Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Verisk Analytics (VRSK): Subscription Model Innovation at the Core – Will Product Leadership Sustain Competitive Advantage?
Verisk Analytics (VRSK) delivered a robust Q3 2024 performance, with revenue of $725.3M (+7% YoY) and adjusted EPS of $1.67, driven by 9.1% organic constant-currency (OCC) subscription revenue growth, now comprising 82% of total revenue. Adjusted EBITDA margin expanded to 55.2% (+120 bps YoY), reflecting disciplined cost control and the high-margin benefits of its subscription model. Free cash flow rose 23% YoY, enabling $455M in shareholder returns. Segment momentum remains strong, with underwriting and claims solutions benefitting from tools like "Future of Forms" and core.verisk.com, enhancing client engagement and retention. Extreme Events Solutions saw notable growth, adding 10 clients, highlighting Verisk’s rising importance in climate risk analytics. Innovations in generative AI, such as underwriting co-pilots and claims tools like Discovery Navigator, further deepen client integration, positioning Verisk as a workflow-critical partner. While transactional revenue declined (-2.5% OCC), the strategic shift to subscriptions enhances stability and long-term profitability. Tailwinds include premium growth (9.5% forecasted for 2024), climate analytics penetration, and global expansion, although rising interest costs and potential moderation in premium growth pose risks. With Verisk’s moat and proprietary datasets solidifying its leadership, can the company sustain its competitive advantage amid evolving market demands and intensifying competition in adjacent analytics verticals?
