Buffett Brain · Research note
Score updated 5 Oct 2026 · analysis from 27 Jul 2026
VRSK· Technology
Verisk Analytics
Verisk Analytics boasts strong margins and ROIC but faces valuation concerns and a complex business model.
Buffett fit
Partial fit
Owner
76
Durability
69
Management
75
Price
41
Score updated 5 Oct 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Verisk, I'd focus on maintaining its strong margins and expanding its analytics capabilities.
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Verisk's durability appears solid, with profitability in all of the last five years.
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Management has effectively reduced share count at a CAGR of -3.72% and executed a yield of 5.89%, suggesting a commitment to returning value to shareholders.
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The current yield of 5.3% is below the ideal 8-10% threshold, indicating that the stock may be overvalued at a of 25.5.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 28.9% ranks in the top quintile for the technology sector, indicating strong capital efficiency.
- 2 of 67.4% exceeds the sector's top-quintile cutoff of 60.9%, demonstrating superior profitability.
- 3 of 44.9% is significantly above the sector average of 18.0%, showcasing operational excellence.
- 4 growth of 29.54% year-over-year indicates robust cash generation capabilities.
Concerns
5- 1 of 25.5 suggests the stock is priced for high growth, but the 5-year EPS CAGR of 12.1% may not justify this valuation.
- 2 yield of 5.3% falls short of the 8-10% target, indicating a lack of .
- 3Net debt/EBITDA of 2.40 raises questions about financial , especially given the current economic environment.
- 4Current ratio of 1.02 suggests limited liquidity to cover short-term obligations, potentially risky during downturns.
Price history
$164-21.0%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Verisk Analytics generates revenue through its data analytics solutions across various sectors, including insurance and energy, with a TTM revenue of $3.07 billion. The company focuses on predictive analytics, particularly in risk assessment. With a of 67.4%, the unit economics appear strong, allowing for substantial reinvestment into growth.
What other investors would say
The same company, judged by three other documented playbooks.
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