For those who appreciate growth without the sticker shock, NYSE:RNR is worth considering.

Last update: Jan 10, 2024

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.

What does the Growth looks like for NYSE:RNR

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:

RNR shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 632.81%, which is quite impressive.
The Revenue has grown by 115.80% in the past year. This is a very strong growth!
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.
The Revenue is expected to grow by 19.28% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

How We Gauge Valuation for NYSE:RNR

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NYSE:RNR has earned a 8 for valuation:

The Price/Earnings ratio is 6.17, which indicates a rather cheap valuation of RNR.
76.92% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.84, RNR is valued rather cheaply.
A Price/Forward Earnings ratio of 6.20 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 76.92% of the companies listed in the same industry.
RNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.76, which is the current average of the S&P500 Index.
RNR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. RNR is cheaper than 74.13% of the companies in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of RNR 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.

How We Gauge Health for NYSE:RNR

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:RNR was assigned a score of 5 for health:

Looking at the Altman-Z score, with a value of 0.82, RNR belongs to the top of the industry, outperforming 83.92% of the companies in the same industry.
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.
RNR has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, RNR is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
RNR has a better Current ratio (0.59) than 74.13% of its industry peers.
The Quick ratio of RNR (0.59) is better than 74.13% of its industry peers.

Profitability Examination for NYSE:RNR

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:RNR scores 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 better Return On Invested Capital (5.73%) than 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.

Our latest full fundamental report of RNR contains the most current fundamental analsysis.

Disclaimer

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.