WR BERKLEY CORP (WRB) Stock Fundamental Analysis
NYSE:WRB - New York Stock Exchange, Inc. - US0844231029 - Common Stock
Taking everything into account, WRB scores 5 out of 10 in our fundamental rating. WRB was compared to 143 industry peers in the Insurance industry. WRB scores excellent on profitability, but there are some minor concerns on its financial health. WRB has a correct valuation and a medium growth rate.
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.
In the past 5 years WRB has always been profitable.
In the past 5 years WRB always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of WRB (3.91%) is better than 70.92% of its industry peers.
WRB's Return On Equity of 18.72% is fine compared to the rest of the industry. WRB outperforms 77.31% of its industry peers.
The Return On Invested Capital of WRB (5.16%) is better than 80.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WRB is in line with the industry average of 4.61%.
The last Return On Invested Capital (5.16%) for WRB is above the 3 year average (3.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROIC | 5.16% |
ROA(3y)3.66%
ROA(5y)3.08%
ROE(3y)18.12%
ROE(5y)14.8%
ROIC(3y)3.98%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.94%, WRB is in the better half of the industry, outperforming 70.92% of the companies in the same industry.
In the last couple of years the Profit Margin of WRB has grown nicely.
With a decent Operating Margin value of 19.67%, WRB is doing good in the industry, outperforming 78.72% 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 | 19.67% | ||
| PM (TTM) | 11.94% | ||
| GM | N/A |
OM growth 3Y6.13%
OM growth 5Y4.41%
PM growth 3Y20.42%
PM growth 5Y6.57%
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.
The number of shares outstanding for WRB has been increased compared to 5 years ago.
The debt/assets ratio for WRB has been reduced compared to a year ago.
2.2 Solvency
WRB has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
WRB has a better Debt to FCF ratio (0.83) than 70.21% of its industry peers.
WRB has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
WRB's Debt to Equity ratio of 0.34 is in line compared to the rest of the industry. WRB outperforms 44.68% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.14 indicates that WRB should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.14, WRB belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
A Quick Ratio of 1.14 indicates that WRB should not have too much problems paying its short term obligations.
WRB has a Quick ratio of 1.14. This is amongst the best in the industry. WRB outperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
WRB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.28%, which is quite impressive.
Measured over the past years, WRB shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.50% on average per year.
WRB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.49%.
WRB shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.42% yearly.
EPS 1Y (TTM)28.28%
EPS 3Y42.89%
EPS 5Y22.5%
EPS Q2Q%3.33%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y14.23%
Revenue growth 5Y9.42%
Sales Q2Q%12.2%
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 5.84% on average per year.
WRB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.75% yearly.
EPS Next Y23.37%
EPS Next 2Y15.46%
EPS Next 3Y12.67%
EPS Next 5Y5.84%
Revenue Next Year13.45%
Revenue Next 2Y11.46%
Revenue Next 3Y10.17%
Revenue Next 5Y2.75%
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
The Price/Earnings ratio is 14.87, which indicates a correct valuation of WRB.
WRB's Price/Earnings ratio is in line with the industry average.
WRB is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
WRB is valuated correctly with a Price/Forward Earnings ratio of 13.48.
The rest of the industry has a similar Price/Forward Earnings ratio as WRB.
WRB is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 13.48 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, WRB is valued a bit cheaper than the industry average as 61.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.61 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
WRB's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
WRB has a very decent profitability rating, which may justify a higher PE ratio.
WRB's earnings are expected to grow with 12.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.64
PEG (5Y)0.66
EPS Next 2Y15.46%
EPS Next 3Y12.67%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, WRB is not a good candidate for dividend investing.
WRB's Dividend Yield is slightly below the industry average, which is at 2.99.
With a Dividend Yield of 0.53, WRB pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of WRB decreases each year by -1.69%.
WRB has been paying a dividend for at least 10 years, so it has a reliable track record.
WRB has decreased its dividend recently.
Dividend Growth(5Y)-1.69%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.69% of the earnings are spent on dividend by WRB. This is a low number and sustainable payout ratio.
