WR BERKLEY CORP (WRB) Stock Fundamental Analysis
USA - NYSE:WRB - US0844231029 - Common Stock
72.61 USD
-2.65 (-3.52%)
72.61 USD
0 (0%)
WRB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. While WRB has a great profitability rating, there are some minor concerns on its financial health. WRB is quite expensive at the moment. It does show a decent growth rate.
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.
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
WRB has a better Return On Assets (4.13%) than 78.91% of its industry peers.
With an excellent Return On Equity value of 18.94%, WRB belongs to the best of the industry, outperforming 87.07% of the companies in the same industry.
WRB has a better Return On Invested Capital (4.32%) than 75.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WRB is in line with the industry average of 4.49%.
The last Return On Invested Capital (4.32%) 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 | 4.32% |
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's Profit Margin of 12.40% is fine compared to the rest of the industry. WRB outperforms 73.47% of its industry peers.
In the last couple of years the Profit Margin of WRB has grown nicely.
Looking at the Operating Margin, with a value of 16.51%, WRB is in the better half of the industry, outperforming 72.79% 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 | 16.51% | ||
| PM (TTM) | 12.4% | ||
| 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.
Compared to 1 year ago, WRB has less shares outstanding
Compared to 5 years ago, WRB has less shares outstanding
Compared to 1 year ago, WRB has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of WRB is 0.84, which is an excellent value as it means it would take WRB, only 0.84 years of fcf income to pay off all of its debts.
WRB has a Debt to FCF ratio of 0.84. This is in the better half of the industry: WRB outperforms 74.15% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that WRB is not too dependend on debt financing.
WRB has a Debt to Equity ratio (0.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Altman-Z | N/A |
ROIC/WACC0.53
WACC8.2%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.88%.
Measured over the past years, WRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.10% on average per year.
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.97%.
WRB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.53% yearly.
EPS 1Y (TTM)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
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 Y5.03%
EPS Next 2Y6.93%
EPS Next 3Y7.46%
EPS Next 5Y2.64%
Revenue Next Year10.66%
Revenue Next 2Y8.58%
Revenue Next 3Y7.94%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 16.93, the valuation of WRB can be described as correct.
Based on the Price/Earnings ratio, WRB is valued a bit more expensive than the industry average as 65.99% of the companies are valued more cheaply.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
WRB is valuated correctly with a Price/Forward Earnings ratio of 15.34.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than the industry average as 62.59% of the companies are valued more cheaply.
WRB's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 15.34 |
4.2 Price Multiples
WRB's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| 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.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.37
PEG (5Y)0.67
EPS Next 2Y6.93%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, WRB is not a good candidate for dividend investing.
WRB's Dividend Yield is slightly below the industry average, which is at 3.26.
With a Dividend Yield of 0.48, WRB pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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.
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
34.10% 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.
DP34.1%
EPS Next 2Y6.93%
EPS Next 3Y7.46%
72.61
-2.65 (-3.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners68.38%
Inst Owner Change0.01%
Ins Owners24.84%
Ins Owner Change1.24%
Market Cap27.54B
Revenue(TTM)13.64B
Net Income(TTM)1.76B
Analysts69.09
Price Target73.95 (1.85%)
Short Float %3.43%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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%
PT rev (3m)-0.44%
EPS NQ rev (1m)4.99%
EPS NQ rev (3m)4.83%
EPS NY rev (1m)0.79%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)-0.61%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.93 | ||
| Fwd PE | 15.34 | ||
| P/S | 1.94 | ||
| P/FCF | 8.11 | ||
| P/OCF | 7.87 | ||
| P/B | 2.96 | ||
| P/tB | 3.02 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.29
EY5.91%
EPS(NY)4.73
Fwd EY6.52%
FCF(TTM)8.95
FCFY12.33%
OCF(TTM)9.22
OCFY12.7%
SpS37.44
BVpS24.51
TBVpS24.02
PEG (NY)3.37
PEG (5Y)0.67
Graham Number48.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.13% | ||
| ROE | 18.94% | ||
| ROCE | 5.53% | ||
| ROIC | 4.32% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 5.47% | ||
| OM | 16.51% | ||
| PM (TTM) | 12.4% | ||
| GM | N/A | ||
| FCFM | 23.92% |
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 | 0.31 | ||
| Debt/FCF | 0.84 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 0.72% | ||
| Interest Coverage | 16.97 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 192.92% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.2%
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)7.88%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%18.28%
EPS Next Y5.03%
EPS Next 2Y6.93%
EPS Next 3Y7.46%
EPS Next 5Y2.64%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%10.82%
Revenue Next Year10.66%
Revenue Next 2Y8.58%
Revenue Next 3Y7.94%
Revenue Next 5Y2.69%
EBIT growth 1Y-5.4%
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%
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 5.03% 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 34.1%.