WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - New York Stock Exchange, Inc. - US0844231029 - Common Stock - Currency: USD
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 143 industry peers in the Insurance industry. While WRB has a great profitability rating, 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.
In the past year WRB had a positive cash flow from operations.
Each year in the past 5 years WRB has been profitable.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
WRB has a better Return On Assets (4.19%) than 83.92% of its industry peers.
WRB has a better Return On Equity (19.42%) than 89.51% of its industry peers.
WRB has a Return On Invested Capital of 4.63%. This is amongst the best in the industry. WRB outperforms 82.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WRB is in line with the industry average of 4.08%.
The last Return On Invested Capital (4.63%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| 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's Profit Margin of 12.37% is fine compared to the rest of the industry. WRB outperforms 76.22% 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 77.62% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WRB is destroying value.
The number of shares outstanding for WRB has been reduced compared to 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 0.80. 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 Debt to FCF ratio of 0.80. This is in the better half of the industry: WRB outperforms 70.63% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WRB is not too dependend on debt financing.
WRB's Debt to Equity ratio of 0.32 is in line compared to the rest of the industry. WRB outperforms 53.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.56%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.09%, which is quite good.
The Earnings Per Share has been growing by 25.10% on average over the past years. This is a very strong growth
The Revenue has grown by 12.79% in the past year. This is quite good.
The Revenue has been growing by 11.53% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 2.11% 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 2.50% yearly.
EPS Next Y4.52%
EPS Next 2Y7.82%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue Next Year11.2%
Revenue Next 2Y9.81%
Revenue Next 3Y8.85%
Revenue Next 5Y2.5%
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
A Price/Earnings ratio of 16.50 indicates a correct valuation of WRB.
WRB's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of WRB to the average of the S&P500 Index (27.46), we can say WRB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 14.09, the valuation of WRB can be described as correct.
61.54% of the companies in the same industry are cheaper than WRB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.44. WRB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 14.09 |
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 | 7.23 | ||
| 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.
The decent profitability rating of WRB may justify a higher PE ratio.
PEG (NY)3.65
PEG (5Y)0.66
EPS Next 2Y7.82%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 3.38, WRB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
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
30.85% 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.
DP30.85%
EPS Next 2Y7.82%
EPS Next 3Y8.44%
67.8
-0.95 (-1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change-0.24%
Ins Owners24.76%
Ins Owner Change0.11%
Market Cap25.72B
Analysts68.57
Price Target74.28 (9.56%)
Short Float %1.61%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)1.8%
PT rev (3m)10.21%
EPS NQ rev (1m)-1.34%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.5 | ||
| Fwd PE | 14.09 | ||
| P/S | 1.84 | ||
| P/FCF | 7.23 | ||
| P/OCF | 7 | ||
| P/B | 2.89 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY6.06%
EPS(NY)4.81
Fwd EY7.1%
FCF(TTM)9.38
FCFY13.83%
OCF(TTM)9.69
OCFY14.29%
SpS36.89
BVpS23.5
TBVpS23.01
PEG (NY)3.65
PEG (5Y)0.66
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
WACC8.56%
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 Y4.52%
EPS Next 2Y7.82%
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 Year11.2%
Revenue Next 2Y9.81%
Revenue Next 3Y8.85%
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%