DB:AGA

Stock Analysis Report

Executive Summary

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Risks

  • Alleghany is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Alleghany's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

DB:AGA

0.5%

DE Insurance

-0.7%

DE Market


1 Year Return

19.8%

DB:AGA

21.2%

DE Insurance

-7.6%

DE Market

AGA underperformed the Insurance industry which returned 21.2% over the past year.

AGA outperformed the Market in Germany which returned -7.6% over the past year.


Share holder returns

AGAIndustryMarket
7 Day-0.6%0.5%-0.7%
30 Day2.5%2.1%-0.8%
90 Day10.6%2.1%-3.8%
1 Year19.8%19.8%26.5%21.2%-4.7%-7.6%
3 Year27.9%25.8%85.4%63.0%18.4%8.2%
5 Year99.0%95.7%101.2%61.1%28.8%11.1%

Price Volatility Vs. Market

How volatile is Alleghany's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Alleghany undervalued based on future cash flows and its price relative to the stock market?

33.37x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Alleghany's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Alleghany's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Alleghany is overvalued based on earnings compared to the DE Insurance industry average.

Alleghany is overvalued based on earnings compared to the Germany market.


Price Based on Expected Growth

Alleghany is poor value based on expected growth next year.


Price Based on Value of Assets

Alleghany is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

How is Alleghany expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Alleghany is high growth as no revenue estimate data is available.

Alleghany's earnings are expected to grow significantly at over 20% yearly.

Unable to compare Alleghany's revenue growth to the Germany market average as no estimate data is available.

Alleghany's earnings growth is expected to exceed the Germany market average.

Alleghany's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Alleghany will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Alleghany performed over the past 5 years?

-20.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Alleghany's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.

Alleghany's 1-year earnings growth exceeds its 5-year average (173.9% vs -20.7%)

Alleghany's earnings growth has exceeded the DE Insurance industry average in the past year (173.9% vs 9.4%).


Return on Equity

Alleghany has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Alleghany used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Alleghany's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Alleghany's financial position?


Financial Position Analysis

Alleghany is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Alleghany's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Alleghany's level of debt (19.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (25.1% vs 19.9% today).

Debt is well covered by operating cash flow (20.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.9x debt.


Next Steps

Dividend

What is Alleghany's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Alleghany's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Alleghany's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Alleghany has not reported any payouts.

Unable to verify if Alleghany's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Alleghany has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Alleghany's salary, the management and board of directors tenure and is there insider trading?

11.2yrs

Average management tenure


CEO

Weston Hicks (62yo)

14.6yrs

Tenure

US$8,129,352

Compensation

Mr. Weston M. Hicks, CFA, has been the Chief Executive Officer and President at Alleghany Corporation since December 31, 2004. Mr. Hicks has been the Chief Executive Officer and President at Alleghany Insu ...


CEO Compensation Analysis

Weston's remuneration is higher than average for companies of similar size in Germany.

Weston's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.2yrs

Average Tenure

58yo

Average Age

The average tenure for the Alleghany management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.6yrs

Average Tenure

66yo

Average Age

The tenure for the Alleghany board of directors is about average.


Insider Trading

More shares have been bought than sold by Alleghany individual insiders in the past 3 months.


