OLD REPUBLIC INTL CORP (ORI) Stock Fundamental Analysis
NYSE:ORI - New York Stock Exchange, Inc. - US6802231042 - Common Stock - Currency: USD
ORI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. While ORI is still in line with the averages on profitability rating, there are concerns on its financial health. ORI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year ORI was profitable.
ORI had a positive operating cash flow in the past year.
ORI had positive earnings in each of the past 5 years.
In the past 5 years ORI always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.79%, ORI is doing good in the industry, outperforming 65.73% of the companies in the same industry.
With a decent Return On Equity value of 13.19%, ORI is doing good in the industry, outperforming 65.03% of the companies in the same industry.
ORI has a better Return On Invested Capital (3.04%) than 64.34% of its industry peers.
ORI had an Average Return On Invested Capital over the past 3 years of 3.40%. This is in line with the industry average of 4.13%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 13.19% | ||
| ROIC | 3.04% |
ROA(3y)2.68%
ROA(5y)3.33%
ROE(3y)11.88%
ROE(5y)13.39%
ROIC(3y)3.4%
ROIC(5y)3.48%
1.3 Margins
Looking at the Profit Margin, with a value of 9.39%, ORI is in the better half of the industry, outperforming 60.84% of the companies in the same industry.
In the last couple of years the Profit Margin of ORI has declined.
The Operating Margin of ORI (12.60%) is better than 60.84% of its industry peers.
ORI's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.6% | ||
| PM (TTM) | 9.39% | ||
| GM | N/A |
OM growth 3Y-0.36%
OM growth 5Y4.91%
PM growth 3Y-16.67%
PM growth 5Y-7.66%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ORI has less shares outstanding
The number of shares outstanding for ORI has been reduced compared to 5 years ago.
The debt/assets ratio for ORI has been reduced compared to a year ago.
2.2 Solvency
ORI has a debt to FCF ratio of 1.22. This is a very positive value and a sign of high solvency as it would only need 1.22 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.22, ORI is in line with its industry, outperforming 53.85% of the companies in the same industry.
ORI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
ORI has a Debt to Equity ratio of 0.27. This is in the better half of the industry: ORI outperforms 62.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ORI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.78%, which is quite good.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
The Revenue has grown by 8.72% in the past year. This is quite good.
The Revenue has been growing slightly by 3.76% on average over the past years.
EPS 1Y (TTM)17.78%
EPS 3Y-0.54%
EPS 5Y10.68%
EPS Q2Q%20.9%
Revenue 1Y (TTM)8.72%
Revenue growth 3Y-1.34%
Revenue growth 5Y3.76%
Sales Q2Q%11.37%
3.2 Future
Based on estimates for the next years, ORI will show a small growth in Earnings Per Share. The EPS will grow by 4.15% on average per year.
Based on estimates for the next years, ORI will show a small growth in Revenue. The Revenue will grow by 6.76% on average per year.
EPS Next Y7.98%
EPS Next 2Y7.26%
EPS Next 3Y4.15%
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.76%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.89, the valuation of ORI can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ORI is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.25. ORI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.81, which indicates a very decent valuation of ORI.
The rest of the industry has a similar Price/Forward Earnings ratio as ORI.
ORI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.81 |
4.2 Price Multiples
ORI's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.18 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ORI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ORI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.49
PEG (5Y)1.11
EPS Next 2Y7.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
ORI has a Yearly Dividend Yield of 3.09%.
ORI's Dividend Yield is a higher than the industry average which is at 3.20.
Compared to an average S&P500 Dividend Yield of 2.38, ORI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
5.2 History
The dividend of ORI decreases each year by -10.29%.
ORI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
ORI pays out 98.40% of its income as dividend. This is not a sustainable payout ratio.
DP98.4%
EPS Next 2Y7.26%
EPS Next 3Y4.15%
37.8
+0.2 (+0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.18%
Inst Owner Change1.2%
Ins Owners0.3%
Ins Owner Change-0.08%
Market Cap9.34B
Analysts75
Price Target42.84 (13.33%)
Short Float %1.54%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.09% |
Yearly Dividend1.03
Dividend Growth(5Y)-10.29%
DP98.4%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.11%
Min EPS beat(2)8.23%
Max EPS beat(2)27.98%
EPS beat(4)3
Avg EPS beat(4)12.61%
Min EPS beat(4)-3.34%
Max EPS beat(4)27.98%
EPS beat(8)6
Avg EPS beat(8)8.99%
EPS beat(12)10
Avg EPS beat(12)12.54%
EPS beat(16)13
Avg EPS beat(16)14.52%
Revenue beat(2)2
Avg Revenue beat(2)0.6%
Min Revenue beat(2)0.19%
Max Revenue beat(2)1%
Revenue beat(4)4
Avg Revenue beat(4)1.95%
Min Revenue beat(4)0.19%
Max Revenue beat(4)3.83%
Revenue beat(8)4
Avg Revenue beat(8)-0.57%
Revenue beat(12)6
Avg Revenue beat(12)1.23%
Revenue beat(16)10
Avg Revenue beat(16)3.8%
PT rev (1m)1.2%
PT rev (3m)3.7%
EPS NQ rev (1m)2.37%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.81 | ||
| P/S | 1.12 | ||
| P/FCF | 7.18 | ||
| P/OCF | 7.18 | ||
| P/B | 1.58 | ||
| P/tB | 1.58 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.18
EY8.41%
EPS(NY)3.5
Fwd EY9.25%
FCF(TTM)5.26
FCFY13.93%
OCF(TTM)5.26
OCFY13.93%
SpS33.65
BVpS23.94
TBVpS23.94
PEG (NY)1.49
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 13.19% | ||
| ROCE | 3.81% | ||
| ROIC | 3.04% | ||
| ROICexc | 3.07% | ||
| ROICexgc | 4.51% | ||
| OM | 12.6% | ||
| PM (TTM) | 9.39% | ||
| GM | N/A | ||
| FCFM | 15.64% |
ROA(3y)2.68%
ROA(5y)3.33%
ROE(3y)11.88%
ROE(5y)13.39%
ROIC(3y)3.4%
ROIC(5y)3.48%
ROICexc(3y)3.41%
ROICexc(5y)3.5%
ROICexgc(3y)4.84%
ROICexgc(5y)4.84%
ROCE(3y)4.25%
ROCE(5y)4.36%
ROICexcg growth 3Y-2.37%
ROICexcg growth 5Y5.05%
ROICexc growth 3Y-5.01%
ROICexc growth 5Y2.94%
OM growth 3Y-0.36%
OM growth 5Y4.91%
PM growth 3Y-16.67%
PM growth 5Y-7.66%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.22 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 13.26 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 166.64% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)153.91%
Profit Quality(5y)151.85%
High Growth Momentum
Growth
EPS 1Y (TTM)17.78%
EPS 3Y-0.54%
EPS 5Y10.68%
EPS Q2Q%20.9%
EPS Next Y7.98%
EPS Next 2Y7.26%
EPS Next 3Y4.15%
EPS Next 5YN/A
Revenue 1Y (TTM)8.72%
Revenue growth 3Y-1.34%
Revenue growth 5Y3.76%
Sales Q2Q%11.37%
Revenue Next Year7.29%
Revenue Next 2Y6.76%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
EBIT growth 1Y-5.19%
EBIT growth 3Y-1.69%
EBIT growth 5Y8.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.06%
FCF growth 3Y-2.12%
FCF growth 5Y5.61%
OCF growth 1Y24.06%
OCF growth 3Y-2.12%
OCF growth 5Y5.61%