RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - BMG7496G1033 - Common Stock
242.99 USD
+1.58 (+0.65%)
242.99 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 These ratings would make RNR suitable 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.
The reported net income has been mixed in the past 5 years: RNR reported negative net income in multiple 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 3.53%. This is in the better half of the industry: RNR outperforms 71.92% of its industry peers.
RNR has a Return On Equity of 17.89%. This is amongst the best in the industry. RNR outperforms 83.56% of its industry peers.
RNR's Return On Invested Capital of 3.87% is fine compared to the rest of the industry. RNR outperforms 71.92% of its industry peers.
| 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 Profit Margin of 15.44%. This is amongst the best in the industry. RNR outperforms 82.88% of its industry peers.
In the last couple of years the Profit Margin of RNR has declined.
RNR's Operating Margin of 21.22% is amongst the best of the industry. RNR outperforms 82.88% 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.
RNR has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, RNR has more shares outstanding
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.
Looking at the Altman-Z score, with a value of 0.78, RNR is in the better half of the industry, outperforming 77.40% of the companies in the same industry.
RNR has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
RNR has a better Debt to FCF ratio (0.58) than 78.08% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that RNR is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, RNR is in the better half of the industry, outperforming 69.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 0.78 |
ROIC/WACC0.48
WACC8.1%
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.
The Current ratio of RNR (0.57) is better than 76.03% of its industry peers.
A Quick Ratio of 0.57 indicates that RNR may have some problems paying its short term obligations.
The Quick ratio of RNR (0.57) is better than 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 -34.91% 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.
RNR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.49%.
The Revenue has been growing by 23.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-34.91%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-0.97%
Revenue 1Y (TTM)22.49%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.08%
3.2 Future
The Earnings Per Share is expected to decrease by -2.92% on average over the next years.
Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
EPS Next Y-45.16%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
EPS Next 5YN/A
Revenue Next Year1.08%
Revenue Next 2Y2.17%
Revenue Next 3Y2.31%
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
A Price/Earnings ratio of 8.35 indicates a reasonable valuation of RNR.
Compared to the rest of the industry, the Price/Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 73.29% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RNR to the average of the S&P500 Index (27.13), we can say RNR is valued rather cheaply.
RNR is valuated cheaply with a Price/Forward Earnings ratio of 6.73.
76.03% 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 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 6.73 |
4.2 Price Multiples
RNR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RNR is cheaper than 83.56% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RNR indicates a rather cheap valuation: RNR is cheaper than 84.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.94 | ||
| EV/EBITDA | 4.24 |
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 -2.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, RNR is not a good candidate for dividend investing.
RNR's Dividend Yield is slightly below the industry average, which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.32, RNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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
RNR pays out 5.90% of its income as dividend. This is a sustainable payout ratio.
DP5.9%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
242.99
+1.58 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners104.2%
Inst Owner Change-9.37%
Ins Owners1.15%
Ins Owner Change2.5%
Market Cap11.44B
Analysts72.22
Price Target288.1 (18.56%)
Short Float %3.16%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
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)-5.54%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)-4.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.7%
Revenue beat(12)3
Avg Revenue beat(12)-2.08%
Revenue beat(16)4
Avg Revenue beat(16)-5.8%
PT rev (1m)1.42%
PT rev (3m)3.24%
EPS NQ rev (1m)-1.72%
EPS NQ rev (3m)6.33%
EPS NY rev (1m)9.56%
EPS NY rev (3m)9.62%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-11.47%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.91 | ||
| P/FCF | 2.94 | ||
| P/OCF | 2.94 | ||
| P/B | 1.06 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.24 |
EPS(TTM)29.09
EY11.97%
EPS(NY)36.11
Fwd EY14.86%
FCF(TTM)82.78
FCFY34.07%
OCF(TTM)82.78
OCFY34.07%
SpS265.76
BVpS229.44
TBVpS215.23
PEG (NY)N/A
PEG (5Y)0.23
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
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-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
WACC8.1%
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)-34.91%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-0.97%
EPS Next Y-45.16%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
EPS Next 5YN/A
Revenue 1Y (TTM)22.49%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.08%
Revenue Next Year1.08%
Revenue Next 2Y2.17%
Revenue Next 3Y2.31%
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%