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 144 industry peers in the Insurance industry. Both the profitability and the financial health of RNR get a neutral evaluation. Nothing too spectacular is happening here. RNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RNR had positive earnings in the past year.
In the past year RNR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RNR reported negative net income in multiple years.
RNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RNR has a better Return On Assets (3.67%) than 77.08% of its industry peers.
RNR has a Return On Equity of 19.00%. This is amongst the best in the industry. RNR outperforms 89.58% of its industry peers.
RNR has a better Return On Invested Capital (4.56%) than 81.94% 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
The Profit Margin of RNR (15.98%) is better than 84.72% of its industry peers.
In the last couple of years the Profit Margin of RNR has declined.
RNR has a better Operating Margin (24.92%) than 89.58% 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
RNR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
RNR has less shares outstanding than it did 1 year ago.
The number of shares outstanding for RNR has been increased compared to 5 years ago.
The debt/assets ratio for RNR has been reduced compared to a year ago.
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.
RNR has a Altman-Z score of 0.79. This is in the better half of the industry: RNR outperforms 79.17% 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 72.92% 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.
The Debt to Equity ratio of RNR (0.27) is better than 63.19% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.49
WACC9.3%
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 has a better Current ratio (0.29) than 71.53% of its industry peers.
A Quick Ratio of 0.29 indicates that RNR may have some problems paying its short term obligations.
RNR's Quick ratio of 0.29 is fine compared to the rest of the industry. RNR outperforms 71.53% 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.
Measured over the past years, RNR shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.08% on average per year.
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%11.33%
3.2 Future
The Earnings Per Share is expected to decrease by -3.01% on average over the next years.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y-50.64%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y2.46%
Revenue Next 3Y2.95%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
RNR is valuated reasonably with a Price/Earnings ratio of 8.38.
Based on the Price/Earnings ratio, RNR is valued a bit cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.65, RNR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.76, the valuation of RNR can be described as very cheap.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than the industry average as 73.61% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RNR to the average of the S&P500 Index (21.27), we can say RNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
RNR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RNR is cheaper than 84.72% of the companies in the same industry.
RNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RNR is cheaper than 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| EV/EBITDA | 3.94 |
4.3 Compensation for Growth
The decent profitability rating of RNR may justify a higher PE ratio.
A cheap valuation may be justified as RNR's earnings are expected to decrease with -3.01% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, RNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.52, RNR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.44, RNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 5.86% of its income as dividend. This is a sustainable payout ratio.
DP5.86%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
244.9
+0.31 (+0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.88%
Inst Owner Change-6.17%
Ins Owners1.11%
Ins Owner Change2.73%
Market Cap11.91B
Analysts73.33
Price Target283.46 (15.75%)
Short Float %3.73%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)1.57%
PT rev (3m)0.91%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-5.53%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-19.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.38 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.97 | ||
| P/FCF | 3.27 | ||
| P/OCF | 3.27 | ||
| P/B | 1.15 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 3.94 |
EPS(TTM)29.21
EY11.93%
EPS(NY)36.22
Fwd EY14.79%
FCF(TTM)74.8
FCFY30.54%
OCF(TTM)74.8
OCFY30.54%
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
WACC9.3%
ROIC/WACC0.49
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-50.64%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%11.33%
Revenue Next Year3.96%
Revenue Next 2Y2.46%
Revenue Next 3Y2.95%
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%