| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
WRB Stock Overview
W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally.
W. R. Berkley Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$85.59 |
| 52 Week High | US$87.07 |
| 52 Week Low | US$61.49 |
| Beta | 0.85 |
| 1 Month Change | 6.46% |
| 3 Month Change | 12.03% |
| 1 Year Change | 29.41% |
| 3 Year Change | 69.64% |
| 5 Year Change | 92.16% |
| Change since IPO | 3,413.24% |
Recent News & Updates
With EPS Growth And More, W. R. Berkley (NYSE:WRB) Is Interesting
Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
W. R. Berkley Reaping A Red-Hot P&C Market
W. R. Berkley posted second quarter earnings that included very good underwriting performance, including strong premium growth, but where most of the upside came from the investment portfolio. Specialty markets remain very hard, with W. R. Berkley reaping another quarter of double-digit rate increases and continuing to write in excess of price as others back away from specialty insurance. It's hard to argue with the quality of W. R. Berkley's management and business, and this remains a buy-and-forget candidate, but the valuation remains robust.
Shareholder Returns
| WRB | US Insurance | US Market | |
|---|---|---|---|
| 7D | 1.2% | -0.2% | -0.5% |
| 1Y | 29.4% | 23.5% | 13.7% |
Return vs Industry: WRB exceeded the US Insurance industry which returned 23.5% over the past year.
Return vs Market: WRB exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| WRB volatility | |
|---|---|
| WRB Average Weekly Movement | 3.5% |
| Insurance Industry Average Movement | 4.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: WRB is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: WRB's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1967 | 7,495 | Rob Berkley | https://www.berkley.com |
W. R. Berkley Corporation, an insurance holding company, operates as a commercial lines writer in the United States and internationally. It operates in two segments, Insurance and Reinsurance & Monoline Excess. The Insurance segment underwrites commercial insurance business, including premises operations, commercial automobile, property, products liability, and general and professional liability lines.
W. R. Berkley Fundamentals Summary
| WRB fundamental statistics | |
|---|---|
| Market Cap | US$15.12b |
| Earnings (TTM) | US$1.04b |
| Revenue (TTM) | US$9.19b |
14.5x
P/E Ratio1.6x
P/S RatioIs WRB overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| WRB income statement (TTM) | |
|---|---|
| Revenue | US$9.19b |
| Cost of Revenue | US$5.17b |
| Gross Profit | US$4.02b |
| Expenses | US$2.98b |
| Earnings | US$1.04b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
| Earnings per share (EPS) | 5.89 |
| Gross Margin | 43.72% |
| Net Profit Margin | 11.32% |
| Debt/Equity Ratio | 49.0% |
How did WRB perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield9%
Payout RatioValuation
Is W. R. Berkley undervalued compared to its fair value and its price relative to the market?
37.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WRB ($85.59) is trading below our estimate of fair value ($137.81)
Significantly Below Fair Value: WRB is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WRB is poor value based on its PE Ratio (14.5x) compared to the US Insurance industry average (11.4x).
PE vs Market: WRB is good value based on its PE Ratio (14.5x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: WRB is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: WRB is overvalued based on its PB Ratio (2.3x) compared to the US Insurance industry average (1.2x).
Future Growth
How is W. R. Berkley forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
7.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WRB's forecast earnings growth (7.3% per year) is above the savings rate (2%).
Earnings vs Market: WRB's earnings (7.3% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: WRB's earnings are forecast to grow, but not significantly.
Revenue vs Market: WRB's revenue (10.4% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: WRB's revenue (10.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: WRB's Return on Equity is forecast to be low in 3 years time (15.1%).
Past Performance
How has W. R. Berkley performed over the past 5 years?
5.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WRB has high quality earnings.
Growing Profit Margin: WRB's current net profit margins (11.3%) are higher than last year (4.4%).
Past Earnings Growth Analysis
Earnings Trend: WRB's earnings have grown by 5% per year over the past 5 years.
Accelerating Growth: WRB's earnings growth over the past year (207.9%) exceeds its 5-year average (5% per year).
Earnings vs Industry: WRB earnings growth over the past year (207.9%) exceeded the Insurance industry 39.8%.
Return on Equity
High ROE: WRB's Return on Equity (15.7%) is considered low.
Financial Health
How is W. R. Berkley's financial position?
Financial Position Analysis
Short Term Liabilities: WRB's short term assets ($9.3B) do not cover its short term liabilities ($20.3B).
Long Term Liabilities: WRB's short term assets ($9.3B) exceed its long term liabilities ($4.6B).
Debt to Equity History and Analysis
Debt Level: WRB's net debt to equity ratio (5.1%) is considered satisfactory.
Reducing Debt: WRB's debt to equity ratio has reduced from 50.2% to 49% over the past 5 years.
Debt Coverage: WRB's debt is well covered by operating cash flow (61.4%).
Interest Coverage: WRB's interest payments on its debt are well covered by EBIT (10.3x coverage).
Balance Sheet
Dividend
What is W. R. Berkley current dividend yield, its reliability and sustainability?
0.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WRB's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: WRB's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: WRB is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: WRB is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: WRB is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of WRB's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.7yrs
Average management tenure
CEO
Rob Berkley (48 yo)
12.17yrs
Tenure
US$9,982,728
Compensation
Mr. William Robert Berkley Jr., also known as Rob, has been the President and Chief Executive Officer of W. R. Berkley Corporation since October 2015 and serves as its Director since 2001. Mr. Berkley serv...
CEO Compensation Analysis
Compensation vs Market: Rob's total compensation ($USD9.98M) is about average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: WRB's management team is seasoned and experienced (10.7 years average tenure).
Board Members
Experienced Board: WRB's board of directors are seasoned and experienced ( 12.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: WRB insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
W. R. Berkley Corporation's employee growth, exchange listings and data sources
Key Information
- Name: W. R. Berkley Corporation
- Ticker: WRB
- Exchange: NYSE
- Founded: 1967
- Industry: Property and Casualty Insurance
- Sector: Insurance
- Implied Market Cap: US$15.119b
- Shares outstanding: 176.64m
- Website: https://www.berkley.com
Number of Employees
Location
- W. R. Berkley Corporation
- 475 Steamboat Road
- Greenwich
- Connecticut
- 6830
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:28 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.