OLD REPUBLIC INTL CORP (ORI) Stock Fundamental Analysis
NYSE:ORI - New York Stock Exchange, Inc. - US6802231042 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to ORI. ORI was compared to 144 industry peers in the Insurance industry. ORI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ORI has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ORI had positive earnings in the past year.
In the past year ORI had a positive cash flow from operations.
Each year in the past 5 years ORI has been profitable.
In the past 5 years ORI always reported a positive cash flow from operatings.
1.2 Ratios
ORI's Return On Assets of 2.79% is fine compared to the rest of the industry. ORI outperforms 65.97% of its industry peers.
ORI has a Return On Equity of 13.19%. This is in the better half of the industry: ORI outperforms 65.97% of its industry peers.
ORI has a better Return On Invested Capital (3.04%) than 64.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ORI is in line with the industry average of 4.08%.
| 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 61.81% of its industry peers.
In the last couple of years the Profit Margin of ORI has declined.
ORI has a Operating Margin of 12.60%. This is in the better half of the industry: ORI outperforms 61.11% 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
ORI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, ORI has less shares outstanding
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.
ORI's Debt to FCF ratio of 1.22 is in line compared to the rest of the industry. ORI outperforms 55.56% of its industry peers.
ORI has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.27, ORI is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
| 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.
Looking at the last year, ORI shows a quite strong growth in Revenue. The Revenue has grown by 8.72% in the last year.
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
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.
The Revenue is expected to grow by 6.76% on average over the next years.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.73 indicates a reasonable valuation of ORI.
The rest of the industry has a similar Price/Earnings ratio as ORI.
ORI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
ORI is valuated reasonably with a Price/Forward Earnings ratio of 10.67.
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 valuation a bit cheaper than the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 10.67 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, ORI is valued a bit cheaper than the industry average as 61.11% of the companies are valued more expensively.
| 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.
ORI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.47
PEG (5Y)1.1
EPS Next 2Y7.26%
EPS Next 3Y4.15%
5. Dividend
5.1 Amount
ORI has a Yearly Dividend Yield of 3.14%.
ORI's Dividend Yield is a higher than the industry average which is at 3.52.
ORI's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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.
The dividend of ORI decreased 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%
37.31
+0.31 (+0.84%)
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 Cap9.22B
Analysts75
Price Target42.84 (14.82%)
Short Float %1.83%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
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 | 11.73 | ||
| Fwd PE | 10.67 | ||
| 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 EY9.37%
FCF(TTM)5.26
FCFY14.11%
OCF(TTM)5.26
OCFY14.11%
SpS33.65
BVpS23.94
TBVpS23.94
PEG (NY)1.47
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 Y7.98%
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%