VRSK
Verisk Analytics, Inc.
Industrials · Consulting Services · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The profitability sub-score of 20.0 and dividend sub-score of 16.2 together contribute 36.2 of the total 58.2 points, anchoring the score around Verisk's genuinely strong cash generation and margin characteristics as reported in its 10-K.
- The momentum sub-score of 12.4 adds meaningful points by reflecting improving quarterly trends in revenue and earnings, confirming that the business is not deteriorating operationally even if growth is modest.
- The model's best-fit profile is dividend income at 66.2, indicating that the scoring engine recognizes Verisk as a structurally sound cash-flow business, which lifts the overall weighted score above the midpoint despite weaknesses elsewhere.
Why Not Higher
- The financial health sub-score of only 8.0 out of 20 is a significant drag, reflecting leverage and interest coverage concerns that directly reduce the model's confidence in the company's balance sheet resilience and limit the overall composite score.
- The combined effect of a growth sub-score of 7.5 and a theme sub-score of 0.0 means Verisk earns almost no credit for revenue acceleration or thematic tailwinds, capping the upside of an otherwise high-quality profitability profile at 58.2 rather than the 70s or 80s range.
Data Confidence
10 / 10
Very High — full data coverage
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Verisk Analytics, Inc. is a leading data analytics and technology company serving the insurance, energy, and financial services industries. Its core business provides proprietary data assets, predictive analytics, and decision-support tools — particularly within the insurance vertical where it holds a deeply embedded market position through products like ISO (Insurance Services Office) forms and rating data. The company's overall model score of 58.2/100 reflects a mixed picture: a near-perfect profitability sub-score of 20.0 and a strong dividend sub-score of 16.2 anchor the rating, while a weak financial health sub-score of 8.0 signals meaningful leverage concerns, and a theme sub-score of 0.0 indicates no identifiable macro tailwind exposure in the model's framework. The momentum sub-score of 12.4 suggests quarterly operational trends are positive but not exceptional, and the growth sub-score of 7.5 points to modest year-over-year expansion in revenue, net income, and EPS relative to peers. The key research tradeoff is that Verisk presents a high-quality, highly profitable business with durable free cash flow and a consistent dividend track record — characteristics that favor a dividend income goal profile, where it scores 66.2 — but this quality comes packaged with a Very High risk rating driven primarily by elevated balance sheet leverage and limited financial cushion as reflected in the financial health sub-score of 8.0. Researchers evaluating VRSK must weigh the company's exceptional margin profile and dividend discipline against its debt load and the absence of identifiable macro theme exposure that might otherwise support a higher conviction score.
Plain English
Verisk Analytics sells data and analytics tools to insurance companies and other industries — think of it as the company that helps insurers figure out risk and pricing using massive proprietary databases. The model score of 58.2 out of 100 means it performs well in some areas, especially profitability and dividends, but has real weaknesses in financial health and growth that hold it back. The Very High risk rating means the balance sheet carries significant debt, which could create stress if earnings or cash flow were to decline. It earns a 'Research Further' label, meaning it has enough merit to investigate more deeply but is not a straightforward fit for every research profile.
Bull Case vs. Bear Case
Bull Case
- The profitability sub-score of 20.0 — the maximum possible — confirms that Verisk generates exceptional net margins, operating margins, and return on assets, reflecting its pricing power and the near-irreplaceable nature of its proprietary insurance data.
- The dividend sub-score of 16.2 out of 20 indicates strong free cash flow coverage of dividend payments, a consistent dividend per share growth streak, and a healthy FCF payout ratio, making this a credible candidate for income-focused research under its best-fit goal profile where it scores 66.2.
- The momentum sub-score of 12.4 indicates that quarterly revenue, earnings, and margin trends have been improving, suggesting the business is executing well operationally in recent periods as captured in the FY2025 10-K filing.
Bear Case
- The financial health sub-score of 8.0 out of 20 signals elevated leverage and constrained interest coverage, meaning Verisk carries a debt burden that leaves limited balance sheet flexibility if economic conditions deteriorate or refinancing costs rise.
- The growth sub-score of 7.5 out of 20 reflects only modest year-over-year improvements in revenue, net income, and EPS, suggesting the business may be maturing or facing headwinds in expanding its top line at a rate that would justify a higher overall score.
- The theme sub-score of 0.0 indicates that the model identified no macro theme exposure — such as AI infrastructure, energy transition, or reshoring — meaning the company lacks the thematic tailwind that is currently rewarding many higher-scoring research candidates.
What Could Change the Picture
Bullish Triggers
- A material improvement in the financial health sub-score — driven by debt reduction, improved interest coverage ratios, or stronger balance sheet metrics disclosed in future 10-K filings — would directly address the most significant scoring drag and could push the overall model score meaningfully higher.
- Sustained acceleration in revenue and EPS growth that lifts the growth sub-score above 12 or 15 would signal that Verisk's concentrated insurance data platform is finding new monetization pathways, improving the research case across multiple goal profiles.
Bearish Triggers
- A deterioration in free cash flow coverage of dividends — reflected in a declining dividend sub-score in future filings — would undermine the primary thesis supporting Verisk's dividend income profile score of 66.2 and raise questions about dividend sustainability.
- Further leverage increases or a decline in interest coverage ratios disclosed in upcoming 10-K filings would worsen the already-weak financial health sub-score of 8.0, reinforcing the Very High risk rating and potentially triggering a downgrade in the model's overall assessment.
Red Flags
- The financial health sub-score of 8.0 combined with the Very High risk rating suggests the company's leverage ratio and interest coverage metrics are materially below healthy thresholds, a concern that regulators and analysts monitoring debt sustainability would flag in SEC filings.
- The growth sub-score of 7.5 may reflect limited revenue diversification following Verisk's strategic divestitures of its energy and financial services segments, concentrating risk in the insurance vertical with correspondingly slower aggregate growth.
Risk Profile
Very High RiskThe Very High risk rating for Verisk Analytics reflects the combination of a low financial health sub-score of 8.0 — indicating elevated leverage and limited interest coverage buffer as derived from its 10-K balance sheet — and significant business concentration in the insurance data vertical following strategic divestitures, which together create asymmetric downside exposure relative to a more diversified or less-leveraged peer. Researchers should be aware that even a modest deterioration in earnings or cash flow could pressure both debt covenants and dividend sustainability given current balance sheet conditions.
Key Catalysts to Watch
The key catalysts to monitor for Verisk include any disclosed changes in debt levels, interest coverage, or capital allocation strategy in future SEC filings, as these would directly affect the financial health sub-score that is the primary constraint on the overall model score. Additionally, evidence of renewed revenue growth momentum — particularly from pricing power within its insurance analytics platform or new product adoption — would be the most direct path to improving the growth sub-score and broadening the company's appeal beyond the dividend income profile.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.