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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.28
Y's Cash to Debt is ranked higher than
57% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 2.89 vs. Y: 0.28 )
Y' s 10-Year Cash to Debt Range
Min: 0.06   Max: No Debt
Current: 0.28

Equity to Asset 0.30
Y's Equity to Asset is ranked higher than
83% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.21 vs. Y: 0.30 )
Y' s 10-Year Equity to Asset Range
Min: 0.25   Max: 0.72
Current: 0.3

0.25
0.72
Interest Coverage 9.86
Y's Interest Coverage is ranked higher than
61% of the 88 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 33.72 vs. Y: 9.86 )
Y' s 10-Year Interest Coverage Range
Min: 3.82   Max: 9999.99
Current: 9.86

3.82
9999.99
F-Score: 3
Z-Score: 0.77
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 17.20
Y's Operating margin (%) is ranked higher than
90% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.09 vs. Y: 17.20 )
Y' s 10-Year Operating margin (%) Range
Min: 6.17   Max: 35.18
Current: 17.2

6.17
35.18
Net-margin (%) 12.64
Y's Net-margin (%) is ranked higher than
86% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 6.46 vs. Y: 12.64 )
Y' s 10-Year Net-margin (%) Range
Min: 4.78   Max: 327.19
Current: 12.64

4.78
327.19
ROE (%) 9.08
Y's ROE (%) is ranked higher than
69% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.02 vs. Y: 9.08 )
Y' s 10-Year ROE (%) Range
Min: 2.76   Max: 16.02
Current: 9.08

2.76
16.02
ROA (%) 2.69
Y's ROA (%) is ranked higher than
80% of the 98 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 2.19 vs. Y: 2.69 )
Y' s 10-Year ROA (%) Range
Min: 0.9   Max: 11.48
Current: 2.69

0.9
11.48
ROC (Joel Greenblatt) (%) 1450.19
Y's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 78 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 147.68 vs. Y: 1450.19 )
Y' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 59.07   Max: 2190.42
Current: 1450.19

59.07
2190.42
Revenue Growth (%) 39.80
Y's Revenue Growth (%) is ranked higher than
96% of the 89 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 8.20 vs. Y: 39.80 )
Y' s 10-Year Revenue Growth (%) Range
Min: -56.8   Max: 140.6
Current: 39.8

-56.8
140.6
EBITDA Growth (%) 26.70
Y's EBITDA Growth (%) is ranked higher than
92% of the 84 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 7.60 vs. Y: 26.70 )
Y' s 10-Year EBITDA Growth (%) Range
Min: 0   Max: 139.7
Current: 26.7

0
139.7
EPS Growth (%) 19.60
Y's EPS Growth (%) is ranked higher than
89% of the 83 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 8.20 vs. Y: 19.60 )
Y' s 10-Year EPS Growth (%) Range
Min: -48.8   Max: 135.7
Current: 19.6

-48.8
135.7
» Y's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

Y Guru Trades in Q2 2013

Jean-Marie Eveillard 177,302 sh (+4.73%)
First Pacific Advisors 297,823 sh (+0.71%)
Chuck Royce 600,820 sh (+0.47%)
Meryl Witmer 7,148 sh (unchged)
Steven Romick 286,200 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Mario Gabelli 3,695 sh (unchged)
Martin Whitman 75,858 sh (unchged)
Tom Russo Sold Out
Zeke Ashton Sold Out
Whitney Tilson Sold Out
Chris Davis 1,925,153 sh (-5.13%)
Diamond Hill Capital 61,859 sh (-6.58%)
Third Avenue Management 258,504 sh (-6.62%)
Michael Price 74,500 sh (-15.38%)
Steven Cohen 1,262 sh (-61.21%)
» More
Q3 2013

