WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WRB - US0844231029 - Common Stock
67.67 USD
+0.44 (+0.65%)
66.99 USD
-0.68 (-1%)
We assign a fundamental rating of 4 out of 10 to WRB. WRB was compared to 148 industry peers in the Insurance industry. WRB has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- WRB had positive earnings in each of the past 5 years.
- WRB had a positive operating cash flow in 4 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 79.73% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 19.45%, WRB belongs to the top of the industry, outperforming 85.81% of the companies in the same industry.
- WRB's Return On Invested Capital of 4.44% is fine compared to the rest of the industry. WRB outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.36% | ||
| ROE | 19.45% | ||
| ROIC | 4.44% |
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
- With a decent Profit Margin value of 13.08%, WRB is doing good in the industry, outperforming 70.95% of the companies in the same industry.
- WRB's Profit Margin has improved in the last couple of years.
- WRB has a better Operating Margin (17.00%) than 66.89% of its industry peers.
- 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 3Y0.44%
OM growth 5Y5.07%
PM growth 3Y-0.73%
PM growth 5Y13.05%
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.
- 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
- The Debt to FCF ratio of WRB is 0.86, which is an excellent value as it means it would take WRB, only 0.86 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of WRB (0.86) is better than 73.65% 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.
- WRB has a Debt to Equity ratio (0.29) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.37%
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 3.62% 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 30.61% on average per year.
- WRB shows a small growth in Revenue. In the last year, the Revenue has grown by 6.91%.
- Measured over the past years, WRB shows a quite strong growth in Revenue. The Revenue has been growing by 12.67% on average per year.
EPS 1Y (TTM)3.62%
EPS 3Y13.6%
EPS 5Y30.61%
EPS Q2Q%0%
Revenue 1Y (TTM)6.91%
Revenue growth 3Y9.62%
Revenue growth 5Y12.67%
Sales Q2Q%1.47%
3.2 Future
- The Earnings Per Share is expected to grow by 2.40% 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 0.65% yearly.
EPS Next Y8.54%
EPS Next 2Y7.53%
EPS Next 3Y5.23%
EPS Next 5Y2.4%
Revenue Next Year5.03%
Revenue Next 2Y5.27%
Revenue Next 3Y-0.44%
Revenue Next 5Y0.65%
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 15.77.
- 61.49% of the companies in the same industry are cheaper than WRB, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, WRB is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 14.53, WRB is valued correctly.
- WRB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 60.81% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, WRB is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.77 | ||
| Fwd PE | 14.53 |
4.2 Price Multiples
- WRB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.75 | ||
| 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)1.85
PEG (5Y)0.52
EPS Next 2Y7.53%
EPS Next 3Y5.23%
5. Dividend
5.1 Amount
- WRB has a yearly dividend return of 0.52%, which is pretty low.
- WRB's Dividend Yield is slightly below the industry average, which is at 2.41.
- Compared to an average S&P500 Dividend Yield of 1.82, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
- On average, the dividend of WRB grows each year by 13.22%, which is quite nice.
- WRB has paid a dividend for at least 10 years, which is 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 2Y7.53%
EPS Next 3Y5.23%
WR BERKLEY CORP / WRB FAQ
What is the ChartMill fundamental rating of WR BERKLEY CORP (WRB) stock?
ChartMill assigns a fundamental rating of 4 / 10 to WRB.
Can you provide the valuation status for WR BERKLEY CORP?
ChartMill assigns a valuation rating of 3 / 10 to WR BERKLEY CORP (WRB). This can be considered as Overvalued.
What is the profitability of WRB stock?
WR BERKLEY CORP (WRB) has a profitability rating of 6 / 10.
What is the valuation of WR BERKLEY CORP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for WR BERKLEY CORP (WRB) is 15.77 and the Price/Book (PB) ratio is 2.62.
Can you provide the expected EPS growth for WRB stock?
The Earnings per Share (EPS) of WR BERKLEY CORP (WRB) is expected to grow by 8.54% in the next year.