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. 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.
WRB had a positive operating cash flow in the past year.
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 better Return On Assets (4.19%) than 83.22% of its industry peers.
The Return On Equity of WRB (19.42%) is better than 83.92% of its industry peers.
WRB has a Return On Invested Capital of 4.63%. This is amongst the best in the industry. WRB outperforms 81.12% 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 4.27%.
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
The Profit Margin of WRB (12.37%) is better than 74.83% of its industry peers.
WRB's Profit Margin has improved in the last couple of years.
WRB has a Operating Margin of 17.38%. This is in the better half of the industry: WRB outperforms 73.43% 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.
Compared to 1 year ago, WRB has less shares outstanding
WRB has less shares outstanding than it did 5 years ago.
WRB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WRB is 0.80, which is an excellent value as it means it would take WRB, only 0.80 years of fcf income to pay off all of its debts.
WRB's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. WRB outperforms 69.23% 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/WACC0.53
WACC8.73%
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.
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%8.92%
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.
The Revenue is expected to grow by 2.50% on average over the next years.
EPS Next Y5.2%
EPS Next 2Y8.01%
EPS Next 3Y8.37%
EPS Next 5Y2.11%
Revenue Next Year11.06%
Revenue Next 2Y9.64%
Revenue Next 3Y8.89%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 17.56 indicates a rather expensive valuation of WRB.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than 60.84% of the companies in the same industry.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 14.95, which indicates a correct valuation of WRB.
WRB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.85, WRB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 14.95 |
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 | 8.06 | ||
| 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)3.38
PEG (5Y)0.7
EPS Next 2Y8.01%
EPS Next 3Y8.37%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 3.17, WRB is paying slightly less dividend.
With a Dividend Yield of 0.44, WRB pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
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.
The dividend of WRB decreased recently.
Dividend Growth(5Y)13.22%
Div Incr Years1
Div Non Decr Years1
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 2Y8.01%
EPS Next 3Y8.37%
72.19
-1.01 (-1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.13%
Inst Owner Change1.03%
Ins Owners24.3%
Ins Owner Change-0.87%
Market Cap28.66B
Analysts70.48
Price Target70.49 (-2.35%)
Short Float %1.25%
Short Ratio1.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.85%
Div Incr Years1
Div Non Decr Years1
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)4.59%
PT rev (3m)8.08%
EPS NQ rev (1m)-0.31%
EPS NQ rev (3m)-1.17%
EPS NY rev (1m)0.25%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.36%
Revenue NY rev (1m)0.52%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 14.95 | ||
| P/S | 2.05 | ||
| P/FCF | 8.06 | ||
| P/OCF | 7.8 | ||
| P/B | 3.22 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY5.69%
EPS(NY)4.83
Fwd EY6.69%
FCF(TTM)8.96
FCFY12.41%
OCF(TTM)9.26
OCFY12.83%
SpS35.25
BVpS22.45
TBVpS21.99
PEG (NY)3.38
PEG (5Y)0.7
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
WACC8.73%
ROIC/WACC0.53
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 Y5.2%
EPS Next 2Y8.01%
EPS Next 3Y8.37%
EPS Next 5Y2.11%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
Revenue Next Year11.06%
Revenue Next 2Y9.64%
Revenue Next 3Y8.89%
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%