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 144 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. WRB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WRB had positive earnings in the past year.
In the past year WRB had a positive cash flow from operations.
In the past 5 years WRB has always been profitable.
Each year in the past 5 years WRB had a positive operating cash flow.
1.2 Ratios
WRB has a Return On Assets of 4.19%. This is amongst the best in the industry. WRB outperforms 84.03% of its industry peers.
WRB has a Return On Equity of 19.42%. This is amongst the best in the industry. WRB outperforms 89.58% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.63%, WRB belongs to the top of the industry, outperforming 82.64% 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 4.07%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(4.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROIC | 4.63% |
ROA(3y)4.04%
ROA(5y)3.44%
ROE(3y)19.97%
ROE(5y)16.74%
ROIC(3y)4.25%
ROIC(5y)N/A
1.3 Margins
WRB has a better Profit Margin (12.37%) than 74.31% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB has a better Operating Margin (17.38%) than 75.69% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| 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.
WRB has less shares outstanding than it did 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 0.80. This is a very positive value and a sign of high solvency as it would only need 0.80 years to pay back of all of its debts.
WRB has a better Debt to FCF ratio (0.80) than 70.83% of its industry peers.
WRB has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WRB (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.5%
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.
WRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.10% yearly.
Looking at the last year, WRB shows a quite strong growth in Revenue. The Revenue has grown by 12.79% in the last year.
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%8.92%
3.2 Future
WRB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.11% yearly.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
EPS Next Y5.03%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue Next Year11.21%
Revenue Next 2Y9.71%
Revenue Next 3Y8.81%
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 17.39.
Compared to the rest of the industry, the Price/Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 61.11% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of WRB to the average of the S&P500 Index (27.45), we can say WRB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.83, the valuation of WRB can be described as correct.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than the industry average as 61.81% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of WRB to the average of the S&P500 Index (21.90), we can say WRB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 14.83 |
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 | 7.62 | ||
| 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.
The decent profitability rating of WRB may justify a higher PE ratio.
PEG (NY)3.46
PEG (5Y)0.69
EPS Next 2Y7.92%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
WRB has a Yearly Dividend Yield of 6.40%, which is a nice return.
WRB's Dividend Yield is rather good when compared to the industry average which is at 3.51. WRB pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, WRB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
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
WRB pays out 30.85% of its income as dividend. This is a sustainable payout ratio.
WRB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.85%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
71.49
+0.73 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change1.01%
Ins Owners24.76%
Ins Owner Change-0.74%
Market Cap27.12B
Analysts69.52
Price Target72.96 (2.06%)
Short Float %1.56%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.4% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)1.65%
Max EPS beat(2)17.06%
EPS beat(4)3
Avg EPS beat(4)7.47%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.23%
EPS beat(12)10
Avg EPS beat(12)7.42%
EPS beat(16)14
Avg EPS beat(16)10.72%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)3.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)6
Avg Revenue beat(16)0.33%
PT rev (1m)3.51%
PT rev (3m)10.72%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.39 | ||
| Fwd PE | 14.83 | ||
| P/S | 1.94 | ||
| P/FCF | 7.62 | ||
| P/OCF | 7.38 | ||
| P/B | 3.04 | ||
| P/tB | 3.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY5.75%
EPS(NY)4.82
Fwd EY6.74%
FCF(TTM)9.38
FCFY13.12%
OCF(TTM)9.69
OCFY13.55%
SpS36.89
BVpS23.5
TBVpS23.01
PEG (NY)3.46
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROCE | 5.92% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.84% | ||
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| GM | N/A | ||
| FCFM | 25.42% |
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 | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 16.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 205.51% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.5%
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)12.09%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%-2.88%
EPS Next Y5.03%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
Revenue Next Year11.21%
Revenue Next 2Y9.71%
Revenue Next 3Y8.81%
Revenue Next 5Y2.5%
EBIT growth 1Y2.23%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.1%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y44.94%
OCF growth 3Y18.98%
OCF growth 5Y26.32%