RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - NYSE:RNR - BMG7496G1033 - Common Stock
242.5 USD
+1.54 (+0.64%)
242.5 USD
0 (0%)
Overall RNR gets a fundamental rating of 6 out of 10. We evaluated RNR against 146 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make RNR a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year RNR was profitable.
In the past year RNR had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: RNR reported negative net income in multiple years.
Each year in the past 5 years RNR had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.53%, RNR is doing good in the industry, outperforming 71.92% of the companies in the same industry.
The Return On Equity of RNR (17.89%) is better than 83.56% of its industry peers.
RNR has a better Return On Invested Capital (3.87%) than 71.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 17.89% | ||
| ROIC | 3.87% |
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
The Profit Margin of RNR (15.44%) is better than 82.88% of its industry peers.
RNR's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 21.22%, RNR belongs to the top of the industry, outperforming 82.88% of the companies in the same industry.
RNR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.22% | ||
| PM (TTM) | 15.44% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5Y3.17%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNR is destroying value.
Compared to 1 year ago, RNR has less shares outstanding
Compared to 5 years ago, RNR has more shares outstanding
Compared to 1 year ago, RNR has an improved debt to assets ratio.
2.2 Solvency
RNR has an Altman-Z score of 0.77. This is a bad value and indicates that RNR is not financially healthy and even has some risk of bankruptcy.
With a decent Altman-Z score value of 0.77, RNR is doing good in the industry, outperforming 75.34% of the companies in the same industry.
The Debt to FCF ratio of RNR is 0.58, which is an excellent value as it means it would take RNR, only 0.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.58, RNR is doing good in the industry, outperforming 78.08% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that RNR is not too dependend on debt financing.
RNR has a better Debt to Equity ratio (0.21) than 69.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 0.77 |
ROIC/WACC0.49
WACC7.95%
2.3 Liquidity
A Current Ratio of 0.57 indicates that RNR may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.57, RNR is in the better half of the industry, outperforming 76.03% of the companies in the same industry.
RNR has a Quick Ratio of 0.57. 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 Quick ratio of RNR (0.57) is better than 76.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 |
3. Growth
3.1 Past
RNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.91%.
Measured over the past years, RNR shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.08% on average per year.
The Revenue has grown by 22.49% in the past year. This is a very strong growth!
The Revenue has been growing by 23.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-34.91%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-0.97%
Revenue 1Y (TTM)22.49%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.08%
3.2 Future
Based on estimates for the next years, RNR will show a decrease in Earnings Per Share. The EPS will decrease by -2.92% on average per year.
The Revenue is expected to grow by 2.31% on average over the next years.
EPS Next Y-45.16%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
EPS Next 5YN/A
Revenue Next Year0.71%
Revenue Next 2Y2.17%
Revenue Next 3Y2.31%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RNR is valuated reasonably with a Price/Earnings ratio of 8.34.
RNR's Price/Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 73.97% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. RNR is valued rather cheaply when compared to this.
RNR is valuated cheaply with a Price/Forward Earnings ratio of 6.72.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than the industry average as 76.03% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RNR to the average of the S&P500 Index (22.88), we can say RNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 6.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RNR indicates a rather cheap valuation: RNR is cheaper than 83.56% of the companies listed in the same industry.
RNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RNR is cheaper than 83.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 4.2 |
4.3 Compensation for Growth
The decent profitability rating of RNR may justify a higher PE ratio.
RNR's earnings are expected to decrease with -2.92% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
5. Dividend
5.1 Amount
RNR has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 3.43, RNR is paying slightly less dividend.
With a Dividend Yield of 0.65, RNR pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of RNR has a limited annual growth rate of 0.22%.
RNR has been paying a dividend for at least 10 years, so it has a reliable track record.
RNR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.22%
Div Incr Years26
Div Non Decr Years26
5.3 Sustainability
RNR pays out 5.90% of its income as dividend. This is a sustainable payout ratio.
DP5.9%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
242.5
+1.54 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners104.2%
Inst Owner Change-9.37%
Ins Owners1.15%
Ins Owner Change-1.3%
Market Cap11.41B
Analysts73.68
Price Target284.33 (17.25%)
Short Float %3.28%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP5.9%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.87%
Min EPS beat(2)-15.92%
Max EPS beat(2)23.67%
EPS beat(4)3
Avg EPS beat(4)12.98%
Min EPS beat(4)-15.92%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)21.17%
EPS beat(12)10
Avg EPS beat(12)16.02%
EPS beat(16)13
Avg EPS beat(16)11.23%
Revenue beat(2)0
Avg Revenue beat(2)-5.54%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)-4.17%
Revenue beat(4)1
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-6.92%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.7%
Revenue beat(12)3
Avg Revenue beat(12)-2.08%
Revenue beat(16)4
Avg Revenue beat(16)-5.8%
PT rev (1m)-1.15%
PT rev (3m)0.31%
EPS NQ rev (1m)6.43%
EPS NQ rev (3m)13.64%
EPS NY rev (1m)9.56%
EPS NY rev (3m)9.62%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)5.78%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-3.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.34 | ||
| Fwd PE | 6.72 | ||
| P/S | 0.91 | ||
| P/FCF | 2.93 | ||
| P/OCF | 2.93 | ||
| P/B | 1.06 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.2 |
EPS(TTM)29.09
EY12%
EPS(NY)36.11
Fwd EY14.89%
FCF(TTM)82.78
FCFY34.14%
OCF(TTM)82.78
OCFY34.14%
SpS265.76
BVpS229.44
TBVpS215.23
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 17.89% | ||
| ROCE | 4.89% | ||
| ROIC | 3.87% | ||
| ROICexc | 3.97% | ||
| ROICexgc | 4.58% | ||
| OM | 21.22% | ||
| PM (TTM) | 15.44% | ||
| GM | N/A | ||
| FCFM | 31.15% |
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 5Y10.38%
ROICexc growth 3YN/A
ROICexc growth 5Y11.16%
OM growth 3YN/A
OM growth 5Y3.17%
PM growth 3YN/A
PM growth 5Y-2%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.78 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 134.56% | ||
| Profit Quality | 201.7% | ||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.57 | ||
| Altman-Z | 0.77 |
F-Score5
WACC7.95%
ROIC/WACC0.49
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)-34.91%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-0.97%
EPS Next Y-45.16%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
EPS Next 5YN/A
Revenue 1Y (TTM)22.49%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.08%
Revenue Next Year0.71%
Revenue Next 2Y2.17%
Revenue Next 3Y2.31%
Revenue Next 5YN/A
EBIT growth 1Y-30.43%
EBIT growth 3YN/A
EBIT growth 5Y27.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y98.68%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y98.68%
OCF growth 3Y49.97%
OCF growth 5Y14.27%