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Verisk (VRSK) Benefits From Shareholder-Friendly Policies
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Verisk Analytics Inc. (VRSK - Free Report) employs a robust growth strategy, emphasizing organic growth, product development and acquisitions. Its expertise in predictive data analytics and decision support solutions provides a competitive advantage. The company actively acquires and invests in global companies to expand its data and analytics capabilities. Additionally, it consistently rewards shareholders through dividend payments and share repurchases.
VRSK gained 33.4% in the past six months, outperforming its industry’s 15.5% growth and the S&P 500 composite’s 6.2% rise in the same time frame.
How is VRSK Doing?
Verisk's growth strategy includes organic growth, product development, and acquisitions, with a 1% CAGR in revenues over five years. It invests in people, data, tech and complementary businesses to stay current in the markets, with a focus on solution penetration, proprietary data, predictive analytics, and diversification.
Acquisitions play a vital role in Verisk's growth strategy, as it consistently invests in global companies to enhance its data and analytics capabilities across various sectors. The acquisition of Opta in March 2022 is set to extend its presence in the Canadian market, while the purchase of Automated Insurance Solutions is anticipated to bolster its automation capabilities in claims processing and support geographical expansion. The 2022 acquisition of Infutor Data Solutions, LLC (Infutor) strengthened Verisk's marketing solutions portfolio, helping it cater to diverse industries, including insurance.
Verisk's current ratio at the end of second-quarter 2023 was pegged at 1.07, higher than the current ratio of 0.89 reported at the end of the prior quarter and 0.56 at the end of the year-ago quarter. It indicates that the company is not likely to have problems meeting its short-term debt obligations.
Verisk consistently rewards shareholders, paying dividends of $195.2 million and repurchasing $1.7 billion in shares in 2022. In 2021, it paid $188.2 million in dividends and bought back $475 million in shares. In 2020, the company distributed $175.8 million in dividends and repurchased $348.8 million in shares. These actions underscore the commitment to shareholder value and confidence in the business.
Verisk relies on vast data, facing operational risks like security breaches, contractual disputes with external data suppliers (some rivals), and potential data theft by third-party contractors, risking credibility, customers, and its core existence.
In 2022 and 2023, Verisk divested its Energy and Specialized Markets segment and Financial Services segment, leaving only the Insurance segment. While this sharpens its focus on insurance, it raises concerns about reliance on a single service, reducing diversification. Companies with multiple service offerings are generally seen as more secure due to their diversified business.
VRSK carries a Zacks Rank #2 (Buy) at present.
Other Stocks to Consider
Here are some other top-ranked stocks from the Business Services sector:
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank of 2 at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicates an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM has a Zacks Rank of 2 at present.
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Verisk (VRSK) Benefits From Shareholder-Friendly Policies
Verisk Analytics Inc. (VRSK - Free Report) employs a robust growth strategy, emphasizing organic growth, product development and acquisitions. Its expertise in predictive data analytics and decision support solutions provides a competitive advantage. The company actively acquires and invests in global companies to expand its data and analytics capabilities. Additionally, it consistently rewards shareholders through dividend payments and share repurchases.
VRSK gained 33.4% in the past six months, outperforming its industry’s 15.5% growth and the S&P 500 composite’s 6.2% rise in the same time frame.
How is VRSK Doing?
Verisk's growth strategy includes organic growth, product development, and acquisitions, with a 1% CAGR in revenues over five years. It invests in people, data, tech and complementary businesses to stay current in the markets, with a focus on solution penetration, proprietary data, predictive analytics, and diversification.
Verisk Analytics, Inc. Price
Verisk Analytics, Inc. price | Verisk Analytics, Inc. Quote
Acquisitions play a vital role in Verisk's growth strategy, as it consistently invests in global companies to enhance its data and analytics capabilities across various sectors. The acquisition of Opta in March 2022 is set to extend its presence in the Canadian market, while the purchase of Automated Insurance Solutions is anticipated to bolster its automation capabilities in claims processing and support geographical expansion. The 2022 acquisition of Infutor Data Solutions, LLC (Infutor) strengthened Verisk's marketing solutions portfolio, helping it cater to diverse industries, including insurance.
Verisk's current ratio at the end of second-quarter 2023 was pegged at 1.07, higher than the current ratio of 0.89 reported at the end of the prior quarter and 0.56 at the end of the year-ago quarter. It indicates that the company is not likely to have problems meeting its short-term debt obligations.
Verisk consistently rewards shareholders, paying dividends of $195.2 million and repurchasing $1.7 billion in shares in 2022. In 2021, it paid $188.2 million in dividends and bought back $475 million in shares. In 2020, the company distributed $175.8 million in dividends and repurchased $348.8 million in shares. These actions underscore the commitment to shareholder value and confidence in the business.
Verisk relies on vast data, facing operational risks like security breaches, contractual disputes with external data suppliers (some rivals), and potential data theft by third-party contractors, risking credibility, customers, and its core existence.
In 2022 and 2023, Verisk divested its Energy and Specialized Markets segment and Financial Services segment, leaving only the Insurance segment. While this sharpens its focus on insurance, it raises concerns about reliance on a single service, reducing diversification. Companies with multiple service offerings are generally seen as more secure due to their diversified business.
VRSK carries a Zacks Rank #2 (Buy) at present.
Other Stocks to Consider
Here are some other top-ranked stocks from the Business Services sector:
DocuSign (DOCU - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 25.6%. The current consensus estimate for revenues indicates an 8.1% increase from the year-ago figure. The consensus mark for earnings is pegged at $2.52 per share, indicating 24.1% year-over-year growth. DOCU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International (CRAI - Free Report) has beaten the Zacks Consensus Estimate in two of the four trailing quarters and missed on two instances, the earning surprise being 5.1%. The current Zacks Consensus Estimate for revenues indicates an 6.6% increase from the year-ago figure. The consensus mark for earnings is pegged at $5.49 per share, indicating 7.6% year-over-year decline. CRAI has a Zacks Rank of 2 at present.
ABM Industries (ABM - Free Report) has beaten the Zacks Consensus Estimate in all the four trailing quarters and has an earning surprise of 2.64%. The current Zacks Consensus Estimate for revenues indicates an 3.5% increase from the year-ago figure. The consensus mark for earnings is pegged at $3.51 per share, indicating 4.1% year-over-year decline. ABM has a Zacks Rank of 2 at present.