company background image
WRB

W. R. BerkleyNYSE:WRB Stock Report

Last Price

US$85.59

Market Cap

US$15.1b

7D

1.2%

1Y

29.4%

Updated

16 Jan, 2022

Data

Company Financials +
WRB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health5/6
Dividends0/6

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

Chubb

NYSE:CB

US$84.5b

Travelers Companies

NYSE:TRV

US$40.2b

Allstate

NYSE:ALL

US$35.6b

Cincinnati Financial

NasdaqGS:CINF

US$19.3b

Price History & Performance

Summary of all time highs, changes and price drops for W. R. Berkley
Historical stock prices
Current Share PriceUS$85.59
52 Week HighUS$87.07
52 Week LowUS$61.49
Beta0.85
1 Month Change6.46%
3 Month Change12.03%
1 Year Change29.41%
3 Year Change69.64%
5 Year Change92.16%
Change since IPO3,413.24%

Recent News & Updates

Oct 25
With EPS Growth And More, W. R. Berkley (NYSE:WRB) Is Interesting

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...

Jul 31

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

WRBUS InsuranceUS Market
7D1.2%-0.2%-0.5%
1Y29.4%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

Is WRB's price volatile compared to industry and market?
WRB volatility
WRB Average Weekly Movement3.5%
Insurance Industry Average Movement4.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
19677,495Rob Berkleyhttps://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

How do W. R. Berkley's earnings and revenue compare to its market cap?
WRB fundamental statistics
Market CapUS$15.12b
Earnings (TTM)US$1.04b
Revenue (TTM)US$9.19b

14.5x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WRB income statement (TTM)
RevenueUS$9.19b
Cost of RevenueUS$5.17b
Gross ProfitUS$4.02b
ExpensesUS$2.98b
EarningsUS$1.04b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 27, 2022

Earnings per share (EPS)5.89
Gross Margin43.72%
Net Profit Margin11.32%
Debt/Equity Ratio49.0%

How did WRB perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

9%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:28
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.