RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - New York Stock Exchange, Inc. - BMG7496G1033 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to RNR. RNR was compared to 144 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, RNR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
RNR had positive earnings in the past year.
RNR had a positive operating cash flow in the past year.
In multiple years RNR reported negative net income over the last 5 years.
Each year in the past 5 years RNR had a positive operating cash flow.
1.2 Ratios
RNR has a better Return On Assets (4.27%) than 79.02% of its industry peers.
RNR has a Return On Equity of 20.49%. This is amongst the best in the industry. RNR outperforms 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.61%, RNR belongs to the top of the industry, outperforming 86.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 20.49% | ||
| ROIC | 6.61% |
ROA(3y)1.88%
ROA(5y)1.55%
ROE(3y)7.6%
ROE(5y)6.25%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 18.22%, RNR belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
RNR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 35.53%, RNR belongs to the top of the industry, outperforming 95.80% of the companies in the same industry.
In the last couple of years the Operating Margin of RNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.53% | ||
| PM (TTM) | 18.22% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y3.18%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RNR is destroying value.
The number of shares outstanding for RNR has been reduced compared to 1 year ago.
RNR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RNR has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.92, we must say that RNR is in the distress zone and has some risk of bankruptcy.
RNR's Altman-Z score of 0.92 is fine compared to the rest of the industry. RNR outperforms 79.02% of its industry peers.
The Debt to FCF ratio of RNR is 0.45, which is an excellent value as it means it would take RNR, only 0.45 years of fcf income to pay off all of its debts.
RNR has a better Debt to FCF ratio (0.45) than 84.62% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that RNR is not too dependend on debt financing.
RNR has a better Debt to Equity ratio (0.18) than 73.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 0.92 |
ROIC/WACC0.8
WACC8.21%
2.3 Liquidity
RNR has a Current Ratio of 0.61. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of RNR (0.61) is better than 76.92% of its industry peers.
A Quick Ratio of 0.61 indicates that RNR may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.61, RNR is doing good in the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.74% over the past year.
The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
RNR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.25%.
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.24% yearly.
EPS 1Y (TTM)15.74%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-31.52%
Revenue 1Y (TTM)16.25%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%12.36%
3.2 Future
Based on estimates for the next years, RNR will show a decrease in Earnings Per Share. The EPS will decrease by -1.38% on average per year.
Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 3.43% on average per year.
EPS Next Y-38.87%
EPS Next 2Y-6.91%
EPS Next 3Y-1.38%
EPS Next 5YN/A
Revenue Next Year2.12%
Revenue Next 2Y3.45%
Revenue Next 3Y3.43%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.69, the valuation of RNR can be described as very cheap.
Based on the Price/Earnings ratio, RNR is valued cheaply inside the industry as 80.42% of the companies are valued more expensively.
RNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
The Price/Forward Earnings ratio is 9.30, which indicates a very decent valuation of RNR.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than the industry average as 66.43% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 9.3 |
4.2 Price Multiples
88.11% of the companies in the same industry are more expensive than RNR, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RNR is valued a bit cheaper than the industry average as 79.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.88 | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
RNR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2Y-6.91%
EPS Next 3Y-1.38%
5. Dividend
5.1 Amount
RNR has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 3.17, RNR is paying slightly less dividend.
With a Dividend Yield of 0.66, RNR pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of RNR has a limited annual growth rate of 0.22%.
RNR has paid a dividend for at least 10 years, which is a reliable track record.
RNR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)0.22%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
5.36% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
DP5.36%
EPS Next 2Y-6.91%
EPS Next 3Y-1.38%
243.82
+0.62 (+0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners106.49%
Inst Owner Change0.17%
Ins Owners1.22%
Ins Owner Change4.5%
Market Cap12.01B
Analysts71.11
Price Target280.91 (15.21%)
Short Float %3.61%
Short Ratio3.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP5.36%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.08%
Min EPS beat(2)13.48%
Max EPS beat(2)30.69%
EPS beat(4)4
Avg EPS beat(4)21.94%
Min EPS beat(4)13.48%
Max EPS beat(4)30.69%
EPS beat(8)8
Avg EPS beat(8)23.71%
EPS beat(12)10
Avg EPS beat(12)13.67%
EPS beat(16)13
Avg EPS beat(16)6.78%
Revenue beat(2)1
Avg Revenue beat(2)3.62%
Min Revenue beat(2)-1.53%
Max Revenue beat(2)8.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.44%
Min Revenue beat(4)-14.49%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-3.3%
Revenue beat(12)3
Avg Revenue beat(12)-8.13%
Revenue beat(16)5
Avg Revenue beat(16)-0.49%
PT rev (1m)-4.51%
PT rev (3m)-7.02%
EPS NQ rev (1m)-46.95%
EPS NQ rev (3m)-74.21%
EPS NY rev (1m)-23.16%
EPS NY rev (3m)-25.08%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-12.3%
Revenue NY rev (1m)-1.11%
Revenue NY rev (3m)-2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 9.3 | ||
| P/S | 1.01 | ||
| P/FCF | 2.88 | ||
| P/OCF | 2.88 | ||
| P/B | 1.14 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 2.72 |
EPS(TTM)42.88
EY17.59%
EPS(NY)26.21
Fwd EY10.75%
FCF(TTM)84.56
FCFY34.68%
OCF(TTM)84.56
OCFY34.68%
SpS241.54
BVpS214.7
TBVpS200.4
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 20.49% | ||
| ROCE | 8.36% | ||
| ROIC | 6.61% | ||
| ROICexc | 6.83% | ||
| ROICexgc | 7.93% | ||
| OM | 35.53% | ||
| PM (TTM) | 18.22% | ||
| GM | N/A | ||
| FCFM | 35.01% |
ROA(3y)1.88%
ROA(5y)1.55%
ROE(3y)7.6%
ROE(5y)6.25%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y10.4%
ROICexc growth 3YN/A
ROICexc growth 5Y11.18%
OM growth 3YN/A
OM growth 5Y3.18%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 48.01 | ||
| Cash Conversion | 92.85% | ||
| Profit Quality | 192.19% | ||
| Current Ratio | 0.61 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | 0.92 |
F-Score6
WACC8.21%
ROIC/WACC0.8
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.74%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-31.52%
EPS Next Y-38.87%
EPS Next 2Y-6.91%
EPS Next 3Y-1.38%
EPS Next 5YN/A
Revenue 1Y (TTM)16.25%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%12.36%
Revenue Next Year2.12%
Revenue Next 2Y3.45%
Revenue Next 3Y3.43%
Revenue Next 5YN/A
EBIT growth 1Y46.69%
EBIT growth 3YN/A
EBIT growth 5Y27.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y117.87%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y117.87%
OCF growth 3Y49.97%
OCF growth 5Y14.27%