RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - New York Stock Exchange, Inc. - BMG7496G1033 - Common Stock - Currency: USD
Overall RNR gets a fundamental rating of 5 out of 10. We evaluated RNR against 145 industry peers in the Insurance industry. RNR has only an average score on both its financial health and profitability. RNR is not valued too expensively and it also shows a decent growth rate.
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.
The reported net income has been mixed in the past 5 years: RNR reported negative net income in multiple years.
Each year in the past 5 years RNR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.67%, RNR is doing good in the industry, outperforming 77.93% of the companies in the same industry.
RNR has a better Return On Equity (19.00%) than 89.66% of its industry peers.
The Return On Invested Capital of RNR (4.56%) is better than 82.07% of its industry peers.
| 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 84.83% of the companies in the same industry.
In the last couple of years the Profit Margin of RNR has declined.
RNR has a Operating Margin of 24.92%. This is amongst the best in the industry. RNR outperforms 88.97% of its industry peers.
In the last couple of years the Operating Margin of RNR has grown nicely.
| 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.
RNR has less shares outstanding than it did 1 year ago.
RNR has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RNR has an improved debt to assets ratio.
2.2 Solvency
RNR has an Altman-Z score of 0.79. This is a bad value and indicates that RNR is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of RNR (0.79) is better than 78.62% 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.
Looking at the Debt to FCF ratio, with a value of 0.76, RNR is in the better half of the industry, outperforming 73.10% of the companies in the same industry.
RNR has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
RNR has a better Debt to Equity ratio (0.27) than 62.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.55
WACC8.28%
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.
The Current ratio of RNR (0.29) is better than 71.72% 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 71.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for RNR have decreased strongly by -28.88% in the last year.
The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
Looking at the last year, RNR shows a quite strong growth in Revenue. The Revenue has grown by 9.94% in the last year.
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.24% yearly.
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%11.33%
3.2 Future
The Earnings Per Share is expected to decrease by -3.07% on average over the next years.
The Revenue is expected to grow by 2.90% on average over the next years.
EPS Next Y-49.94%
EPS Next 2Y-8.1%
EPS Next 3Y-3.07%
EPS Next 5YN/A
Revenue Next Year3.64%
Revenue Next 2Y2.43%
Revenue Next 3Y2.9%
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
With a Price/Earnings ratio of 8.13, the valuation of RNR can be described as very reasonable.
75.86% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
RNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 6.56, the valuation of RNR can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 73.10% of the companies listed in the same industry.
RNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.56 |
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 84.14% of the companies listed in the same industry.
77.93% of the companies in the same industry are more expensive than RNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.17 | ||
| EV/EBITDA | 3.83 |
4.3 Compensation for Growth
RNR has a very decent profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as RNR's earnings are expected to decrease with -3.07% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.1%
EPS Next 3Y-3.07%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, RNR is not a good candidate for dividend investing.
RNR's Dividend Yield is slightly below the industry average, which is at 3.76.
With a Dividend Yield of 0.67, RNR pays less dividend than the S&P500 average, which is at 2.35.
| 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 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
5.86% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
DP5.86%
EPS Next 2Y-8.1%
EPS Next 3Y-3.07%
237.46
-0.98 (-0.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.88%
Inst Owner Change-0.01%
Ins Owners1.11%
Ins Owner Change2.73%
Market Cap11.55B
Analysts73.33
Price Target283.46 (19.37%)
Short Float %3.76%
Short Ratio4.09
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)-1.22%
Min EPS beat(2)-15.92%
Max EPS beat(2)13.48%
EPS beat(4)3
Avg EPS beat(4)10.92%
Min EPS beat(4)-15.92%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)20.27%
EPS beat(12)10
Avg EPS beat(12)14.61%
EPS beat(16)13
Avg EPS beat(16)10.87%
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)8.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-14.49%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-3.2%
Revenue beat(12)3
Avg Revenue beat(12)-5.31%
Revenue beat(16)5
Avg Revenue beat(16)-0.41%
PT rev (1m)0%
PT rev (3m)0.4%
EPS NQ rev (1m)0.98%
EPS NQ rev (3m)-5.27%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-15.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)-0.31%
Revenue NY rev (3m)1.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.13 | ||
| Fwd PE | 6.56 | ||
| P/S | 0.94 | ||
| P/FCF | 3.17 | ||
| P/OCF | 3.17 | ||
| P/B | 1.12 | ||
| P/tB | 1.2 | ||
| EV/EBITDA | 3.83 |
EPS(TTM)29.21
EY12.3%
EPS(NY)36.22
Fwd EY15.25%
FCF(TTM)74.8
FCFY31.5%
OCF(TTM)74.8
OCFY31.5%
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 | 0.79 |
F-Score4
WACC8.28%
ROIC/WACC0.55
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-49.94%
EPS Next 2Y-8.1%
EPS Next 3Y-3.07%
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%11.33%
Revenue Next Year3.64%
Revenue Next 2Y2.43%
Revenue Next 3Y2.9%
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%