RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - New York Stock Exchange, Inc. - BMG7496G1033 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RNR. RNR was compared to 143 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RNR was profitable.
RNR had a positive operating cash flow in the past year.
In multiple years RNR reported negative net income over the last 5 years.
In the past 5 years RNR always reported a positive cash flow from operatings.
1.2 Ratios
RNR has a Return On Assets of 3.67%. This is in the better half of the industry: RNR outperforms 74.83% of its industry peers.
With a decent Return On Equity value of 19.00%, RNR is doing good in the industry, outperforming 79.02% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.56%, RNR is doing good in the industry, outperforming 79.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 19% | ||
| ROIC | 4.56% |
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
With an excellent Profit Margin value of 15.98%, RNR belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
RNR's Profit Margin has declined in the last couple of years.
RNR's Operating Margin of 24.92% is amongst the best of the industry. RNR outperforms 87.41% of its industry peers.
RNR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.92% | ||
| PM (TTM) | 15.98% | ||
| 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
RNR has an Altman-Z score of 0.80. This is a bad value and indicates that RNR is not financially healthy and even has some risk of bankruptcy.
RNR has a Altman-Z score of 0.80. This is in the better half of the industry: RNR outperforms 78.32% of its industry peers.
RNR has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
RNR has a better Debt to FCF ratio (0.76) than 71.33% of its industry peers.
A Debt/Equity ratio of 0.27 indicates that RNR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.27, RNR is in the better half of the industry, outperforming 65.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.56
WACC8.22%
2.3 Liquidity
RNR has a Current Ratio of 0.29. 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's Current ratio of 0.29 is fine compared to the rest of the industry. RNR outperforms 72.03% of its industry peers.
RNR has a Quick Ratio of 0.29. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of RNR (0.29) is better than 72.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
RNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.88%.
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 quite strong growth in Revenue. The Revenue has grown by 9.94% in the last year.
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)-28.88%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-112.23%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%27.95%
3.2 Future
The Earnings Per Share is expected to decrease by -2.49% on average over the next years.
The Revenue is expected to grow by 3.69% on average over the next years.
EPS Next Y-46.75%
EPS Next 2Y-6.76%
EPS Next 3Y-2.49%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y3.63%
Revenue Next 3Y3.69%
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 decreasing.
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
With a Price/Earnings ratio of 8.45, the valuation of RNR can be described as very reasonable.
RNR's Price/Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 74.13% of the companies in the same industry.
RNR is valuated cheaply when we compare the Price/Earnings ratio to 28.10, which is the current average of the S&P500 Index.
RNR is valuated cheaply with a Price/Forward Earnings ratio of 6.62.
78.32% of the companies in the same industry are more expensive than RNR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, RNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
RNR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RNR is cheaper than 83.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RNR is valued cheaply inside the industry as 81.12% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.3 | ||
| EV/EBITDA | 3.96 |
4.3 Compensation for Growth
RNR's earnings are expected to decrease with -2.49% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-6.76%
EPS Next 3Y-2.49%
5. Dividend
5.1 Amount
RNR has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 3.24, RNR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.43, RNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
The dividend of RNR has a limited annual growth rate of 0.22%.
RNR has paid a dividend for at least 10 years, which is a reliable track record.
RNR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.22%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
RNR pays out 5.86% of its income as dividend. This is a sustainable payout ratio.
DP5.86%
EPS Next 2Y-6.76%
EPS Next 3Y-2.49%
246.83
+3.59 (+1.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners106.49%
Inst Owner Change-1.59%
Ins Owners1.22%
Ins Owner Change3.43%
Market Cap12.01B
Analysts73.33
Price Target280.7 (13.72%)
Short Float %3.16%
Short Ratio2.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP5.86%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.26%
Min EPS beat(2)-6.95%
Max EPS beat(2)13.48%
EPS beat(4)3
Avg EPS beat(4)13.16%
Min EPS beat(4)-6.95%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)21.4%
EPS beat(12)10
Avg EPS beat(12)15.36%
EPS beat(16)13
Avg EPS beat(16)11.43%
Revenue beat(2)2
Avg Revenue beat(2)13.31%
Min Revenue beat(2)8.76%
Max Revenue beat(2)17.87%
Revenue beat(4)2
Avg Revenue beat(4)2.65%
Min Revenue beat(4)-14.49%
Max Revenue beat(4)17.87%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)4
Avg Revenue beat(12)-3.24%
Revenue beat(16)6
Avg Revenue beat(16)1.14%
PT rev (1m)-1.33%
PT rev (3m)-4.58%
EPS NQ rev (1m)-2.88%
EPS NQ rev (3m)-4.16%
EPS NY rev (1m)-10.51%
EPS NY rev (3m)-33.07%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-2.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.45 | ||
| Fwd PE | 6.62 | ||
| P/S | 0.98 | ||
| P/FCF | 3.3 | ||
| P/OCF | 3.3 | ||
| P/B | 1.16 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)29.21
EY11.83%
EPS(NY)37.28
Fwd EY15.1%
FCF(TTM)74.8
FCFY30.31%
OCF(TTM)74.8
OCFY30.31%
SpS252.97
BVpS212.71
TBVpS198.61
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 19% | ||
| ROCE | 5.78% | ||
| ROIC | 4.56% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 5.49% | ||
| OM | 24.92% | ||
| PM (TTM) | 15.98% | ||
| GM | N/A | ||
| FCFM | 29.57% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.86% | ||
| Profit Quality | 185.08% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.8 |
F-Score4
WACC8.22%
ROIC/WACC0.56
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)-28.88%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-112.23%
EPS Next Y-46.75%
EPS Next 2Y-6.76%
EPS Next 3Y-2.49%
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%27.95%
Revenue Next Year2.12%
Revenue Next 2Y3.63%
Revenue Next 3Y3.69%
Revenue Next 5YN/A
EBIT growth 1Y-4.89%
EBIT growth 3YN/A
EBIT growth 5Y27.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.49%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y94.49%
OCF growth 3Y49.97%
OCF growth 5Y14.27%