WR BERKLEY CORP (WRB)
US0844231029 - Common Stock
WRB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. WRB scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WRB has a decent growth rate and is not valued too expensively. With these ratings, WRB could be worth investigating further for quality investing!.
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.
WRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of WRB (3.71%) is better than 74.29% of its industry peers.
With a decent Return On Equity value of 18.53%, WRB is doing good in the industry, outperforming 76.43% of the companies in the same industry.
The Return On Invested Capital of WRB (4.11%) is better than 79.29% 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 4.15%.
The 3 year average ROIC (4.03%) for WRB is below the current ROIC(4.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 18.53% | ||
| ROIC | 4.11% |
ROA(3y)3.66%
ROA(5y)3.08%
ROE(3y)18.12%
ROE(5y)14.8%
ROIC(3y)4.03%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 11.38%, WRB is doing good in the industry, outperforming 72.86% of the companies in the same industry.
WRB's Profit Margin has improved in the last couple of years.
WRB has a Operating Margin of 15.77%. This is in the better half of the industry: WRB outperforms 72.14% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.77% | ||
| PM (TTM) | 11.38% | ||
| GM | N/A |
OM growth 3Y7.25%
OM growth 5Y5.07%
PM growth 3Y20.19%
PM growth 5Y6.45%
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.
WRB has less shares outstanding than it did 1 year ago.
WRB has more shares outstanding than it did 5 years ago.
The debt/assets ratio for WRB has been reduced compared to a year ago.
2.2 Solvency
WRB has an Altman-Z score of 1.35. This is a bad value and indicates that WRB is not financially healthy and even has some risk of bankruptcy.
WRB has a better Altman-Z score (1.35) than 87.86% of its industry peers.
WRB has a debt to FCF ratio of 0.99. This is a very positive value and a sign of high solvency as it would only need 0.99 years to pay back of all of its debts.
WRB has a Debt to FCF ratio of 0.99. This is in the better half of the industry: WRB outperforms 73.57% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that WRB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.38, WRB perfoms like the industry average, outperforming 47.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 0.99 | ||
| Altman-Z | 1.35 |
ROIC/WACC0.49
WACC8.44%
2.3 Liquidity
WRB has a Current Ratio of 6.39. This indicates that WRB is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.39, WRB belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
WRB has a Quick Ratio of 6.39. This indicates that WRB is financially healthy and has no problem in meeting its short term obligations.
WRB has a better Quick ratio (6.39) than 99.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.39 | ||
| Quick Ratio | 6.39 |
3. Growth
3.1 Past
WRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.53%, which is quite good.
WRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.50% yearly.
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.74%.
Measured over the past years, WRB shows a quite strong growth in Revenue. The Revenue has been growing by 9.55% on average per year.
EPS 1Y (TTM)12.53%
EPS 3Y42.89%
EPS 5Y22.5%
EPS growth Q2Q25%
Revenue 1Y (TTM)8.74%
Revenue growth 3Y14.45%
Revenue growth 5Y9.55%
Revenue growth Q2Q6.89%
3.2 Future
Based on estimates for the next years, WRB will show a small growth in Earnings Per Share. The EPS will grow by 5.85% on average per year.
The Revenue is expected to grow by 2.15% on average over the next years.
EPS Next Y23.58%
EPS Next 2Y16.07%
EPS Next 3Y13.19%
EPS Next 5Y5.85%
Revenue Next Year14.12%
Revenue Next 2Y10.85%
Revenue Next 3Y-11.41%
Revenue Next 5Y2.15%
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.
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
Based on the Price/Earnings ratio of 15.93, the valuation of WRB can be described as correct.
WRB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.02, WRB is valued a bit cheaper.
A Price/Forward Earnings ratio of 12.89 indicates a correct valuation of WRB.
WRB's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.58. WRB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 12.89 |
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 | 7.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WRB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
WRB's earnings are expected to grow with 13.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)0.71
EPS Next 2Y16.07%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.56%, which is pretty low.
WRB's Dividend Yield is slightly below the industry average, which is at 4.25.
With a Dividend Yield of 0.56, WRB pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
The dividend of WRB is nicely growing with an annual growth rate of 6.61%!
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WRB decreased recently.
Dividend Growth(5Y)6.61%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
36.30% 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.
DP36.3%
EPS Next 2Y16.07%
EPS Next 3Y13.19%
WR BERKLEY CORP
NYSE:WRB (5/6/2024, 7:04:00 PM)
After market: 78 -0.71 (-0.9%)78.71
+0.15 (+0.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.93 | ||
| Fwd PE | 12.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.68
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.71% | ||
| ROE | 18.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 15.77% | ||
| PM (TTM) | 11.38% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 6.39 | ||
| Quick Ratio | 6.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.53%
EPS 3Y42.89%
EPS 5Y
EPS growth Q2Q
EPS Next Y23.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.74%
Revenue growth 3Y14.45%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y