RENAISSANCERE HOLDINGS LTD (RNR)

BMG7496G1033 - Common Stock

268.12  +2.31 (+0.87%)

After market: 268.12 0 (0%)

Fundamental Rating

6

Overall RNR gets a fundamental rating of 6 out of 10. We evaluated RNR against 139 industry peers in the Insurance industry. RNR scores excellent on profitability, but there are some minor concerns on its financial health. An interesting combination arises when we look at growth and value: RNR is growing strongly while it also seems undervalued.



7

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

Looking at the Return On Assets, with a value of 5.03%, RNR belongs to the top of the industry, outperforming 85.40% of the companies in the same industry.
RNR's Return On Equity of 25.47% is amongst the best of the industry. RNR outperforms 92.70% of its industry peers.
The Return On Invested Capital of RNR (4.57%) is better than 80.29% of its industry peers.
Industry RankSector Rank
ROA 5.03%
ROE 25.47%
ROIC 4.57%
ROA(3y)0.62%
ROA(5y)1.37%
ROE(3y)1.53%
ROE(5y)5.19%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Profit Margin, with a value of 25.38%, RNR belongs to the top of the industry, outperforming 93.43% of the companies in the same industry.
RNR's Profit Margin has improved in the last couple of years.
RNR's Operating Margin of 28.76% is amongst the best of the industry. RNR outperforms 91.24% of its industry peers.
In the last couple of years the Operating Margin of RNR has grown nicely.
Industry RankSector Rank
OM 28.76%
PM (TTM) 25.38%
GM N/A
OM growth 3Y12.74%
OM growth 5Y13.83%
PM growth 3Y28.24%
PM growth 5Y25.78%
GM growth 3YN/A
GM growth 5YN/A

4

2. Health

2.1 Basic Checks

Compared to 1 year ago, RNR has more shares outstanding
The number of shares outstanding for RNR has been increased compared to 5 years ago.
Compared to 1 year ago, RNR has a worse debt to assets ratio.

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.
Looking at the Altman-Z score, with a value of 0.78, RNR belongs to the top of the industry, outperforming 81.02% of the companies in the same industry.
The Debt to FCF ratio of RNR is 0.62, which is an excellent value as it means it would take RNR, only 0.62 years of fcf income to pay off all of its debts.
RNR has a Debt to FCF ratio of 0.62. This is in the better half of the industry: RNR outperforms 76.64% of its industry peers.
RNR has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RNR (0.19) is better than 71.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF 0.62
Altman-Z 0.78
ROIC/WACCN/A
WACCN/A

2.3 Liquidity

A Current Ratio of 0.72 indicates that RNR may have some problems paying its short term obligations.
With a decent Current ratio value of 0.72, RNR is doing good in the industry, outperforming 77.37% of the companies in the same industry.
RNR has a Quick Ratio of 0.72. 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 Quick ratio of 0.72. This is in the better half of the industry: RNR outperforms 77.37% of its industry peers.
Industry RankSector Rank
Current Ratio 0.72
Quick Ratio 0.72

8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 42.87% over the past year.
The Earnings Per Share has been growing by 32.22% on average over the past years. This is a very strong growth
Looking at the last year, RNR shows a very strong growth in Revenue. The Revenue has grown by 63.98%.
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 32.27% yearly.
EPS 1Y (TTM)42.87%
EPS 3Y297.48%
EPS 5Y32.22%
EPS Q2Q%22.81%
Revenue 1Y (TTM)63.98%
Revenue growth 3Y17.76%
Revenue growth 5Y32.27%
Sales Q2Q%18.49%

3.2 Future

The Earnings Per Share is expected to grow by 1.70% on average over the next years.
RNR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.35% yearly.
EPS Next Y10.22%
EPS Next 2Y-1.3%
EPS Next 3Y1.7%
EPS Next 5YN/A
Revenue Next Year44.58%
Revenue Next 2Y21.94%
Revenue Next 3Y15.35%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.

7

4. Valuation

4.1 Price/Earnings Ratio

RNR is valuated cheaply with a Price/Earnings ratio of 5.75.
RNR's Price/Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 78.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.17. RNR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.43 indicates a rather cheap valuation of RNR.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than 77.37% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RNR to the average of the S&P500 Index (23.71), we can say RNR is valued rather cheaply.
Industry RankSector Rank
PE 5.75
Fwd PE 7.43

4.2 Price Multiples

74.45% of the companies in the same industry are more expensive than RNR, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 4.4
EV/EBITDA N/A

4.3 Compensation for Growth

RNR's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
RNR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.56
PEG (5Y)0.18
EPS Next 2Y-1.3%
EPS Next 3Y1.7%

4

5. Dividend

5.1 Amount

RNR has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 4.76, RNR is paying slightly less dividend.
With a Dividend Yield of 0.59, RNR pays less dividend than the S&P500 average, which is at 2.21.
Industry RankSector Rank
Dividend Yield 0.59%

5.2 History

The dividend of RNR has a limited annual growth rate of 2.53%.
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)2.53%
Div Incr Years25
Div Non Decr Years25

5.3 Sustainability

4.45% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
RNR's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP4.45%
EPS Next 2Y-1.3%
EPS Next 3Y1.7%

RENAISSANCERE HOLDINGS LTD

NYSE:RNR (11/8/2024, 8:18:04 PM)

After market: 268.12 0 (0%)

268.12

+2.31 (+0.87%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap13.99B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.59%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 5.75
Fwd PE 7.43
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.56
PEG (5Y)0.18
Profitability
Industry RankSector Rank
ROA 5.03%
ROE 25.47%
ROCE
ROIC
ROICexc
ROICexgc
OM 28.76%
PM (TTM) 25.38%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
Industry RankSector Rank
Debt/Equity 0.19
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.72
Quick Ratio 0.72
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)42.87%
EPS 3Y297.48%
EPS 5Y
EPS Q2Q%
EPS Next Y10.22%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)63.98%
Revenue growth 3Y17.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y