Verisk Analytics, Inc.
VRSKVerisk wins by owning the data and models insurers rely on every day to understand and price risk.
Because few industrial companies turn nearly 30 percent of revenue into profit with so little capital.
Business Model
Data subscriptions and analytics
Insurers pay recurring fees to access Verisk’s data, models, and software tools.
Economic Engine
High cash generation
Nearly 39 percent of revenue turns into free cash flow, more than reported net income.
Long-Term Lens
Embedded in workflows
The key question is whether insurers remain deeply dependent on Verisk’s data over decades.
BinaPrint Snapshot
Style
Blend
Fitness
Strong
Updated Mar 8, 2026
On this page
Company Story
How do Verisk Analytics, Inc.'s business model and economics hold up on a closer read?
Start with the business itself, then go one layer deeper into the model, the economics, and the long-term case.
“Verisk is a high-margin data tollbooth on global insurance risk, built to compound steadily for decades if its data advantage holds.”
What does Verisk Analytics, Inc. actually do?
Verisk collects massive amounts of risk data and sells analytics tools that help insurers price policies and handle claims.
- Aggregates industry data on property, casualty, and catastrophe risk
- Builds models that estimate losses from events like hurricanes and wildfires
- Provides software tools insurers use in daily underwriting and claims work
Why it matters
Insurance runs on data
If insurers misprice risk, they lose money, so they depend on accurate, trusted analytics.
How does Verisk Analytics, Inc. make money?
Verisk charges recurring subscription and licensing fees for access to its data sets, models, and analytics platforms.
- Recurring contracts with insurers and reinsurers
- High gross margin of 67.3 percent reflects digital delivery
- Very low capital spending, about 0.2 billion dollars last year
Economic clue
44.6 percent operating margin
Such high operating profit suggests pricing power and limited direct competition.
Why do long-term investors keep Verisk Analytics, Inc. on the radar?
Verisk sits at the center of an industry that must constantly measure and remeasure risk in a changing world.
- Revenue has grown about 5.7 percent per year on average over five years
- Earnings per share have grown about 12.1 percent per year over five years
- Margins have been expanding, not shrinking
Investor takeaway
Strong financial fitness
High margins and strong cash conversion give it resilience during industry downturns.
Based on company financial statements.
What Could Change The Story
- Centered would move the profile toward Summit.
- Drifting would move the profile toward Steady.
Benchmark Comparison
How has Verisk Analytics, Inc. performed against common long-term benchmarks?
Once the business case is clear, compare the stock against broad market and alternative long-term baselines.
$1,278
+27.8% total return
$1,753
+75.3% total return
$2,975
+197.5% total return
$1,393
+39.3% total return
| Asset | Total Return | Dollar Value |
|---|---|---|
| VRSK | +27.8% | $1,278 |
| S&P 500 | +75.3% | $1,753 |
| Gold | +197.5% | $2,975 |
| Bitcoin | +39.3% | $1,393 |
From Mar 5, 2021 to Mar 6, 2026. Historical price data based on company financial statements and market indices. Each card uses the same starting amount so the comparison stays apples-to-apples.
Investor Fit
How a first-time investor could frame Verisk Analytics, Inc.
Before going deeper, decide what kind of business this is, what it tends to suit, and what deserves monitoring over time.
This Can Fit If You Want
- A steady compounder with mid single digit revenue growth
- High and expanding profit margins
- A business tied to essential industry infrastructure rather than consumer trends
Be Careful If You Expect
- Rapid double digit revenue growth for many years
- A growing dividend, since it currently pays none
- Big visible product launches that transform growth overnight
What To Watch Over Time
- Whether revenue keeps growing around 5 to 7 percent per year
- Whether operating margin stays near or above 40 percent
- Whether insurers try to build competing in house data platforms
BinaPrint Position
Where does Verisk Analytics, Inc. sit on the BinaPrint map right now?
Test whether business quality and financial profile match the company's stated narrative.
Advanced BinaPrint details
Open the axes, investor fit, and risk framing behind this profile.
