May 26, 2025 a 02:46 am
📊 WRB: Dividend Analysis - W. R. Berkley Corporation
W. R. Berkley Corporation (WRB) exhibits a stable dividend profile, characterized by a consistent dividend history spanning over four decades. With a considerable dividend yield and prudent payout ratios, it offers a reliable income source for investors. The firm’s strategic management of cash flows underscores its ability to sustain dividends in varying market conditions, making it an attractive option for dividend-focused portfolios.
Overview
| Metric | Value |
|---|---|
| Sector | Insurance |
| Dividend Yield | 2.71% |
| Current Dividend Per Share | 1.33 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
Dividend History
🗣️ Analysis of the dividend history highlights continuous payments and incremental growth despite economic fluctuations. Such a track record is pivotal for investor confidence and ensures returns over time.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.08 |
| 2024 | 1.72 |
| 2023 | 1.29 |
| 2022 | 0.59 |
| 2021 | 0.89 |
Dividend Growth
📈 Recent growth shows a steady increase in dividend payouts, which is vital for preserving purchasing power against inflation. A robust growth rate signifies the company’s capacity to boost investor returns long-term.
| Time | Growth |
|---|---|
| 3 years | 0.24% |
| 5 years | 0.18% |
The average dividend growth is 0.18% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
✅ Payout ratios reveal the sustainability of dividend payments. The EPS-based payout ratio stands at 30.51%, and the FCF-based ratio is 14.19%, both indicating a disciplined approach, allowing room for reinvestment and growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 30.51% |
| Free cash flow-based | 14.19% |
Cashflow & Capital Efficiency
⚠️ Analyses of cash flow efficiency are critical for sustaining dividend pay outs. WRB showcases stringently managed capital, evidenced by favorable ratios across Free Cash Flow Yield and high Earnings Yield, underscoring robust financial health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 15.27% | 14.87% | 12.40% |
| Earnings Yield | 7.51% | 7.14% | 6.81% |
| CAPEX to Operating Cash Flow | 2.87% | 1.81% | 2.05% |
| Stock-based Compensation to Revenue | 0.40% | 0.42% | 0.44% |
| Free Cash Flow / Operating Cash Flow | 97.13% | 98.19% | 97.95% |
| Return on Invested Capital | 4.50% | 8.16% | 35.73% |
Balance Sheet & Leverage Analysis
🔍 The balance sheet analysis enlightens on debt management and liquidity status. WRB maintains a prudent balance with commendable ratios in Debt-to-Equity and high Quick Ratios, suggesting conservative financial management.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.34 | 0.38 | 0.42 |
| Debt-to-Assets | 0.07 | 0.09 | 0.08 |
| Debt-to-Capital | 0.25 | 0.28 | 0.30 |
| Net Debt to EBITDA | 0.00 | 0.79 | 0.73 |
| Current Ratio | 0 | 0.43 | 83.09 |
| Quick Ratio | 10.77 | 0.43 | 385.21 |
| Financial Leverage | 4.83 | 4.41 | 5.02 |
Fundamental Strength & Profitability
📊 Exploring fundamental metrics such as ROE and Net Margins uncovers WRB's profitability strength. With consistent margins and returns, the company is well-poised to deliver competitive gradual financial performance.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 20.92% | 18.53% | 20.47% |
| Return on Assets | 4.33% | 4.20% | 4.08% |
| Net Margin | 12.88% | 11.38% | 12.31% |
| EBIT Margin | 17.53% | 15.50% | 16.49% |
| EBITDA Margin | 17.53% | 15.33% | 16.99% |
| Gross Margin | 100.00% | 72.30% | 73.60% |
| Research & Development to Revenue | 0.00% | 0.00% | 0.00% |
Price Development
Dividend Scoring System
| Category | Score | Representation |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
Rating
🗣️ Based on a thorough analysis of WRB's financial health and dividend performance, the company maintains a robust dividend strategy with moderate growth potential. The balance sheet strength and prudent payout ratios contribute to its investment appeal, making it a recommendable choice for income-centric portfolios.