EVEREST RE GROUP LTD (RE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RE - BMG3223R1088 - Common Stock
351.28 USD
+10 (+2.93%)
351.28 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RE. RE was compared to 149 industry peers in the Insurance industry. RE scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RE has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- RE had positive earnings in the past year.
- RE had a positive operating cash flow in the past year.
1.2 Ratios
- With a decent Return On Assets value of 1.56%, RE is doing good in the industry, outperforming 67.86% of the companies in the same industry.
- RE has a Return On Equity (7.22%) which is in line with its industry peers.
- RE's Return On Invested Capital of 2.41% is fine compared to the rest of the industry. RE outperforms 72.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for RE is significantly below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 7.22% | ||
| ROIC | 2.41% |
ROA(3y)2.2%
ROA(5y)2.12%
ROE(3y)8.54%
ROE(5y)7.53%
ROIC(3y)3.16%
ROIC(5y)N/A
1.3 Margins
- RE has a Profit Margin of 5.10%. This is comparable to the rest of the industry: RE outperforms 56.43% of its industry peers.
- RE's Profit Margin has declined in the last couple of years.
- RE has a Operating Margin of 8.78%. This is comparable to the rest of the industry: RE outperforms 59.29% of its industry peers.
- RE's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 5.1% | ||
| GM | N/A |
OM growth 3Y-13.04%
OM growth 5Y6.46%
PM growth 3Y-27.01%
PM growth 5Y-7.68%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The number of shares outstanding for RE has been reduced compared to 1 year ago.
- The debt/assets ratio for RE has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of RE is 0.79, which is an excellent value as it means it would take RE, only 0.79 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 0.79, RE belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
- RE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
- RE has a Debt to Equity ratio (0.34) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.79 | ||
| 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 for RE have decreased strongly by -14.33% in the last year.
- RE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.02% yearly.
- RE shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.31%.
- The Revenue has been growing by 13.61% on average over the past years. This is quite good.
EPS 1Y (TTM)-14.33%
EPS 3Y8.18%
EPS 5Y25.02%
EPS Q2Q%9.7%
Revenue 1Y (TTM)-14.31%
Revenue growth 3Y14.91%
Revenue growth 5Y13.61%
Sales Q2Q%8.2%
3.2 Future
- The Earnings Per Share is expected to grow by 35.43% on average over the next years. This is a very strong growth
- RE is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.64% yearly.
EPS Next Y77.49%
EPS Next 2Y44.85%
EPS Next 3Y35.43%
EPS Next 5YN/A
Revenue Next Year11.04%
Revenue Next 2Y9.36%
Revenue Next 3Y8.64%
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 12.53 indicates a correct valuation of RE.
- RE's Price/Earnings ratio is in line with the industry average.
- RE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
- Based on the Price/Forward Earnings ratio of 6.19, the valuation of RE can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RE indicates a somewhat cheap valuation: RE is cheaper than 78.57% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of RE to the average of the S&P500 Index (24.29), we can say RE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, RE is valued a bit cheaper than the industry average as 79.29% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- RE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as RE's earnings are expected to grow with 35.43% in the coming years.
PEG (NY)0.16
PEG (5Y)0.5
EPS Next 2Y44.85%
EPS Next 3Y35.43%
5. Dividend
5.1 Amount
- RE has a Yearly Dividend Yield of 1.88%.
- Compared to an average industry Dividend Yield of 2.53, RE has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.85, RE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
5.2 History
- The dividend of RE has a limited annual growth rate of 5.21%.
- RE has been paying a dividend for at least 10 years, so it has a reliable track record.
