Recent News
On July 30, 2025 Verisk announced an agreement to acquire AccuLynx for $2.35 billion, expanding its footprint in residential insurance software and contractor workflow automation. On July 30 the company reported fiscal Q2 results showing revenue of $773 million and diluted adjusted EPS of $1.88, above consensus, and raised full-year revenue and adjusted EBITDA guidance. On August 7 Verisk priced $750 million of 4.500% senior notes due 2030 and $750 million of 5.125% senior notes due 2036 to help fund the acquisition and related financing.
Technical Analysis
ADX at 38.62 indicates a strong trend strength that amplifies directional signals into the near term; strong ADX tends to increase the persistence of current directional bias.
DI- sits at 33.84 and shows an increasing trend, which reads as bearish pressure against DI+, while DI+ at 11.18 shows a decreasing trend—both directional indicators align toward downside momentum relative to the valuation and near-term price bias.
MACD stands at -7.68 and the MACD line trends downward below the signal line (-6.19), a bearish momentum setup that pressures short-term price recovery versus the current valuation.
MRO reads -35.22 with a dip-and-reversal signature; the negative oscillator signals the price sits below the model target and therefore carries an embedded potential for upward mean reversion against the present over-valued diagnosis.
RSI at 34.82 and trending down reflects growing selling momentum without having reached canonical oversold extremes; relative weakness supports the technical case for continued consolidation near the lower Bollinger band.
Price closed at $242.95 below the 20-day average ($255.57), 50-day average ($270.67) and 200-day average ($288.15), while the super trend upper boundary at $253.96 functions as immediate resistance; that structure aligns technical resistance with the valuation premium when assessing short-term directional risk.
Fundamental Analysis
Q2 revenue totaled $772.6 million, marking YoY revenue growth of 43.18% and quarter-over-quarter growth of 10.06%; top-line expansion accompanies an operating environment that supports higher services demand in property and casualty analytics.
Adjusted EPS came in at $1.88 versus an estimate of $1.77, an EPS beat of $0.11 or +6.22%, while forward EPS stands near $1.8225; the EPS surprise and raised guidance underpin the company’s stated full-year outlook.
Margins remain a distinguishing feature: operating margin at 45.858% and EBIT margin at 47.036% exceed the industry peer mean and the industry peer high for those measures, signaling substantial operating leverage in the business model given current revenue levels.
Cash flow shows mixed signals. Free cash flow totaled $188.7 million with a free cash flow yield of 0.48%, while operating cash flow reached $244.5 million and cash on hand equaled $628.7 million; cash conversion ratio stands at 161.6%, supporting near-term liquidity despite heavy financing activity.
Leverage increased materially: total debt approximates $3.43 billion with net debt near $2.58 billion, debt-to-EBITDA about 7.69x and debt-to-equity at ~11.0x, movements that reflect the acquisition financing and note issuance; the year-over-year change in debt-to-equity reported at +847.74% confirms a sharp leverage step-up versus the prior year.
Returns show asymmetry: return on equity registers at 81.26%—substantially above the industry peer mean—while return on assets at 5.11% sits above the industry peer mean as well; elevated ROE reflects a capital structure with high leverage rather than purely proportionate operating profitability.
