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%)
Taking everything into account, RNR scores 5 out of 10 in our fundamental rating. RNR was compared to 148 industry peers in the Insurance industry. RNR has an average financial health and profitability rating. RNR is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, RNR could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
- RNR had positive earnings in the past year.
- 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
- The Return On Assets of RNR (3.06%) is better than 65.10% of its industry peers.
- RNR has a Return On Equity of 14.51%. This is in the better half of the industry: RNR outperforms 67.79% 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 71.14% 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 71.81% of the companies in the same industry.
- In the last couple of years the Profit Margin of RNR has declined.
- Looking at the Operating Margin, with a value of 24.04%, RNR belongs to the top of the industry, outperforming 81.88% of the companies in the same industry.
- 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.
- Compared to 1 year ago, RNR has less shares outstanding
- RNR has more shares outstanding than it did 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.
- RNR's Altman-Z score of 0.83 is fine compared to the rest of the industry. RNR outperforms 77.18% 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.
- RNR has a better Debt to FCF ratio (0.56) than 79.87% 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.
- With a decent Debt to Equity ratio value of 0.19, RNR is doing good in 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
WACC8.17%
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.
- The Current ratio of RNR (0.18) is better than 67.79% 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.
- The Quick ratio of RNR (0.18) is better than 67.79% 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%.
- The Revenue has been growing by 23.24% on average over the past years. This is a very strong growth!
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.
- 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-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.
- 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
- The Price/Earnings ratio is 7.93, which 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 72.48% of the companies listed in the same industry.
- RNR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- A Price/Forward Earnings ratio of 7.44 indicates a rather cheap valuation of RNR.
- RNR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RNR is cheaper than 73.83% of the companies in the same industry.
- RNR is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.93 | ||
| Fwd PE | 7.44 |
4.2 Price Multiples
- 80.54% 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 | 4.44 |
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.
- Compared to an average industry Dividend Yield of 2.41, RNR is paying slightly less dividend.
- 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 their dividend for at least 10 years, which is a reliable track record.
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.