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 143 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 valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WRB was profitable.
WRB had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 4.33%, WRB belongs to the best of the industry, outperforming 81.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.92%, WRB belongs to the top of the industry, outperforming 86.01% of the companies in the same industry.
WRB has a better Return On Invested Capital (5.46%) than 82.52% 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 4.47%.
The 3 year average ROIC (4.25%) for WRB is below the current ROIC(5.46%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 20.92% | ||
| ROIC | 5.46% |
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 (12.84%) than 73.43% of its industry peers.
WRB's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 20.58%, WRB is in the better half of the industry, outperforming 78.32% 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 | 20.58% | ||
| PM (TTM) | 12.84% | ||
| 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.
WRB has less shares outstanding than it did 1 year ago.
The number of shares outstanding for WRB has been reduced compared to 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 0.81. This is a very positive value and a sign of high solvency as it would only need 0.81 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.81, WRB is doing good in the industry, outperforming 68.53% of the companies in the same industry.
WRB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.34, WRB perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.81 | ||
| Altman-Z | N/A |
ROIC/WACC0.64
WACC8.49%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
WRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.71%, which is quite impressive.
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 13.71%.
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)25.71%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%16.9%
Revenue 1Y (TTM)13.71%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%13.85%
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 Y7.08%
EPS Next 2Y8.06%
EPS Next 3Y8.12%
EPS Next 5Y2.11%
Revenue Next Year10.49%
Revenue Next 2Y9.31%
Revenue Next 3Y8.37%
Revenue Next 5Y2.5%
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
With a Price/Earnings ratio of 16.62, WRB is valued correctly.
60.14% of the companies in the same industry are cheaper than WRB, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. WRB is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.52 indicates a correct valuation of WRB.
Based on the Price/Forward Earnings ratio, WRB is valued a bit more expensive than 60.14% of the companies in the same industry.
WRB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 15.52 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as WRB.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.79 | ||
| 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)2.35
PEG (5Y)0.66
EPS Next 2Y8.06%
EPS Next 3Y8.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.47%, WRB is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.32, WRB is paying slightly less dividend.
With a Dividend Yield of 0.47, WRB pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
The dividend of WRB is nicely growing with an annual growth rate of 13.22%!
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WRB decreased recently.
Dividend Growth(5Y)13.22%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WRB pays out 30.29% of its income as dividend. This is a sustainable payout ratio.
WRB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.29%
EPS Next 2Y8.06%
EPS Next 3Y8.12%
68.8
+0.35 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners69.13%
Inst Owner Change0%
Ins Owners24.3%
Ins Owner Change-0.87%
Market Cap27.31B
Analysts73.64
Price Target67.4 (-2.03%)
Short Float %3.03%
Short Ratio4.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend1.39
Dividend Growth(5Y)13.22%
DP30.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)8.36%
Min EPS beat(2)-0.35%
Max EPS beat(2)17.06%
EPS beat(4)3
Avg EPS beat(4)8.93%
Min EPS beat(4)-0.35%
Max EPS beat(4)17.06%
EPS beat(8)6
Avg EPS beat(8)4.57%
EPS beat(12)10
Avg EPS beat(12)8.54%
EPS beat(16)14
Avg EPS beat(16)12.6%
Revenue beat(2)1
Avg Revenue beat(2)0.63%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)3.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)3.49%
Revenue beat(8)1
Avg Revenue beat(8)-1.11%
Revenue beat(12)3
Avg Revenue beat(12)-0.67%
Revenue beat(16)7
Avg Revenue beat(16)0.43%
PT rev (1m)2.27%
PT rev (3m)1.43%
EPS NQ rev (1m)-6.23%
EPS NQ rev (3m)-7.61%
EPS NY rev (1m)0.2%
EPS NY rev (3m)0.97%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.62 | ||
| Fwd PE | 15.52 | ||
| P/S | 2 | ||
| P/FCF | 7.79 | ||
| P/OCF | 7.42 | ||
| P/B | 3.25 | ||
| P/tB | 3.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)4.14
EY6.02%
EPS(NY)4.43
Fwd EY6.44%
FCF(TTM)8.83
FCFY12.84%
OCF(TTM)9.27
OCFY13.47%
SpS34.46
BVpS21.15
TBVpS20.68
PEG (NY)2.35
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.33% | ||
| ROE | 20.92% | ||
| ROCE | 6.99% | ||
| ROIC | 5.46% | ||
| ROICexc | 5.74% | ||
| ROICexgc | 6.98% | ||
| OM | 20.58% | ||
| PM (TTM) | 12.84% | ||
| GM | N/A | ||
| FCFM | 25.63% |
ROA(3y)4.04%
ROA(5y)3.44%
ROE(3y)19.97%
ROE(5y)16.74%
ROIC(3y)4.25%
ROIC(5y)N/A
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 | 0.34 | ||
| Debt/FCF | 0.81 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 20.4 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 199.65% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.49%
ROIC/WACC0.64
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)25.71%
EPS 3Y22.24%
EPS 5Y25.1%
EPS Q2Q%16.9%
EPS Next Y7.08%
EPS Next 2Y8.06%
EPS Next 3Y8.12%
EPS Next 5Y2.11%
Revenue 1Y (TTM)13.71%
Revenue growth 3Y12.99%
Revenue growth 5Y11.53%
Sales Q2Q%13.85%
Revenue Next Year10.49%
Revenue Next 2Y9.31%
Revenue Next 3Y8.37%
Revenue Next 5Y2.5%
EBIT growth 1Y56.29%
EBIT growth 3Y17.51%
EBIT growth 5Y19.64%
EBIT Next Year36.5%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.99%
FCF growth 3Y18.31%
FCF growth 5Y30.21%
OCF growth 1Y25.57%
OCF growth 3Y18.98%
OCF growth 5Y26.32%