RYAN SPECIALTY HOLDINGS INC (RYAN) Stock Fundamental Analysis
NYSE:RYAN - New York Stock Exchange, Inc. - US78351F1075 - Common Stock - Currency: USD
Taking everything into account, RYAN scores 4 out of 10 in our fundamental rating. RYAN was compared to 143 industry peers in the Insurance industry. RYAN has a medium profitability rating, but doesn't score so well on its financial health evaluation. RYAN is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
RYAN had positive earnings in the past year.
In the past year RYAN had a positive cash flow from operations.
In the past 5 years RYAN has always been profitable.
In the past 5 years RYAN always reported a positive cash flow from operatings.
1.2 Ratios
RYAN's Return On Assets of 0.68% is on the low side compared to the rest of the industry. RYAN is outperformed by 62.94% of its industry peers.
Looking at the Return On Equity, with a value of 12.35%, RYAN is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
RYAN has a Return On Invested Capital of 10.84%. This is amongst the best in the industry. RYAN outperforms 96.50% 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
RYAN has a worse Profit Margin (2.09%) than 77.62% of its industry peers.
In the last couple of years the Profit Margin of RYAN has declined.
With an excellent Operating Margin value of 22.36%, RYAN belongs to the best of the industry, outperforming 85.31% of the companies in the same industry.
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
RYAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for RYAN has been increased compared to 1 year ago.
RYAN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, RYAN has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that RYAN is in the distress zone and has some risk of bankruptcy.
RYAN's Altman-Z score of 1.70 is amongst the best of the industry. RYAN outperforms 89.51% of its industry peers.
RYAN has a debt to FCF ratio of 8.54. This is a slightly negative value and a sign of low solvency as RYAN would need 8.54 years to pay back of all of its debts.
RYAN's Debt to FCF ratio of 8.54 is on the low side compared to the rest of the industry. RYAN is outperformed by 75.52% of its industry peers.
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 95.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 8.54 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.14
WACC9.51%
2.3 Liquidity
A Current Ratio of 1.05 indicates that RYAN should not have too much problems paying its short term obligations.
RYAN has a better Current ratio (1.05) than 80.42% of its industry peers.
RYAN has a Quick 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's Quick ratio of 1.05 is amongst the best of the industry. RYAN outperforms 80.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.49% over the past year.
RYAN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.82% yearly.
The Revenue has grown by 47.61% in the past year. This is a very strong growth!
The Revenue has been growing by 26.88% on average over the past years. This is a very strong growth!
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 Y19.95%
EPS Next 2Y20.92%
EPS Next 3Y20.96%
EPS Next 5Y20.13%
Revenue Next Year22.49%
Revenue Next 2Y18.91%
Revenue Next 3Y17.58%
Revenue Next 5Y16.21%
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 accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
RYAN is valuated quite expensively with a Price/Earnings ratio of 35.99.
80.42% of the companies in the same industry are cheaper than RYAN, based on the Price/Earnings ratio.
RYAN is valuated rather expensively when we compare the Price/Earnings ratio to 26.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.16, which means the current valuation is very expensive for RYAN.
Based on the Price/Forward Earnings ratio, RYAN is valued a bit more expensive than the industry average as 77.62% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, RYAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 25.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYAN is valued a bit more expensive than the industry average as 65.03% of the companies are valued more cheaply.
77.62% of the companies in the same industry are cheaper than RYAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.03 | ||
| EV/EBITDA | 22.41 |
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.
RYAN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as RYAN's earnings are expected to grow with 20.96% in the coming years.
PEG (NY)1.8
PEG (5Y)N/A
EPS Next 2Y20.92%
EPS Next 3Y20.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, RYAN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, RYAN is paying slightly less dividend.
With a Dividend Yield of 0.69, RYAN pays less dividend than the S&P500 average, which is at 2.40.
| 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 2Y20.92%
EPS Next 3Y20.96%
65.86
+0.4 (+0.61%)
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-5.53%
Market Cap17.28B
Analysts77
Price Target78.83 (19.69%)
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)1.18%
PT rev (3m)1.18%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)-2.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.01%
Revenue NQ rev (1m)-0.26%
Revenue NQ rev (3m)-0.25%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.99 | ||
| Fwd PE | 25.16 | ||
| P/S | 5.39 | ||
| P/FCF | 40.03 | ||
| P/OCF | 35.38 | ||
| P/B | 31.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.41 |
EPS(TTM)1.83
EY2.78%
EPS(NY)2.62
Fwd EY3.97%
FCF(TTM)1.65
FCFY2.5%
OCF(TTM)1.86
OCFY2.83%
SpS12.22
BVpS2.07
TBVpS-15.75
PEG (NY)1.8
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 | 1.7 |
F-Score4
WACC9.51%
ROIC/WACC1.14
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 Y19.95%
EPS Next 2Y20.92%
EPS Next 3Y20.96%
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%