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

Moderate growth potential with poor track record.


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

Stable Share Price: Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

Y

0.06%

US Insurance

0.7%

US Market


1 Year Return

22.7%

Y

14.4%

US Insurance

13.7%

US Market

Return vs Industry: Y exceeded the US Insurance industry which returned 14.4% over the past year.

Return vs Market: Y exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

YIndustryMarket
7 Day-0.7%0.06%0.7%
30 Day-1.4%1.4%4.7%
90 Day0.6%1.5%6.1%
1 Year22.7%22.7%17.2%14.4%16.2%13.7%
3 Year38.3%36.0%37.1%26.5%48.8%39.2%
5 Year72.1%69.2%64.7%45.0%62.5%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 compared to its fair value and its price relative to the market?

98.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Y ($770.04) is trading above our estimate of fair value ($127.43)

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 (98x) compared to the Insurance industry average (17.1x).

PE vs Market: Y is poor value based on its PE Ratio (98x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Y is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: Y is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

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

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Y's forecast earnings growth (34% per year) is above the savings rate (2.7%).

Earnings vs Market: Y's earnings (34% per year) are forecast to grow faster than the US market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Y's revenue is expected to decline over the next 3 years (-15.5% per year).

High Growth Revenue: Y's revenue is forecast to decline over the next 3 years (-15.5% 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


Next Steps

Past Performance

How has Alleghany performed over the past 5 years?

-23.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Y has high quality earnings.

Growing Profit Margin: Y's current net profit margins (1.4%) are lower than last year (12.3%).


Past Earnings Growth Analysis

Earnings Trend: Y's earnings have declined by -23.6% per year over the past 5 years.

Accelerating Growth: Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: Y had negative earnings growth (-87.4%) over the past year, making it difficult to compare to the Insurance industry average (-10.4%).


Return on Equity

High ROE: Y's Return on Equity (1.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

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


Balance Sheet

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 2.7x 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.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.3%forecastin3Years0%

Current dividend yield vs market & industry

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.


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

Weston Hicks (62yo)

14.9yrs

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

Compensation vs Market: Weston's total compensation ($USD8.13M) is about average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Weston's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.3yrs

Average Tenure

58yo

Average Age

Experienced Management: Y's management team is seasoned and experienced (10.3 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

66yo

Average Age

Experienced Board: Y's board of directors are considered experienced (9.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$382,65422 May 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Independent 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
Independent Director
Shares286
Max PriceUS$665.25
SellUS$141,09829 Mar 19
Phillip Martineau
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares230
Max PriceUS$613.47

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Peter Sismondo (63yo)

    VP, Controller & Assistant Secretary

    • Tenure: 31.8yrs
    • Compensation: US$674.63k
  • Christopher Dalrymple (51yo)

    Senior VP

    • Tenure: 10.3yrs
    • Compensation: US$2.60m
  • Weston Hicks (62yo)

    President

    • Tenure: 14.9yrs
    • Compensation: US$8.13m
  • Joe Brandon (60yo)

    Executive Vice President

    • Tenure: 7.7yrs
    • Compensation: US$5.59m
  • Mike Sapnar (53yo)

    CEO & President of Transatlantic Holdings

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

    VP of Finance & Chief Accounting Officer

    • Tenure: 13.3yrs
    • Compensation: US$888.43k
  • Andrew Carr (58yo)

    VP & Tax Director

    • Tenure: 12.7yrs
    • Compensation: US$862.90k
  • Kerry Jacobs

    Senior VP

    • Tenure: 0.3yrs
  • Stela Burghart

    VP, Associate General Counsel & Assistant Secretary

    • Tenure: 7.6yrs
  • John Shannon

    VP & Head of Fixed Income

    • Tenure: 1.8yrs

Board Members

  • Lauren Tyler (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • John Foos (69yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$251.74k
  • William Lavin (74yo)

    Independent Director

    • Tenure: 27.6yrs
    • Compensation: US$269.74k
  • Karen Brenner (66yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$256.74k
  • Weston Hicks (62yo)

    President

    • Tenure: 14.9yrs
    • Compensation: US$8.13m
  • Phillip Martineau (71yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$246.74k
  • Jefferson Kirby (57yo)

    Independent Chairman of the Board

    • Tenure: 9.3yrs
    • Compensation: US$329.74k
  • Raymond L. Wong (66yo)

    Independent Director

    • Tenure: 13.6yrs
    • Compensation: US$264.74k
  • Ian Chippendale (70yo)

    Independent Director

    • Tenure: 7.7yrs
    • 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$11.083b
  • Shares outstanding: 14.39m
  • 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 Analysis2019/11/17 23:30
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.