RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - NYSE:RNR - BMG7496G1033 - Common Stock
266.77 USD
-0.83 (-0.31%)
266.77 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to RNR. RNR was compared to 146 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on RNR. 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
Looking at the Return On Assets, with a value of 3.06%, RNR is in the better half of the industry, outperforming 65.75% of the companies in the same industry.
The Return On Equity of RNR (14.51%) is better than 67.12% of its industry peers.
The Return On Invested Capital of RNR (4.30%) is better than 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.51% | ||
| ROIC | 4.3% |
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 a decent Profit Margin value of 13.59%, RNR is doing good in the industry, outperforming 76.71% of the companies in the same industry.
RNR's Profit Margin has declined in the last couple of years.
RNR's Operating Margin of 24.04% is amongst the best of the industry. RNR outperforms 86.30% of its industry peers.
RNR's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.04% | ||
| PM (TTM) | 13.59% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 0.83. 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 0.83, RNR is doing good in the industry, outperforming 77.40% of the companies in the same industry.
The Debt to FCF ratio of RNR is 0.56, which is an excellent value as it means it would take RNR, only 0.56 years of fcf income to pay off all of its debts.
RNR has a better Debt to FCF ratio (0.56) than 80.14% of its industry peers.
RNR has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, RNR is in the better half of the industry, outperforming 70.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC8.07%
2.3 Liquidity
A Current Ratio of 0.18 indicates that RNR may have some problems paying its short term obligations.
RNR has a better Current ratio (0.18) than 67.81% of its industry peers.
RNR has a Quick Ratio of 0.18. This is a bad value and indicates that RNR is not financially healthy enough and could expect problems in meeting its short term obligations.
RNR has a better Quick ratio (0.18) than 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
The earnings per share for RNR have decreased strongly by -25.99% 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
Looking at the last year, RNR shows a small growth in Revenue. The Revenue has grown by 6.33% in the last year.
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.24% yearly.
EPS 1Y (TTM)-25.99%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%52.69%
Revenue 1Y (TTM)6.33%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.77%
3.2 Future
RNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.18% yearly.
The Revenue is expected to grow by 1.02% on average over the next years.
EPS Next Y-27.67%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
EPS Next 5YN/A
Revenue Next Year0.61%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.02%
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
The Price/Earnings ratio is 7.74, which indicates a rather cheap valuation of RNR.
Based on the Price/Earnings ratio, RNR is valued a bit cheaper than 73.29% of the companies in the same industry.
RNR is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.50, the valuation of RNR can be described as very cheap.
72.60% of the companies in the same industry are more expensive than RNR, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of RNR to the average of the S&P500 Index (33.61), we can say RNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RNR is valued cheaper than 82.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RNR is valued cheaper than 80.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.15 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
RNR's earnings are expected to decrease with -3.18% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, RNR is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.45, RNR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, RNR's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
RNR pays out 6.75% of its income as dividend. This is a sustainable payout ratio.