DP39.69%
EPS Next 2Y15.46%
EPS Next 3Y12.67%
WR BERKLEY CORP
NYSE:WRB (1/21/2025, 8:04:00 PM)
After market: 59.19 0 (0%)59.19
-0.31 (-0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.75%
Inst Owner Change-0.04%
Ins Owners24.32%
Ins Owner Change0.37%
Market Cap22.56B
Analysts74.55
Price Target66.45 (12.27%)
Short Float %1.66%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend1.28
Dividend Growth(5Y)-1.69%
DP39.69%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.58%
Min EPS beat(2)-0.35%
Max EPS beat(2)11.51%
EPS beat(4)3
Avg EPS beat(4)5.7%
Min EPS beat(4)-0.35%
Max EPS beat(4)11.51%
EPS beat(8)6
Avg EPS beat(8)3.04%
EPS beat(12)10
Avg EPS beat(12)8.77%
EPS beat(16)14
Avg EPS beat(16)12.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.14%
Min Revenue beat(2)-2.23%
Max Revenue beat(2)-2.04%
Revenue beat(4)0
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-2.23%
Max Revenue beat(4)-0.7%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)3
Avg Revenue beat(12)-0.59%
Revenue beat(16)7
Avg Revenue beat(16)0.76%
PT rev (1m)1.79%
PT rev (3m)10.01%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-37.44%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-1.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.87 | ||
| Fwd PE | 13.48 | ||
| P/S | 1.71 | ||
| P/FCF | 6.61 | ||
| P/OCF | 6.32 | ||
| P/B | 2.68 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.98
EY6.72%
EPS(NY)4.39
Fwd EY7.42%
FCF(TTM)8.95
FCFY15.12%
OCF(TTM)9.36
OCFY15.81%
SpS34.66
BVpS22.11
TBVpS21.63
PEG (NY)0.64
PEG (5Y)0.66
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.91% | ||
| ROE | 18.72% | ||
| ROCE | 6.47% | ||
| ROIC | 5.16% | ||
| ROICexc | 5.37% | ||
| ROICexgc | 6.49% | ||
| OM | 19.67% | ||
| PM (TTM) | 11.94% | ||
| GM | N/A | ||
| FCFM | 25.82% |
ROA(3y)3.66%
ROA(5y)3.08%
ROE(3y)18.12%
ROE(5y)14.8%
ROIC(3y)3.98%
ROIC(5y)N/A
ROICexc(3y)4.16%
ROICexc(5y)N/A
ROICexgc(3y)5.2%
ROICexgc(5y)N/A
ROCE(3y)4.99%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y6.13%
OM growth 5Y4.41%
PM growth 3Y20.42%
PM growth 5Y6.57%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.83 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.18% | ||
| Interest Coverage | 0.02 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 216.19% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | N/A |
F-Score8
WACC8.57%
ROIC/WACC0.6
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)0.68%
Cap/Sales(5y)1.03%
Profit Quality(3y)198%
Profit Quality(5y)205.76%
High Growth Momentum
Growth
EPS 1Y (TTM)28.28%
EPS 3Y42.89%
EPS 5Y22.5%
EPS Q2Q%3.33%
EPS Next Y23.37%
EPS Next 2Y15.46%
EPS Next 3Y12.67%
EPS Next 5Y5.84%
Revenue 1Y (TTM)11.49%
Revenue growth 3Y14.23%
Revenue growth 5Y9.42%
Sales Q2Q%12.2%
Revenue Next Year13.45%
Revenue Next 2Y11.46%
Revenue Next 3Y10.17%
Revenue Next 5Y2.75%
EBIT growth 1Y43.9%
EBIT growth 3Y21.24%
EBIT growth 5Y14.24%
EBIT Next Year71.04%
EBIT Next 3Y23.59%
EBIT Next 5YN/A
FCF growth 1Y44.14%
FCF growth 3Y22.11%
FCF growth 5Y119.58%
OCF growth 1Y46.59%
OCF growth 3Y21.91%
OCF growth 5Y36.41%