Y Guru Trades in Q3 2013

Jim Simons 2,988 sh (New)
Jean-Marie Eveillard 182,744 sh (+3.07%)
Michael Price 74,500 sh (unchged)
Tom Gayner 4,328 sh (unchged)
Martin Whitman 75,858 sh (unchged)
Steven Cohen Sold Out
Chuck Royce 586,918 sh (-2.31%)
Mario Gabelli 3,595 sh (-2.71%)
Diamond Hill Capital 57,959 sh (-6.3%)
Third Avenue Management 242,104 sh (-6.34%)
Chris Davis 1,797,619 sh (-6.62%)
Steven Romick 248,034 sh (-13.34%)
First Pacific Advisors 257,770 sh (-13.45%)
» More
Q4 2013

Y Guru Trades in Q4 2013

HOTCHKIS & WILEY 75,655 sh (New)
Paul Tudor Jones 1,100 sh (New)
Zeke Ashton 10,000 sh (New)
Steven Cohen 1,050 sh (New)
Jim Simons 21,788 sh (+629.18%)
Jean-Marie Eveillard 286,592 sh (+56.83%)
First Pacific Advisors 258,425 sh (+0.25%)
Tom Gayner 4,328 sh (unchged)
Steven Romick 248,034 sh (unchged)
Michael Price 74,500 sh (unchged)
Martin Whitman 75,858 sh (unchged)
Chuck Royce 581,513 sh (-0.92%)
Mario Gabelli 3,295 sh (-8.34%)
Third Avenue Management 211,651 sh (-12.58%)
Diamond Hill Capital 49,650 sh (-14.34%)
Chris Davis 1,416,323 sh (-21.21%)
» More
Q1 2014

Y Guru Trades in Q1 2014

Steven Romick 268,776 sh (+8.36%)
Martin Whitman 80,858 sh (+6.59%)
» More
» Details

Insider Trades

Latest Guru Trades with Y

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Jean-Marie Eveillard 2013-12-31 Add 56.83%0.11%$389.79 - $411.22 $ 409.173%286592
Michael Price 2013-06-30 Reduce -15.38%0.71%$368.74 - $400 $ 409.176%74500
Ruane Cunniff 2013-03-31 Sold Out 0.04%$335.42 - $395.92 $ 409.1710%0
Joel Greenblatt 2013-03-31 Sold Out 0.01%$335.42 - $395.92 $ 409.1710%0
Jean-Marie Eveillard 2012-12-31 Add 41.23%0.06%$325.56 - $355.46 $ 409.1721%168702
Joel Greenblatt 2012-09-30 New Buy0.01%$328.19 - $355.64 $ 409.1719%601
Martin Whitman 2012-07-31 Add 70.68%0.39%$320.45 - $346.85 $ 409.1722%68099
Martin Whitman 2012-04-30 New Buy0.53%$287 - $340.98 $ 409.1727%39898
Michael Price 2012-03-31 New Buy4.1%$284.25 - $338.8 $ 409.1742%88044
Jean-Marie Eveillard 2012-03-31 Add 29.2%0.04%$284.25 - $338.8 $ 409.1742%119452
Ruane Cunniff 2012-03-31 New Buy0.04%$284.25 - $338.8 $ 409.1742%14254
Jean-Marie Eveillard 2011-12-31 Add 31.45%0.03%$277.15 - $321.57 $ 409.1738%92452
Jean-Marie Eveillard 2011-09-30 Add 24.52%0.02%$278.74 - $335.25 $ 409.1734%70332
Mario Gabelli 2011-03-31 Reduce -90.47%0.09%$298.088 - $335.529 $ 409.1730%3497
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Alleghany Corp

Third Avenue Management Comments on Alleghany Corp - Jun 28, 2012

From Third Avenue Management's second-quarter letter:

We initiated a position in Alleghany Common (Y), which was purchased in TASCX and discussed in last quarter's TASCX shareholder letter. Curtis Jensen and I attended a lunch with a small group of investors and Alleghany's CEO, Weston Hicks, in April. Weston seems to be our type of CEO: he is non-promotional and focused on generating shareholder value by growing book value per share. The company has no dedicated investor relations person and does not do quarterly earnings calls, but instead provides comprehensive financial disclosures aimed at enabling long-term investors, as opposed to short-term speculators, to make informed investment decisions. Weston's presentation to investors consisted of a one page Excel spreadsheet showing the company's performance since 2002, when he joined the company. Over this period, the company's average combined ratio was 90% (i.e., a 10% underwriting profit margin), and book value per share increased at a 9% compounded annual growth rate ("CAGR"). This growth was particularly impressive given the difficult underwriting environment over the period with competitive pricing and an elevated level of insured losses.