DP6.75%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
266.77
-0.83 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.37%
Inst Owner Change-4.05%
Ins Owners1.13%
Ins Owner Change-0.47%
Market Cap12.56B
Revenue(TTM)12.28B
Net Income(TTM)1.67B
Analysts69.52
Price Target287.33 (7.71%)
Short Float %1.66%
Short Ratio1.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend2.26
Dividend Growth(5Y)0.22%
DP6.75%
Div Incr Years26
Div Non Decr Years26
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.9%
Min EPS beat(2)23.67%
Max EPS beat(2)58.13%
EPS beat(4)3
Avg EPS beat(4)19.84%
Min EPS beat(4)-15.92%
Max EPS beat(4)58.13%
EPS beat(8)7
Avg EPS beat(8)24.46%
EPS beat(12)11
Avg EPS beat(12)22.41%
EPS beat(16)13
Avg EPS beat(16)14.54%
Revenue beat(2)0
Avg Revenue beat(2)-4.45%
Min Revenue beat(2)-7.47%
Max Revenue beat(2)-1.43%
Revenue beat(4)1
Avg Revenue beat(4)-2.04%
Min Revenue beat(4)-8.02%
Max Revenue beat(4)8.76%
Revenue beat(8)2
Avg Revenue beat(8)-2.26%
Revenue beat(12)3
Avg Revenue beat(12)-1.65%
Revenue beat(16)3
Avg Revenue beat(16)-7.23%
PT rev (1m)1.06%
PT rev (3m)-0.11%
EPS NQ rev (1m)6.39%
EPS NQ rev (3m)5.53%
EPS NY rev (1m)29.47%
EPS NY rev (3m)44.49%
Revenue NQ rev (1m)-2.35%
Revenue NQ rev (3m)-3.86%
Revenue NY rev (1m)2.41%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.74 | ||
| Fwd PE | 7.5 | ||
| P/S | 1.02 | ||
| P/FCF | 3.15 | ||
| P/OCF | 3.15 | ||
| P/B | 1.09 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 4.43 |
EPS(TTM)34.48
EY12.92%
EPS(NY)35.58
Fwd EY13.34%
FCF(TTM)84.75
FCFY31.77%
OCF(TTM)84.75
OCFY31.77%
SpS260.86
BVpS244.37
TBVpS230.53
PEG (NY)N/A
PEG (5Y)0.21
Graham Number435.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.06% | ||
| ROE | 14.51% | ||
| ROCE | 5.45% | ||
| ROIC | 4.3% | ||
| ROICexc | 4.44% | ||
| ROICexgc | 5.06% | ||
| OM | 24.04% | ||
| PM (TTM) | 13.59% | ||
| GM | N/A | ||
| FCFM | 32.49% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 0.19 | ||
| Debt/FCF | 0.56 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 134.73% | ||
| Profit Quality | 239.06% | ||
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 | ||
| Altman-Z | 0.83 |
F-Score5
WACC8.07%
ROIC/WACC0.53
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)-25.99%
EPS 3Y208.53%
EPS 5Y36.08%
EPS Q2Q%52.69%
EPS Next Y-27.67%
EPS Next 2Y-8.91%
EPS Next 3Y-3.18%
EPS Next 5YN/A
Revenue 1Y (TTM)6.33%
Revenue growth 3Y30.87%
Revenue growth 5Y23.24%
Sales Q2Q%-5.77%
Revenue Next Year0.61%
Revenue Next 2Y-0.51%
Revenue Next 3Y1.02%
Revenue Next 5YN/A
EBIT growth 1Y-31.76%
EBIT growth 3YN/A
EBIT growth 5Y27.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y87.07%
FCF growth 3Y49.97%
FCF growth 5Y14.27%
OCF growth 1Y87.07%
OCF growth 3Y49.97%
OCF growth 5Y14.27%
RENAISSANCERE HOLDINGS LTD / RNR FAQ
What is the ChartMill fundamental rating of RENAISSANCERE HOLDINGS LTD (RNR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to RNR.
Can you provide the valuation status for RENAISSANCERE HOLDINGS LTD?
ChartMill assigns a valuation rating of 7 / 10 to RENAISSANCERE HOLDINGS LTD (RNR). This can be considered as Undervalued.
How profitable is RENAISSANCERE HOLDINGS LTD (RNR) stock?
RENAISSANCERE HOLDINGS LTD (RNR) has a profitability rating of 5 / 10.
What is the valuation of RENAISSANCERE HOLDINGS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for RENAISSANCERE HOLDINGS LTD (RNR) is 7.74 and the Price/Book (PB) ratio is 1.09.
Can you provide the dividend sustainability for RNR stock?
The dividend rating of RENAISSANCERE HOLDINGS LTD (RNR) is 4 / 10 and the dividend payout ratio is 6.75%.