Valuation multiples remain rich. Trailing PE approximates 160.93x, P/B near $127.31, PS about 51.36x and enterprise multiple around 95.32x; the current valuation, as determined by WMDST, sits in the over-valued category given those multiples relative to cash-flow conversion and the step-up in leverage.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-30 |
| NEXT REPORT DATE: | 2025-11-05 |
| CASH FLOW | Begin Period Cash Flow | $ 1.1 B |
| Operating Cash Flow | $ 244.5 M | |
| Capital Expenditures | $ -55.80 M | |
| Change In Working Capital | $ -89.70 M | |
| Dividends Paid | $ -63.00 M | |
| Cash Flow Delta | $ -483.40 M | |
| End Period Cash Flow | $ 628.7 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 772.6 M | |
| Forward Revenue | $ 194.1 M | |
| COSTS | ||
| Cost Of Revenue | $ 229.5 M | |
| Depreciation | $ 66.0 M | |
| Depreciation and Amortization | $ 82.3 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 418.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 543.1 M | |
| EBITDA | $ 445.7 M | |
| EBIT | $ 363.4 M | |
| Operating Income | $ 354.3 M | |
| Interest Income | — | |
| Interest Expense | $ 35.5 M | |
| Net Interest Income | $ -35.50 M | |
| Income Before Tax | $ 327.9 M | |
| Tax Provision | $ 74.6 M | |
| Tax Rate | 22.7 % | |
| Net Income | $ 253.3 M | |
| Net Income From Continuing Operations | $ 253.3 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.77 | |
| EPS Actual | $ 1.88 | |
| EPS Difference | $ 0.11 | |
| EPS Surprise | 6.215 % | |
| Forward EPS | $ 1.82 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 4.8 B | |
| Intangible Assets | $ 2.2 B | |
| Net Tangible Assets | $ -1.89 B | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 628.7 M | |
| Cash | $ 628.7 M | |
| Net Receivables | $ 612.0 M | |
| Inventory | — | |
| Long-Term Investments | $ 441.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 175.6 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 899.4 M | |
| Net Debt | $ 2.6 B | |
| Total Debt | $ 3.4 B | |
| Total Liabilities | $ 4.5 B | |
| EQUITY | ||
| Total Equity | $ 311.7 M | |
| Retained Earnings | $ 7.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 2.23 | |
| Shares Outstanding | 139.701 M | |
| Revenue Per-Share | $ 5.53 | |
| VALUATION | Market Capitalization | $ 39.7 B |
| Enterprise Value | $ 42.5 B | |
| Enterprise Multiple | 95.317 | |
| Enterprise Multiple QoQ | -8.731 % | |
| Enterprise Multiple YoY | 27.443 % | |
| Enterprise Multiple IPRWA | high: 179.976 VRSK: 95.317 mean: 89.553 median: 55.696 low: -20.955 |
|
| EV/R | 54.987 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 15.383 | |
| Asset To Liability | 1.07 | |
| Debt To Capital | 0.917 | |
| Debt To Assets | 0.715 | |
| Debt To Assets QoQ | -6.951 % | |
| Debt To Assets YoY | 582.659 % | |
| Debt To Assets IPRWA | VRSK: 0.715 high: 0.526 median: 0.526 mean: 0.482 low: 0.012 |
|
| Debt To Equity | 10.997 | |
| Debt To Equity QoQ | -65.627 % | |
| Debt To Equity YoY | 847.741 % | |
| Debt To Equity IPRWA | VRSK: 10.997 high: 3.456 median: 3.456 mean: 3.009 low: -0.467 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 127.314 | |
| Price To Book QoQ | -61.44 % | |
| Price To Book YoY | 46.18 % | |
| Price To Book IPRWA | VRSK: 127.314 high: 8.641 mean: 4.182 median: 3.047 low: -0.871 |
|
| Price To Earnings (P/E) | 160.925 | |
| Price To Earnings QoQ | -4.057 % | |
| Price To Earnings YoY | 6.441 % | |
| Price To Earnings IPRWA | high: 161.822 VRSK: 160.925 mean: 84.444 median: 72.492 low: -43.153 |
|
| PE/G Ratio | 18.559 | |
| Price To Sales (P/S) | 51.364 | |
| Price To Sales QoQ | -4.764 % | |
| Price To Sales YoY | -1.758 % | |
| Price To Sales IPRWA | VRSK: 51.364 high: 29.222 mean: 12.819 median: 6.73 low: 1.721 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 166.827 | |
| Forward PE/G | 19.24 | |
| Forward P/S | 204.403 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 3.545 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.156 | |
| Asset Turnover Ratio QoQ | -2.886 % | |
| Asset Turnover Ratio YoY | 0.711 % | |
