We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verisk Analytics, Inc. (VRSK - Free Report) is currently benefiting from strong organic growth and acquisitions. However, low liquidity is a headwind.
Verisk’s second-quarter 2022 adjusted earnings per share (excluding 29 cents from non-recurring items) of $1.53 beat the consensus mark by 7.8% and grew 30.8% on a year-over-year basis. Revenues of $746.3 million beat the consensus estimate by 0.1% but decreased 0.2% year over year on a reported basis and 5.3% on an organic constant-currency (cc) basis.
How is VRSK Faring?
Verisk has a robust growth strategy focusing on organic growth, product development and acquisitions. This strategy has enabled it to grow its revenues, witnessing a CAGR of 10.3% over the past five years. VRSK continues to invest in people, data sets, analytic solutions, technology and complementary businesses to keep itself updated with the changing requirements in the markets it serves.
Acquisitions form a key component of Verisk’s growth strategy. VRSK’s recent buyout of Opta is expected to expand its footprint in the Canadian market. Another acquisition of Data-Driven Safety is likely to boost its robust auto insurance analytics.
A Key Risk
Verisk's current ratio at the end of second-quarter 2022 was pegged at 0.56, lower than the current ratio of 0.62 reported at the end of second-quarter 2021. Decreasing current ratio is not desirable as it indicates that VRSK may have problems meeting its short-term debt obligations. Shares of VRSK have plunged 14.9% in the year-to-date period compared with the 9.3% fall of the industry it belongs to.
Image: Shutterstock
Strategic Buyouts Boost Verisk (VRSK), Low Liquidity Ails
Verisk Analytics, Inc. (VRSK - Free Report) is currently benefiting from strong organic growth and acquisitions. However, low liquidity is a headwind.
Verisk’s second-quarter 2022 adjusted earnings per share (excluding 29 cents from non-recurring items) of $1.53 beat the consensus mark by 7.8% and grew 30.8% on a year-over-year basis. Revenues of $746.3 million beat the consensus estimate by 0.1% but decreased 0.2% year over year on a reported basis and 5.3% on an organic constant-currency (cc) basis.
How is VRSK Faring?
Verisk has a robust growth strategy focusing on organic growth, product development and acquisitions. This strategy has enabled it to grow its revenues, witnessing a CAGR of 10.3% over the past five years. VRSK continues to invest in people, data sets, analytic solutions, technology and complementary businesses to keep itself updated with the changing requirements in the markets it serves.
Acquisitions form a key component of Verisk’s growth strategy. VRSK’s recent buyout of Opta is expected to expand its footprint in the Canadian market. Another acquisition of Data-Driven Safety is likely to boost its robust auto insurance analytics.
A Key Risk
Verisk's current ratio at the end of second-quarter 2022 was pegged at 0.56, lower than the current ratio of 0.62 reported at the end of second-quarter 2021. Decreasing current ratio is not desirable as it indicates that VRSK may have problems meeting its short-term debt obligations. Shares of VRSK have plunged 14.9% in the year-to-date period compared with the 9.3% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Verisk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget Group, Inc. (CAR - Free Report) , Genpact Limited (G - Free Report) and H&R Block, Inc. (HRB - Free Report) .
Avis Budget sports a Zacks Rank #1 (Strong Buy) at present. CAR has an earnings growth rate of 108.4% for 2022.
Avis Budget delivered a trailing four-quarter earnings surprise of 69.5%, on average.
Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 12.3%.
Genpact delivered a trailing four-quarter earnings surprise of 10.1%, on average.
H&R Block flaunts a Zacks Rank of 1, currently. HRB has a long-term earnings growth expectation of 12.5%.
HRB delivered a trailing four-quarter earnings surprise of 19.2%, on average.