RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
NYSE:RNR - New York Stock Exchange, Inc. - BMG7496G1033 - Common Stock - Currency: USD
Taking everything into account, RNR scores 5 out of 10 in our fundamental rating. RNR was compared to 144 industry peers in the Insurance industry. Both the profitability and the financial health of RNR get a neutral evaluation. Nothing too spectacular is happening here. RNR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
RNR had positive earnings in the past year.
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.
In the past 5 years RNR always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.67%, RNR is doing good in the industry, outperforming 77.08% of the companies in the same industry.
The Return On Equity of RNR (19.00%) is better than 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.56%, RNR belongs to the top of the industry, outperforming 81.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 19% | ||
| ROIC | 4.56% |
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
With an excellent Profit Margin value of 15.98%, RNR belongs to the best of the industry, outperforming 84.03% of the companies in the same industry.
In the last couple of years the Profit Margin of RNR has declined.
The Operating Margin of RNR (24.92%) is better than 88.89% of its industry peers.
In the last couple of years the Operating Margin of RNR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.92% | ||
| PM (TTM) | 15.98% | ||
| 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.
RNR has less shares outstanding than it did 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
RNR has an Altman-Z score of 0.79. This is a bad value and indicates that RNR is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.79, RNR is in the better half of the industry, outperforming 78.47% of the companies in the same industry.
RNR has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
The Debt to FCF ratio of RNR (0.76) is better than 72.92% of its industry peers.
RNR has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
RNR has a Debt to Equity ratio of 0.27. This is in the better half of the industry: RNR outperforms 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.56
WACC8.22%
2.3 Liquidity
RNR has a Current Ratio of 0.29. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.29, RNR is doing good in the industry, outperforming 71.53% of the companies in the same industry.
RNR has a Quick Ratio of 0.29. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.29, RNR is doing good in the industry, outperforming 71.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 |
3. Growth
3.1 Past
The earnings per share for RNR have decreased strongly by -28.88% in the last year.
The Earnings Per Share has been growing by 36.08% on average over the past years. This is a very strong growth
The Revenue has grown by 9.94% in the past year. This is quite good.
The Revenue has been growing by 23.24% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-28.88%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-112.23%
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%11.33%
3.2 Future
The Earnings Per Share is expected to decrease by -3.01% on average over the next years.
The Revenue is expected to grow by 2.95% on average over the next years.
EPS Next Y-50.64%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y2.46%
Revenue Next 3Y2.95%
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.
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
A Price/Earnings ratio of 8.25 indicates a reasonable valuation of RNR.
Compared to the rest of the industry, the Price/Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 76.39% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, RNR is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.65, the valuation of RNR can be described as very cheap.
Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than the industry average as 72.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 21.90. RNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 6.65 |
4.2 Price Multiples
RNR's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. RNR is cheaper than 84.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RNR is valued a bit cheaper than the industry average as 79.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.22 | ||
| EV/EBITDA | 3.88 |
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 -3.01% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, RNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.51, RNR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.42, RNR's dividend is way lower than the S&P500 average.
| 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 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 5.86% of its income as dividend. This is a sustainable payout ratio.
DP5.86%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
240.9
+5.07 (+2.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.88%
Inst Owner Change-6.17%
Ins Owners1.11%
Ins Owner Change2.73%
Market Cap11.72B
Analysts73.33
Price Target283.46 (17.67%)
Short Float %3.76%
Short Ratio4.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP5.86%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.22%
Min EPS beat(2)-15.92%
Max EPS beat(2)13.48%
EPS beat(4)3
Avg EPS beat(4)10.92%
Min EPS beat(4)-15.92%
Max EPS beat(4)30.69%
EPS beat(8)7
Avg EPS beat(8)20.27%
EPS beat(12)10
Avg EPS beat(12)14.61%
EPS beat(16)13
Avg EPS beat(16)10.87%
Revenue beat(2)1
Avg Revenue beat(2)0.92%
Min Revenue beat(2)-6.92%
Max Revenue beat(2)8.76%
Revenue beat(4)1
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-14.49%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-3.2%
Revenue beat(12)3
Avg Revenue beat(12)-5.31%
Revenue beat(16)5
Avg Revenue beat(16)-0.41%
PT rev (1m)1.57%
PT rev (3m)-0.36%
EPS NQ rev (1m)-1.54%
EPS NQ rev (3m)-5.55%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-17.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.87%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.25 | ||
| Fwd PE | 6.65 | ||
| P/S | 0.95 | ||
| P/FCF | 3.22 | ||
| P/OCF | 3.22 | ||
| P/B | 1.13 | ||
| P/tB | 1.21 | ||
| EV/EBITDA | 3.88 |
EPS(TTM)29.21
EY12.13%
EPS(NY)36.22
Fwd EY15.03%
FCF(TTM)74.8
FCFY31.05%
OCF(TTM)74.8
OCFY31.05%
SpS252.97
BVpS212.71
TBVpS198.61
PEG (NY)N/A
PEG (5Y)0.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.67% | ||
| ROE | 19% | ||
| ROCE | 5.78% | ||
| ROIC | 4.56% | ||
| ROICexc | 4.71% | ||
| ROICexgc | 5.49% | ||
| OM | 24.92% | ||
| PM (TTM) | 15.98% | ||
| GM | N/A | ||
| FCFM | 29.57% |
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-Score4
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 109.86% | ||
| Profit Quality | 185.08% | ||
| Current Ratio | 0.29 | ||
| Quick Ratio | 0.29 | ||
| Altman-Z | 0.79 |
F-Score4
WACC8.22%
ROIC/WACC0.56
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)-28.88%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%-112.23%
EPS Next Y-50.64%
EPS Next 2Y-8.09%
EPS Next 3Y-3.01%
EPS Next 5YN/A
Revenue 1Y (TTM)9.94%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%11.33%
Revenue Next Year3.96%
Revenue Next 2Y2.46%
Revenue Next 3Y2.95%
Revenue Next 5YN/A
EBIT growth 1Y-4.89%
EBIT growth 3YN/A
EBIT growth 5Y27.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.49%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y94.49%
OCF growth 3Y49.97%
OCF growth 5Y14.27%