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Alleghany

NYSE:Y
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
Y
NYSE
$10B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Alleghany Corporation provides property and casualty reinsurance and insurance products in the United States and internationally. The last earnings update was 72 days ago. More info.


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Y Share Price and Events
7 Day Returns
-0.7%
NYSE:Y
-0.7%
US Insurance
-0.3%
US Market
1 Year Returns
15%
NYSE:Y
13.4%
US Insurance
3.4%
US Market
Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alleghany (Y) -0.7% 2.9% 8% 15% 27.9% 62.8%
US Insurance -0.7% 2.6% 8.8% 13.4% 38.5% 50.1%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • Y outperformed the Insurance industry which returned 13.4% over the past year.
  • Y outperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
Y
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alleghany to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alleghany.

NYSE:Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $532.40 * 5.5%
$29.19
Book Value of Equity per Share Median Book Value from the past 5 years. $532.40
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.68
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.684 (1 + (1- 21%) (19.04%))
0.857
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.857 * 5.96%)
7.84%

Discounted Cash Flow Calculation for NYSE:Y using Excess Returns Model Model

The calculations below outline how an intrinsic value for Alleghany is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:Y Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (5.5% – 7.84%) * $532.40)
$-12.54
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-12.54 / (7.84% - 2.73%)
$-245.52
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $532.40 + $-245.52
$286.89
NYSE:Y Discount to Share Price
Calculation Result
Value per share (USD) From above. $286.89
Current discount Discount to share price of $698.42
= -1 x ($698.42 - $286.89) / $286.89
-143.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Alleghany is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alleghany's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alleghany's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $20.77
NYSE:Y Share Price ** NYSE (2019-07-18) in USD $698.42
United States of America Insurance Industry PE Ratio Median Figure of 89 Publicly-Listed Insurance Companies 17.55x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alleghany.

NYSE:Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:Y Share Price ÷ EPS (both in USD)

= 698.42 ÷ 20.77

33.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Alleghany's expected growth come at a high price?
Raw Data
NYSE:Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 33.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
22%per year
United States of America Insurance Industry PEG Ratio Median Figure of 62 Publicly-Listed Insurance Companies 1.83x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 33.62x ÷ 22%

1.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alleghany is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alleghany's assets?
Raw Data
NYSE:Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $570.09
NYSE:Y Share Price * NYSE (2019-07-18) in USD $698.42
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:Y Share Price ÷ Book Value per Share (both in USD)

= 698.42 ÷ 570.09

1.23x

* Primary Listing of Alleghany.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alleghany is good value based on assets compared to the US Insurance industry average.
X
Value checks
We assess Alleghany's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Alleghany has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alleghany expected to grow at an attractive rate?
  • Alleghany's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Alleghany's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Alleghany's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NYSE:Y Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 22%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 8.8%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:Y Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31
2020-12-31 566
2019-12-31 830
NYSE:Y Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,623 341 308
2018-12-31 6,887 402 40
2018-09-30 7,331 343 905
2018-06-30 6,821 391 306
2018-03-31 6,477 483 113
2017-12-31 6,425 446 90
2017-09-30 6,209 645 6
2017-06-30 6,156 675 476
2017-03-31 6,185 711 452
2016-12-31 6,131 793 457
2016-09-30 6,028 338 541
2016-06-30 5,602 319 482

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alleghany's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Alleghany is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Alleghany Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:Y Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31
2020-12-31 39.62 39.62 39.62 1.00
2019-12-31 57.57 57.57 57.57 1.00
NYSE:Y Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 20.77
2018-12-31 2.62
2018-09-30 59.44
2018-06-30 19.93
2018-03-31 7.31
2017-12-31 5.85
2017-09-30 0.41
2017-06-30 30.89
2017-03-31 29.27
2016-12-31 29.60
2016-09-30 34.95
2016-06-30 30.89

