WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRB - US0844231029 - Common Stock
77.92 USD
+0.39 (+0.5%)
77.92 USD
0 (0%)
Taking everything into account, WRB scores 5 out of 10 in our fundamental rating. 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. WRB is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WRB was profitable.
In the past year WRB had a positive cash flow from operations.
Each year in the past 5 years WRB has been profitable.
WRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WRB's Return On Assets of 4.36% is fine compared to the rest of the industry. WRB outperforms 78.91% of its industry peers.
WRB's Return On Equity of 19.45% is amongst the best of the industry. WRB outperforms 85.03% of its industry peers.
WRB has a better Return On Invested Capital (4.45%) than 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 4.52%.
The last Return On Invested Capital (4.45%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| 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
WRB has a Profit Margin of 13.08%. This is in the better half of the industry: WRB outperforms 68.71% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
With a decent Operating Margin value of 17.00%, WRB is doing good in the industry, outperforming 68.71% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
WRB has a better debt/assets ratio than last year.
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.
The Debt to FCF ratio of WRB (0.86) is better than 72.79% of its industry peers.
WRB has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WRB (0.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.25%
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.
Looking at the last year, WRB shows a quite strong growth in Revenue. The Revenue has grown by 10.30% in the last year.
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
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
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
WRB is valuated rather expensively with a Price/Earnings ratio of 18.16.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 67.35% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 25.98, WRB is valued a bit cheaper.
With a Price/Forward Earnings ratio of 16.66, WRB is valued correctly.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than the industry average as 65.99% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.79, WRB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.16 | ||
| Fwd PE | 16.66 |
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 | 8.91 | ||
| 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.
The decent profitability rating of WRB may justify a higher PE ratio.
PEG (NY)3.63
PEG (5Y)0.72
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.
WRB's Dividend Yield is slightly below the industry average, which is at 3.46.
With a Dividend Yield of 0.50, WRB pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
5.2 History
The dividend of WRB is nicely growing with an annual growth rate of 13.22%!
WRB has been paying a dividend for at least 10 years, so it has 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
26.69% of the earnings are spent on dividend by WRB. This is a low number and sustainable payout ratio.
The dividend of WRB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.69%
EPS Next 2Y6.3%
EPS Next 3Y6.34%
77.92
+0.39 (+0.5%)
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 Cap29.55B
Revenue(TTM)14.57B
Net Income(TTM)1.91B
Analysts68.18
Price Target75.1 (-3.62%)
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 | 18.16 | ||
| Fwd PE | 16.66 | ||
| P/S | 2.03 | ||
| P/FCF | 8.91 | ||
| P/OCF | 8.7 | ||
| P/B | 3.02 | ||
| P/tB | 3.07 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.51%
EPS(NY)4.68
Fwd EY6%
FCF(TTM)8.75
FCFY11.23%
OCF(TTM)8.96
OCFY11.5%
SpS38.41
BVpS25.83
TBVpS25.35
PEG (NY)3.63
PEG (5Y)0.72
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
WACC8.25%
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%.