WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRB - US0844231029 - Common Stock
69.37 USD
-0.18 (-0.26%)
69.37 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to WRB. WRB was compared to 148 industry peers in the Insurance industry. While WRB belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, WRB is valued expensive at the moment.
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.
WRB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 4.36%, WRB is doing good in the industry, outperforming 79.05% of the companies in the same industry.
With an excellent Return On Equity value of 19.45%, WRB belongs to the best of the industry, outperforming 86.49% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.45%, WRB is doing good in the industry, outperforming 74.32% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for WRB is significantly below the industry average of 14.88%.
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 70.27% of its industry peers.
WRB's Profit Margin has improved in the last couple of years.
WRB has a better Operating Margin (17.00%) than 66.22% 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
WRB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
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.
With a decent Debt to FCF ratio value of 0.86, WRB is doing good in the industry, outperforming 73.65% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that WRB is not too dependend on debt financing.
WRB has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: WRB outperforms 56.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC0.54
WACC8.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.88% over the past year.
WRB shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.10% yearly.
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.
Based on estimates for the next years, WRB will show a small growth in Revenue. The Revenue will grow by 2.69% on average per year.
EPS Next Y5.04%
EPS Next 2Y6.34%
EPS Next 3Y6.49%
EPS Next 5Y2.64%
Revenue Next Year11.33%
Revenue Next 2Y8.38%
Revenue Next 3Y7.64%
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
WRB is valuated correctly with a Price/Earnings ratio of 16.17.
WRB's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.39, WRB is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.82, the valuation of WRB can be described as correct.
WRB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 60.14% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. WRB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 14.82 |
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 | 7.95 | ||
| 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)3.21
PEG (5Y)0.64
EPS Next 2Y6.34%
EPS Next 3Y6.49%
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 2.30.
Compared to an average S&P500 Dividend Yield of 1.87, WRB's dividend is way lower than the S&P500 average.
| 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
WRB pays out 26.69% of its income as dividend. This is a 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 2Y6.34%
EPS Next 3Y6.49%
69.37
-0.18 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.53%
Inst Owner Change-4.56%
Ins Owners24.79%
Ins Owner Change0.38%
Market Cap26.36B
Revenue(TTM)14.57B
Net Income(TTM)1.91B
Analysts67.27
Price Target75.44 (8.75%)
Short Float %9.05%
Short Ratio7.93
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)-0.36%
PT rev (3m)2.02%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.17 | ||
| Fwd PE | 14.82 | ||
| P/S | 1.81 | ||
| P/FCF | 7.95 | ||
| P/OCF | 7.76 | ||
| P/B | 2.69 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY6.18%
EPS(NY)4.68
Fwd EY6.75%
FCF(TTM)8.73
FCFY12.59%
OCF(TTM)8.94
OCFY12.89%
SpS38.34
BVpS25.79
TBVpS25.3
PEG (NY)3.21
PEG (5Y)0.64
Graham Number49.89
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
WACC8.31%
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 Y5.04%
EPS Next 2Y6.34%
EPS Next 3Y6.49%
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 2Y8.38%
Revenue Next 3Y7.64%
Revenue Next 5Y2.69%
EBIT growth 1Y-4.65%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year39.8%
EBIT Next 3Y15.02%
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 5.04% 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%.