WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRB - US0844231029 - Common Stock
78.1 USD
+0.8 (+1.03%)
78.1 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WRB. WRB was compared to 147 industry peers in the Insurance industry. WRB has an excellent profitability rating, but 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
WRB had positive earnings in the past year.
In the past year WRB had a positive cash flow from operations.
WRB had positive earnings in each of the past 5 years.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 4.36%, WRB is doing good in the industry, outperforming 78.91% of the companies in the same industry.
The Return On Equity of WRB (19.45%) is better than 85.03% of its industry peers.
WRB's Return On Invested Capital of 4.45% is fine compared to the rest of the industry. WRB outperforms 76.87% 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 4.37%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(4.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROIC | 4.45% |
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
Looking at the Profit Margin, with a value of 13.08%, WRB is in the better half of the industry, outperforming 68.71% of the companies in the same industry.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB's Operating Margin of 17.00% is fine compared to the rest of the industry. WRB outperforms 68.71% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17% | ||
| PM (TTM) | 13.08% | ||
| 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 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
WRB has a Debt to FCF ratio of 0.86. This is in the better half of the industry: WRB outperforms 72.79% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that WRB is not too dependend on debt financing.
WRB's Debt to Equity ratio of 0.29 is in line compared to the rest of the industry. WRB outperforms 56.46% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.27%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.88%.
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 10.30% 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)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
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 2.64% on average per year.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y5.01%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
EPS Next 5Y2.64%
Revenue Next Year11.33%
Revenue Next 2Y8.37%
Revenue Next 3Y7.65%
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
WRB is valuated rather expensively with a Price/Earnings ratio of 18.21.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than 67.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of WRB to the average of the S&P500 Index (25.45), we can say WRB is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 16.70, the valuation of WRB can be described as correct.
65.99% of the companies in the same industry are cheaper than WRB, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, WRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.7 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as WRB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.93 | ||
| 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)3.64
PEG (5Y)0.73
EPS Next 2Y6.3%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.50%, which is pretty low.
Compared to an average industry Dividend Yield of 3.43, WRB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
On average, the dividend of WRB grows each year by 13.22%, which is quite nice.
WRB has been paying a dividend for at least 10 years, so it has 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
26.69% 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.
DP26.69%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
78.1
+0.8 (+1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change-4.62%
Ins Owners24.84%
Ins Owner Change1.24%
Market Cap29.62B
Revenue(TTM)14.57B
Net Income(TTM)1.91B
Analysts68.18
Price Target75.1 (-3.84%)
Short Float %7.39%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP26.69%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.37%
Min EPS beat(2)-0.46%
Max EPS beat(2)1.19%
EPS beat(4)3
Avg EPS beat(4)4.86%
Min EPS beat(4)-0.46%
Max EPS beat(4)17.06%
EPS beat(8)6
Avg EPS beat(8)5.28%
EPS beat(12)9
Avg EPS beat(12)3.65%
EPS beat(16)13
Avg EPS beat(16)7.8%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)0.7%
Revenue beat(4)2
Avg Revenue beat(4)0.89%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)3.49%
Revenue beat(8)2
Avg Revenue beat(8)-0.27%
Revenue beat(12)3
Avg Revenue beat(12)-0.5%
Revenue beat(16)5
Avg Revenue beat(16)-0.22%
PT rev (1m)1.56%
PT rev (3m)2.52%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0.61%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.21 | ||
| Fwd PE | 16.7 | ||
| P/S | 2.03 | ||
| P/FCF | 8.93 | ||
| P/OCF | 8.72 | ||
| P/B | 3.02 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.49%
EPS(NY)4.68
Fwd EY5.99%
FCF(TTM)8.75
FCFY11.2%
OCF(TTM)8.96
OCFY11.47%
SpS38.41
BVpS25.83
TBVpS25.35
PEG (NY)3.64
PEG (5Y)0.73
Graham Number49.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROCE | 5.7% | ||
| ROIC | 4.45% | ||
| ROICexc | 4.72% | ||
| ROICexgc | 5.65% | ||
| OM | 17% | ||
| PM (TTM) | 13.08% | ||
| GM | N/A | ||
| FCFM | 22.77% |
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 | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.55% | ||
| Interest Coverage | 19.67 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 174.07% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.27%
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 Y5.01%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
EPS Next 5Y2.64%
Revenue 1Y (TTM)10.3%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
Revenue Next Year11.33%
Revenue Next 2Y8.37%
Revenue Next 3Y7.65%
Revenue Next 5Y2.69%
EBIT growth 1Y-4.65%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.44%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y12.26%
OCF growth 3Y18.98%
OCF growth 5Y26.32%
WR BERKLEY CORP / WRB FAQ
What is the ChartMill fundamental rating of WR BERKLEY CORP (WRB) stock?
ChartMill assigns a fundamental rating of 5 / 10 to WRB.
What is the valuation status for WRB stock?
ChartMill assigns a valuation rating of 3 / 10 to WR BERKLEY CORP (WRB). This can be considered as Overvalued.
How profitable is WR BERKLEY CORP (WRB) stock?
WR BERKLEY CORP (WRB) has a profitability rating of 7 / 10.
What is the expected EPS growth for WR BERKLEY CORP (WRB) stock?
The Earnings per Share (EPS) of WR BERKLEY CORP (WRB) is expected to grow by 5.01% in the next year.
Is the dividend of WR BERKLEY CORP sustainable?
The dividend rating of WR BERKLEY CORP (WRB) is 3 / 10 and the dividend payout ratio is 26.69%.