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 4 out of 10 in our fundamental rating. ORI was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of ORI while its profitability can be described as average. ORI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ORI had positive earnings in the past year.
ORI had a positive operating cash flow in the past year.
Each year in the past 5 years ORI has been profitable.
Each year in the past 5 years ORI had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ORI (2.79%) is better than 64.34% of its industry peers.
Looking at the Return On Equity, with a value of 13.19%, ORI is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.04%, ORI is in the better half of the industry, outperforming 65.73% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for ORI is in line with the industry average of 4.23%.
| 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
ORI's Profit Margin of 9.39% is in line compared to the rest of the industry. ORI outperforms 59.44% of its industry peers.
In the last couple of years the Profit Margin of ORI has declined.
With a Operating Margin value of 12.60%, ORI perfoms like the industry average, outperforming 57.34% of the companies in the same industry.
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
The number of shares outstanding for ORI has been reduced compared to 1 year ago.
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
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.
With a Debt to FCF ratio value of 1.22, ORI perfoms like the industry average, outperforming 56.64% of the companies in the same 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 62.94% 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.
ORI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.68% yearly.
The Revenue has grown by 8.72% in the past year. This is quite good.
Measured over the past years, ORI shows a small growth in Revenue. The Revenue has been growing by 3.76% on average per year.
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 7.24% yearly.
The Revenue is expected to grow by 6.76% on average over the next years.
EPS Next Y7.15%
EPS Next 2Y7.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.29%
Revenue Next 2Y6.76%
Revenue Next 3Y6.76%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 11.74 indicates a reasonable valuation of ORI.
The rest of the industry has a similar Price/Earnings ratio as ORI.
ORI is valuated cheaply when we compare the Price/Earnings ratio to 24.85, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of ORI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ORI is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 20.89. ORI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.74 | ||
| Fwd PE | 10.68 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ORI is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.09 | ||
| 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.
PEG (NY)1.64
PEG (5Y)1.1
EPS Next 2Y7.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ORI has a Yearly Dividend Yield of 3.04%.
ORI's Dividend Yield is a higher than the industry average which is at 3.19.
Compared to an average S&P500 Dividend Yield of 2.40, ORI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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
98.40% of the earnings are spent on dividend by ORI. This is not a sustainable payout ratio.
DP98.4%
EPS Next 2Y7.24%
EPS Next 3YN/A
37.34
-0.36 (-0.95%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.18%
Inst Owner Change-0.57%
Ins Owners0.3%
Ins Owner Change-0.08%
Market Cap9.23B
Analysts75
Price Target42.84 (14.73%)
Short Float %1.54%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
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)3.7%
PT rev (3m)3.7%
EPS NQ rev (1m)2.37%
EPS NQ rev (3m)2.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 11.74 | ||
| Fwd PE | 10.68 | ||
| P/S | 1.11 | ||
| P/FCF | 7.09 | ||
| P/OCF | 7.09 | ||
| P/B | 1.56 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.18
EY8.52%
EPS(NY)3.5
Fwd EY9.36%
FCF(TTM)5.26
FCFY14.1%
OCF(TTM)5.26
OCFY14.1%
SpS33.65
BVpS23.94
TBVpS23.94
PEG (NY)1.64
PEG (5Y)1.1
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 Y7.15%
EPS Next 2Y7.24%
EPS Next 3YN/A
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%