RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RNR - BMG7496G1033 - Common Stock
281.95 USD
+6.55 (+2.38%)
RNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. RNR has only an average score on both its financial health and profitability. 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.
- RNR had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: RNR reported negative net income in multiple years.
- RNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of RNR (3.06%) is better than 65.54% of its industry peers.
- RNR has a Return On Equity of 14.51%. This is in the better half of the industry: RNR outperforms 68.24% of its industry peers.
- RNR has a better Return On Invested Capital (4.30%) than 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 Profit Margin of 13.59%. This is in the better half of the industry: RNR outperforms 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.
- 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
- 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.
- Compared to 5 years ago, RNR has more shares outstanding
- RNR has a better debt/assets ratio than last year.
2.2 Solvency
- RNR has an Altman-Z score of 0.84. This is a bad value and indicates that RNR is not financially healthy and even has some risk of bankruptcy.
- The Altman-Z score of RNR (0.84) is better than 77.70% of its industry peers.
- 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.
- A Debt/Equity ratio of 0.19 indicates that RNR is not too dependend on debt financing.
- 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 | 0.84 |
ROIC/WACC0.53
WACC8.18%
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 has a better Current ratio (0.18) than 68.24% of its industry peers.
- A Quick Ratio of 0.18 indicates that RNR may have some problems paying its short term obligations.
- With a decent Quick ratio value of 0.18, RNR is doing good in the industry, outperforming 68.24% of the companies in the same industry.
| 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
- RNR shows a small growth in Revenue. In the last year, the Revenue has grown by 6.33%.
- Measured over the past years, RNR shows a very strong growth in Revenue. The Revenue has been growing by 23.24% on average per year.
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
- The Earnings Per Share is expected to decrease by -1.97% on average over the next years.
- 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
- 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
- Based on the Price/Earnings ratio of 8.18, the valuation of RNR can be described as reasonable.
- Based on the Price/Earnings ratio, RNR is valued a bit cheaper than 72.97% of the companies in the same industry.
- RNR is valuated cheaply when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.67, the valuation of RNR can be described as very cheap.
- Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than 73.65% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. RNR is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
- RNR's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. RNR is cheaper than 78.38% of the companies in the same industry.
- RNR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RNR is cheaper than 81.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.26 | ||
| EV/EBITDA | 4.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.23
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 1.82.
| 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 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
- 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 6 / 10 to RENAISSANCERE HOLDINGS LTD (RNR). This can be considered as Fairly Valued.
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 8.18 and the Price/Book (PB) ratio is 1.13.
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.