Future book value growth should be partially driven by the company's 2012 purchase of Transatlantic, a leading global reinsurer. This transaction appears to have been well timed, as it was completed at a significant discount to tangible book value and reinsurance rates are improving in 2012. Alleghany also recently announced a small acquisition of Bourn & Koch, Inc., an Illinois-based manufacturer of precision machine tools. This company will join several other noninsurance investments in Alleghany's portfolio and is representative of management's opportunistic approach and willingness to look outside the insurance industry to enhance shareholder value. Shares of Alleghany Common were purchased at a discount to tangible book value.

Check out Martin Whitman latest stock trades

Top Ranked Articles about Alleghany Corp

Sell-out Update from Ruane, Cunniff & Goldfarb
Managed by Ruane, Cunniff & Goldfarb Inc., the Sequoia Fund's investment objective is long-term capital growth. To that end, the fund focuses on undervalued common stocks that have growth potential. The recently updated portfolio of Ruane, Cunniff & Goldfarb Inc. lists 143 stocks, five of them new, with a total value of $15.18 billion and a quarter-over-quarter turnover of 1%. The portfolio’s top sectors are weighted as healthcare at 24.8%, consumer cyclical at 23.4% and financial services at 21.5%. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 11.00
Y's P/E(ttm) is ranked higher than
68% of the 91 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.00 vs. Y: 11.00 )
Y' s 10-Year P/E(ttm) Range
Min: 4.74   Max: 62.4
Current: 11

4.74
62.4
P/B 1.00
Y's P/B is ranked higher than
79% of the 97 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.20 vs. Y: 1.00 )
Y' s 10-Year P/B Range
Min: 0.69   Max: 1.51
Current: 1

0.69
1.51
P/S 1.40
Y's P/S is ranked higher than
55% of the 104 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.07 vs. Y: 1.40 )
Y' s 10-Year P/S Range
Min: 0.9   Max: 3.5
Current: 1.4

0.9
3.5
PFCF 12.10
Y's PFCF is ranked higher than
65% of the 71 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 11.75 vs. Y: 12.10 )
Y' s 10-Year PFCF Range
Min: 3.21   Max: 54.41
Current: 12.1

3.21
54.41
EV-to-EBIT 10.20
Y's EV-to-EBIT is ranked higher than
61% of the 95 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 9.40 vs. Y: 10.20 )
Y' s 10-Year EV-to-EBIT Range
Min: 5.6   Max: 237.3
Current: 10.2

5.6
237.3
PEG 0.60
Y's PEG is ranked higher than
78% of the 59 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.70 vs. Y: 0.60 )
Y' s 10-Year PEG Range
Min: 0.11   Max: 44.38
Current: 0.6

0.11
44.38
Shiller P/E 13.50
Y's Shiller P/E is ranked higher than
59% of the 66 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 12.02 vs. Y: 13.50 )
Y' s 10-Year Shiller P/E Range
Min: 9.87   Max: 39.04
Current: 13.5

9.87
39.04

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.00
Y's Price/Tangible Book is ranked higher than
83% of the 95 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.60 vs. Y: 1.00 )
Y' s 10-Year Price/Tangible Book Range
Min: 0.72   Max: 1.45
Current: 1

0.72
1.45
Price/DCF (Projected) 0.70
Y's Price/DCF (Projected) is ranked higher than
72% of the 61 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.70 vs. Y: 0.70 )
Y' s 10-Year Price/DCF (Projected) Range
Min: 0.28   Max: 1.5
Current: 0.7

0.28
1.5
Price/Median PS Value 0.60
Y's Price/Median PS Value is ranked higher than
98% of the 95 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 1.00 vs. Y: 0.60 )
Y' s 10-Year Price/Median PS Value Range
Min: 0.16   Max: 2.32
Current: 0.6

