WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
75.03 USD
-0.21 (-0.28%)
75.03 USD
0 (0%)
WRB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. While WRB belongs to the best of the industry regarding profitability, 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 has a Return On Assets of 4.13%. This is in the better half of the industry: WRB outperforms 78.91% of its industry peers.
WRB has a better Return On Equity (18.94%) than 87.07% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.32%, WRB is in the better half of the industry, outperforming 75.51% 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 4.46%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(4.32%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROIC | 4.32% |
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
With a decent Profit Margin value of 12.40%, WRB is doing good in the industry, outperforming 73.47% 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 16.51%. This is in the better half of the industry: WRB outperforms 72.79% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.51% | ||
| PM (TTM) | 12.4% | ||
| 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
WRB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, WRB has less shares outstanding
The number of shares outstanding for WRB has been reduced compared to 5 years ago.
WRB has a better debt/assets ratio than last year.
2.2 Solvency
WRB has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
WRB has a better Debt to FCF ratio (0.84) than 74.15% of its industry peers.
WRB has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
WRB has a Debt to Equity ratio (0.31) which 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
WACC8.22%
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 7.88%.
Measured over the past years, WRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.10% on average per year.
The Revenue has grown by 12.97% in the past year. This is quite good.
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)12.97%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
3.2 Future
Based on estimates for the next years, WRB will show a small growth in Earnings Per Share. The EPS will grow by 2.64% on average per year.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y5.03%
EPS Next 2Y6.93%
EPS Next 3Y7.46%
EPS Next 5Y2.64%
Revenue Next Year10.66%
Revenue Next 2Y8.58%
Revenue Next 3Y7.94%
Revenue Next 5Y2.69%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 17.49, WRB is valued on the expensive side.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 65.99% of the companies are valued more cheaply.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.85, which indicates a correct valuation of WRB.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than 62.59% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.99, WRB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 15.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRB is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.38 | ||
| 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.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.48
PEG (5Y)0.7
EPS Next 2Y6.93%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.48%, which is pretty low.
WRB's Dividend Yield is slightly below the industry average, which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.31, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
5.2 History
The dividend of WRB is nicely growing with an annual growth rate of 13.22%!
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 2Y6.93%
EPS Next 3Y7.46%
75.03
-0.21 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change0.01%
Ins Owners24.84%
Ins Owner Change1.24%
Market Cap28.46B
Revenue(TTM)13.64B
Net Income(TTM)1.76B
Analysts69.09
Price Target73.95 (-1.44%)
Short Float %3.12%
Short Ratio4.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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)0%
PT rev (3m)-0.44%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)0.79%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 15.85 | ||
| P/S | 2 | ||
| P/FCF | 8.38 | ||
| P/OCF | 8.13 | ||
| P/B | 3.06 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.72%
EPS(NY)4.73
Fwd EY6.31%
FCF(TTM)8.95
FCFY11.94%
OCF(TTM)9.22
OCFY12.29%
SpS37.44
BVpS24.51
TBVpS24.02
PEG (NY)3.48
PEG (5Y)0.7
Graham Number48.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROCE | 5.53% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 5.47% | ||
| OM | 16.51% | ||
| PM (TTM) | 12.4% | ||
| GM | N/A | ||
| FCFM | 23.92% |
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 | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 16.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 192.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.22%
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 Y5.03%
EPS Next 2Y6.93%
EPS Next 3Y7.46%
EPS Next 5Y2.64%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
Revenue Next Year10.66%
Revenue Next 2Y8.58%
Revenue Next 3Y7.94%
Revenue Next 5Y2.69%
EBIT growth 1Y-5.4%
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%
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 2 / 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 5.03% 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 34.1%.