EVEREST RE GROUP LTD (RE) Stock Fundamental Analysis

NYSE:RE • BMG3223R1088

351.28 USD
+10 (+2.93%)
At close: Jul 7, 2023
351.28 USD
0 (0%)
After Hours: 7/7/2023, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall RE gets a fundamental rating of 5 out of 10. We evaluated RE against 150 industry peers in the Insurance industry. While RE seems to be doing ok healthwise, there are quite some concerns on its profitability. RE is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year RE was profitable.
  • In the past year RE had a positive cash flow from operations.
RE Yearly Net Income VS EBIT VS OCF VS FCFRE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 1B 2B 3B

1.2 Ratios

  • The Return On Assets of RE (1.56%) is better than 67.86% of its industry peers.
  • RE has a Return On Equity (7.22%) which is in line with its industry peers.
  • RE has a Return On Invested Capital of 2.41%. This is in the better half of the industry: RE outperforms 72.14% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for RE is significantly below the industry average of 15.13%.
Industry RankSector 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
RE Yearly ROA, ROE, ROICRE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 5 10

1.3 Margins

  • RE has a Profit Margin (5.10%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of RE has declined.
  • RE's Operating Margin of 8.78% is in line compared 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 RankSector 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
RE Yearly Profit, Operating, Gross MarginsRE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 10 15 20

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ROAROEROICOperating and Profit MarginShow most profitable peers

4

2. Health

2.1 Basic Checks

  • RE has less shares outstanding than it did 1 year ago.
  • Compared to 1 year ago, RE has an improved debt to assets ratio.
RE Yearly Shares OutstandingRE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
RE Yearly Total Debt VS Total AssetsRE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B

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.
  • Looking at the Debt to FCF ratio, with a value of 0.79, RE belongs to the top 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 RankSector Rank
Debt/Equity 0.34
Debt/FCF 0.79
Altman-Z N/A
ROIC/WACCN/A
WACCN/A
RE Yearly LT Debt VS Equity VS FCFRE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2B 4B 6B 8B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
RE Yearly Current Assets VS Current LiabilitesRE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • RE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.33%.
  • RE shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.02% yearly.
  • Looking at the last year, RE shows a very negative growth in Revenue. The Revenue has decreased by -14.31% in the last year.
  • RE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.61% yearly.
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

  • Based on estimates for the next years, RE will show a very strong growth in Earnings Per Share. The EPS will grow by 35.43% on average per year.
  • The Revenue is expected to grow by 8.64% on average over the next years. This is quite good.
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.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
RE Yearly Revenue VS EstimatesRE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B
RE Yearly EPS VS EstimatesRE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • RE is valuated correctly with a Price/Earnings ratio of 12.53.
  • Compared to the rest of the industry, the Price/Earnings ratio of RE is on the same level as its industry peers.
  • RE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.98.
  • The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of RE.
  • 78.57% of the companies in the same industry are more expensive than RE, based on the Price/Forward Earnings ratio.
  • RE is valuated cheaply when we compare the Price/Forward Earnings ratio to 28.01, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.53
Fwd PE 6.19
RE Price Earnings VS Forward Price EarningsRE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 3.53
EV/EBITDA N/A
RE Per share dataRE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • RE's earnings are expected to grow with 35.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.16
PEG (5Y)0.5
EPS Next 2Y44.85%
EPS Next 3Y35.43%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • RE has a Yearly Dividend Yield of 1.88%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.62, RE has a dividend in line with its industry peers.
  • RE's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector 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
RE Yearly Dividends per shareRE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6

5.3 Sustainability

  • 39.77% of the earnings are spent on dividend by RE. This is a low number and 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%
RE Yearly Income VS Free CF VS DividendRE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B
RE Dividend Payout.RE Dividend Payout, showing the Payout Ratio.RE Dividend Payout.PayoutRetained Earnings

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EVEREST RE GROUP LTD

NYSE:RE (7/7/2023, 8:04:00 PM)

After market: 351.28 0 (0%)

351.28

+10 (+2.93%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01
Earnings (Next)07-26
Inst Owners104.63%
Inst Owner Change-1.13%
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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%.