WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - New York Stock Exchange, Inc. - US0844231029 - Common Stock - Currency: USD
WRB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. WRB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year WRB had a positive cash flow from operations.
In the past 5 years WRB has always been profitable.
Of the past 5 years WRB 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of WRB (3.91%) is better than 70.92% of its industry peers.
With a decent Return On Equity value of 18.72%, WRB is doing good in the industry, outperforming 77.31% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.06%, WRB is in the better half of the industry, outperforming 79.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROIC | 5.06% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.94%, WRB is in the better half of the industry, outperforming 70.92% of the companies in the same industry.
WRB's Profit Margin has improved in the last couple of years.
WRB's Operating Margin of 19.67% is fine compared to the rest of the industry. WRB outperforms 78.72% of its industry peers.
WRB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.67% | ||
| PM (TTM) | 11.94% | ||
| 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.
There is no outstanding debt for WRB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
WRB has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.83, WRB is doing good in the industry, outperforming 70.21% of the companies in the same industry.
WRB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WRB has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC8.49%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.71%, which is quite impressive.
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 13.71%.
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)25.71%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%16.9%
Revenue 1Y (TTM)13.71%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%13.85%
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 1.38% on average per year.
The Revenue is expected to grow by 0.68% on average over the next years.
EPS Next Y6.87%
EPS Next 2Y7.84%
EPS Next 3Y8.12%
EPS Next 5Y1.38%
Revenue Next Year10.81%
Revenue Next 2Y9.31%
Revenue Next 3Y8.82%
Revenue Next 5Y0.68%
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 correctly with a Price/Earnings ratio of 14.73.
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 29.63. WRB is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 13.78, WRB is valued correctly.
The rest of the industry has a similar Price/Forward Earnings ratio as WRB.
When comparing the Price/Forward Earnings ratio of WRB to the average of the S&P500 Index (22.68), we can say WRB is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 13.78 |
4.2 Price Multiples
62.41% of the companies in the same industry are more expensive than WRB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.8 | ||
| 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)2.14
PEG (5Y)0.59
EPS Next 2Y7.84%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
WRB has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 3.09, WRB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.29, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of WRB is nicely growing with an annual growth rate of 15.64%!
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WRB decreased recently.
Dividend Growth(5Y)15.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WRB pays out 39.69% 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.
DP39.69%
EPS Next 2Y7.84%
EPS Next 3Y8.12%
60.97
+0.57 (+0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.75%
Inst Owner Change1.34%
Ins Owners24.32%
Ins Owner Change-0.87%
Market Cap23.17B
Analysts73.64
Price Target65.22 (6.97%)
Short Float %2.35%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend1.28
Dividend Growth(5Y)15.64%
DP39.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.76%
PT rev (1m)-1.84%
PT rev (3m)4.7%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)-3.68%
EPS NY rev (1m)0.77%
EPS NY rev (3m)0.75%
Revenue NQ rev (1m)-0.42%
Revenue NQ rev (3m)-0.37%
Revenue NY rev (1m)-0.56%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.73 | ||
| Fwd PE | 13.78 | ||
| P/S | 1.75 | ||
| P/FCF | 6.8 | ||
| P/OCF | 6.5 | ||
| P/B | 2.75 | ||
| P/tB | 2.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.14
EY6.79%
EPS(NY)4.42
Fwd EY7.26%
FCF(TTM)8.97
FCFY14.72%
OCF(TTM)9.38
OCFY15.39%
SpS34.75
BVpS22.17
TBVpS21.69
PEG (NY)2.14
PEG (5Y)0.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROCE | 6.47% | ||
| ROIC | 5.06% | ||
| ROICexc | 5.27% | ||
| ROICexgc | 6.37% | ||
| OM | 19.67% | ||
| PM (TTM) | 11.94% | ||
| GM | N/A | ||
| FCFM | 25.82% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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 | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 216.19% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.49%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)25.71%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%16.9%
EPS Next Y6.87%
EPS Next 2Y7.84%
EPS Next 3Y8.12%
EPS Next 5Y1.38%
Revenue 1Y (TTM)13.71%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%13.85%
Revenue Next Year10.81%
Revenue Next 2Y9.31%
Revenue Next 3Y8.82%
Revenue Next 5Y0.68%
EBIT growth 1Y43.9%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y17.84%
OCF growth 3YN/A
OCF growth 5YN/A