RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - NYSE:RNR - BMG7496G1033 - Common Stock
255.99 USD
+1.9 (+0.75%)
255.99 USD
0 (0%)
RNR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. RNR has only an average score on both its financial health and profitability. RNR may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, RNR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
RNR had positive earnings in the past year.
RNR had a positive operating cash flow in the past year.
In multiple years RNR reported negative net income over the last 5 years.
Each year in the past 5 years RNR had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.53%, RNR is in the better half of the industry, outperforming 71.92% of the companies in the same industry.
RNR has a Return On Equity of 17.89%. This is amongst the best in the industry. RNR outperforms 80.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.87%, RNR is in the better half of the industry, outperforming 69.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 17.89% | ||
| ROIC | 3.87% |
ROA(3y)1.88%
ROA(5y)1.55%
ROE(3y)7.6%
ROE(5y)6.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RNR has a better Profit Margin (15.44%) than 81.51% of its industry peers.
In the last couple of years the Profit Margin of RNR has declined.
RNR has a better Operating Margin (21.22%) than 82.19% of its industry peers.
In the last couple of years the Operating Margin of RNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.22% | ||
| PM (TTM) | 15.44% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y3.17%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNR is destroying value.
Compared to 1 year ago, RNR has less shares outstanding
The number of shares outstanding for RNR has been increased compared to 5 years ago.
RNR has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.78, we must say that RNR is in the distress zone and has some risk of bankruptcy.
RNR has a Altman-Z score of 0.78. This is in the better half of the industry: RNR outperforms 76.03% of its industry peers.
The Debt to FCF ratio of RNR is 0.58, which is an excellent value as it means it would take RNR, only 0.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of RNR (0.58) is better than 78.77% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that RNR is not too dependend on debt financing.
RNR has a better Debt to Equity ratio (0.21) than 68.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.48
WACC8.03%
2.3 Liquidity
RNR has a Current Ratio of 0.57. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
RNR has a better Current ratio (0.57) than 76.03% of its industry peers.
RNR has a Quick Ratio of 0.57. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
RNR has a Quick ratio of 0.57. This is in the better half of the industry: RNR outperforms 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
The earnings per share for RNR have decreased strongly by -25.99% in the last year.
RNR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.08% yearly.
Looking at the last year, RNR shows a very strong growth in Revenue. The Revenue has grown by 42.04%.
Measured over the past years, RNR shows a very strong growth in Revenue. The Revenue has been growing by 23.24% on average per year.
EPS 1Y (TTM)-25.99%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%52.69%
Revenue 1Y (TTM)42.04%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.77%
3.2 Future
Based on estimates for the next years, RNR will show a decrease in Earnings Per Share. The EPS will decrease by -3.18% on average per year.
Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 1.02% on average per year.
EPS Next Y-27.67%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
EPS Next 5YN/A
Revenue Next Year0.61%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.02%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.42, the valuation of RNR can be described as very cheap.
73.97% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.11. RNR is valued rather cheaply when compared to this.
RNR is valuated cheaply with a Price/Forward Earnings ratio of 7.19.
74.66% of the companies in the same industry are more expensive than RNR, based on the Price/Forward Earnings ratio.
RNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.55, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 7.19 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RNR indicates a rather cheap valuation: RNR is cheaper than 81.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RNR is valued cheaper than 81.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.09 | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
The decent profitability rating of RNR may justify a higher PE ratio.
RNR's earnings are expected to decrease with -3.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.63%, RNR is not a good candidate for dividend investing.
RNR's Dividend Yield is slightly below the industry average, which is at 3.27.
With a Dividend Yield of 0.63, RNR pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
The dividend of RNR has a limited annual growth rate of 0.22%.
RNR has been paying a dividend for at least 10 years, so it has a reliable track record.
