NYSE:Y

Stock Analysis Report

Executive Summary

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally.


Snowflake Analysis

Adequate balance sheet with proven 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.0%

Y

1.2%

US Insurance

2.4%

US Market


1 Year Return

-12.5%

Y

-20.0%

US Insurance

-10.0%

US Market

Return vs Industry: Y exceeded the US Insurance industry which returned -26.3% over the past year.

Return vs Market: Y exceeded the US Market which returned -15.9% over the past year.


Shareholder returns

YIndustryMarket
7 Day5.0%1.2%2.4%
30 Day-11.2%-18.7%-11.0%
90 Day-32.6%-28.8%-19.4%
1 Year-10.6%-12.5%-18.0%-20.0%-8.1%-10.0%
3 Year-7.5%-11.0%-6.2%-13.6%17.3%9.6%
5 Year15.7%11.3%17.2%2.9%36.1%21.1%

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?

9.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Y ($539.26) is trading above our estimate of fair value ($266.89)

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 (9.1x) compared to the Insurance industry average (8.1x).

PE vs Market: Y is good value based on its PE Ratio (9.1x) compared to the US market (12.2x).


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 (0.8x).


Next Steps

Future Growth

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

-14.0%

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


Next Steps

Past Performance

How has Alleghany performed over the past 5 years?

-13.9%

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 43.7%.


Return on Equity

High ROE: Y's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Alleghany's financial position?


Financial Position Analysis

Short Term Liabilities: Y's short term assets ($4.8B) do not cover its short term liabilities ($6.2B).

Long Term Liabilities: Y's short term assets ($4.8B) do not cover its long term liabilities ($11.8B).


Debt to Equity History and Analysis

Debt Level: Y's debt to equity ratio (19.5%) is considered satisfactory.

Reducing Debt: Y's debt to equity ratio has reduced from 23.6% to 19.5% over the past 5 years.

Debt Coverage: Y's debt is well covered by operating cash flow (40.8%).

Interest Coverage: Y's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Next Steps

Dividend

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

2.78%

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.0yrs

Average management tenure


CEO

Weston Hicks (62yo)

15.33s

Tenure

US$13,993,062

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 ($USD13.99M) is above average for companies of similar size in the US market ($USD7.76M).

Compensation vs Earnings: Weston's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Weston Hicks
President15.33yrsUS$13.99m0.46% $35.5m
Kerry Jacobs
Senior VP0.75yrUS$1.39m0.0063% $486.2k
Christopher Dalrymple
Senior VP10.75yrsUS$4.20m0.038% $3.0m
Joseph Brandon
Executive Vice President8.08yrsUS$6.04m0.17% $12.9m
John Sennott
President & CEO of CapSpecialty0.75yrUS$8.97m0.044% $3.4m
John Shannon
Senior VP & Chief Investment Officer0.25yrno data0.00052% $40.3k
Jerry Borrelli
VP of Finance & Chief Accounting Officer13.75yrsUS$888.43kno data
Dale James
Vice President of Corporate Finance0.17yrno datano data
Stela Burghart
VP,Chief Compliance Officer6yrsno datano data
Peter Sismondo
VP, Controller & Assistant Secretary32.25yrsUS$674.63kno data

7.0yrs

Average Tenure

53yo

Average Age

Experienced Management: Y's management team is seasoned and experienced (7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Weston Hicks
President15.33yrsUS$13.99m0.46% $35.5m
Lauren Tyler
Independent Director1.25yrsUS$293.88k0.012% $923.5k
John Foos
Independent Director8.08yrsUS$261.77k0.020% $1.5m
William Lavin
Independent Director28yrsUS$282.27k0.015% $1.1m
Karen Brenner
Independent Director10.33yrsUS$271.77k0.026% $2.0m
Phillip Martineau
Independent Director10.33yrsUS$256.77k0.022% $1.7m
Jefferson Kirby
Independent Chairman of the Board9.75yrsUS$339.77k2.31% $179.0m
Raymond L. Wong
Independent Director14yrsUS$277.27k0.059% $4.5m
Ian Chippendale
Independent Director8.08yrsUS$256.77k0.015% $1.2m

10.3yrs

Average Tenure

66yo

Average Age

Experienced Board: Y's board of directors are seasoned and experienced ( 10.3 years average tenure).


Ownership

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

Ownership Breakdown

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


Top Shareholders

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$7.754b
  • Shares outstanding: 14.35m
  • 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 04:18
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.