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 143 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
WRB had positive earnings in the past year.
WRB had a positive operating cash flow in the past year.
Each year in the past 5 years WRB has been profitable.
Each year in the past 5 years WRB had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 4.33%, WRB belongs to the best of the industry, outperforming 80.42% of the companies in the same industry.
WRB's Return On Equity of 20.92% is amongst the best of the industry. WRB outperforms 86.01% of its industry peers.
WRB has a better Return On Invested Capital (5.46%) than 81.82% of its industry peers.
WRB had an Average Return On Invested Capital over the past 3 years of 4.25%. This is in line with the industry average of 4.47%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(5.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 20.92% | ||
| ROIC | 5.46% |
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 12.84%, WRB is doing good in the industry, outperforming 73.43% of the companies in the same industry.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB has a better Operating Margin (20.58%) than 78.32% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.58% | ||
| PM (TTM) | 12.84% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WRB is destroying value.
The number of shares outstanding for WRB has been reduced compared to 1 year ago.
The number of shares outstanding for WRB has been reduced compared to 5 years ago.
The debt/assets ratio for WRB has been reduced compared to a year ago.
2.2 Solvency
WRB has a debt to FCF ratio of 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.81, WRB is doing good in the industry, outperforming 68.53% of the companies in the same industry.
WRB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WRB has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC8.54%
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.
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.
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.79%.
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)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%8.42%
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 2.11% on average per year.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
EPS Next Y4.94%
EPS Next 2Y7.9%
EPS Next 3Y8.03%
EPS Next 5Y2.11%
Revenue Next Year8.93%
Revenue Next 2Y8.75%
Revenue Next 3Y7.61%
Revenue Next 5Y2.5%
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
WRB is valuated rather expensively with a Price/Earnings ratio of 17.46.
Compared to the rest of the industry, the Price/Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 62.24% of the companies listed in the same industry.
WRB's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.92.
The Price/Forward Earnings ratio is 14.88, which indicates a correct valuation of WRB.
WRB's Price/Forward Earnings ratio is in line with the industry average.
WRB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
WRB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.76 | ||
| 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)3.54
PEG (5Y)0.7
EPS Next 2Y7.9%
EPS Next 3Y8.03%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.45%, which is pretty low.
WRB's Dividend Yield is slightly below the industry average, which is at 3.28.
With a Dividend Yield of 0.45, WRB pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 recently.
Dividend Growth(5Y)13.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.29% 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.
DP30.29%
EPS Next 2Y7.9%
EPS Next 3Y8.03%
71.75
+0.51 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.13%
Inst Owner Change0.34%
Ins Owners24.3%
Ins Owner Change-0.87%
Market Cap27.22B
Analysts73.64
Price Target70.12 (-2.27%)
Short Float %3.03%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.36%
Min EPS beat(2)-0.35%
Max EPS beat(2)17.06%
EPS beat(4)3
Avg EPS beat(4)8.93%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)6
Avg EPS beat(8)4.57%
EPS beat(12)10
Avg EPS beat(12)8.54%
EPS beat(16)14
Avg EPS beat(16)12.6%
Revenue beat(2)1
Avg Revenue beat(2)0.63%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)3.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.43%
PT rev (1m)2.27%
PT rev (3m)1.43%
EPS NQ rev (1m)-7.65%
EPS NQ rev (3m)-9.01%
EPS NY rev (1m)-1.81%
EPS NY rev (3m)-1.05%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.46 | ||
| Fwd PE | 14.88 | ||
| P/S | 1.99 | ||
| P/FCF | 7.76 | ||
| P/OCF | 7.4 | ||
| P/B | 3.24 | ||
| P/tB | 3.31 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY5.73%
EPS(NY)4.82
Fwd EY6.72%
FCF(TTM)9.24
FCFY12.88%
OCF(TTM)9.7
OCFY13.52%
SpS36.06
BVpS22.13
TBVpS21.65
PEG (NY)3.54
PEG (5Y)0.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 20.92% | ||
| ROCE | 6.99% | ||
| ROIC | 5.46% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 6.98% | ||
| OM | 20.58% | ||
| PM (TTM) | 12.84% | ||
| GM | N/A | ||
| FCFM | 25.63% |
ROA(3y)4.04%
ROA(5y)3.44%
ROE(3y)19.97%
ROE(5y)16.74%
ROIC(3y)4.25%
ROIC(5y)N/A
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 | 0.34 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 20.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 199.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.54%
ROIC/WACC0.64
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 Y4.94%
EPS Next 2Y7.9%
EPS Next 3Y8.03%
EPS Next 5Y2.11%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.42%
Revenue Next Year8.93%
Revenue Next 2Y8.75%
Revenue Next 3Y7.61%
Revenue Next 5Y2.5%
EBIT growth 1Y56.29%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.99%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y25.57%
OCF growth 3Y18.98%
OCF growth 5Y26.32%