Recent Insider Transactions

Buy€76,67505 Jun 19
Karen Brenner
EntityIndividual
Role
Member of the Board of Directors
Shares297
Max Price€258.16
Sell€76,50605 Jun 19
Karen Brenner
EntityIndividual
Role
Member of the Board of Directors
Shares221
Max Price€604.35
Sell€342,74322 May 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Shares559
Max Price€613.14
Sell€75,41513 May 19
Raymond L. Wong
EntityIndividual
Role
Member of the Board of Directors
Shares224
Max Price€594.78
Buy€75,88313 May 19
Raymond L. Wong
EntityIndividual
Role
Member of the Board of Directors
Shares294
Max Price€258.11
Buy€883,17110 May 19
Lauren Tyler
EntityIndividual
Role
Member of the Board of Directors
Shares1,485
Max Price€598.05
Sell€169,23610 May 19
William Lavin
EntityIndividual
Role
Member of the Board of Directors
Shares286
Max Price€591.74
Buy€99,97309 Apr 19
Jefferson Kirby
EntityIndividual
Role
Chairman of the Board
Shares528
Max Price€189.34
Sell€149,69309 Apr 19
William Lavin
EntityIndividual
Role
Member of the Board of Directors
Shares518
Max Price€546.68
Sell€125,71829 Mar 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Shares230
Max Price€546.60
Buy€68,15222 Mar 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Shares230
Max Price€296.31
Sell€67,65522 Mar 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Shares278
Max Price€539.68
Sell€134,53904 Feb 19
John Sennott
EntityIndividual
Shares243
Max Price€553.66
Sell€391,98904 Feb 19
Christopher Dalrymple
EntityIndividual
Role
Senior VP
Shares708
Max Price€553.66
Buy€98,31802 Jan 19
Raymond L. Wong
EntityIndividual
Role
Member of the Board of Directors
Shares528
Max Price€186.21
Sell€191,65414 Nov 18
William Lavin
EntityIndividual
Role
Member of the Board of Directors
Shares528
Max Price€551.90
Sell€743,88104 Sep 18
Joseph Brandon
EntityIndividual
Role
Executive Vice President
Shares1,374
Max Price€541.40

Ownership Breakdown


Management Team

  • Christopher Dalrymple (51yo)

    Senior VP

    • Tenure: 10.0yrs
    • Compensation: $2.60m
  • Weston Hicks (62yo)

    President

    • Tenure: 14.6yrs
    • Compensation: $8.13m
  • Stela Burghart

    VP, Associate General Counsel & Assistant Secretary

    • Tenure: 7.3yrs
  • Kerry Jacobs

    Senior VP

  • Andrew Carr (58yo)

    VP & Tax Director

    • Tenure: 12.3yrs
    • Compensation: $862.90k
  • Peter Sismondo (63yo)

    VP, Controller & Assistant Secretary

    • Tenure: 31.5yrs
    • Compensation: $874.39k
  • John Shannon

    VP & Head of Fixed Income

    • Tenure: 1.4yrs
  • Mike Sapnar (53yo)

    CEO & President of Transatlantic Holdings

  • Jerry Borrelli (53yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 13.0yrs
    • Compensation: $954.27k
  • Joe Brandon (60yo)

    Executive Vice President

    • Tenure: 7.3yrs
    • Compensation: $5.59m

Board Members

  • Raymond L. Wong (66yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: $264.74k
  • Ian Chippendale (70yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $246.74k
  • John Foos (69yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: $251.74k
  • Weston Hicks (62yo)

    President

    • Tenure: 14.6yrs
    • Compensation: $8.13m
  • William Lavin (74yo)

    Director

    • Tenure: 27.3yrs
    • Compensation: $269.74k
  • Karen Brenner (66yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: $256.74k
  • Phillip Martineau (71yo)

    Director

    • Tenure: 9.6yrs
    • Compensation: $246.74k
  • Lauren Tyler (57yo)

    Independent Director

    • Tenure: 0.5yrs
  • Jefferson Kirby (57yo)

    Chairman of the Board

    • Tenure: 9.0yrs
    • Compensation: $329.74k

Company Information

Alleghany Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Alleghany Corporation
  • Ticker: AGA
  • Exchange: DB
  • Founded: 1929
  • Industry: reinsurance
  • Sector: insurance
  • Market Cap: US$10.010b
  • Listing Market Cap: US$8.921b
  • Shares outstanding: 14.44m
  • Website: Click here

Number of Employees


Location

  • Alleghany Corporation
  • 1411 Broadway
  • 34th Floor
  • New York
  • New York
  • 10018
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1986
AGADB (Deutsche Boerse AG)YesCommon StockDEEURDec 1986

Biography

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The company operates in three segments: Reinsurance, Insurance, and Allegha ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/20 20:32
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.