend highlights the company's continued ability to drive growth.
Conclusion
With its strong financial strength, profitability, and growth metrics, Verisk Analytics Inc's GF Score highlights the firm's unparalleled position for potential outperformance. The company's strategic initiatives, robust financial health, and commitment to growth make it an attractive option for value investors. For those interested in exploring more companies with strong GF Scores, GuruFocus Premium members can utilize 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.
