OLD REPUBLIC INTL CORP (ORI) Stock Fundamental Analysis
NYSE:ORI - New York Stock Exchange, Inc. - US6802231042 - Common Stock - Currency: USD
Taking everything into account, ORI scores 5 out of 10 in our fundamental rating. ORI was compared to 144 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 65.28% of the companies in the same industry.
ORI has a better Return On Equity (13.19%) than 65.28% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.04%, ORI is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
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 4.07%.
| 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
The Profit Margin of ORI (9.39%) is better than 61.11% of its industry peers.
In the last couple of years the Profit Margin of ORI has declined.
ORI's Operating Margin of 12.60% is fine compared to the rest of the industry. ORI outperforms 60.42% of its industry peers.
In the last couple of years the Operating Margin of ORI has grown nicely.
| 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
ORI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ORI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ORI is 1.22, which is an excellent value as it means it would take ORI, only 1.22 years of fcf income to pay off all of its debts.
ORI has a Debt to FCF ratio (1.22) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.27 indicates that ORI is not too dependend on debt financing.
The Debt to Equity ratio of ORI (0.27) is better than 61.81% 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
The Earnings Per Share has grown by an nice 17.78% over the past year.
The Earnings Per Share has been growing by 10.68% on average over the past years. This is quite good.
Looking at the last year, ORI shows a quite strong growth in Revenue. The Revenue has grown by 8.72% in the last year.
ORI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
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
ORI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.15% yearly.
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
With a Price/Earnings ratio of 11.94, the valuation of ORI can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as ORI.
When comparing the Price/Earnings ratio of ORI to the average of the S&P500 Index (27.45), we can say ORI is valued rather cheaply.
ORI is valuated reasonably with a Price/Forward Earnings ratio of 10.86.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORI is on the same level as its industry peers.
ORI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 10.86 |
4.2 Price Multiples
ORI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.21 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of ORI may justify a higher PE ratio.
PEG (NY)1.5
PEG (5Y)1.12
EPS Next 2Y7.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
ORI has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
ORI's Dividend Yield is a higher than the industry average which is at 3.51.
ORI's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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.
ORI has decreased its dividend in the last 3 years.
Dividend Growth(5Y)-10.29%
Div Incr Years2
Div Non Decr Years2
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%
37.97
+0.44 (+1.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners72.56%
Inst Owner Change1.21%
Ins Owners0.28%
Ins Owner Change-1.07%
Market Cap9.38B
Analysts75
Price Target42.84 (12.83%)
Short Float %1.2%
Short Ratio2.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.03
Dividend Growth(5Y)-10.29%
DP98.4%
Div Incr Years2
Div Non Decr Years2
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)0%
PT rev (3m)3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.94 | ||
| Fwd PE | 10.86 | ||
| P/S | 1.13 | ||
| P/FCF | 7.21 | ||
| P/OCF | 7.21 | ||
| P/B | 1.59 | ||
| P/tB | 1.59 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.18
EY8.38%
EPS(NY)3.5
Fwd EY9.21%
FCF(TTM)5.26
FCFY13.86%
OCF(TTM)5.26
OCFY13.86%
SpS33.65
BVpS23.94
TBVpS23.94
PEG (NY)1.5
PEG (5Y)1.12
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%