For those who appreciate value investing, RENAISSANCERE HOLDINGS LTD (NYSE:RNR) is a compelling option with its solid fundamentals.

Last update: Mar 14, 2025

Discover RENAISSANCERE HOLDINGS LTD (NYSE:RNR), an undervalued stock highlighted by our stock screener. RNR showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: RNR

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. RNR scores a 7 out of 10:

With a Price/Earnings ratio of 5.51, the valuation of RNR can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of RNR indicates a rather cheap valuation: RNR is cheaper than 81.94% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 28.38. RNR is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.01, the valuation of RNR can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than 67.36% of the companies in the same industry.
RNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.15.
88.19% of the companies in the same industry are more expensive than RNR, based on the Enterprise Value to EBITDA ratio.
RNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RNR is cheaper than 79.86% of the companies in the same industry.
The decent profitability rating of RNR may justify a higher PE ratio.

Profitability Examination for RNR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. RNR has earned a 6 out of 10:

With a decent Return On Assets value of 4.27%, RNR is doing good in the industry, outperforming 78.47% of the companies in the same industry.
RNR's Return On Equity of 20.49% is amongst the best of the industry. RNR outperforms 81.25% of its industry peers.
RNR has a Return On Invested Capital of 6.61%. This is amongst the best in the industry. RNR outperforms 86.11% of its industry peers.
RNR has a Profit Margin of 18.22%. This is amongst the best in the industry. RNR outperforms 84.03% of its industry peers.
The Operating Margin of RNR (35.53%) is better than 95.83% of its industry peers.
RNR's Operating Margin has improved in the last couple of years.

ChartMill's Evaluation of Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. RNR was assigned a score of 5 for health:

RNR's Altman-Z score of 0.91 is fine compared to the rest of the industry. RNR outperforms 79.17% of its industry peers.
RNR has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.45, RNR belongs to the top of the industry, outperforming 84.03% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that RNR is not too dependend on debt financing.
RNR has a better Debt to Equity ratio (0.18) than 73.61% of its industry peers.
RNR's Current ratio of 0.61 is fine compared to the rest of the industry. RNR outperforms 77.08% of its industry peers.
RNR's Quick ratio of 0.61 is fine compared to the rest of the industry. RNR outperforms 77.08% of its industry peers.

What does the Growth looks like for RNR

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of RNR, the assigned 5 reflects its growth potential:

The Earnings Per Share has grown by an nice 15.74% over the past year.
Measured over the past years, RNR shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.08% on average per year.
The Revenue has grown by 16.25% in the past year. This is quite good.
Measured over the past years, RNR shows a very strong growth in Revenue. The Revenue has been growing by 23.24% on average per year.

More Decent Value stocks can be found in our Decent Value screener.

Our latest full fundamental report of RNR contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.