Verisk Analytics Inc (VRSK, Financial) has recently captured the attention of investors and financial analysts due to its strong financial position. With shares currently priced at $313.77, the company has experienced a daily loss of 0.18%, yet it boasts a three-month change of 6.49%. A comprehensive analysis, highlighted by the GF Score, indicates that Verisk Analytics Inc is poised for significant growth in the near future.
Understanding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus, utilizing five aspects of valuation. This system has been shown to correlate closely with the long-term performance of stocks, as evidenced by backtesting from 2006 to 2021. Stocks with higher GF Scores tend to generate higher returns compared to those with lower scores. 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
Verisk Analytics Inc is a leading provider of statistical, actuarial, and underwriting data for the United States' property and casualty insurance industry. The company 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. Verisk Analytics Inc is also expanding into adjacent markets, including life insurance, marketing, and non-U.S. operations. The company boasts a market cap of $43.89 billion, with sales amounting to $2.93 billion and an operating margin of 43.56%.
Profitability Rank Breakdown
The Profitability Rank highlights Verisk Analytics Inc's 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 Analytics Inc's gross margin has consistently risen over the past five years, reaching 68.73 in 2024. The Piotroski F-Score further confirms the company's solid financial situation, while its strong 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 commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 10.2%, outperforming 58.09% of 983 companies in the Business Services industry. Furthermore, Verisk Analytics Inc has experienced a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years, with a three-year growth rate of 13.5 and a five-year rate of 12.5. This trend highlights the company's continued capability to drive growth.
Conclusion: Verisk Analytics Inc's Potential for Outperformance
With its strong financial strength, impressive profitability, and robust growth metrics, Verisk Analytics Inc's high GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with strong GF Scores can explore more options using the following screener link: GF Score Screen. As Verisk Analytics Inc continues to expand its market presence and enhance its operational efficiency, it remains a compelling investment opportunity for those looking to capitalize on its growth potential.
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.
