WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - New York Stock Exchange, Inc. - US0844231029 - Common Stock - Currency: USD
WRB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. WRB scores excellent on profitability, but there are some minor concerns on its financial health. While showing a medium growth rate, WRB is valued expensive at the moment. Finally WRB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WRB had positive earnings in the past year.
In the past year WRB had a positive cash flow from operations.
In the past 5 years WRB has always been profitable.
Each year in the past 5 years WRB had a positive operating cash flow.
1.2 Ratios
WRB has a better Return On Assets (4.19%) than 84.83% of its industry peers.
Looking at the Return On Equity, with a value of 19.42%, WRB belongs to the top of the industry, outperforming 90.34% of the companies in the same industry.
WRB has a Return On Invested Capital of 4.63%. This is amongst the best in the industry. WRB outperforms 82.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WRB is in line with the industry average of 4.07%.
The last Return On Invested Capital (4.63%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROIC | 4.63% |
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 12.37%, WRB is in the better half of the industry, outperforming 75.17% of the companies in the same industry.
WRB's Profit Margin has improved in the last couple of years.
WRB has a Operating Margin of 17.38%. This is in the better half of the industry: WRB outperforms 75.86% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| 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.
Compared to 5 years ago, WRB has less shares outstanding
Compared to 1 year ago, WRB has an improved debt to assets ratio.
2.2 Solvency
WRB has a debt to FCF ratio of 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
The Debt to FCF ratio of WRB (0.80) is better than 71.03% of its industry peers.
WRB has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
WRB has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: WRB outperforms 51.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.55%
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 grown by an nice 12.09% over the past year.
The Earnings Per Share has been growing by 25.10% on average over the past years. This is a very strong growth
The Revenue has grown by 12.79% in the past year. This is quite good.
WRB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.53% yearly.
EPS 1Y (TTM)12.09%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%-2.88%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
3.2 Future
WRB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.11% yearly.
The Revenue is expected to grow by 2.50% on average over the next years.
EPS Next Y4.52%
EPS Next 2Y7.82%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue Next Year11.2%
Revenue Next 2Y9.81%
Revenue Next 3Y8.85%
Revenue Next 5Y2.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.76, which indicates a correct valuation of WRB.
WRB's Price/Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 60.69% of the companies in the same industry.
When comparing the Price/Earnings ratio of WRB to the average of the S&P500 Index (27.30), we can say WRB is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.31, which indicates a correct valuation of WRB.
WRB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 62.76% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WRB to the average of the S&P500 Index (21.76), we can say WRB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.31 |
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 | 7.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WRB may justify a higher PE ratio.
PEG (NY)3.71
PEG (5Y)0.67
EPS Next 2Y7.82%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
WRB has a Yearly Dividend Yield of 6.21%, which is a nice return.
WRB's Dividend Yield is rather good when compared to the industry average which is at 3.67. WRB pays more dividend than 86.21% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, WRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
5.2 History
On average, the dividend of WRB grows each year by 13.22%, which is quite nice.
WRB has paid a dividend for at least 10 years, which is a reliable track record.
WRB has decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.22%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
30.85% of the earnings are spent on dividend by WRB. This is a low number and sustainable payout ratio.
WRB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.85%
EPS Next 2Y7.82%
EPS Next 3Y8.44%
68.88
-0.27 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change-0.02%
Ins Owners24.76%
Ins Owner Change0.11%
Market Cap26.13B
Analysts68.57
Price Target72.96 (5.92%)
Short Float %1.56%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.21% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)1.65%
Max EPS beat(2)17.06%
EPS beat(4)3
Avg EPS beat(4)7.47%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.23%
EPS beat(12)10
Avg EPS beat(12)7.42%
EPS beat(16)14
Avg EPS beat(16)10.72%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)3.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)6
Avg Revenue beat(16)0.33%
PT rev (1m)0%
PT rev (3m)8.26%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)-0.64%
EPS NY rev (3m)-2.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.31 | ||
| P/S | 1.87 | ||
| P/FCF | 7.34 | ||
| P/OCF | 7.11 | ||
| P/B | 2.93 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY5.97%
EPS(NY)4.81
Fwd EY6.99%
FCF(TTM)9.38
FCFY13.62%
OCF(TTM)9.69
OCFY14.07%
SpS36.89
BVpS23.5
TBVpS23.01
PEG (NY)3.71
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROCE | 5.92% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.84% | ||
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| GM | N/A | ||
| FCFM | 25.42% |
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
ROICexcg growth 3Y7.06%
ROICexcg 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 16.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 205.51% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.55%
ROIC/WACC0.54
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)12.09%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%-2.88%
EPS Next Y4.52%
EPS Next 2Y7.82%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
Revenue Next Year11.2%
Revenue Next 2Y9.81%
Revenue Next 3Y8.85%
Revenue Next 5Y2.5%
EBIT growth 1Y2.23%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.1%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y44.94%
OCF growth 3Y18.98%
OCF growth 5Y26.32%