- RE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.21%
Div Incr Years1
Div Non Decr Years19
5.3 Sustainability
- RE pays out 39.77% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.77%
EPS Next 2Y44.85%
EPS Next 3Y35.43%
351.28
+10 (+2.93%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2023-05-01/amc
Earnings (Next)07-26 2023-07-26/amc
Inst Owners104.63%
Inst Owner Change-0.02%
Ins Owners0.56%
Ins Owner Change0%
Market Cap13.80B
Revenue(TTM)12.77B
Net Income(TTM)651.05M
Analysts84.21
Price Target440.87 (25.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.88% |
Yearly Dividend6.52
Dividend Growth(5Y)5.21%
DP39.77%
Div Incr Years1
Div Non Decr Years19
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.97%
Min EPS beat(2)-12.19%
Max EPS beat(2)20.13%
EPS beat(4)3
Avg EPS beat(4)8.61%
Min EPS beat(4)-12.19%
Max EPS beat(4)20.13%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)0.23%
Min Revenue beat(2)-0.82%
Max Revenue beat(2)1.28%
Revenue beat(4)2
Avg Revenue beat(4)0.44%
Min Revenue beat(4)-0.97%
Max Revenue beat(4)2.26%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.64%
PT rev (3m)2.77%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-7.87%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.53 | ||
| Fwd PE | 6.19 | ||
| P/S | 1.08 | ||
| P/FCF | 3.53 | ||
| P/OCF | 3.53 | ||
| P/B | 1.53 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | N/A |
EPS(TTM)28.03
EY7.98%
EPS(NY)56.71
Fwd EY16.14%
FCF(TTM)99.64
FCFY28.37%
OCF(TTM)99.64
OCFY28.37%
SpS325.08
BVpS229.51
TBVpS229.51
PEG (NY)0.16
PEG (5Y)0.5
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.56% | ||
| ROE | 7.22% | ||
| ROCE | N/A | ||
| ROIC | 2.41% | ||
| ROICexc | 2.5% | ||
| ROICexgc | 2.87% | ||
| OM | 8.78% | ||
| PM (TTM) | 5.1% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)2.2%
ROA(5y)2.12%
ROE(3y)8.54%
ROE(5y)7.53%
ROIC(3y)3.16%
ROIC(5y)N/A
ROICexc(3y)3.27%
ROICexc(5y)N/A
ROICexgc(3y)3.72%
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y-11.77%
ROICexgc growth 5Y9.66%
ROICexc growth 3Y-11.91%
ROICexc growth 5Y9.08%
OM growth 3Y-13.04%
OM growth 5Y6.46%
PM growth 3Y-27.01%
PM growth 5Y-7.68%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 0.79 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 601.11% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
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)491.69%
Profit Quality(5y)470.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-14.33%
EPS 3Y8.18%
EPS 5Y25.02%
EPS Q2Q%9.7%
EPS Next Y77.49%
EPS Next 2Y44.85%
EPS Next 3Y35.43%
EPS Next 5YN/A
Revenue 1Y (TTM)-14.31%
Revenue growth 3Y14.91%
Revenue growth 5Y13.61%
Sales Q2Q%8.2%
Revenue Next Year11.04%
Revenue Next 2Y9.36%
Revenue Next 3Y8.64%
Revenue Next 5YN/A
EBIT growth 1Y-46.05%
EBIT growth 3Y-0.08%
EBIT growth 5Y20.95%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y19.61%
FCF growth 3Y25.9%
FCF growth 5Y26.02%
OCF growth 1Y19.61%
OCF growth 3Y25.9%
OCF growth 5Y26.02%
EVEREST RE GROUP LTD / RE FAQ
What is the fundamental rating for RE stock?
ChartMill assigns a fundamental rating of 5 / 10 to RE.
What is the valuation status of EVEREST RE GROUP LTD (RE) stock?
ChartMill assigns a valuation rating of 7 / 10 to EVEREST RE GROUP LTD (RE). This can be considered as Undervalued.
Can you provide the profitability details for EVEREST RE GROUP LTD?
EVEREST RE GROUP LTD (RE) has a profitability rating of 5 / 10.
What is the expected EPS growth for EVEREST RE GROUP LTD (RE) stock?
The Earnings per Share (EPS) of EVEREST RE GROUP LTD (RE) is expected to grow by 77.49% in the next year.
Is the dividend of EVEREST RE GROUP LTD sustainable?
The dividend rating of EVEREST RE GROUP LTD (RE) is 6 / 10 and the dividend payout ratio is 39.77%.