Resources

VRSK – Market expectations are for Uniform ROA to improve, and management is confident about analytics, ACTINEO, and product development

January 11, 2022

  • Verisk Analytics (VRSK) currently trades above corporate averages relative to Uniform earnings, with a 39.0x Uniform P/E (Fwd. V/E’).
  • At these levels, markets are pricing in expectations for Uniform ROA to improve to 128%, accompanied by 9% Uniform asset growth.
  • However, analysts expect Uniform ROA to compress to 78% in 2022, accompanied by 20% Uniform asset growth.
  • If sustained going forward, these levels would imply a stock price closer to $196, representing approximately 14% equity downside for the firm.
  • That said, the firm’s most recent earnings call suggests management is confident about their analytics capabilities, ACTINEO acquisition, and product.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email client.relations@valens-research.com.

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683