WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - New York Stock Exchange, Inc. - US0844231029 - Common Stock - Currency: USD
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 145 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. WRB is quite expensive at the moment. It does show a decent growth rate. Finally WRB also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
WRB had positive earnings in the past year.
WRB had a positive operating cash flow in the past year.
WRB had positive earnings in each of the past 5 years.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 4.19%, WRB belongs to the best of the industry, outperforming 84.83% of the companies in the same industry.
The Return On Equity of WRB (19.42%) is better than 90.34% of its industry peers.
The Return On Invested Capital of WRB (4.63%) is better than 82.76% of its industry peers.
WRB had an Average Return On Invested Capital over the past 3 years of 4.25%. This is in line with the industry average of 4.07%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(4.63%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROIC | 4.63% |
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
With a decent Profit Margin value of 12.37%, WRB is doing good in the industry, outperforming 75.17% of the companies in the same industry.
In the last couple of years the Profit Margin of WRB has grown nicely.
WRB has a Operating Margin of 17.38%. This is in the better half of the industry: WRB outperforms 75.86% of its industry peers.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| 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.
Compared to 1 year ago, WRB has less shares outstanding
Compared to 5 years ago, WRB has less shares outstanding
WRB has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of WRB is 0.80, which is an excellent value as it means it would take WRB, only 0.80 years of fcf income to pay off all of its debts.
WRB's Debt to FCF ratio of 0.80 is fine compared to the rest of the industry. WRB outperforms 71.03% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that WRB is not too dependend on debt financing.
The Debt to Equity ratio of WRB (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Altman-Z | N/A |
ROIC/WACC0.55
WACC8.48%
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 grown by an nice 12.09% 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 12.79%.
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)12.09%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%-2.88%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
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 2.11% on average per year.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.50% yearly.
EPS Next Y5.03%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue Next Year11.21%
Revenue Next 2Y9.71%
Revenue Next 3Y8.81%
Revenue Next 5Y2.5%
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
A Price/Earnings ratio of 16.76 indicates a correct valuation of WRB.
Compared to the rest of the industry, the Price/Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 60.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, WRB is valued a bit cheaper.
WRB is valuated correctly with a Price/Forward Earnings ratio of 14.29.
WRB's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. WRB is more expensive than 62.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. WRB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.29 |
4.2 Price Multiples
WRB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.34 | ||
| 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)3.33
PEG (5Y)0.67
EPS Next 2Y7.92%
EPS Next 3Y8.44%
5. Dividend
5.1 Amount
WRB has a Yearly Dividend Yield of 6.34%, which is a nice return.
WRB's Dividend Yield is rather good when compared to the industry average which is at 3.64. WRB pays more dividend than 86.21% of the companies in the same industry.
WRB's Dividend Yield is rather good when compared to the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
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.
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
30.85% 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.
DP30.85%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
68.88
-0.27 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.17%
Inst Owner Change-0.02%
Ins Owners24.76%
Ins Owner Change-0.74%
Market Cap26.13B
Analysts68.57
Price Target72.96 (5.92%)
Short Float %1.56%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.85%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.36%
Min EPS beat(2)1.65%
Max EPS beat(2)17.06%
EPS beat(4)3
Avg EPS beat(4)7.47%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.23%
EPS beat(12)10
Avg EPS beat(12)7.42%
EPS beat(16)14
Avg EPS beat(16)10.72%
Revenue beat(2)1
Avg Revenue beat(2)1.48%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)3.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.79%
Revenue beat(12)2
Avg Revenue beat(12)-1.11%
Revenue beat(16)6
Avg Revenue beat(16)0.33%
PT rev (1m)3.51%
PT rev (3m)8.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.15%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)-1.91%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.76 | ||
| Fwd PE | 14.29 | ||
| P/S | 1.87 | ||
| P/FCF | 7.34 | ||
| P/OCF | 7.11 | ||
| P/B | 2.93 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.11
EY5.97%
EPS(NY)4.82
Fwd EY7%
FCF(TTM)9.38
FCFY13.62%
OCF(TTM)9.69
OCFY14.07%
SpS36.89
BVpS23.5
TBVpS23.01
PEG (NY)3.33
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.19% | ||
| ROE | 19.42% | ||
| ROCE | 5.92% | ||
| ROIC | 4.63% | ||
| ROICexc | 4.83% | ||
| ROICexgc | 5.84% | ||
| OM | 17.38% | ||
| PM (TTM) | 12.37% | ||
| GM | N/A | ||
| FCFM | 25.42% |
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
ROICexcg growth 3Y7.06%
ROICexcg 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 0.8 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.84% | ||
| Interest Coverage | 16.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 205.51% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.48%
ROIC/WACC0.55
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)12.09%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%-2.88%
EPS Next Y5.03%
EPS Next 2Y7.92%
EPS Next 3Y8.44%
EPS Next 5Y2.11%
Revenue 1Y (TTM)12.79%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%8.92%
Revenue Next Year11.21%
Revenue Next 2Y9.71%
Revenue Next 3Y8.81%
Revenue Next 5Y2.5%
EBIT growth 1Y2.23%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y46.1%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y44.94%
OCF growth 3Y18.98%
OCF growth 5Y26.32%