WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
75.02 USD
+0.02 (+0.03%)
75.3 USD
+0.28 (+0.37%)
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 147 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, WRB is valued expensive at the moment.
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.
Each year in the past 5 years WRB has been profitable.
WRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WRB has a better Return On Assets (4.13%) than 78.91% of its industry peers.
WRB's Return On Equity of 18.94% is amongst the best of the industry. WRB outperforms 87.07% of its industry peers.
The Return On Invested Capital of WRB (4.43%) is better than 76.87% 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 4.46%.
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 has a Profit Margin of 12.32%. This is in the better half of the industry: WRB outperforms 73.47% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB has a Operating Margin of 16.80%. This is in the better half of the industry: WRB outperforms 72.79% 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.
Compared to 1 year ago, WRB has less shares outstanding
WRB has less shares outstanding than it did 5 years ago.
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 has a better Debt to FCF ratio (0.84) than 74.15% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that WRB is not too dependend on debt financing.
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/WACC0.54
WACC8.18%
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 been growing slightly by 7.88% over the past year.
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 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
WRB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.64% yearly.
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 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.
Compared to the rest of the industry, the Price/Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 64.63% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WRB to the average of the S&P500 Index (27.57), we can say WRB is valued slightly cheaper.
The Price/Forward Earnings ratio is 15.85, which 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 62.59% of the companies listed in the same industry.
WRB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.09.
| 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 0.49%, which is pretty low.
Compared to an average industry Dividend Yield of 3.31, WRB is paying slightly less dividend.
With a Dividend Yield of 0.49, WRB pays less dividend than the S&P500 average, which is at 2.32.
| 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 paid a dividend for at least 10 years, which is 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 2Y6.93%
EPS Next 3Y7.46%
75.02
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change0%
Ins Owners24.84%
Ins Owner Change1.24%
Market Cap28.45B
Revenue(TTM)13.64B
Net Income(TTM)1.76B
Analysts69.09
Price Target73.95 (-1.43%)
Short Float %3.14%
Short Ratio4.72
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%
PT rev (3m)-0.44%
EPS NQ rev (1m)3.62%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)-0.3%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.49 | ||
| Fwd PE | 15.85 | ||
| P/S | 1.99 | ||
| 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%
SpS37.67
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 | 5.66% | ||
| 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
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 | 0.71% | ||
| 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
WACC8.18%
ROIC/WACC0.54
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-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%