WRB

Of course. Here is a consolidated analysis of WRB.

**Overall Analysis**

WRB presents a compelling case of a fundamentally sound company experiencing a temporary technical downturn. Its sturdy financial health, reasonable valuation, and low volatility profile contrast sharply with its recent significant price decline, suggesting a potential buying opportunity for value-oriented investors.

**Technical Perspective**

The stock is technically oversold after a severe -12.28% three-month decline, lagging the market considerably. Trading 14% below its 52-week high, it sits in the lower half of its annual range. This sharp sell-off appears overdone relative to its typically low volatility, indicating a potential reversal point.

**Fundamental Perspective**

Fundamentally, WRB is robust. It boasts strong profitability with a 13.6% net income margin and exceptional financial health, evidenced by a very low debt-to-equity ratio of 0.29 and strong interest coverage. However, operational efficiency is a concern, highlighted by a very high days sales outstanding (DSO) of 170 days, which needs improvement.

**Valuation & Risk**

Valuation is mixed but leans positive. The trailing P/E of 13.56 and a low PEG ratio of 0.54 signal potential undervaluation based on earnings growth. A key caution is the high EV/EBITDA ratio of 45.43, which requires scrutiny. The primary risk is operational, not financial, centered on working capital management.

**Investment Recommendation**

Based on the comprehensive analysis, a buy recommendation is warranted for long-term investors. The combination of a strong balance sheet, apparent undervaluation on an earnings basis, and a technically oversold condition creates a favorable risk-reward profile. Investors should monitor the company's progress in improving its receivables collection (DSO) to unlock further value.

RockFlow Model Forecast: Three Scenarios for 2026

Of course. Here is a 12-month outlook for WRB based on the provided analysis.

12-Month Outlook for WRB

Catalysts for potential outperformance include a likely technical rebound from severely oversold conditions and the unlocking of value as the market recognizes its strong fundamentals, including a robust balance sheet and attractive earnings-based valuation. Key risks center on persistent operational inefficiencies, particularly the extremely high days sales outstanding, which could continue to weigh on sentiment and cash flow if not addressed. Given the absence of a specific analyst target, a prudent 12-month price target range would be $75-$85, representing a 10-25% appreciation from the current $68 level as the disconnect between price and fundamentals corrects.

Wall Street Consensus

Most Wall Street analysts are optimistic about WRB's 12-month outlook, with consensus target around $69.18, indicating expected upside potential.

Overall, WRB has investment potential but also faces challenges. Here are key factors to weigh before investing.

WRB has demonstrated notable underperformance over the recent period, characterized by significant short-term declines despite its low volatility profile.

The stock has posted losses over both the one-month and three-month horizons, with the three-month decline of -12.28% being particularly severe. This performance has substantially lagged the broader market, as evidenced by a -15.65% relative strength figure, indicating it has fallen considerably more than the market average during this period.

Currently trading at $68, WRB's price sits approximately 26% above its 52-week low but is also nearly 14% below its 52-week high, positioning it in the lower-middle portion of its annual range. Given the recent sharp downturn and a moderate one-year max drawdown of -15.1%, the stock appears to be approaching an oversold condition rather than being overbought.

Of course. Here is a fundamental analysis of WRB based on the provided data.

Revenue & Profitability

WRB demonstrates stable revenue between Q2 and Q3 2025, with a slight increase to $3.77 billion. Profitability is strong, with gross profit margins holding steady around 18.2% and a healthy net income margin of 13.6% in Q3. The company's effective tax rate of approximately 21% indicates efficient tax management, contributing to solid bottom-line performance.

Financial Health

The company exhibits a very conservative capital structure, with a low debt-to-equity ratio of 0.29, suggesting minimal reliance on debt financing. This is further supported by a strong interest coverage ratio of 21.0, indicating ample earnings to cover interest obligations. The cash flow to debt ratio of 0.40 shows a moderate ability to cover debt from operating cash flows.

Operational Efficiency

WRB's operational efficiency is mixed. The return on equity (ROE) of 5.2% is relatively modest, which is consistent with the capital-intensive nature of the industry. However, the asset turnover ratio of 0.09 is low, suggesting the company is not generating a high volume of sales relative to its asset base. The high days sales outstanding (DSO) of 170 days points to a very long collection cycle for receivables, which is a significant area for potential improvement in working capital management.

Valuation Level

WRB appears modestly valued based on its trailing P/E ratio of 13.56 and forward P/E of 14.89, which suggest reasonable pricing relative to earnings. The stock's P/B ratio of 2.64 and P/S ratio of 1.76 further indicate a valuation that is not excessive and may be sustainable. The notably low PEG ratio of 0.54 signals potential undervaluation, as it implies strong expected earnings growth relative to the current P/E; however, the elevated EV/EBITDA of 45.43 is a significant concern, pointing to high enterprise value compared to operating cash flows and potentially overvaluation on that basis.

Peer Comparison

Without specific industry average data provided, a precise peer comparison is not feasible. Generally, WRB's P/E ratios in the mid-teens would be considered attractive if below the industry average, particularly given its strong growth outlook reflected in the low PEG ratio. The high EV/EBITDA ratio stands out as an area that warrants further investigation against industry benchmarks to determine if it is an outlier or consistent with sector norms for cash flow valuation.

Volatility Risk

WRB demonstrates below-average volatility risk, with a Beta of 0.388 indicating the stock is approximately 61% less volatile than the broader market. While this suggests a defensive profile, the stock experienced a maximum drawdown of -15.1% over the past year, which is a moderate level of peak-to-trough decline that investors should note, particularly during broader market downturns.

Other Risks

The absence of significant short interest is a positive signal, suggesting a lack of concentrated speculative bets against the company. However, risk remains tied to company-specific factors such as execution in its core business lines (insurance/reinsurance) and potential liquidity constraints that are not apparent from these metrics alone.