When you look at NYSE:RNR, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Dec 27, 2023

Our stock screener has singled out RENAISSANCERE HOLDINGS LTD (NYSE:RNR) as a stellar value proposition. NYSE:RNR not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Understanding NYSE:RNR's Valuation

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:RNR boasts a 8 out of 10:

The Price/Earnings ratio is 5.91, which indicates a rather cheap valuation of RNR.
Based on the Price/Earnings ratio, RNR is valued a bit cheaper than the industry average as 79.02% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RNR to the average of the S&P500 Index (26.11), we can say RNR is valued rather cheaply.
The Price/Forward Earnings ratio is 5.94, which indicates a rather cheap valuation of RNR.
RNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 78.32% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.02. RNR is valued rather cheaply when compared to this.
Based on the Price/Free Cash Flow ratio, RNR is valued a bit cheaper than the industry average as 74.83% of the companies are valued more expensively.
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.
RNR's earnings are expected to grow with 70.79% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NYSE:RNR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:RNR, the assigned 6 is noteworthy for profitability:

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.
The Return On Equity of RNR (25.54%) is better than 95.80% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.73%, RNR belongs to the top of the industry, outperforming 89.51% of the companies in the same industry.
RNR's Profit Margin of 19.95% is amongst the best of the industry. RNR outperforms 85.31% of its industry peers.
RNR has a better Operating Margin (29.88%) than 91.61% of its industry peers.

Exploring NYSE:RNR's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:RNR has earned a 5 out of 10:

RNR's Altman-Z score of 0.82 is amongst the best of the industry. RNR outperforms 82.52% 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.
RNR has a Debt to FCF ratio of 0.88. This is in the better half of the industry: RNR outperforms 79.72% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that RNR is not too dependend on debt financing.
RNR has a better Debt to Equity ratio (0.25) than 72.73% of its industry peers.
RNR has a better Current ratio (0.59) than 74.13% of its industry peers.
With a decent Quick ratio value of 0.59, RNR is doing good in the industry, outperforming 74.13% of the companies in the same industry.

How do we evaluate the Growth for NYSE:RNR?

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:RNR has received a 7 out of 10:

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

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of RNR for a complete fundamental analysis.

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.