RYAN SPECIALTY HOLDINGS INC (RYAN) Stock Fundamental Analysis
NYSE:RYAN - New York Stock Exchange, Inc. - US78351F1075 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to RYAN. RYAN was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of RYAN while its profitability can be described as average. RYAN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
In the past year RYAN was profitable.
RYAN had a positive operating cash flow in the past year.
RYAN had positive earnings in each of the past 5 years.
Each year in the past 5 years RYAN had a positive operating cash flow.
1.2 Ratios
RYAN has a Return On Assets of 0.68%. This is in the lower half of the industry: RYAN underperforms 62.50% of its industry peers.
With a decent Return On Equity value of 12.35%, RYAN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
RYAN's Return On Invested Capital of 10.84% is amongst the best of the industry. RYAN outperforms 96.53% of its industry peers.
RYAN had an Average Return On Invested Capital over the past 3 years of 10.21%. This is significantly above the industry average of 4.07%.
The 3 year average ROIC (10.21%) for RYAN is below the current ROIC(10.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 12.35% | ||
| ROIC | 10.84% |
ROA(3y)0.93%
ROA(5y)1.1%
ROE(3y)12.97%
ROE(5y)16.02%
ROIC(3y)10.21%
ROIC(5y)9.27%
1.3 Margins
The Profit Margin of RYAN (2.09%) is worse than 77.08% of its industry peers.
RYAN's Profit Margin has declined in the last couple of years.
RYAN has a Operating Margin of 22.36%. This is amongst the best in the industry. RYAN outperforms 85.42% of its industry peers.
RYAN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.36% | ||
| PM (TTM) | 2.09% | ||
| GM | N/A |
OM growth 3Y6.77%
OM growth 5Y12.9%
PM growth 3Y-6.47%
PM growth 5Y-14.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RYAN is still creating some value.
Compared to 1 year ago, RYAN has more shares outstanding
RYAN has more shares outstanding than it did 5 years ago.
RYAN has a worse debt/assets ratio than last year.
2.2 Solvency
RYAN has an Altman-Z score of 1.73. This is a bad value and indicates that RYAN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.73, RYAN belongs to the top of the industry, outperforming 90.28% of the companies in the same industry.
The Debt to FCF ratio of RYAN is 8.54, which is on the high side as it means it would take RYAN, 8.54 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.54, RYAN is doing worse than 74.31% of the companies in the same industry.
A Debt/Equity ratio of 6.73 is on the high side and indicates that RYAN has dependencies on debt financing.
RYAN has a Debt to Equity ratio of 6.73. This is amonst the worse of the industry: RYAN underperforms 94.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 8.54 | ||
| Altman-Z | 1.73 |
ROIC/WACC1.16
WACC9.37%
2.3 Liquidity
RYAN has a Current Ratio of 1.05. This is a normal value and indicates that RYAN is financially healthy and should not expect problems in meeting its short term obligations.
RYAN has a better Current ratio (1.05) than 80.56% of its industry peers.
A Quick Ratio of 1.05 indicates that RYAN should not have too much problems paying its short term obligations.
RYAN has a better Quick ratio (1.05) than 80.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
RYAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.49%, which is quite impressive.
The earnings per share for RYAN have been decreasing by -11.82% on average. This is quite bad
The Revenue has grown by 47.61% in the past year. This is a very strong growth!
RYAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.88% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%11.43%
Revenue 1Y (TTM)47.61%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%25.02%
3.2 Future
Based on estimates for the next years, RYAN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.13% on average per year.
Based on estimates for the next years, RYAN will show a quite strong growth in Revenue. The Revenue will grow by 16.21% on average per year.
EPS Next Y19.84%
EPS Next 2Y20.93%
EPS Next 3Y21.01%
EPS Next 5Y20.13%
Revenue Next Year22.49%
Revenue Next 2Y18.91%
Revenue Next 3Y17.58%
Revenue Next 5Y16.21%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 36.76, the valuation of RYAN can be described as expensive.
RYAN's Price/Earnings ratio is a bit more expensive when compared to the industry. RYAN is more expensive than 79.17% of the companies in the same industry.
When comparing the Price/Earnings ratio of RYAN to the average of the S&P500 Index (26.35), we can say RYAN is valued slightly more expensively.
