WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
76.35 USD
+0.51 (+0.67%)
76.6 USD
+0.25 (+0.33%)
We assign a fundamental rating of 5 out of 10 to WRB. WRB was compared to 146 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. WRB is quite expensive at the moment. 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.
Each year in the past 5 years WRB had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WRB (4.13%) is better than 77.40% of its industry peers.
With an excellent Return On Equity value of 18.94%, WRB belongs to the best of the industry, outperforming 84.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.32%, WRB is in the better half of the industry, outperforming 75.34% of the companies in the same industry.
WRB had an Average Return On Invested Capital over the past 3 years of 4.25%. This is in line with the industry average of 4.51%.
The last Return On Invested Capital (4.32%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROIC | 4.32% |
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 (12.40%) is better than 71.23% of its industry peers.
WRB's Profit Margin has improved in the last couple of years.
WRB's Operating Margin of 16.51% is fine compared to the rest of the industry. WRB outperforms 71.23% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.51% | ||
| PM (TTM) | 12.4% | ||
| 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.
WRB has less shares outstanding than it did 1 year ago.
WRB has less 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
The Debt to FCF ratio of WRB is 0.84, which is an excellent value as it means it would take WRB, only 0.84 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.84, WRB is in the better half of the industry, outperforming 75.34% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that WRB is not too dependend on debt financing.
WRB's Debt to Equity ratio of 0.31 is in line compared to the rest of the industry. WRB outperforms 54.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.52
WACC8.33%
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%.
The Earnings Per Share has been growing by 25.10% on average over the past years. This is a very strong growth
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.30%.
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
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 17.80 indicates a rather expensive valuation of WRB.
Compared to the rest of the industry, the Price/Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 65.75% of the companies listed in the same industry.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
WRB is valuated correctly with a Price/Forward Earnings ratio of 16.32.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than 63.01% of the companies in the same industry.
WRB is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 16.32 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WRB is valued a bit cheaper than 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.53 | ||
| 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.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.56
PEG (5Y)0.71
EPS Next 2Y6.3%
EPS Next 3Y6.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.50%, WRB is not a good candidate for dividend investing.
WRB's Dividend Yield is slightly below the industry average, which is at 3.45.
Compared to an average S&P500 Dividend Yield of 2.36, 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 paid a dividend for at least 10 years, which is 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
WRB pays out 34.10% 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.
DP34.1%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
76.35
+0.51 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change-1.85%
Ins Owners24.84%
Ins Owner Change1.24%
Market Cap28.96B
Revenue(TTM)14.57B
Net Income(TTM)1.76B
Analysts68.18
Price Target75.72 (-0.83%)
Short Float %3.43%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP34.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)1.19%
Max EPS beat(2)1.65%
EPS beat(4)3
Avg EPS beat(4)4.89%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.02%
EPS beat(12)10
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)9.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.11%
Revenue beat(4)1
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.72%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)2.39%
PT rev (3m)3.36%
EPS NQ rev (1m)4.76%
EPS NQ rev (3m)5.22%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.8 | ||
| Fwd PE | 16.32 | ||
| P/S | 2.04 | ||
| P/FCF | 8.53 | ||
| P/OCF | 8.28 | ||
| P/B | 3.12 | ||
| P/tB | 3.18 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.62%
EPS(NY)4.68
Fwd EY6.13%
FCF(TTM)8.95
FCFY11.73%
OCF(TTM)9.22
OCFY12.08%
SpS37.44
BVpS24.51
TBVpS24.02
PEG (NY)3.56
PEG (5Y)0.71
Graham Number48.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROCE | 5.53% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 5.47% | ||
| OM | 16.51% | ||
| PM (TTM) | 12.4% | ||
| GM | N/A | ||
| FCFM | 23.92% |
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 | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 16.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 192.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.33%
ROIC/WACC0.52
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-5.4%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.95%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y28.76%
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 34.1%.