RENAISSANCERE HOLDINGS LTD (RNR) Stock Fundamental Analysis
USA - NYSE:RNR - BMG7496G1033 - Common Stock
243.02 USD
+0.52 (+0.21%)
243.02 USD
0 (0%)
Taking everything into account, RNR scores 6 out of 10 in our fundamental rating. RNR was compared to 146 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR may be a bit undervalued, certainly considering the very reasonable score on growth RNR also has an excellent dividend rating. These ratings would make RNR suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
RNR had positive earnings in the past year.
RNR had a positive operating cash flow in the past year.
In multiple years RNR reported negative net income over the last 5 years.
In the past 5 years RNR always reported a positive cash flow from operatings.
1.2 Ratios
RNR's Return On Assets of 3.53% is fine compared to the rest of the industry. RNR outperforms 71.92% of its industry peers.
RNR's Return On Equity of 17.89% is amongst the best of the industry. RNR outperforms 83.56% of its industry peers.
The Return On Invested Capital of RNR (3.87%) is better 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
RNR has a better Profit Margin (15.44%) than 82.88% of its industry peers.
In the last couple of years the Profit Margin of RNR has declined.
RNR has a Operating Margin of 21.22%. This is amongst the best in the industry. RNR outperforms 82.88% of its industry peers.
In the last couple of years the Operating Margin of RNR has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), RNR is destroying value.
Compared to 1 year ago, RNR has less shares outstanding
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 0.78. 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 (0.78) is better than 75.34% of its industry peers.
RNR has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
RNR has a better Debt to FCF ratio (0.58) than 78.08% of its industry peers.
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 | 0.78 |
ROIC/WACC0.48
WACC8.02%
2.3 Liquidity
A Current Ratio of 0.57 indicates that RNR may have some problems paying its short term obligations.
The Current ratio of RNR (0.57) is better than 76.03% of its industry peers.
A Quick Ratio of 0.57 indicates that RNR may have some problems paying 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%.
RNR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.08% yearly.
RNR shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.49%.
RNR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.24% yearly.
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
RNR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.92% yearly.
Based on estimates for the next years, RNR will show a small growth in Revenue. The Revenue will grow by 2.31% on average per year.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 8.35 indicates a reasonable valuation of RNR.
73.29% of the companies in the same industry are more expensive than RNR, based on the Price/Earnings ratio.
RNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 6.73, the valuation of RNR can be described as very cheap.
RNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 76.03% of the companies in the same industry.
RNR's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.35 | ||
| Fwd PE | 6.73 |
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.
83.56% 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 | 2.94 | ||
| EV/EBITDA | 4.23 |
4.3 Compensation for Growth
The decent profitability rating of RNR may justify a higher PE ratio.
A cheap valuation may be justified as RNR's earnings are expected to decrease with -2.92% in the coming years.
PEG (NY)N/A
PEG (5Y)0.23
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.12%, RNR is a good candidate for dividend investing.
RNR's Dividend Yield is slightly below the industry average, which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.38, RNR pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
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
5.90% of the earnings are spent on dividend by RNR. This is a low number and sustainable payout ratio.
DP5.9%
EPS Next 2Y-8.24%
EPS Next 3Y-2.92%
243.02
+0.52 (+0.21%)
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 Cap11.44B
Analysts73.68
Price Target284.33 (17%)
Short Float %3.28%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.12% |
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 | 8.35 | ||
| Fwd PE | 6.73 | ||
| P/S | 0.91 | ||
| P/FCF | 2.94 | ||
| P/OCF | 2.94 | ||
| P/B | 1.06 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 4.23 |
EPS(TTM)29.09
EY11.97%
EPS(NY)36.11
Fwd EY14.86%
FCF(TTM)82.78
FCFY34.06%
OCF(TTM)82.78
OCFY34.06%
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 | 0.78 |
F-Score5
WACC8.02%
ROIC/WACC0.48
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%