NYSE:Y

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 limited growth.


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

0.5%

NYSE:Y

1.6%

US Insurance

0.8%

US Market


1 Year Return

21.1%

NYSE:Y

9.9%

US Insurance

1.9%

US Market

Y outperformed the Insurance industry which returned 9.5% over the past year.

Y outperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

YIndustryMarket
7 Day0.5%1.6%0.8%
30 Day3.2%2.7%3.4%
90 Day13.5%1.4%2.1%
1 Year21.1%21.1%12.6%9.9%4.2%1.9%
3 Year50.9%48.4%47.6%36.3%46.7%37.2%
5 Year87.4%84.3%71.8%51.2%62.3%44.5%

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

Valuation

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

36.78x

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 US Insurance industry average.

Alleghany is overvalued based on earnings compared to the United States of America 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 US Insurance industry average.


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Alleghany's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Alleghany's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Alleghany's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Alleghany's earnings growth is expected to exceed the United States of America market average.

Alleghany's earnings growth is expected to exceed the low risk savings rate of 2.7%.


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?

-21.1%

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 (0.9% vs -21.1%)

Alleghany's earnings growth has not exceeded the US Insurance industry average in the past year (0.9% vs 3.1%).


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 less efficiently than the US 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 (19.3%) 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 (24.1% vs 19.3% today).

Debt is well covered by operating cash flow (24.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.1x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.7x 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

No need to calculate the sustainability of Alleghany's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

10.2yrs

Average management tenure


CEO

Weston Hicks (62yo)

14.8yrs

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 about average for companies of similar size in United States of America.

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


Management Age and Tenure

10.2yrs

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

9.8yrs

Average Tenure

66yo

Average Age

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


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$382,65422 May 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares559
Max PriceUS$684.53
BuyUS$992,88510 May 19
Lauren Tyler
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,485
Max PriceUS$672.34
SellUS$190,26010 May 19
William Lavin
EntityIndividual
Role
Member of the Board of Directors
Director
Shares286
Max PriceUS$665.25
SellUS$141,09829 Mar 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Director
Shares230
Max PriceUS$613.47

Ownership Breakdown


Management Team

  • Peter Sismondo (63yo)

    VP, Controller & Assistant Secretary

    • Tenure: 31.7yrs
    • Compensation: US$674.63k
  • Christopher Dalrymple (51yo)

    Senior VP

    • Tenure: 10.2yrs
    • Compensation: US$2.60m
  • Weston Hicks (62yo)

    President

    • Tenure: 14.8yrs
    • Compensation: US$8.13m
  • Joe Brandon (60yo)

    Executive Vice President

    • Tenure: 7.5yrs
    • Compensation: US$5.59m
  • Mike Sapnar (53yo)

    CEO & President of Transatlantic Holdings

    • Tenure: 0yrs
  • Jerry Borrelli (53yo)

    VP of Finance & Chief Accounting Officer

    • Tenure: 13.2yrs
    • Compensation: US$888.43k
  • Andrew Carr (58yo)

    VP & Tax Director

    • Tenure: 12.5yrs
    • Compensation: US$862.90k
  • Kerry Jacobs

    Senior VP

    • Tenure: 0.2yrs
  • Stela Burghart

    VP, Associate General Counsel & Assistant Secretary

    • Tenure: 7.4yrs
  • John Shannon

    VP & Head of Fixed Income

    • Tenure: 1.6yrs

Board Members

  • Lauren Tyler (57yo)

    Independent Director

    • Tenure: 0.7yrs
  • John Foos (69yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$251.74k
  • William Lavin (74yo)

    Director

    • Tenure: 27.4yrs
    • Compensation: US$269.74k
  • Karen Brenner (66yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$256.74k
  • Weston Hicks (62yo)

    President

    • Tenure: 14.8yrs
    • Compensation: US$8.13m
  • Phillip Martineau (71yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$246.74k
  • Jefferson Kirby (57yo)

    Chairman of the Board

    • Tenure: 9.2yrs
    • Compensation: US$329.74k
  • Raymond L. Wong (66yo)

    Director

    • Tenure: 13.4yrs
    • Compensation: US$264.74k
  • Ian Chippendale (70yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$246.74k

Company Information

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


Key Information

  • Name: Alleghany Corporation
  • Ticker: Y
  • Exchange: NYSE
  • Founded: 1929
  • Industry: Reinsurance
  • Sector: Insurance
  • Market Cap: US$11.177b
  • Shares outstanding: 14.43m
  • Website: https://www.alleghany.com

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 Analysis2019/09/17 23:30
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
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.