RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - New York Stock Exchange, Inc. - BMG7496G1033 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to RNR. RNR was compared to 143 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.
Each year in the past 5 years RNR had a positive operating cash flow.
1.2 Ratios
RNR has a better Return On Assets (3.67%) than 76.92% of its industry peers.
RNR has a Return On Equity of 19.00%. This is amongst the best in the industry. RNR outperforms 88.11% of its industry peers.
With an excellent Return On Invested Capital value of 4.56%, RNR belongs to the best of the industry, outperforming 81.12% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 15.98%, RNR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RNR's Profit Margin has declined in the last couple of years.
RNR has a Operating Margin of 24.92%. This is amongst the best in the industry. RNR outperforms 88.81% 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.
Compared to 1 year ago, RNR has less shares outstanding
Compared to 5 years ago, RNR has more shares outstanding
Compared to 1 year ago, RNR has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.79, we must say that RNR is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of RNR (0.79) is better than 78.32% of its industry peers.
The Debt to FCF ratio of RNR is 0.76, which is an excellent value as it means it would take RNR, only 0.76 years of fcf income to pay off all of its debts.
RNR has a Debt to FCF ratio of 0.76. This is in the better half of the industry: RNR outperforms 71.33% of its industry peers.
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 62.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.55
WACC8.29%
2.3 Liquidity
A Current Ratio of 0.29 indicates that RNR may have some problems paying its short term obligations.
RNR has a Current ratio of 0.29. This is in the better half of the industry: RNR outperforms 71.33% 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 71.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
RNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -28.88%.
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 9.94% in the past year. This is quite good.
The Revenue has been growing by 23.24% on average over the past years. This is a very strong growth!
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
RNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.99% yearly.
Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 3.06% on average per year.
EPS Next Y-49.97%
EPS Next 2Y-8.01%
EPS Next 3Y-2.99%
EPS Next 5YN/A
Revenue Next Year1.98%
Revenue Next 2Y2.54%
Revenue Next 3Y3.06%
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 8.54, the valuation of RNR can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 75.52% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.25. RNR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.87, which indicates a rather cheap valuation of RNR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 73.43% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.15. RNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 6.87 |
4.2 Price Multiples
83.92% of the companies in the same industry are more expensive than RNR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RNR is valued a bit cheaper than 77.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.33 | ||
| EV/EBITDA | 3.94 |
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 -2.99% in the coming years.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-8.01%
EPS Next 3Y-2.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, RNR is not a good candidate for dividend investing.
RNR's Dividend Yield is slightly below the industry average, which is at 3.23.
With a Dividend Yield of 0.65, RNR pays less dividend than the S&P500 average, which is at 2.40.
| 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 paid a dividend for at least 10 years, which is 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
RNR pays out 5.86% of its income as dividend. This is a sustainable payout ratio.
DP5.86%
EPS Next 2Y-8.01%
EPS Next 3Y-2.99%
249.42
+4.28 (+1.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners106.49%
Inst Owner Change-6.14%
Ins Owners1.22%
Ins Owner Change2.73%
Market Cap12.13B
Analysts73.33
Price Target279.07 (11.89%)
Short Float %3.36%
Short Ratio3.08
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)-0.58%
PT rev (3m)-0.65%
EPS NQ rev (1m)-4.72%
EPS NQ rev (3m)-4.34%
EPS NY rev (1m)-6.04%
EPS NY rev (3m)-18.15%
Revenue NQ rev (1m)-2.87%
Revenue NQ rev (3m)-4.33%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 6.87 | ||
| P/S | 0.99 | ||
| P/FCF | 3.33 | ||
| P/OCF | 3.33 | ||
| P/B | 1.17 | ||
| P/tB | 1.26 | ||
| EV/EBITDA | 3.94 |
EPS(TTM)29.21
EY11.71%
EPS(NY)36.28
Fwd EY14.55%
FCF(TTM)74.8
FCFY29.99%
OCF(TTM)74.8
OCFY29.99%
SpS252.97
BVpS212.71
TBVpS198.61
PEG (NY)N/A
PEG (5Y)0.24
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
WACC8.29%
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-49.97%
EPS Next 2Y-8.01%
EPS Next 3Y-2.99%
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%11.33%
Revenue Next Year1.98%
Revenue Next 2Y2.54%
Revenue Next 3Y3.06%
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%