Key Metrics
Which metrics matter most for Verisk Analytics, Inc. right now?
Three durable business metrics that matter more than day-to-day price moves.
5.7% per year
12.1% per year
44.6% operating margin
| Metric | Value | Context |
|---|---|---|
| Revenue Growth | 5.7% per year | Shows whether the business has been expanding fast enough to create more long-term value. |
| EPS Growth | 12.1% per year | Shows whether earnings per share are compounding for owners over time. |
| Margin Quality | 44.6% operating margin | Shows how much room the business has to fund growth, absorb shocks, and stay profitable. |
Based on company financial statements.
Fundamentals
What do Verisk Analytics, Inc.'s fundamentals say right now?
Core financial markers that explain how the business is performing beneath the stock price.
24.1% ROIC
67.3% gross margin
38.8% FCF margin
Stable to shrinking
| Metric | Value | Interpretation |
|---|---|---|
| Capital Efficiency | 24.1% ROIC | The business is currently showing excellent capital efficiency. |
| Profitability | 67.3% gross margin | Healthy gross margins give the company room to invest, price competitively, and absorb shocks. |
| Cash Generation | 38.8% FCF margin | Free cash flow margin shows how much real cash the business keeps after funding operations and investment. |
| Ownership Trend | Stable to shrinking | The company is not currently diluting owners and may be buying back shares instead. |
Based on company financial statements.
Included In Funds
Which ETFs and funds currently hold Verisk Analytics, Inc.?
Verisk Analytics, Inc. currently appears in these ETF and fund proxies.
QQQ
Invesco QQQ Trust, Series 1
SPY
SPDR S&P 500 ETF Trust
IWB
iShares Russell 1000 ETF
Questions & Answers
What questions come up most often about Verisk Analytics, Inc.?
Company-specific questions readers often ask about Verisk Analytics, Inc..
Each entry answers a direct question about the business, the long-term thesis, or the risks that matter over time.
It collects and analyzes large amounts of insurance and risk data, then sells tools and models that help insurers price policies and manage claims.
Decision Framing
Secondary context after the long-term thesis
Shorter-horizon context and comparison tools, after the core long-term read.
Shorter-horizon price moves, two-sided debate, and comparison tools live here so the page stays anchored on business quality, durability, and BinaPrint fit first.
Investment Thesis
Bull vs Bear
Two-sided framing before any decision.
Current argument weight is balanced.
Bull case
What can work
Deeply embedded data sets built over decades make Verisk a default infrastructure provider for insurers, creating switching costs tied to workflow and regulatory filings.
Rising climate volatility and more complex risks increase demand for advanced catastrophe and risk modeling, expanding the need for analytics rather than shrinking it.
High margins, 44.6 percent operating and 29.6 percent net, provide room to invest in product development while still generating strong cash.
Consistent earnings per share growth of about 12.1 percent per year over five years shows the model can compound even with mid single digit revenue growth.
Bear case
What can break
Large insurers could invest heavily in their own data science teams and reduce reliance on third party analytics, pressuring pricing and renewal rates.
A technological shift, such as open source risk models powered by artificial intelligence, could commoditize parts of Verisk’s data offering.
If insurance markets shrink due to regulatory changes or prolonged underwriting losses, demand for analytics subscriptions could stagnate.
Reputational damage from a major modeling error during a catastrophic event could undermine trust, which is central to the business model.
Risk Radar
Key Risks
Where downside pressure can build.
Industry concentration: A large portion of revenue comes from property and casualty insurers, so a severe downturn in that segment could slow growth.
Margin risk: Operating margin of 44.6 percent leaves room for compression if pricing power weakens or costs rise.
Technology disruption: Artificial intelligence driven competitors could pressure subscription pricing over time.
Sizing matters
Risks should be read as scenario inputs, not certainties. Position size and time horizon determine how much of this downside profile is acceptable.
Market Snapshot
Tactical context after the core long-term read.
- Price
- $214.84
- Daily move
- +1.71%
Peer Set
A compact peer list for side-by-side context.
Next Actions
Explore planning scenarios or keep browsing similar companies.