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Alleghany will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Alleghany's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alleghany has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alleghany performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alleghany's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (173.9% vs -20.7%)
  • Alleghany's earnings growth has exceeded the US Insurance industry average in the past year (173.9% vs 9.2%).
Earnings and Revenue History
Alleghany's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alleghany Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:Y Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,623.46 308.19 27.32
2018-12-31 6,887.16 39.54 15.73
2018-09-30 7,330.84 904.89 61.40
2018-06-30 6,820.90 305.84 37.61
2018-03-31 6,477.16 112.53 37.90
2017-12-31 6,424.66 90.13 47.00
2017-09-30 6,209.28 6.34 35.62
2017-06-30 6,156.41 476.33 51.06
2017-03-31 6,184.52 451.59 50.11
2016-12-31 6,131.02 456.92 42.96
2016-09-30 6,027.98 540.91 47.00
2016-06-30 5,602.40 481.60 47.18
2016-03-31 5,320.81 587.01 43.56
2015-12-31 4,999.48 557.72 46.50
2015-09-30 4,949.13 543.28 48.72
2015-06-30 5,112.01 633.07 47.25
2015-03-31 5,102.79 599.57 50.10
2014-12-31 5,231.81 679.24 47.05
2014-09-30 5,292.18 745.43 41.91
2014-06-30 5,129.74 672.28 36.14
2014-03-31 5,034.74 637.01 33.32
2013-12-31 4,971.65 628.42 44.91
2013-09-30 4,849.68 330.56 34.13
2013-06-30 4,866.23 342.84 39.75
2013-03-31 4,904.40 338.44 40.97
2012-12-31 4,234.77 702.24 42.04
2012-09-30 3,276.35 832.53 41.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Alleghany has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Alleghany used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • Alleghany's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alleghany's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alleghany has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alleghany's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alleghany's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Alleghany's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alleghany Company Filings, last reported 3 months ago.

NYSE:Y Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 8,412.21 1,676.42 2,050.45
2018-12-31 7,862.47 1,669.04 1,932.54
2018-09-30 8,733.59 1,581.68 1,337.54
2018-06-30 8,539.76 1,569.37 1,096.05
2018-03-31 8,511.03 1,540.87 1,322.70
2017-12-31 8,620.59 1,484.90 1,416.43
2017-09-30 8,304.50 1,486.38 1,249.63
2017-06-30 8,535.94 1,487.48 1,344.48
2017-03-31 8,258.32 1,471.18 2,349.53
2016-12-31 8,014.67 1,476.49 1,372.50
2016-09-30 8,182.31 1,462.68 1,321.28
2016-06-30 7,991.52 1,417.33 1,132.53
2016-03-31 7,797.60 1,423.97 1,003.36
2015-12-31 7,580.43 1,419.36 841.08
2015-09-30 7,460.79 1,788.69 925.22
2015-06-30 7,650.38 1,795.97 1,249.36
2015-03-31 7,638.31 1,808.60 1,051.03
2014-12-31 7,482.04 1,767.13 1,320.81
2014-09-30 7,414.47 2,079.17 1,399.57
2014-06-30 7,407.30 1,785.66 1,034.70
2014-03-31 7,138.08 1,790.04 1,408.09
2013-12-31 6,947.52 1,794.41 1,816.21
2013-09-30 6,739.57 1,798.71 1,363.96
2013-06-30 6,498.37 1,803.01 1,365.58
2013-03-31 6,625.30 1,807.25 1,331.99
2012-12-31 6,403.79 1,811.48 1,015.57
2012-09-30 6,581.07 1,815.66 806.41
  • Alleghany's level of debt (19.9%) 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 (25.1% vs 19.9% today).
  • Debt is well covered by operating cash flow (20.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.2x coverage).
X
Financial health checks
We assess Alleghany's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alleghany has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Alleghany dividends.
If you bought $2,000 of Alleghany shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:Y Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Alleghany's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Alleghany has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Alleghany's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alleghany afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alleghany has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Weston Hicks
COMPENSATION $8,129,352
AGE 62
TENURE AS CEO 14.6 years
CEO Bio

