WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - US0844231029 - Common Stock
71.96 USD
-0.96 (-1.32%)
71.96 USD
0 (0%)
Taking everything into account, WRB scores 5 out of 10 in our fundamental rating. WRB was compared to 146 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. WRB is quite expensive at the moment. 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.
WRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WRB's Return On Assets of 4.13% is fine compared to the rest of the industry. WRB outperforms 78.77% of its industry peers.
WRB has a better Return On Equity (18.94%) than 87.67% of its industry peers.
WRB has a better Return On Invested Capital (4.43%) than 79.45% 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 4.46%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(4.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROIC | 4.43% |
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 12.32%, WRB is in the better half of the industry, outperforming 73.29% 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 16.80%. This is in the better half of the industry: WRB outperforms 71.92% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 12.32% | ||
| 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.
WRB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WRB has been reduced compared to 5 years ago.
Compared to 1 year ago, WRB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WRB is 0.84, which is an excellent value as it means it would take WRB, only 0.84 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.84, WRB is doing good in the industry, outperforming 72.60% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that WRB is not too dependend on debt financing.
The Debt to Equity ratio of WRB (0.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.34%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.39%.
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 11.49% 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)4.39%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%0.96%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.77%
3.2 Future
WRB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.64% yearly.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
EPS Next 5Y2.64%
Revenue Next Year11.23%
Revenue Next 2Y9.28%
Revenue Next 3Y8.26%
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
Based on the Price/Earnings ratio of 17.47, the valuation of WRB can be described as rather expensive.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 63.01% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.06. WRB is valued slightly cheaper when compared to this.
WRB is valuated correctly with a Price/Forward Earnings ratio of 15.16.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than the industry average as 62.33% of the companies are valued more cheaply.
WRB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WRB is valued a bit cheaper than 61.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.04 | ||
| 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.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.14
PEG (5Y)0.7
EPS Next 2Y7.08%
EPS Next 3Y7.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, WRB is not a good candidate for dividend investing.
WRB's Dividend Yield is slightly below the industry average, which is at 3.24.
With a Dividend Yield of 0.51, WRB pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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.
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
34.10% 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.
DP34.1%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
71.96
-0.96 (-1.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.98%
Inst Owner Change-3.62%
Ins Owners24.76%
Ins Owner Change1.24%
Market Cap27.29B
Analysts68.57
Price Target73.26 (1.81%)
Short Float %2.79%
Short Ratio3.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP34.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)1.19%
Max EPS beat(2)1.65%
EPS beat(4)3
Avg EPS beat(4)4.89%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.02%
EPS beat(12)10
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)9.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.11%
Revenue beat(4)1
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.72%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)-1.37%
PT rev (3m)3.93%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-3.21%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.47 | ||
| Fwd PE | 15.16 | ||
| P/S | 1.91 | ||
| P/FCF | 8.04 | ||
| P/OCF | 7.8 | ||
| P/B | 2.94 | ||
| P/tB | 3 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.12
EY5.73%
EPS(NY)4.75
Fwd EY6.6%
FCF(TTM)8.95
FCFY12.44%
OCF(TTM)9.22
OCFY12.82%
SpS37.67
BVpS24.51
TBVpS24.02
PEG (NY)4.14
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROCE | 5.66% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 5.6% | ||
| OM | 16.8% | ||
| PM (TTM) | 12.32% | ||
| GM | N/A | ||
| FCFM | 23.77% |
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
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 17.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 192.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.34%
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)4.39%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%0.96%
EPS Next Y4.22%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
EPS Next 5Y2.64%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.77%
Revenue Next Year11.23%
Revenue Next 2Y9.28%
Revenue Next 3Y8.26%
Revenue Next 5Y2.69%
EBIT growth 1Y-3.15%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.95%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y28.76%
OCF growth 3Y18.98%
OCF growth 5Y26.32%