RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RNR - BMG7496G1033 - Common Stock
273.37 USD
+1.67 (+0.61%)
273.37 USD
0 (0%)
Overall RNR gets a fundamental rating of 5 out of 10. We evaluated RNR against 148 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR has a decent growth rate and is not valued too expensively.
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.
- 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 3.06%, RNR is doing good in the industry, outperforming 65.54% of the companies in the same industry.
- RNR's Return On Equity of 14.51% is fine compared to the rest of the industry. RNR outperforms 68.24% of its industry peers.
- RNR has a Return On Invested Capital of 4.30%. This is in the better half of the industry: RNR outperforms 71.62% 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
- RNR has a better Profit Margin (13.59%) than 72.30% of its industry peers.
- RNR's Profit Margin has declined in the last couple of years.
- RNR has a Operating Margin of 24.04%. This is amongst the best in the industry. RNR outperforms 82.43% of its industry peers.
- In the last couple of years the Operating Margin of RNR has grown nicely.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so RNR is destroying value.
- The number of shares outstanding for RNR has been reduced compared to 1 year ago.
- The number of shares outstanding for RNR has been increased compared to 5 years ago.
- Compared to 1 year ago, RNR has an improved debt to assets ratio.
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 77.70% of the companies in the same industry.
- RNR has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.56, RNR is in the better half of the industry, outperforming 79.73% of the companies in the same industry.
- RNR has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
- RNR's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. RNR outperforms 69.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | 0.83 |
ROIC/WACC0.53
WACC8.17%
2.3 Liquidity
- RNR has a Current 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's Current ratio of 0.18 is fine compared to the rest of the industry. RNR outperforms 68.24% 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 68.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.18 | ||
| Quick Ratio | 0.18 |
3. Growth
3.1 Past
- RNR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.99%.
- 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.
- RNR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.33%.
- 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 -1.97% yearly.
- Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 0.41% on average per year.
EPS Next Y-15.89%
EPS Next 2Y-7.42%
EPS Next 3Y-1.97%
EPS Next 5YN/A
Revenue Next Year-2.13%
Revenue Next 2Y-1.84%
Revenue Next 3Y0.41%
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 7.93, which indicates a rather cheap valuation of RNR.
- 72.30% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
- RNR is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 7.44, the valuation of RNR can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RNR indicates a somewhat cheap valuation: RNR is cheaper than 73.65% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, RNR is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RNR is valued a bit cheaper than 79.73% of the companies in the same industry.
- 81.76% of the companies in the same industry are more expensive than RNR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-7.42%
EPS Next 3Y-1.97%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.59%, RNR is not a good candidate for dividend investing.
- RNR's Dividend Yield is slightly below the industry average, which is at 2.41.
- With a Dividend Yield of 0.59, RNR pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 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
- 6.75% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
DP6.75%
EPS Next 2Y-7.42%
EPS Next 3Y-1.97%
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.
What is the valuation status for RNR stock?
ChartMill assigns a valuation rating of 7 / 10 to RENAISSANCERE HOLDINGS LTD (RNR). This can be considered as Undervalued.
What is the profitability of RNR stock?
RENAISSANCERE HOLDINGS LTD (RNR) has a profitability rating of 5 / 10.
What are the PE and PB ratios of RENAISSANCERE HOLDINGS LTD (RNR) stock?
The Price/Earnings (PE) ratio for RENAISSANCERE HOLDINGS LTD (RNR) is 7.93 and the Price/Book (PB) ratio is 1.1.
Can you provide the expected EPS growth for RNR stock?
The Earnings per Share (EPS) of RENAISSANCERE HOLDINGS LTD (RNR) is expected to decline by -15.89% in the next year.