| Asset Turnover Ratio IPRWA | high: 0.312 median: 0.186 mean: 0.178 VRSK: 0.156 low: 0.008 |
|
| Receivables Turnover | 1.313 | |
| Receivables Turnover Ratio QoQ | -14.021 % | |
| Receivables Turnover Ratio YoY | -11.52 % | |
| Receivables Turnover Ratio IPRWA | high: 3.5 mean: 1.777 VRSK: 1.313 median: 1.274 low: 0.753 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 69.471 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.616 | |
| CapEx To Revenue | -0.072 | |
| CapEx To Depreciation | -0.845 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 3.5 B | |
| Net Invested Capital | $ 3.5 B | |
| Invested Capital | $ 3.5 B | |
| Net Tangible Assets | $ -1.89 B | |
| Net Working Capital | $ 478.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.699 | |
| Current Ratio | 1.531 | |
| Current Ratio QoQ | 20.825 % | |
| Current Ratio YoY | 60.656 % | |
| Current Ratio IPRWA | high: 3.987 VRSK: 1.531 mean: 0.743 median: 0.473 low: 0.13 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.691 | |
| Cost Of Debt | 0.745 % | |
| Interest Coverage Ratio | 10.237 | |
| Interest Coverage Ratio QoQ | 11.689 % | |
| Interest Coverage Ratio YoY | -29.428 % | |
| Interest Coverage Ratio IPRWA | high: 11.542 VRSK: 10.237 median: 4.556 mean: 3.267 low: -12.718 |
|
| Operating Cash Flow Ratio | 0.286 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 75.574 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 4.021 | |
| Dividend Payout Ratio | 0.249 | |
| Dividend Rate | $ 0.45 | |
| Dividend Yield | 0.002 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -6.388 % | |
| Revenue Growth | 2.603 % | |
| Revenue Growth QoQ | 10.063 % | |
| Revenue Growth YoY | 43.179 % | |
| Revenue Growth IPRWA | high: 8.11 % median: 3.623 % mean: 3.342 % VRSK: 2.603 % low: -6.106 % |
|
| Earnings Growth | 8.671 % | |
| Earnings Growth QoQ | 16.342 % | |
| Earnings Growth YoY | 28.497 % | |
| Earnings Growth IPRWA | high: 363.636 % median: 12.5 % mean: 10.517 % VRSK: 8.671 % low: -39.683 % |
|
| MARGINS | ||
| Gross Margin | 70.295 % | |
| Gross Margin QoQ | 1.364 % | |
| Gross Margin YoY | 1.301 % | |
| Gross Margin IPRWA | high: 83.921 % VRSK: 70.295 % mean: 47.516 % median: 37.326 % low: 31.216 % |
|
| EBIT Margin | 47.036 % | |
| EBIT Margin QoQ | 6.457 % | |
| EBIT Margin YoY | -20.125 % | |
| EBIT Margin IPRWA | VRSK: 47.036 % high: 12.634 % mean: 8.329 % median: 8.059 % low: 1.11 % |
|
| Return On Sales (ROS) | 45.858 % | |
| Return On Sales QoQ | 3.791 % | |
| Return On Sales YoY | -22.125 % | |
| Return On Sales IPRWA | VRSK: 45.858 % high: 12.634 % mean: 9.114 % median: 8.403 % low: 2.071 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 188.7 M | |
| Free Cash Flow Yield | 0.476 % | |
| Free Cash Flow Yield QoQ | -50.571 % | |
| Free Cash Flow Yield YoY | 15.815 % | |
| Free Cash Flow Yield IPRWA | high: 3.156 % mean: 1.013 % median: 0.918 % VRSK: 0.476 % low: -4.301 % |
|
| Free Cash Growth | -51.739 % | |
| Free Cash Growth QoQ | -154.177 % | |
| Free Cash Growth YoY | 0.56 % | |
| Free Cash Growth IPRWA | high: 92.184 % VRSK: -51.739 % median: -105.759 % mean: -107.639 % low: -226.643 % |
|
| Free Cash To Net Income | 0.745 | |
| Cash Flow Margin | 33.251 % | |
| Cash Flow To Earnings | 1.014 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.108 % | |
| Return On Assets QoQ | 3.192 % | |
| Return On Assets YoY | -23.188 % | |
| Return On Assets IPRWA | VRSK: 5.108 % high: 3.488 % mean: 1.495 % median: 1.366 % low: -0.628 % |
|
| Return On Capital Employed (ROCE) | 9.329 % | |
| Return On Equity (ROE) | 0.813 | |
| Return On Equity QoQ | -56.972 % | |
| Return On Equity YoY | 13.496 % | |
| Return On Equity IPRWA | VRSK: 0.813 high: 0.062 mean: 0.03 median: 0.024 low: -0.014 |
|
| DuPont ROE | 116.536 % | |
| Return On Invested Capital (ROIC) | 7.964 % | |
| Return On Invested Capital QoQ | 17.152 % | |
| Return On Invested Capital YoY | -103.2 % | |
| Return On Invested Capital IPRWA | VRSK: 7.964 % high: 4.225 % median: 2.072 % mean: 1.967 % low: 0.054 % |
|