Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally.
Proven track record and overvalued.
Share Price & News
How has Alleghany's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: Y's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: Y exceeded the US Insurance industry which returned -17.9% over the past year.
Return vs Market: Y underperformed the US Market which returned -9.1% over the past year.
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
1 month ago | Simply Wall StShould You Worry About Alleghany Corporation's (NYSE:Y) CEO Pay?
1 month ago | Simply Wall StIf You Had Bought Alleghany (NYSE:Y) Stock Five Years Ago, You Could Pocket A 73% Gain Today
2 months ago | Simply Wall StWhat Kind Of Investor Owns Most Of Alleghany Corporation (NYSE:Y)?
Is Alleghany undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Y ($547.8) is trading above our estimate of fair value ($263.69)
Significantly Below Fair Value: Y is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: Y is poor value based on its PE Ratio (9.2x) compared to the Insurance industry average (9.1x).
PE vs Market: Y is good value based on its PE Ratio (9.2x) compared to the US market (13.4x).
Price to Earnings Growth Ratio
PEG Ratio: Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: Y is overvalued based on its PB Ratio (0.9x) compared to the US Insurance industry average (0.9x).
How is Alleghany forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Y's earnings are forecast to decline over the next 3 years (-14% per year).
Earnings vs Market: Y's earnings are forecast to decline over the next 3 years (-14% per year).
High Growth Earnings: Y's earnings are forecast to decline over the next 3 years.
Revenue vs Market: Insufficient data to determine if Y's revenue is forecast to grow faster than the US market.
High Growth Revenue: Insufficient data to determine if Y's revenue is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if Y's Return on Equity is forecast to be high in 3 years time
How has Alleghany performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: Y has high quality earnings.
Growing Profit Margin: Y's current net profit margins (9.5%) are higher than last year (0.6%).
Past Earnings Growth Analysis
Earnings Trend: Y's earnings have declined by -13.9% per year over the past 5 years.
Accelerating Growth: Y's earnings growth over the past year (2069.5%) exceeds its 5-year average (-13.9% per year).
Earnings vs Industry: Y earnings growth over the past year (2069.5%) exceeded the Insurance industry 44.6%.
Return on Equity
High ROE: Y's Return on Equity (9.9%) is considered low.
How is Alleghany's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: Y has a low level of unsold assets or inventory.
Debt Coverage by Assets: Y's debt is covered by short term assets (assets are 2.8x debt).
Financial Institutions Analysis
Asset Level: Y's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if Y has a sufficient allowance for bad loans.
Low Risk Liabilities: Y reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if Y has an acceptable proportion of non-loan assets held.
Low Risk Deposits: Y has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if Y has an appropriate level of bad loans.
What is Alleghany's current dividend yield, its reliability and sustainability?
Forecast Dividend Yield
Dividend Yield vs Market
Notable Dividend: Unable to evaluate Y's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate Y's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if Y's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if Y's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Weston Hicks (62yo)
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
Compensation vs Market: Weston's total compensation ($USD13.99M) is above average for companies of similar size in the US market ($USD7.36M).
Compensation vs Earnings: Weston's compensation has increased by more than 20% in the past year.
|Senior VP||0.67yr||US$1.39m||0.0063% $503.7k|
|Senior VP||10.67yrs||US$4.20m||0.038% $3.1m|
|Executive Vice President||8yrs||US$6.04m||0.17% $13.3m|
|President & CEO of CapSpecialty||0.67yr||US$8.97m||0.039% $3.1m|
|Senior VP & Chief Investment Officer||0.17yr||no data||0.00052% $41.8k|
|VP of Finance & Chief Accounting Officer||13.67yrs||US$888.43k||no data|
|Vice President of Corporate Finance||0.083yr||no data||no data|
|VP,Chief Compliance Officer||5.92yrs||no data||no data|
|VP, Controller & Assistant Secretary||32.17yrs||US$674.63k||no data|
Experienced Management: Y's management team is seasoned and experienced (7 years average tenure).
|Independent Director||1.17yrs||US$293.88k||0.012% $956.7k|
|Independent Director||8yrs||US$261.77k||0.018% $1.5m|
|Independent Director||27.92yrs||US$282.27k||0.015% $1.2m|
|Independent Director||10.25yrs||US$271.77k||0.025% $2.0m|
|Independent Director||10.25yrs||US$256.77k||0.021% $1.7m|
|Independent Chairman of the Board||9.67yrs||US$339.77k||2.31% $185.5m|
|Independent Director||13.92yrs||US$277.27k||0.057% $4.6m|
|Independent Director||8yrs||US$256.77k||0.014% $1.1m|
Experienced Board: Y's board of directors are seasoned and experienced ( 10.3 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Alleghany Corporation's company bio, employee growth, exchange listings and data sources
- Name: Alleghany Corporation
- Ticker: Y
- Exchange: NYSE
- Founded: 1929
- Industry: Reinsurance
- Sector: Insurance
- Market Cap: US$8.033b
- Shares outstanding: 14.35m
- Website: https://www.alleghany.com
Number of Employees
- Alleghany Corporation
- 1411 Broadway
- 34th Floor
- New York
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|Y||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 1986|
|AGA||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Dec 1986|
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 Alleghany Capital. The Reinsurance segment offers fire, allied lines, auto physical damage, and homeowners multiple peril reinsurance products; and casualty and other reinsurance products, such as medical malpractice, ocean marine and aviation, accident and health, mortgage, surety, and credit reinsurance products, as well as directors’ and officers’, errors and omissions, general, and auto liability reinsurance. It distributes its products and services through brokers, as well as directly to insurance and reinsurance companies. The Insurance segment underwrites specialty insurance coverages in the property, as well as umbrella/excess, general, directors’ and officers’, and professional liability lines; surety products comprising commercial and contract surety bonds; and workers’ compensation insurance products. It distributes its products through independent wholesale insurance brokers, and retail and general insurance agents. The Alleghany Capital segment provides precision automated machine tool solutions; manufactures custom trailers and truck bodies for the moving and storage industry, and other markets; and operates as a toy, and entertainment and musical instrument company. It also offers various services for pharmaceutical and biotechnology industries; products and services for the funeral and cemetery industries, and precast concrete markets; and hotel management and development services, as well as operates as a structural steel fabricator and erector. The company also explores for and produces oil; and owns and manages improved and unimproved commercial land, and residential lots. As of December 31, 2019, it owned approximately 95 acres of property. The company was founded in 1929 and is based in New York, New York.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/28 00:49|
|End of Day Share Price||2020/03/27 00:00|
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.