Verisk Analytics is a data analytics and consulting firm that has a leadership position in the property and casualty markets. It is known to count the 100 largest property and casualty insurance companies as its customers. Verisk also offers services to energy, financial services, and other specialized industries. Verisk claims that more than 70% of the Fortune 100 companies use their technologies and services to make decisions, manage risks, and improve operating efficiency. Verisk Analytics has a global presence with over 100 offices spread out across 35 countries. If you are looking for consulting stocks to buy, then Verisk Analytics is one name that you should certainly look at. It may not be a traditional name like Accenture, Bain, or McKinsey, but Verisk has carved out a niche for itself and is a leader in its space.
The Business Performance Of Verisk Analytics
Verisk Analytics has three business segments, insurance, financial services, and energy & specialized markets. The insurance segment is by far the largest and accounts for over 70% of Verisk revenues. The energy & specialized markets segment is the second-largest and accounts for over 20% of total Verisk revenues. The financial services segment is the smallest and brings in around 5% of the total revenue. Verisk has managed to grow its earnings per share from $1.63 in 2011 to $4.31 in 2020. It has achieved this growth while improving its gross margins from around 60% in 2011 to 64% in 2020. It is achieving growth while improving margins is a sign of a dominant market position with sustainable moats. Such qualities are sought after by investors looking to buy consulting stock for the long run.
In the technology industry, subscription revenues are highly prized. They indicate recurring business and cash flows. In the same manner, Verisk Analytics also focuses on generating subscription revenues. In fact, 85% of its consolidated revenue is either subscription or long-term contract income.