Verisk Beneish M Score

VRSK
 Stock
  

USD 182.87  5.33  3.00%   

This module uses fundamental data of Verisk Analytics to approximate the value of its Beneish M Score. Verisk Analytics M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at Verisk Analytics Piotroski F Score and Verisk Analytics Altman Z Score analysis.
  
Verisk Analytics Debt to Equity Ratio is decreasing as compared to previous years. The last year's value of Debt to Equity Ratio was reported at 1.18. Verisk Analytics PPandE Turnover is decreasing as compared to previous years. The last year's value of PPandE Turnover was reported at 4.65. The current Receivables Turnover is estimated to increase to 8.22, while Earnings per Basic Share are projected to decrease to 3.37.
At this time, it appears that Verisk Analytics is an unlikely manipulator. The earnings manipulation may begin if Verisk Analytics' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Verisk Analytics executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Verisk Analytics' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.82
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality1.0Focus
Expense Coverage1.03Focus
Gross Margin Strengs0.93Focus
Accruals Factor1.03Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.81Focus
Financial Leverage Condition0.75Focus

Verisk Analytics Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Verisk Analytics' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense226.4 M271.4 M
Fairly Down
Increasing
Slightly volatile
Revenues2.4 BB
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables196.4 M237.5 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net369.3 M342.3 M
Significantly Up
Increasing
Slightly volatile
Operating Income831.7 MB
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations1.2 B1.2 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current2.6 B2.4 B
Significantly Up
Increasing
Slightly volatile
Current LiabilitiesB1.8 B
Significantly Up
Increasing
Slightly volatile
Total LiabilitiesBB
Significantly Down
Increasing
Slightly volatile
Investments Current4.7 M3.9 M
Fairly Up
Decreasing
Slightly volatile
Investments4.7 M3.9 M
Fairly Up
Decreasing
Slightly volatile
Gross Margin60.1364.7235
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion218.1 M202.1 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current2.2 B2.1 B
Significantly Up
Increasing
Slightly volatile
Debt Current98.6 M96.1 M
Fairly Up
Decreasing
Stable
Total Debt1.7 B2.1 B
Significantly Down
Increasing
Slightly volatile
Assets Non CurrentB3.7 B
Significantly Up
Increasing
Slightly volatile
Current Assets973.9 M902.6 M
Significantly Up
Increasing
Slightly volatile
Total Assets8.4 B7.8 B
Significantly Up
Increasing
Slightly volatile

Verisk Analytics Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Verisk Analytics' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Verisk Analytics in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Verisk Analytics' degree of accounting gimmicks and manipulations.

About Verisk Analytics Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

218.1 Million

Verisk Analytics Depreciation Amortization and Accretion is increasing as compared to previous years. The last year's value of Depreciation Amortization and Accretion was reported at 202.14 Million

Verisk Analytics Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Verisk Analytics. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues2.15 B2.4 B2.61 B2.78 B3 B2.43 B
Total Assets6.02 B5.9 B7.06 B7.56 B7.81 B8.42 B
Current Assets597.6 M644.5 M744.9 M794.2 M902.6 M973.86 M
Total Liabilities4.09 B3.83 B4.79 B4.86 B4.99 B4.01 B
Current Liabilities1.34 B1.32 B1.49 B1.43 B1.84 B1.99 B
Operating Income801.2 M834.1 M696.9 M1.04 B1 B831.69 M
Gross Margin63.4663.062.5364.3164.7260.13

Verisk Analytics ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Verisk Analytics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Verisk Analytics' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Verisk Analytics Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Verisk Analytics's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Verisk Analytics using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Verisk Analytics based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Verisk Analytics, Inc. provides data analytics solutions in the United States and internationally. The company was founded in 1971 and is headquartered in Jersey City, New Jersey. Verisk Analytics operates under Consulting Services classification in the United States and is traded on NASDAQ Exchange. It employs 9367 people.

Verisk Analytics Investors Sentiment

The influence of Verisk Analytics' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Verisk. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Verisk Analytics' public news can be used to forecast risks associated with investment in Verisk. The trend in average sentiment can be used to explain how an investor holding Verisk can time the market purely based on public headlines and social activities around Verisk Analytics. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Verisk Analytics' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Verisk Analytics' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Verisk Analytics' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Verisk Analytics.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Verisk Analytics in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Verisk Analytics' short interest history, or implied volatility extrapolated from Verisk Analytics options trading.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Also, please take a look at Verisk Analytics Piotroski F Score and Verisk Analytics Altman Z Score analysis. You can also try Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Complementary Tools for analysis

When running Verisk Analytics price analysis, check to measure Verisk Analytics' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Verisk Analytics is operating at the current time. Most of Verisk Analytics' value examination focuses on studying past and present price action to predict the probability of Verisk Analytics' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Verisk Analytics' price. Additionally, you may evaluate how the addition of Verisk Analytics to your portfolios can decrease your overall portfolio volatility.
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Is Verisk Analytics' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Verisk Analytics. If investors know Verisk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Verisk Analytics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.032) 
Market Capitalization
28.6 B
Quarterly Revenue Growth YOY
(0.018) 
Return On Assets
0.0997
Return On Equity
0.44
The market value of Verisk Analytics is measured differently than its book value, which is the value of Verisk that is recorded on the company's balance sheet. Investors also form their own opinion of Verisk Analytics' value that differs from its market value or its book value, called intrinsic value, which is Verisk Analytics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Verisk Analytics' market value can be influenced by many factors that don't directly affect Verisk Analytics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Verisk Analytics' value and its price as these two are different measures arrived at by different means. Investors typically determine Verisk Analytics value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verisk Analytics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.