WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
75.88 USD
+1.32 (+1.77%)
75.88 USD
0 (0%)
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 146 industry peers in the Insurance industry. WRB scores excellent on profitability, but 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.
In the past year WRB had a positive cash flow from operations.
In the past 5 years WRB has always been profitable.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
WRB has a Return On Assets of 4.13%. This is in the better half of the industry: WRB outperforms 78.77% of its industry peers.
The Return On Equity of WRB (18.94%) is better than 87.67% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.43%, WRB is in the better half of the industry, outperforming 79.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WRB is in line with the industry average of 4.47%.
The last Return On Invested Capital (4.43%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| 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
WRB's Profit Margin of 12.32% is fine compared to the rest of the industry. WRB outperforms 73.29% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
Looking at the Operating Margin, with a value of 16.80%, WRB is in the better half of the industry, outperforming 71.92% of the companies in the same industry.
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.
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 0.84. 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's Debt to FCF ratio of 0.84 is fine compared to the rest of the industry. WRB outperforms 72.60% 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.
With a Debt to Equity ratio value of 0.31, WRB perfoms like the industry average, outperforming 53.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.39%
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.
The Revenue has grown by 11.49% 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)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
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y4.22%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
EPS Next 5Y2.64%
Revenue Next Year10.67%
Revenue Next 2Y8.87%
Revenue Next 3Y8.25%
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.
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 18.42, which indicates a rather expensive current valuation of WRB.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 65.07% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.32, WRB is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.98 indicates a correct valuation of WRB.
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 63.01% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of WRB to the average of the S&P500 Index (22.89), we can say WRB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 15.98 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WRB is valued a bit cheaper than 60.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| 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)4.37
PEG (5Y)0.73
EPS Next 2Y7.08%
EPS Next 3Y7.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WRB is not a good candidate for dividend investing.
WRB's Dividend Yield is slightly below the industry average, which is at 3.44.
With a Dividend Yield of 0.49, WRB pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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.
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
34.10% of the earnings are spent on dividend by WRB. This is a low number and sustainable payout ratio.
The dividend of WRB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP34.1%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
75.88
+1.32 (+1.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.98%
Inst Owner Change-3.61%
Ins Owners24.76%
Ins Owner Change1.24%
Market Cap28.78B
Analysts68.57
Price Target73.95 (-2.54%)
Short Float %3.07%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
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)0.95%
PT rev (3m)1.35%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.42 | ||
| Fwd PE | 15.98 | ||
| P/S | 2.01 | ||
| P/FCF | 8.47 | ||
| P/OCF | 8.23 | ||
| P/B | 3.1 | ||
| P/tB | 3.16 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.12
EY5.43%
EPS(NY)4.75
Fwd EY6.26%
FCF(TTM)8.95
FCFY11.8%
OCF(TTM)9.22
OCFY12.16%
SpS37.67
BVpS24.51
TBVpS24.02
PEG (NY)4.37
PEG (5Y)0.73
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
WACC8.39%
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 Year10.67%
Revenue Next 2Y8.87%
Revenue Next 3Y8.25%
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%