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%)
RNR gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 149 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 Finally RNR also has an excellent dividend rating. These ratings could make RNR a good candidate for value and dividend 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.
- RNR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- RNR has a Return On Assets of 3.06%. This is in the better half of the industry: RNR outperforms 65.10% of its industry peers.
- Looking at the Return On Equity, with a value of 14.51%, RNR is in the better half of the industry, outperforming 67.79% of the companies in the same industry.
- With a decent Return On Invested Capital value of 4.30%, RNR is doing good in the industry, outperforming 71.14% of the companies in the same industry.
| 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 71.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of RNR has declined.
- With an excellent Operating Margin value of 24.04%, RNR belongs to the best of the industry, outperforming 81.88% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
- RNR has a better debt/assets ratio than last year.
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.
- RNR has a Altman-Z score of 0.83. This is in the better half of the industry: RNR outperforms 77.18% of its industry peers.
- 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's Debt to FCF ratio of 0.56 is fine compared to the rest of the industry. RNR outperforms 79.87% of its industry peers.
- A Debt/Equity ratio of 0.19 indicates that RNR is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.19, RNR is in the better half of the industry, outperforming 69.80% 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
WACC8.19%
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.
- With a decent Current ratio value of 0.18, RNR is doing good in the industry, outperforming 67.79% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.18, RNR is in the better half of the industry, outperforming 67.79% 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.
- RNR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.08% yearly.
- The Revenue has been growing slightly by 6.33% in the past 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
- Based on estimates for the next years, RNR will show a decrease in Earnings Per Share. The EPS will decrease by -2.78% on average per year.
- RNR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.41% yearly.
EPS Next Y-18.14%
EPS Next 2Y-8.6%
EPS Next 3Y-2.78%
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
- A Price/Earnings ratio of 7.93 indicates a rather cheap 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 73.83% of the companies listed in the same industry.
- RNR is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 7.63, the valuation of RNR can be described as very cheap.
- Based on the Price/Forward Earnings ratio, RNR is valued a bit cheaper than 73.83% 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 24.26.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
- 81.88% of the companies in the same industry are more expensive than RNR, based on the Enterprise Value to EBITDA ratio.
- 81.88% 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 | 4.41 |
4.3 Compensation for Growth
- A cheap valuation may be justified as RNR's earnings are expected to decrease with -2.78% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-8.6%
EPS Next 3Y-2.78%
5. Dividend
5.1 Amount
- RNR has a Yearly Dividend Yield of 6.34%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.53, RNR pays a better dividend. On top of this RNR pays more dividend than 87.25% of the companies listed in the same industry.
- RNR's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
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-8.6%
EPS Next 3Y-2.78%
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 -18.14% in the next year.