WR BERKLEY CORP (WRB)
US0844231029 - Common Stock
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 141 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. WRB is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WRB had positive earnings in the past year.
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's Return On Assets of 3.91% is fine compared to the rest of the industry. WRB outperforms 71.43% of its industry peers.
WRB has a better Return On Equity (18.72%) than 77.14% of its industry peers.
WRB has a better Return On Invested Capital (5.16%) than 80.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WRB is in line with the industry average of 4.38%.
The last Return On Invested Capital (5.16%) for WRB is above the 3 year average (3.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROIC | 5.16% |
ROA(3y)3.66%
ROA(5y)3.08%
ROE(3y)18.12%
ROE(5y)14.8%
ROIC(3y)3.98%
ROIC(5y)N/A
1.3 Margins
WRB's Profit Margin of 11.96% is fine compared to the rest of the industry. WRB outperforms 70.71% of its industry peers.
WRB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 19.69%, WRB is doing good in the industry, outperforming 78.57% of the companies in the same industry.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.69% | ||
| PM (TTM) | 11.96% | ||
| GM | N/A |
OM growth 3Y5.93%
OM growth 5Y4.29%
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.
Compared to 1 year ago, WRB has less shares outstanding
The number of shares outstanding for WRB has been increased compared to 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 0.83, which is an excellent value as it means it would take WRB, only 0.83 years of fcf income to pay off all of its debts.
WRB has a better Debt to FCF ratio (0.83) than 70.00% of its industry peers.
WRB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WRB's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. WRB outperforms 45.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.14 indicates that WRB should not have too much problems paying its short term obligations.
WRB's Current ratio of 1.14 is amongst the best of the industry. WRB outperforms 82.14% of its industry peers.
WRB has a Quick Ratio of 1.14. This is a normal value and indicates that WRB is financially healthy and should not expect problems in meeting its short term obligations.
WRB has a better Quick ratio (1.14) than 82.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.28% over the past year.
Measured over the past years, WRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.50% on average per year.
Looking at the last year, WRB shows a quite strong growth in Revenue. The Revenue has grown by 10.53% in the last year.
The Revenue has been growing by 9.55% on average over the past years. This is quite good.
EPS 1Y (TTM)28.28%
EPS 3Y42.89%
EPS 5Y22.5%
EPS Q2Q%3.33%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y14.45%
Revenue growth 5Y9.55%
Sales Q2Q%12.2%
3.2 Future
WRB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.89% yearly.
Based on estimates for the next years, WRB will show a small growth in Revenue. The Revenue will grow by 2.15% on average per year.
EPS Next Y23.36%
EPS Next 2Y15.19%
EPS Next 3Y12.36%
EPS Next 5Y4.89%
Revenue Next Year13.41%
Revenue Next 2Y11.44%
Revenue Next 3Y10.04%
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.
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
Based on the Price/Earnings ratio of 14.72, the valuation of WRB can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of WRB is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.73. WRB is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.40, WRB is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WRB.
The average S&P500 Price/Forward Earnings ratio is at 22.83. WRB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WRB indicates a somewhat cheap valuation: WRB is cheaper than 62.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.55 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WRB may justify a higher PE ratio.
A more expensive valuation may be justified as WRB's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)0.63
PEG (5Y)0.65
EPS Next 2Y15.19%
EPS Next 3Y12.36%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, WRB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.33, 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 | 0.55% |
5.2 History
The dividend of WRB decreases each year by -1.69%.
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
WRB has decreased its dividend recently.
Dividend Growth(5Y)-1.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.69% of the earnings are spent on dividend by WRB. This is a low number and sustainable payout ratio.
DP39.69%
EPS Next 2Y15.19%
EPS Next 3Y12.36%
WR BERKLEY CORP
NYSE:WRB (12/20/2024, 8:04:00 PM)
After market: 58.57 0 (0%)58.57
+0.54 (+0.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.75%
Inst Owner Change44.82%
Ins Owners24.32%
Ins Owner Change1.22%
Market Cap22.32B
Analysts75.24
Price Target65.28 (11.46%)
Short Float %1.37%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Dividend Growth(5Y)-1.69%
DP39.69%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.58%
Min EPS beat(2)-0.35%
Max EPS beat(2)11.51%
EPS beat(4)3
Avg EPS beat(4)5.7%
Min EPS beat(4)-0.35%
Max EPS beat(4)11.51%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)10
Avg EPS beat(12)8.77%
EPS beat(16)14
Avg EPS beat(16)12.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)-0.7%
Revenue beat(8)1
Avg Revenue beat(8)-1.01%
Revenue beat(12)3
Avg Revenue beat(12)-0.46%
Revenue beat(16)7
Avg Revenue beat(16)0.85%
PT rev (1m)4.8%
PT rev (3m)7.63%
EPS NQ rev (1m)-2.4%
EPS NQ rev (3m)-37.7%
EPS NY rev (1m)-0.52%
EPS NY rev (3m)-1.86%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.4 | ||
| P/S | 1.69 | ||
| P/FCF | 6.55 | ||
| P/OCF | 6.26 | ||
| P/B | 2.65 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.98
EY6.8%
EPS(NY)4.37
Fwd EY7.46%
FCF(TTM)8.95
FCFY15.28%
OCF(TTM)9.36
OCFY15.98%
SpS34.62
BVpS22.11
TBVpS21.63
PEG (NY)0.63
PEG (5Y)0.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROCE | 6.47% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 6.49% | ||
| OM | 19.69% | ||
| PM (TTM) | 11.96% | ||
| GM | N/A | ||
| FCFM | 25.85% |
ROA(3y)3.66%
ROA(5y)3.08%
ROE(3y)18.12%
ROE(5y)14.8%
ROIC(3y)3.98%
ROIC(5y)N/A
ROICexc(3y)4.16%
ROICexc(5y)N/A
ROICexgc(3y)5.2%
ROICexgc(5y)N/A
ROCE(3y)4.99%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y5.93%
OM growth 5Y4.29%
PM growth 3Y20.19%
PM growth 5Y6.45%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.19% | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 216.19% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | N/A |
F-Score8
WACC8.53%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.68%
Cap/Sales(5y)1.03%
Profit Quality(3y)198%
Profit Quality(5y)205.76%
High Growth Momentum
Growth
EPS 1Y (TTM)28.28%
EPS 3Y42.89%
EPS 5Y22.5%
EPS Q2Q%3.33%
EPS Next Y23.36%
EPS Next 2Y15.19%
EPS Next 3Y12.36%
EPS Next 5Y4.89%
Revenue 1Y (TTM)10.53%
Revenue growth 3Y14.45%
Revenue growth 5Y9.55%
Sales Q2Q%12.2%
Revenue Next Year13.41%
Revenue Next 2Y11.44%
Revenue Next 3Y10.04%
Revenue Next 5Y2.15%
EBIT growth 1Y38.9%
EBIT growth 3Y21.24%
EBIT growth 5Y14.24%
EBIT Next Year33.54%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y44.14%
FCF growth 3Y22.11%
FCF growth 5Y119.58%
OCF growth 1Y46.59%
OCF growth 3Y21.91%
OCF growth 5Y36.41%