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%)
WRB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. WRB scores excellent on profitability, but there are some minor concerns on its financial health. WRB is valied quite expensively at the moment, while 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.
In the past 5 years WRB has always been profitable.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
WRB's Return On Assets of 4.36% is fine compared to the rest of the industry. WRB outperforms 79.59% of its industry peers.
WRB has a better Return On Equity (19.45%) than 86.39% of its industry peers.
WRB has a better Return On Invested Capital (4.45%) than 77.55% 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
WRB has a better Profit Margin (13.08%) than 74.15% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB has a better Operating Margin (17.00%) than 72.79% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| 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.
WRB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, WRB has less shares outstanding
The debt/assets ratio for WRB has been reduced compared to a year ago.
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.
A Debt/Equity ratio of 0.29 indicates that WRB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.29, WRB perfoms like the industry average, outperforming 56.46% of the companies in the same industry.
| 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%.
Measured over the past years, WRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.10% on average per year.
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.30%.
Measured over the past years, WRB shows a quite strong growth in Revenue. The Revenue has been growing by 11.53% on average per year.
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.
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 18.21, the valuation of WRB can be described as rather expensive.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 68.03% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 25.45. WRB is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 16.70, the valuation of WRB can be described as correct.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than 65.99% of the companies in the same industry.
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
WRB's Price/Free Cash Flow is on the same level as the industry average.
| 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.
WRB has a very decent profitability rating, which 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
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 3.51.
With a Dividend Yield of 0.50, WRB pays less dividend than the S&P500 average, which is at 2.45.
| 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 paid a dividend for at least 10 years, which is 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-4.42%
Ins Owners24.84%
Ins Owner Change1.28%
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)2.39%
PT rev (3m)3.36%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)-0.68%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0.59%
Revenue NY rev (3m)0.04%
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%.