0.16
2.32
Price/Peter Lynch Fair Value 0.40
Y's Price/Peter Lynch Fair Value is ranked higher than
91% of the 33 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.60 vs. Y: 0.40 )
Y' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.23   Max: 5.42
Current: 0.4

0.23
5.42
Price/Graham Number 0.70
Y's Price/Graham Number is ranked higher than
82% of the 87 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 0.80 vs. Y: 0.70 )
Y' s 10-Year Price/Graham Number Range
Min: 0.57   Max: 2.79
Current: 0.7

0.57
2.79
Earnings Yield (Greenblatt) 9.80
Y's Earnings Yield (Greenblatt) is ranked higher than
63% of the 95 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 10.70 vs. Y: 9.80 )
Y' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 17.9
Current: 9.8

0.4
17.9
Forward Rate of Return (Yacktman) 67.70
Y's Forward Rate of Return (Yacktman) is ranked higher than
98% of the 83 Companies
in the Global Insurance - Reinsurance industry.

( Industry Median: 13.60 vs. Y: 67.70 )
Y' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 2.4   Max: 75.6
Current: 67.7

2.4
75.6

Business Description

Industry: Insurance - Specialty » Insurance - Reinsurance
Compare:HVRRY, RE, SZCRF, RGA, VR » details
Traded in other countries:AGA.Germany
Alleghany Corp DEL was incorporated in 1984 under the laws of the State of Delaware. In December 1986, the Company succeeded to the business of its parent company, Alleghany Corporation, a Maryland corporation incorporated in 1929, upon its liquidation. Alleghany is engaged, through Alleghany Insurance Holdings LLC or 'AIHL' and its subsidiaries RSUI, CATA and EDC, in the property and casualty and surety insurance business. The Company owns an approximately 38 percent ownership stake in ORX Exploration, Inc., or 'ORX,' a regional oil and gas exploration and production company, and an approximately 33 percent stake in Homesite Group Incorporated, or 'Homesite,' a national, full-service, mono-line provider of homeowners insurance. AIHL is Alleghany's holding company for its property and casualty and surety insurance operations. Property and casualty operations are conducted through RSUI, headquartered in Atlanta, Georgia, CATA, headquartered in Middleton, Wisconsin and EDC, headquartered in Agoura Hills, California. Surety operations are conducted through CATA. AIHL Re, its Vermont-domiciled captive reinsurance company, has, in the past, been available to provide reinsurance to its insurance operating units and affiliates. RSUI, which includes the operations of its operating subsidiaries RSUI Indemnity Company, or 'RIC,' Landmark American Insurance Company, or 'Landmark,' and Covington Specialty Insurance Company, or 'Covington,', underwrites specialty insurance coverages in the property, umbrella/excess, general liability, directors and officers liability and professional liability lines of business. RSUI writes business on an admitted basis mainly through RIC in the 50 states and the District of Columbia where RIC is licensed and subject to form and rate regulations. RSUI writes business on an approved, non-admitted basis primarily through Landmark, which, as a non-admitted company. RSUI's wholesale brokers are appointed on an individual basis based on management's appraisal of expertise and experience and only specific locations of a wholesale broker's operations might be appointed to distribute RSUI's products. CATA, mainly through its wholly-owned subsidiaries, Capitol Indemnity Corporation, or 'Capitol Indemnity,' and Capitol Specialty Insurance Corporation, or 'CSIC,' operates in 50 states and the District of Columbia, with a geographic concentration in the Midwestern and Plains states. Capitol Indemnity conducts its property and casualty insurance business on an admitted basis, with a geographic concentration in the Midwestern and Plains states. Capitol Indemnity also writes surety products such as commercial surety bonds and contract surety bonds on a national basis. PCC's main business is workers' compensation insurance, which is conducted on a direct basis through its wholly-owned subsidiary Pacific Compensation Insurance Company, or 'PCIC'. It is currently licensed in California and seven additional states. Workers' com

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