RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - NYSE:RNR - BMG7496G1033 - Common Stock
237.01 USD
-6.49 (-2.67%)
234.34 USD
-2.67 (-1.13%)
Taking everything into account, RNR scores 6 out of 10 in our fundamental rating. RNR was compared to 146 industry peers in the Insurance industry. RNR has only an average score on both its financial health and profitability. RNR is valued quite cheap, while showing a decent growth score. This is a good combination! This makes RNR very considerable for value investing!
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
The Return On Assets of RNR (3.53%) is better than 71.92% of its industry peers.
With an excellent Return On Equity value of 17.89%, RNR belongs to the best of the industry, outperforming 83.56% of the companies in the same industry.
RNR has a better Return On Invested Capital (3.87%) than 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.
With an excellent Operating Margin value of 21.22%, RNR belongs to the best of the industry, outperforming 82.88% of the companies in the same industry.
RNR's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for RNR has been reduced compared to 1 year ago.
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 0.78. 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 (0.78) is better than 75.34% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 0.58, RNR is in the better half of the industry, outperforming 78.08% of the companies in the same industry.
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/WACC0.49
WACC7.93%
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.
Looking at the Current ratio, with a value of 0.57, RNR is in the better half of the industry, outperforming 76.03% of the companies in the same industry.
A Quick Ratio of 0.57 indicates that RNR may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.57, RNR is doing good in the industry, outperforming 76.03% of the companies in the same industry.
| 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.
The Revenue has grown by 22.49% in the past year. This is a very strong growth!
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.24% yearly.
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
RNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.92% yearly.
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 Year0.71%
Revenue Next 2Y2.17%
Revenue Next 3Y2.31%
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 8.15, the valuation of RNR can be described as very reasonable.
72.60% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.20, RNR is valued rather cheaply.
A Price/Forward Earnings ratio of 6.56 indicates a rather cheap valuation of RNR.
RNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 76.03% of the companies in the same industry.
RNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| 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 83.56% of the companies listed in the same industry.
RNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RNR is cheaper than 82.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.86 | ||
| EV/EBITDA | 4.25 |
4.3 Compensation for Growth
RNR has a very decent profitability rating, which may justify a higher PE ratio.
RNR's earnings are expected to decrease with -2.92% in the coming years. This may justify a cheaper valuation.
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 0.65%, RNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.43, RNR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, 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 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
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-8.24%
EPS Next 3Y-2.92%
237.01
-6.49 (-2.67%)
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 Change-1.3%
Market Cap11.16B
Analysts73.68
Price Target284.33 (19.97%)
Short Float %3.28%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)-1.15%
PT rev (3m)0.31%
EPS NQ rev (1m)6.43%
EPS NQ rev (3m)13.64%
EPS NY rev (1m)9.56%
EPS NY rev (3m)9.62%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)5.78%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 6.56 | ||
| P/S | 0.89 | ||
| P/FCF | 2.86 | ||
| P/OCF | 2.86 | ||
| P/B | 1.03 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 4.25 |
EPS(TTM)29.09
EY12.27%
EPS(NY)36.11
Fwd EY15.23%
FCF(TTM)82.78
FCFY34.93%
OCF(TTM)82.78
OCFY34.93%
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
WACC7.93%
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)-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 Year0.71%
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%