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 Insurance Holdings LLC since December 31, 2004. Previously, he served as a Senior Research Analyst at Scb Inc. He served as an Executive Vice President at Alleghany Corporation from October 2002 to December 2004. Prior to this, he served as Chief Financial Officer and Executive Vice President at The Chubb Corporation from March 2001 to October 2002. He also served as Equity Analyst of JP Morgan Chase & Co, Research Division and Sanford C. Bernstein & Co., LLC., Research Division. Mr. Hicks served as a Senior Research Analyst at Sanford C. Bernstein & Co., Inc. from March 1991 to February 1999. He served as Senior Research Analyst and Managing Director at J.P. Morgan Securities from February 1999 to March 2001. He has been a Director of Transatlantic Holdings Inc., since March 6, 2012. He has been a Director of Alleghany Corporation since December 31, 2004. He served as a Director of Alliancebernstein Corporation, General Partner of AllianceBernstein Holding L.P. and AllianceBernstein LP since July 2005 until April 28, 2017. He served as Director of Darwin Professional Underwriters, Inc. from 2003 to October 20, 2008. Mr. Hicks is a Chartered Financial Analyst. He holds a B.S. in Business and Economics from Lehigh University.

CEO Compensation
  • Weston's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Weston's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Alleghany management team in years:

11.2
Average Tenure
58
Average Age
  • The average tenure for the Alleghany management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Weston Hicks

TITLE
President
COMPENSATION
$8M
AGE
62
TENURE
14.6 yrs

Christopher Dalrymple

TITLE
Senior VP
COMPENSATION
$3M
AGE
51
TENURE
10 yrs

Joe Brandon

TITLE
Executive Vice President
COMPENSATION
$6M
AGE
60
TENURE
7.3 yrs

Kerry Jacobs

TITLE
Senior VP

Jerry Borrelli

TITLE
VP of Finance & Chief Accounting Officer
COMPENSATION
$954K
AGE
53
TENURE
13 yrs

John Shannon

TITLE
VP & Head of Fixed Income
TENURE
1.4 yrs

Peter Sismondo

TITLE
VP, Controller & Assistant Secretary
COMPENSATION
$874K
AGE
63
TENURE
31.5 yrs

Mike Sapnar

TITLE
CEO & President of Transatlantic Holdings
AGE
53

Andrew Carr

TITLE
VP & Tax Director
COMPENSATION
$863K
AGE
58
TENURE
12.3 yrs

Stela Burghart

TITLE
VP, Associate General Counsel & Assistant Secretary
TENURE
7.3 yrs
Board of Directors Tenure

Average tenure and age of the Alleghany board of directors in years:

9.6
Average Tenure
66
Average Age
  • The tenure for the Alleghany board of directors is about average.
Board of Directors

Jefferson Kirby

TITLE
Chairman of the Board
COMPENSATION
$330K
AGE
57
TENURE
9 yrs

Weston Hicks

TITLE
President
COMPENSATION
$8M
AGE
62
TENURE
14.6 yrs

William Lavin

TITLE
Director
COMPENSATION
$270K
AGE
74
TENURE
27.3 yrs

Raymond L. Wong

TITLE
Director
COMPENSATION
$265K
AGE
66
TENURE
13.3 yrs

Karen Brenner

TITLE
Director
COMPENSATION
$257K
AGE
66
TENURE
9.6 yrs

Phillip Martineau

TITLE
Director
COMPENSATION
$247K
AGE
71
TENURE
9.6 yrs

John Foos

TITLE
Director
COMPENSATION
$252K
AGE
69
TENURE
7.3 yrs

Ian Chippendale

TITLE
Director
COMPENSATION
$247K
AGE
70
TENURE
7.3 yrs

Lauren Tyler

TITLE
Independent Director
AGE
57
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Alleghany individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. May 19 Sell Phillip Martineau Individual 21. May 19 21. May 19 -559 $684.53 $-382,654
10. May 19 Sell William Lavin Individual 10. May 19 10. May 19 -286 $665.25 $-190,260
10. May 19 Buy Lauren Tyler Individual 10. May 19 10. May 19 1,485 $672.34 $992,885
29. Mar 19 Sell Phillip Martineau Individual 29. Mar 19 29. Mar 19 -230 $613.47 $-141,098
X
Management checks
We assess Alleghany's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alleghany has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Why Alleghany Corporation's (NYSE:Y) High P/E Ratio Isn't Necessarily A Bad Thing

