WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
73.39 USD
+0.29 (+0.4%)
73.39 USD
0 (0%)
Overall WRB gets a fundamental rating of 5 out of 10. We evaluated WRB against 146 industry peers in the Insurance industry. WRB scores excellent on profitability, but 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
In the past year WRB was profitable.
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 each of the past 5 years.
1.2 Ratios
The Return On Assets of WRB (4.13%) is better than 78.77% of its industry peers.
WRB's Return On Equity of 18.94% is amongst the best of the industry. WRB outperforms 87.67% of its industry peers.
With a decent Return On Invested Capital value of 4.43%, WRB is doing good in the industry, outperforming 79.45% of the companies in the same industry.
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 4.47%.
The last Return On Invested Capital (4.43%) for WRB is above the 3 year average (4.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROIC | 4.43% |
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
Looking at the Profit Margin, with a value of 12.32%, WRB is in the better half of the industry, outperforming 73.29% of the companies in the same industry.
WRB's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 16.80%, WRB is doing good in the industry, outperforming 71.92% of the companies in the same industry.
In the last couple of years the Operating Margin of WRB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.8% | ||
| PM (TTM) | 12.32% | ||
| 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.
The number of shares outstanding for WRB has been reduced compared to 1 year ago.
WRB has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, WRB has an improved debt to assets ratio.
2.2 Solvency
WRB has a debt to FCF ratio of 0.84. This is a very positive value and a sign of high solvency as it would only need 0.84 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.84, WRB is in the better half of the industry, outperforming 72.60% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that WRB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.31, WRB is in line with its industry, outperforming 53.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.29%
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 4.39% over the past year.
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 11.49%.
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)4.39%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%0.96%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.77%
3.2 Future
The Earnings Per Share is expected to grow by 2.64% on average over the next years.
The Revenue is expected to grow by 2.69% on average over the next years.
EPS Next Y4.22%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
EPS Next 5Y2.64%
Revenue Next Year10.67%
Revenue Next 2Y8.87%
Revenue Next 3Y8.25%
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.
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 17.81 indicates a rather expensive valuation of WRB.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 63.01% of the companies are valued more cheaply.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.46, the valuation of WRB can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of WRB indicates a slightly more expensive valuation: WRB is more expensive than 63.01% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. WRB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WRB is valued a bit cheaper than the industry average as 60.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.2 | ||
| 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)4.23
PEG (5Y)0.71
EPS Next 2Y7.08%
EPS Next 3Y7.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.49%, WRB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, WRB is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, WRB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
On average, the dividend of WRB grows each year by 13.22%, which is quite nice.
WRB has been paying a dividend for at least 10 years, so it has 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
WRB pays out 34.10% 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.
DP34.1%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
73.39
+0.29 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.98%
Inst Owner Change-3.61%
Ins Owners24.76%
Ins Owner Change1.24%
Market Cap27.84B
Analysts68.57
Price Target73.95 (0.76%)
Short Float %3.07%
Short Ratio4.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP34.1%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.42%
Min EPS beat(2)1.19%
Max EPS beat(2)1.65%
EPS beat(4)3
Avg EPS beat(4)4.89%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)7
Avg EPS beat(8)7.02%
EPS beat(12)10
Avg EPS beat(12)5.11%
EPS beat(16)14
Avg EPS beat(16)9.84%
Revenue beat(2)0
Avg Revenue beat(2)-0.32%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.11%
Revenue beat(4)1
Avg Revenue beat(4)0.15%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.72%
Revenue beat(16)5
Avg Revenue beat(16)0%
PT rev (1m)0.95%
PT rev (3m)1.35%
EPS NQ rev (1m)0.14%
EPS NQ rev (3m)-2.32%
EPS NY rev (1m)-0.29%
EPS NY rev (3m)-0.94%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.81 | ||
| Fwd PE | 15.46 | ||
| P/S | 1.95 | ||
| P/FCF | 8.2 | ||
| P/OCF | 7.96 | ||
| P/B | 2.99 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.12
EY5.61%
EPS(NY)4.75
Fwd EY6.47%
FCF(TTM)8.95
FCFY12.2%
OCF(TTM)9.22
OCFY12.57%
SpS37.67
BVpS24.51
TBVpS24.02
PEG (NY)4.23
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROCE | 5.66% | ||
| ROIC | 4.43% | ||
| ROICexc | 4.64% | ||
| ROICexgc | 5.6% | ||
| OM | 16.8% | ||
| PM (TTM) | 12.32% | ||
| GM | N/A | ||
| FCFM | 23.77% |
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
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 Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 17.37 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 192.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.29%
ROIC/WACC0.53
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)4.39%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%0.96%
EPS Next Y4.22%
EPS Next 2Y7.08%
EPS Next 3Y7.94%
EPS Next 5Y2.64%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.77%
Revenue Next Year10.67%
Revenue Next 2Y8.87%
Revenue Next 3Y8.25%
Revenue Next 5Y2.69%
EBIT growth 1Y-3.15%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.95%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y28.76%
OCF growth 3Y18.98%
OCF growth 5Y26.32%