The Price/Forward Earnings ratio is 25.70, which means the current valuation is very expensive for RYAN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RYAN indicates a slightly more expensive valuation: RYAN is more expensive than 75.69% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. RYAN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 25.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RYAN indicates a slightly more expensive valuation: RYAN is more expensive than 64.58% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RYAN is valued a bit more expensive than the industry average as 76.39% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.88 | ||
| EV/EBITDA | 22.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RYAN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RYAN may justify a higher PE ratio.
RYAN's earnings are expected to grow with 21.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.85
PEG (5Y)N/A
EPS Next 2Y20.93%
EPS Next 3Y21.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, RYAN is not a good candidate for dividend investing.
RYAN's Dividend Yield is slightly below the industry average, which is at 3.51.
With a Dividend Yield of 0.69, RYAN pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
RYAN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
82.49% of the earnings are spent on dividend by RYAN. This is not a sustainable payout ratio.
DP82.49%
EPS Next 2Y20.93%
EPS Next 3Y21.01%
67.27
+0.61 (+0.92%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.36%
Inst Owner Change2.61%
Ins Owners13.69%
Ins Owner Change-4.23%
Market Cap17.65B
Analysts77
Price Target80.92 (20.29%)
Short Float %5.03%
Short Ratio5.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP82.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.38%
Min EPS beat(2)-2.5%
Max EPS beat(2)-2.26%
EPS beat(4)1
Avg EPS beat(4)-1.65%
Min EPS beat(4)-3.27%
Max EPS beat(4)1.45%
EPS beat(8)2
Avg EPS beat(8)-0.99%
EPS beat(12)5
Avg EPS beat(12)0%
EPS beat(16)9
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.89%
Revenue beat(12)2
Avg Revenue beat(12)-0.48%
Revenue beat(16)4
Avg Revenue beat(16)0.05%
PT rev (1m)3.86%
PT rev (3m)3.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)-0.1%
EPS NY rev (3m)-5.11%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.76 | ||
| Fwd PE | 25.7 | ||
| P/S | 5.51 | ||
| P/FCF | 40.88 | ||
| P/OCF | 36.13 | ||
| P/B | 32.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.93 |
EPS(TTM)1.83
EY2.72%
EPS(NY)2.62
Fwd EY3.89%
FCF(TTM)1.65
FCFY2.45%
OCF(TTM)1.86
OCFY2.77%
SpS12.22
BVpS2.07
TBVpS-15.75
PEG (NY)1.85
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 12.35% | ||
| ROCE | 13.05% | ||
| ROIC | 10.84% | ||
| ROICexc | 11.26% | ||
| ROICexgc | 97.45% | ||
| OM | 22.36% | ||
| PM (TTM) | 2.09% | ||
| GM | N/A | ||
| FCFM | 13.47% |
ROA(3y)0.93%
ROA(5y)1.1%
ROE(3y)12.97%
ROE(5y)16.02%
ROIC(3y)10.21%
ROIC(5y)9.27%
ROICexc(3y)13.17%
ROICexc(5y)11.62%
ROICexgc(3y)93.16%
ROICexgc(5y)N/A
ROCE(3y)12.29%
ROCE(5y)11.17%
ROICexcg growth 3Y9.66%
ROICexcg growth 5Y-25.48%
ROICexc growth 3Y0.3%
ROICexc growth 5Y-1.24%
OM growth 3Y6.77%
OM growth 5Y12.9%
PM growth 3Y-6.47%
PM growth 5Y-14.82%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 8.54 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 27.67% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 52.99% | ||
| Profit Quality | 644.28% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.73 |
F-Score4
WACC9.37%
ROIC/WACC1.16
Cap/Depr(3y)24.87%
Cap/Depr(5y)82.79%
Cap/Sales(3y)1.54%
Cap/Sales(5y)6.2%
Profit Quality(3y)577.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.49%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%11.43%
EPS Next Y19.84%
EPS Next 2Y20.93%
EPS Next 3Y21.01%
EPS Next 5Y20.13%
Revenue 1Y (TTM)47.61%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%25.02%
Revenue Next Year22.49%
Revenue Next 2Y18.91%
Revenue Next 3Y17.58%
Revenue Next 5Y16.21%
EBIT growth 1Y45.14%
EBIT growth 3Y28.81%
EBIT growth 5Y43.25%
EBIT Next Year54.25%
EBIT Next 3Y28.75%
EBIT Next 5Y23%
FCF growth 1Y97.72%
FCF growth 3YN/A
FCF growth 5Y27.04%
OCF growth 1Y102.06%
OCF growth 3Y23.48%
OCF growth 5Y28.06%