RNR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.22%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
5.90% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
DP5.9%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
255.99
+1.9 (+0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.37%
Inst Owner Change-0.07%
Ins Owners1.13%
Ins Owner Change-1.3%
Market Cap12.05B
Revenue(TTM)11.90B
Net Income(TTM)1.93B
Analysts69.52
Price Target287.33 (12.24%)
Short Float %1.66%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP5.9%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.87%
Min EPS beat(2)-15.92%
Max EPS beat(2)23.67%
EPS beat(4)3
Avg EPS beat(4)12.98%
Min EPS beat(4)-15.92%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)21.17%
EPS beat(12)10
Avg EPS beat(12)16.02%
EPS beat(16)13
Avg EPS beat(16)11.23%
Revenue beat(2)0
Avg Revenue beat(2)-7.75%
Min Revenue beat(2)-8.02%
Max Revenue beat(2)-7.47%
Revenue beat(4)1
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-8.02%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-3.25%
Revenue beat(12)3
Avg Revenue beat(12)-2.45%
Revenue beat(16)4
Avg Revenue beat(16)-6.08%
PT rev (1m)1.06%
PT rev (3m)1.15%
EPS NQ rev (1m)92.14%
EPS NQ rev (3m)97.06%
EPS NY rev (1m)17.66%
EPS NY rev (3m)31.3%
Revenue NQ rev (1m)-3.67%
Revenue NQ rev (3m)-4.34%
Revenue NY rev (1m)2.36%
Revenue NY rev (3m)1.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.42 | ||
| Fwd PE | 7.19 | ||
| P/S | 0.96 | ||
| P/FCF | 3.09 | ||
| P/OCF | 3.09 | ||
| P/B | 1.12 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)34.48
EY13.47%
EPS(NY)35.58
Fwd EY13.9%
FCF(TTM)82.78
FCFY32.34%
OCF(TTM)82.78
OCFY32.34%
SpS265.76
BVpS229.44
TBVpS215.23
PEG (NY)N/A
PEG (5Y)0.21
Graham Number421.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 17.89% | ||
| ROCE | 4.89% | ||
| ROIC | 3.87% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 4.58% | ||
| OM | 21.22% | ||
| PM (TTM) | 15.44% | ||
| GM | N/A | ||
| FCFM | 31.15% |
ROA(3y)1.88%
ROA(5y)1.55%
ROE(3y)7.6%
ROE(5y)6.25%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y10.38%
ROICexc growth 3YN/A
ROICexc growth 5Y11.16%
OM growth 3YN/A
OM growth 5Y3.17%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 134.56% | ||
| Profit Quality | 201.7% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.78 |
F-Score5
WACC8.03%
ROIC/WACC0.48
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.99%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%52.69%
EPS Next Y-27.67%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
EPS Next 5YN/A
Revenue 1Y (TTM)42.04%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.77%
Revenue Next Year0.61%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
EBIT growth 1Y-30.43%
EBIT growth 3YN/A
EBIT growth 5Y27.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y98.68%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y98.68%
OCF growth 3Y49.97%
OCF growth 5Y14.27%
RENAISSANCERE HOLDINGS LTD / RNR FAQ
What is the ChartMill fundamental rating of RENAISSANCERE HOLDINGS LTD (RNR) stock?
ChartMill assigns a fundamental rating of 6 / 10 to RNR.
Can you provide the valuation status for RENAISSANCERE HOLDINGS LTD?
ChartMill assigns a valuation rating of 7 / 10 to RENAISSANCERE HOLDINGS LTD (RNR). This can be considered as Undervalued.
How profitable is RENAISSANCERE HOLDINGS LTD (RNR) stock?
RENAISSANCERE HOLDINGS LTD (RNR) has a profitability rating of 6 / 10.
What is the valuation of RENAISSANCERE HOLDINGS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RENAISSANCERE HOLDINGS LTD (RNR) is 7.42 and the Price/Book (PB) ratio is 1.12.
Can you provide the dividend sustainability for RNR stock?
The dividend rating of RENAISSANCERE HOLDINGS LTD (RNR) is 4 / 10 and the dividend payout ratio is 5.9%.