WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
77.3 USD
+0.61 (+0.8%)
77.3 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WRB. WRB was compared to 147 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. WRB is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WRB was profitable.
WRB had a positive operating cash flow in the past year.
WRB had positive earnings in each of the past 5 years.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.36%, WRB is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
WRB has a Return On Equity of 19.45%. This is amongst the best in the industry. WRB outperforms 86.39% of its industry peers.
With a decent Return On Invested Capital value of 4.45%, WRB is doing good in the industry, outperforming 77.55% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WRB is in line with the industry average of 4.39%.
The last Return On Invested Capital (4.45%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROIC | 4.45% |
ROA(3y)4.04%
ROA(5y)3.44%
ROE(3y)19.97%
ROE(5y)16.74%
ROIC(3y)4.25%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 13.08%, WRB is in the better half of the industry, outperforming 74.15% of the companies in the same industry.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB's Operating Margin of 17.00% is fine compared to the rest of the industry. WRB outperforms 72.79% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17% | ||
| PM (TTM) | 13.08% | ||
| GM | N/A |
OM growth 3Y4%
OM growth 5Y7.27%
PM growth 3Y5.99%
PM growth 5Y8.33%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRB is destroying value.
The number of shares outstanding for WRB has been reduced compared to 1 year ago.
WRB has less shares outstanding than it did 5 years ago.
WRB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WRB is 0.86, which is an excellent value as it means it would take WRB, only 0.86 years of fcf income to pay off all of its debts.
WRB's Debt to FCF ratio of 0.86 is fine compared to the rest of the industry. WRB outperforms 73.47% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that WRB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, WRB is in line with its industry, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.33%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.88% over the past year.
WRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.10% yearly.
Looking at the last year, WRB shows a quite strong growth in Revenue. The Revenue has grown by 10.30% in the last year.
Measured over the past years, WRB shows a quite strong growth in Revenue. The Revenue has been growing by 11.53% on average per year.
EPS 1Y (TTM)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
3.2 Future
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
EPS Next 5Y2.64%
Revenue Next Year11.33%
Revenue Next 2Y8.37%
Revenue Next 3Y7.65%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.02 indicates a rather expensive valuation of WRB.
67.35% of the companies in the same industry are cheaper than WRB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.47. WRB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.53, the valuation of WRB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 65.31% of the companies listed in the same industry.
WRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.53 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as WRB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.84 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates WRB does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of WRB may justify a higher PE ratio.
PEG (NY)3.6
PEG (5Y)0.72
EPS Next 2Y6.3%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.50%, which is pretty low.
WRB's Dividend Yield is slightly below the industry average, which is at 3.51.
With a Dividend Yield of 0.50, WRB pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of WRB grows each year by 13.22%, which is quite nice.
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WRB decreased in the last 3 years.
Dividend Growth(5Y)13.22%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
WRB pays out 26.69% of its income as dividend. This is a sustainable payout ratio.
WRB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.69%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
77.3
+0.61 (+0.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change-4.42%
Ins Owners24.84%
Ins Owner Change1.28%
Market Cap29.32B
Revenue(TTM)14.57B
Net Income(TTM)1.91B
Analysts68.18
Price Target75.72 (-2.04%)
Short Float %7.39%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP26.69%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-0.46%
Max EPS beat(2)1.19%
EPS beat(4)3
Avg EPS beat(4)4.86%
Min EPS beat(4)-0.46%
Max EPS beat(4)17.06%
EPS beat(8)6
Avg EPS beat(8)5.28%
EPS beat(12)9
Avg EPS beat(12)3.65%
EPS beat(16)13
Avg EPS beat(16)7.8%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)3.49%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)3
Avg Revenue beat(12)-0.5%
Revenue beat(16)5
Avg Revenue beat(16)-0.22%
PT rev (1m)2.39%
PT rev (3m)3.36%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.02 | ||
| Fwd PE | 16.53 | ||
| P/S | 2.01 | ||
| P/FCF | 8.84 | ||
| P/OCF | 8.63 | ||
| P/B | 2.99 | ||
| P/tB | 3.05 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.55%
EPS(NY)4.68
Fwd EY6.05%
FCF(TTM)8.75
FCFY11.32%
OCF(TTM)8.96
OCFY11.59%
SpS38.41
BVpS25.83
TBVpS25.35
PEG (NY)3.6
PEG (5Y)0.72
Graham Number49.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROCE | 5.7% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 5.65% | ||
| OM | 17% | ||
| PM (TTM) | 13.08% | ||
| GM | N/A | ||
| FCFM | 22.77% |
ROA(3y)4.04%
ROA(5y)3.44%
ROE(3y)19.97%
ROE(5y)16.74%
ROIC(3y)4.25%
ROIC(5y)N/A
ROICexc(3y)4.44%
ROICexc(5y)N/A
ROICexgc(3y)5.47%
ROICexgc(5y)N/A
ROCE(3y)5.44%
ROCE(5y)N/A
ROICexgc growth 3Y7.06%
ROICexgc growth 5Y8.92%
ROICexc growth 3Y8.81%
ROICexc growth 5Y10.19%
OM growth 3Y4%
OM growth 5Y7.27%
PM growth 3Y5.99%
PM growth 5Y8.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 19.67 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 174.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.33%
ROIC/WACC0.53
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.87%
Cap/Sales(5y)0.76%
Profit Quality(3y)195.52%
Profit Quality(5y)218.22%
High Growth Momentum
Growth
EPS 1Y (TTM)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
EPS Next Y5.01%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
EPS Next 5Y2.64%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
Revenue Next Year11.33%
Revenue Next 2Y8.37%
Revenue Next 3Y7.65%
Revenue Next 5Y2.69%
EBIT growth 1Y-4.65%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.44%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y12.26%
OCF growth 3Y18.98%
OCF growth 5Y26.32%
WR BERKLEY CORP / WRB FAQ
What is the ChartMill fundamental rating of WR BERKLEY CORP (WRB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WRB.
What is the valuation status for WRB stock?
ChartMill assigns a valuation rating of 3 / 10 to WR BERKLEY CORP (WRB). This can be considered as Overvalued.
How profitable is WR BERKLEY CORP (WRB) stock?
WR BERKLEY CORP (WRB) has a profitability rating of 7 / 10.
What is the expected EPS growth for WR BERKLEY CORP (WRB) stock?
The Earnings per Share (EPS) of WR BERKLEY CORP (WRB) is expected to grow by 5.01% in the next year.
Is the dividend of WR BERKLEY CORP sustainable?
The dividend rating of WR BERKLEY CORP (WRB) is 3 / 10 and the dividend payout ratio is 26.69%.