NYSE:RNR stands out as a growth opportunity that won't break the bank.

Last update: Dec 18, 2023

Here's RENAISSANCERE HOLDINGS LTD (NYSE:RNR) for you, a growth stock our stock screener believes is undervalued. NYSE:RNR is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Looking at the Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:RNR boasts a 7 out of 10:

The Earnings Per Share has grown by an impressive 632.81% over the past year.
RNR shows a strong growth in Revenue. In the last year, the Revenue has grown by 115.80%.
Measured over the past years, RNR shows a quite strong growth in Revenue. The Revenue has been growing by 19.63% on average per year.
RNR is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 70.79% yearly.
RNR is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 19.28% yearly.
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.

Understanding NYSE:RNR's Valuation

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NYSE:RNR was assigned a score of 8 for valuation:

The Price/Earnings ratio is 6.01, which indicates a rather cheap valuation of RNR.
Compared to the rest of the industry, the Price/Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 77.62% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.46. RNR is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.04 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 77.62% of the companies listed in the same industry.
RNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.07.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 74.13% of the companies listed in the same industry.
The 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.
A more expensive valuation may be justified as RNR's earnings are expected to grow with 70.79% in the coming years.

Deciphering NYSE:RNR's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RNR has received a 5 out of 10:

RNR's Altman-Z score of 0.82 is amongst the best of the industry. RNR outperforms 83.22% of its industry peers.
RNR has a debt to FCF ratio of 0.88. This is a very positive value and a sign of high solvency as it would only need 0.88 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.88, RNR is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that RNR is not too dependend on debt financing.
RNR has a Debt to Equity ratio of 0.25. This is in the better half of the industry: RNR outperforms 72.73% of its industry peers.
Looking at the Current ratio, with a value of 0.59, RNR is in the better half of the industry, outperforming 74.13% of the companies in the same industry.
Looking at the Quick ratio, with a value of 0.59, RNR is in the better half of the industry, outperforming 74.13% of the companies in the same industry.

A Closer Look at Profitability for NYSE:RNR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:RNR has earned a 6 out of 10:

With an excellent Return On Assets value of 4.75%, RNR belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With an excellent Return On Equity value of 25.54%, RNR belongs to the best of the industry, outperforming 95.80% of the companies in the same industry.
RNR has a Return On Invested Capital of 5.73%. This is amongst the best in the industry. RNR outperforms 89.51% of its industry peers.
Looking at the Profit Margin, with a value of 19.95%, RNR belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
RNR's Operating Margin of 29.88% is amongst the best of the industry. RNR outperforms 91.61% of its industry peers.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of RNR

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.