Looking at earnings over the last twelve months, Alleghany has a P/E ratio of 33.92. … See our latest analysis for Alleghany How Do I Calculate Alleghany's Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Alleghany: P/E of 33.92 = $704.7 ÷ $20.77 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good?

Simply Wall St -

Is Alleghany (NYSE:Y) A Risky Investment?

We note that Alleghany Corporation (NYSE:Y) does have debt on its balance sheet. … NYSE:Y Historical Debt, June 27th 2019 A Look At Alleghany's Liabilities The latest balance sheet data shows that Alleghany had liabilities of US$2.54b due within a year, and liabilities of US$14.8b falling due after that. … Alleghany may have net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt.

Simply Wall St -

The Alleghany (NYSE:Y) Share Price Is Up 58% And Shareholders Are Holding On

For example, long term Alleghany Corporation (NYSE:Y) shareholders have enjoyed a 58% share price rise over the last half decade, well in excess of the market return of around 39% (not including dividends). … Alleghany's earnings per share are down 11% per year, despite strong share price performance over five years. … We'd be remiss not to mention the difference between Alleghany's total shareholder return (TSR) and its share price return.

Simply Wall St -

With A 3.9% Return On Equity, Is Alleghany Corporation (NYSE:Y) A Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Alleghany: 3.9% = US$308m ÷ US$8.4b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … In my book the highest quality companies have high return on equity, despite low debt. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

How Much Are Alleghany Corporation (NYSE:Y) Insiders Taking Off The Table?

As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. … Alleghany insiders didn't buy any shares over the last year

Simply Wall St -

What Kind Of Shareholder Owns Most Alleghany Corporation (NYSE:Y) Stock?

Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Alleghany is a pretty big company. … Normally institutions would own a significant portion of a company this size.

Simply Wall St -

If You Had Bought Alleghany Stock Five Years Ago, You Could Pocket A 56% Gain Today

Alleghany's earnings per share are down 41% per year, despite strong share price performance over five years. … Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. … In contrast revenue growth of 7.7% per year is probably viewed as evidence that Alleghany is growing, a real positive.

Simply Wall St -

A Note On Alleghany Corporation's (NYSE:Y) ROE and Debt To Equity

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Alleghany has a return on equity of 11% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Have Insiders Been Selling Alleghany Corporation (NYSE:Y) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Alleghany Corporation (NYSE:Y). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … That means that even when the share price was below the current price of US$616, an insider wanted to cash in some shares.

Simply Wall St -

How Much Did Alleghany Corporation's (NYSE:Y) CEO Pocket Last Year?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Weston Hicks's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Alleghany Corporation has a market cap of US$9.4b, and is paying total annual CEO compensation of US$9.6m.

Simply Wall St -

Company Info

Description

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, management, 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 manufacturer/remanufacturer of specialty machine tools, as well as 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 provides technical engineering 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, 2018, it owned approximately 125 acres of property. Alleghany Corporation was founded in 1929 and is based in New York, New York.

Details
Name: Alleghany Corporation
Y
Exchange: NYSE
Founded: 1929
$10,086,837,261
14,442,366
Website: http://www.alleghany.com
Address: Alleghany Corporation
1411 Broadway,
34th Floor,
New York,
New York, 10018,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE Y Common Stock New York Stock Exchange US USD 24. Dec 1986
DB AGA Common Stock Deutsche Boerse AG DE EUR 24. Dec 1986
Number of employees
Current staff
Staff numbers
9,300
Alleghany employees.
Industry
Reinsurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 23:32
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.