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
- A perfect profitability score anchors the composite, reflecting the company's outstanding operating margin of 43.7%, net margin of 29.6%, and return on assets of 14.7%.
- Growth, financial health, and momentum scores are all below midpoint, dragged down by declining net income and EPS, a debt-to-equity ratio of 10.45, and volatile quarterly earnings.
- The absence of any macro theme assignment means Verisk receives no thematic tailwind credit, which alongside the other below-midpoint factors contributes to the overall 53.6/100 composite score.
Why Not Higher
- The heavily leveraged balance sheet — with a debt-to-equity ratio of 10.45 — and the simultaneous decline in net income (-5.2%) and diluted EPS (-3.4%) despite revenue growth prevent the strong profitability from lifting the composite further.
- Inconsistent quarterly earnings momentum, including a net income trough of $197,200,000 in 2025Q4, and the lack of any macro theme assignment both weigh on the composite score.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $2,881,700,000 to FY2025's $3,072,700,000, a gain of +6.6%, but net income declined -5.2% over the same period (FY2024: $958,200,000 to FY2025: $908,300,000), and diluted EPS fell -3.4% from FY2024's $6.71 to FY2025's $6.48.
The model rewarded modest top-line expansion but penalized the simultaneous contraction in bottom-line profitability and per-share earnings, resulting in a below-midpoint growth score.
In FY2025, Verisk posted an operating margin of 43.7%, a net margin of 29.6%, and a return on assets of 14.7%, all reflecting exceptional efficiency at converting revenue and assets into profit.
The model awarded a perfect score because these margin and return figures are well above typical thresholds for high-quality businesses, signaling that Verisk generates substantial profit at both the operating and net levels relative to its revenue and asset base.
In FY2025, Verisk carried a debt-to-equity ratio of 10.45 against total assets of $6,195,500,000, indicating a heavily leveraged balance sheet relative to equity.
The model penalized the very high debt-to-equity ratio, which signals that the company's capital structure relies predominantly on debt, a risk factor that constrains the financial health score despite the company's strong profitability.
Over the last four quarters, revenue was relatively stable (2025Q2: $772,600,000; 2025Q3: $768,300,000; 2025Q4: $778,800,000; 2026Q1: $782,600,000), but net income showed meaningful volatility and a declining trend from 2025Q2's $253,300,000 to a trough of $197,200,000 in 2025Q4 before partially recovering to $234,200,000 in 2026Q1. Operating income followed a similar pattern, dipping from $354,300,000 in 2025Q2 to $313,600,000 in 2025Q4 before rebounding to $352,200,000 in 2026Q1.
The model recognized flat-to-modest revenue momentum but discounted the score due to the notable mid-period weakness in both net income and operating income, which signals inconsistent earnings momentum even as the most recent quarter showed partial recovery.
In FY2025, Verisk's dividend payout ratio (dividends paid divided by net income) was 27.6%, indicating the company returned a meaningful but conservative share of earnings to shareholders.
The model rewarded a payout ratio that reflects a sustainable dividend policy — large enough to demonstrate shareholder commitment, yet conservative enough to preserve capital for reinvestment and debt management.
Verisk Analytics is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the company did not receive any thematic tailwind credit under the current methodology; this is a neutral classification and does not reflect negatively on the company's business or prospects.
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 delivered modest top-line growth of +6.6% in FY2025, reaching $3,072,700,000 in revenue, but bottom-line results weakened as net income fell -5.2% to $908,300,000 and diluted EPS declined -3.4% to $6.48. The company's profitability profile remains exceptional, with a 43.7% operating margin, 29.6% net margin, and 14.7% return on assets, yet a heavily leveraged balance sheet — reflected in a debt-to-equity ratio of 10.45 — constrains the overall financial health picture. Quarterly earnings momentum showed notable mid-period weakness before a partial recovery in 2026Q1, and the absence of a macro theme assignment means Verisk receives no thematic tailwind credit in the current model, contributing to a composite score of 53.6/100 and a Medium risk rating.
Plain English
Verisk is a highly profitable business that grew its sales modestly last year, but it carries a lot of debt and its profits actually shrank — so while the company runs efficiently, the financial risks and inconsistent earnings keep it from scoring higher.
Bull Case vs. Bear Case
Bull Case
- Exceptional profitability metrics — a 43.7% operating margin, 29.6% net margin, and 14.7% return on assets — demonstrate that Verisk converts revenue and assets into profit at a level well above typical businesses.
- Revenue grew +6.6% year-over-year from $2,881,700,000 to $3,072,700,000, showing consistent top-line expansion even as bottom-line pressures emerged.
- A dividend payout ratio of 27.6% reflects a sustainable shareholder return policy that balances income distribution with capital preservation for reinvestment and debt management.
Bear Case
- Net income declined -5.2% from $958,200,000 to $908,300,000 and diluted EPS fell -3.4% from $6.71 to $6.48 in FY2025, signaling that top-line growth is not translating into bottom-line improvement.
- A debt-to-equity ratio of 10.45 against total assets of $6,195,500,000 indicates a heavily leveraged balance sheet that constrains financial flexibility and amplifies risk.
- Quarterly net income showed meaningful volatility, declining from $253,300,000 in 2025Q2 to a trough of $197,200,000 in 2025Q4, reflecting inconsistent earnings momentum even with a partial recovery to $234,200,000 in 2026Q1.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly net income and operating income beyond the partial rebound seen in 2026Q1 — where operating income returned to $352,200,000 — would signal that the mid-period earnings weakness was temporary.
- A meaningful reduction in the debt-to-equity ratio from its current level of 10.45 would alleviate the primary financial health concern and could support a more favorable composite assessment.
Bearish Triggers
- If the divergence between revenue growth and net income contraction widens further — continuing the FY2025 pattern of +6.6% revenue growth alongside -5.2% net income decline — it would suggest structural margin erosion.
- A renewed deterioration in quarterly operating income below the 2025Q4 trough of $313,600,000 would indicate that the 2026Q1 recovery was not durable.
Risk Profile
Medium RiskVerisk's debt-to-equity ratio of 10.45 signals a capital structure that relies predominantly on debt, which amplifies financial risk and limits balance sheet flexibility. Compounding this, quarterly net income showed meaningful volatility — falling from $253,300,000 in 2025Q2 to $197,200,000 in 2025Q4 before partially recovering — indicating that earnings consistency cannot yet be taken for granted.
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.