OLD REPUBLIC INTL CORP (ORI) Stock Fundamental Analysis
NYSE:ORI - New York Stock Exchange, Inc. - US6802231042 - Common Stock - Currency: USD
Overall ORI gets a fundamental rating of 5 out of 10. We evaluated ORI against 143 industry peers in the Insurance industry. ORI has a medium profitability rating, but doesn't score so well on its financial health evaluation. ORI has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
ORI had positive earnings in the past year.
ORI had a positive operating cash flow in the past year.
Each year in the past 5 years ORI has been profitable.
Each year in the past 5 years ORI had a positive operating cash flow.
1.2 Ratios
ORI has a Return On Assets of 3.06%. This is in the better half of the industry: ORI outperforms 67.83% of its industry peers.
ORI has a Return On Equity of 15.17%. This is in the better half of the industry: ORI outperforms 62.94% of its industry peers.
ORI has a Return On Invested Capital of 3.43%. This is in the better half of the industry: ORI outperforms 68.53% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ORI is in line with the industry average of 4.47%.
The 3 year average ROIC (3.40%) for ORI is below the current ROIC(3.43%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 15.17% | ||
| ROIC | 3.43% |
ROA(3y)2.68%
ROA(5y)3.33%
ROE(3y)11.88%
ROE(5y)13.39%
ROIC(3y)3.4%
ROIC(5y)3.48%
1.3 Margins
The Profit Margin of ORI (10.33%) is better than 62.94% of its industry peers.
In the last couple of years the Profit Margin of ORI has declined.
Looking at the Operating Margin, with a value of 14.20%, ORI is in the better half of the industry, outperforming 62.24% of the companies in the same industry.
In the last couple of years the Operating Margin of ORI has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.2% | ||
| PM (TTM) | 10.33% | ||
| GM | N/A |
OM growth 3Y-0.36%
OM growth 5Y4.91%
PM growth 3Y-16.67%
PM growth 5Y-7.66%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ORI has less shares outstanding
The number of shares outstanding for ORI has been reduced compared to 5 years ago.
Compared to 1 year ago, ORI has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ORI is 1.29, which is an excellent value as it means it would take ORI, only 1.29 years of fcf income to pay off all of its debts.
ORI has a Debt to FCF ratio of 1.29. This is comparable to the rest of the industry: ORI outperforms 57.34% of its industry peers.
ORI has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
ORI has a Debt to Equity ratio of 0.28. This is in the better half of the industry: ORI outperforms 60.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.29 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ORI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.15%, which is quite good.
Measured over the past years, ORI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.68% on average per year.
Looking at the last year, ORI shows a quite strong growth in Revenue. The Revenue has grown by 11.77% in the last year.
ORI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.76% yearly.
EPS 1Y (TTM)15.15%
EPS 3Y-0.54%
EPS 5Y10.68%
EPS Q2Q%30.43%
Revenue 1Y (TTM)11.77%
Revenue growth 3Y-1.34%
Revenue growth 5Y3.76%
Sales Q2Q%11.11%
3.2 Future
ORI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.24% yearly.
ORI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.72% yearly.
EPS Next Y7.15%
EPS Next 2Y7.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.16%
Revenue Next 2Y6.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.64, which indicates a correct valuation of ORI.
The rest of the industry has a similar Price/Earnings ratio as ORI.
ORI is valuated cheaply when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.80 indicates a reasonable valuation of ORI.
ORI's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of ORI to the average of the S&P500 Index (21.65), we can say ORI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 11.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ORI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.72 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ORI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ORI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.77
PEG (5Y)1.18
EPS Next 2Y7.24%
EPS Next 3YN/A
5. Dividend
5.1 Amount
ORI has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
ORI's Dividend Yield is a higher than the industry average which is at 3.28.
ORI's Dividend Yield is a higher than the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of ORI decreases each year by -10.29%.
ORI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-10.29%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
31.89% of the earnings are spent on dividend by ORI. This is a low number and sustainable payout ratio.
DP31.89%
EPS Next 2Y7.24%
EPS Next 3YN/A
38.42
+0.45 (+1.19%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners70.18%
Inst Owner Change0.15%
Ins Owners0.3%
Ins Owner Change0.23%
Market Cap9.50B
Analysts75
Price Target41.31 (7.52%)
Short Float %1.33%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.03
Dividend Growth(5Y)-10.29%
DP31.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)12.32%
Min EPS beat(2)-3.34%
Max EPS beat(2)27.98%
EPS beat(4)3
Avg EPS beat(4)10.97%
Min EPS beat(4)-3.34%
Max EPS beat(4)27.98%
EPS beat(8)6
Avg EPS beat(8)9.8%
EPS beat(12)9
Avg EPS beat(12)11.44%
EPS beat(16)13
Avg EPS beat(16)16.9%
Revenue beat(2)2
Avg Revenue beat(2)1.89%
Min Revenue beat(2)1%
Max Revenue beat(2)2.78%
Revenue beat(4)3
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-0.71%
Max Revenue beat(4)3.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.84%
Revenue beat(12)6
Avg Revenue beat(12)1.4%
Revenue beat(16)10
Avg Revenue beat(16)4.71%
PT rev (1m)0%
PT rev (3m)2.53%
EPS NQ rev (1m)-0.8%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)1.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.64 | ||
| Fwd PE | 11.8 | ||
| P/S | 1.15 | ||
| P/FCF | 7.72 | ||
| P/OCF | 7.72 | ||
| P/B | 1.69 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.04
EY7.91%
EPS(NY)3.26
Fwd EY8.48%
FCF(TTM)4.98
FCFY12.95%
OCF(TTM)4.98
OCFY12.95%
SpS33.38
BVpS22.73
TBVpS22.73
PEG (NY)1.77
PEG (5Y)1.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 15.17% | ||
| ROCE | 4.29% | ||
| ROIC | 3.43% | ||
| ROICexc | 3.46% | ||
| ROICexgc | 5.05% | ||
| OM | 14.2% | ||
| PM (TTM) | 10.33% | ||
| GM | N/A | ||
| FCFM | 14.91% |
ROA(3y)2.68%
ROA(5y)3.33%
ROE(3y)11.88%
ROE(5y)13.39%
ROIC(3y)3.4%
ROIC(5y)3.48%
ROICexc(3y)3.41%
ROICexc(5y)3.5%
ROICexgc(3y)4.84%
ROICexgc(5y)4.84%
ROCE(3y)4.25%
ROCE(5y)4.36%
ROICexcg growth 3Y-2.37%
ROICexcg growth 5Y5.05%
ROICexc growth 3Y-5.01%
ROICexc growth 5Y2.94%
OM growth 3Y-0.36%
OM growth 5Y4.91%
PM growth 3Y-16.67%
PM growth 5Y-7.66%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.29 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 15.15 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 144.29% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)153.91%
Profit Quality(5y)151.85%
High Growth Momentum
Growth
EPS 1Y (TTM)15.15%
EPS 3Y-0.54%
EPS 5Y10.68%
EPS Q2Q%30.43%
EPS Next Y7.15%
EPS Next 2Y7.24%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.77%
Revenue growth 3Y-1.34%
Revenue growth 5Y3.76%
Sales Q2Q%11.11%
Revenue Next Year7.16%
Revenue Next 2Y6.72%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.36%
EBIT growth 3Y-1.69%
EBIT growth 5Y8.85%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y39.85%
FCF growth 3Y-2.12%
FCF growth 5Y5.61%
OCF growth 1Y39.85%
OCF growth 3Y-2.12%
OCF growth 5Y5.61%