WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRB - US0844231029 - Common Stock
67.12 USD
-0.4 (-0.59%)
67.11 USD
-0.01 (-0.01%)
We assign a fundamental rating of 5 out of 10 to WRB. WRB was compared to 149 industry peers in the Insurance industry. WRB has an excellent profitability rating, 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
- WRB had positive earnings in the past year.
- WRB had a positive operating cash flow in the past year.
- 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
- The Return On Assets of WRB (4.36%) is better than 79.19% of its industry peers.
- The Return On Equity of WRB (19.45%) is better than 85.91% of its industry peers.
- WRB's Return On Invested Capital of 4.45% is fine compared to the rest of the industry. WRB outperforms 74.50% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for WRB is significantly below the industry average of 14.92%.
- The last Return On Invested Capital (4.45%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROIC | 4.45% |
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
- The Profit Margin of WRB (13.08%) is better than 70.47% of its industry peers.
- In the last couple of years the Profit Margin of WRB has grown nicely.
- WRB's Operating Margin of 17.00% is fine compared to the rest of the industry. WRB outperforms 66.44% of its industry peers.
- In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17% | ||
| PM (TTM) | 13.08% | ||
| 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.
- 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.
- Compared to 1 year ago, WRB has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of WRB is 0.86, which is an excellent value as it means it would take WRB, only 0.86 years of fcf income to pay off all of its debts.
- WRB has a better Debt to FCF ratio (0.86) than 73.83% of its industry peers.
- WRB has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.29, WRB is in line with its industry, outperforming 57.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| 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 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.
- WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.30%.
- The Revenue has been growing by 11.53% on average over the past years. This is quite good.
EPS 1Y (TTM)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
3.2 Future
- The Earnings Per Share is expected to grow by 2.64% on average over the next years.
- Based on estimates for the next years, WRB will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y4.98%
EPS Next 2Y6.23%
EPS Next 3Y6.43%
EPS Next 5Y2.64%
Revenue Next Year11.3%
Revenue Next 2Y8.29%
Revenue Next 3Y7.55%
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 15.65, the valuation of WRB can be described as correct.
- Compared to the rest of the industry, the Price/Earnings ratio of WRB is on the same level as its industry peers.
- WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 14.37, WRB is valued correctly.
- The rest of the industry has a similar Price/Forward Earnings ratio as WRB.
- WRB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.65 | ||
| Fwd PE | 14.37 |
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 | 7.69 | ||
| 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)3.14
PEG (5Y)0.62
EPS Next 2Y6.23%
EPS Next 3Y6.43%
5. Dividend
5.1 Amount
- WRB has a yearly dividend return of 0.52%, which is pretty low.
- WRB's Dividend Yield is slightly below the industry average, which is at 2.53.
- Compared to an average S&P500 Dividend Yield of 1.82, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
- The dividend of WRB is nicely growing with an annual growth rate of 13.22%!
- WRB has been paying a dividend for at least 10 years, so it has 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
- 26.69% 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.
DP26.69%
EPS Next 2Y6.23%
EPS Next 3Y6.43%
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.
Can you provide the valuation status for WR BERKLEY CORP?
ChartMill assigns a valuation rating of 3 / 10 to WR BERKLEY CORP (WRB). This can be considered as Overvalued.
What is the profitability of WRB stock?
WR BERKLEY CORP (WRB) has a profitability rating of 7 / 10.
What is the valuation of WR BERKLEY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WR BERKLEY CORP (WRB) is 15.65 and the Price/Book (PB) ratio is 2.6.
Can you provide the expected EPS growth for WRB stock?
The Earnings per Share (EPS) of WR BERKLEY CORP (WRB) is expected to grow by 4.98% in the next year.