RYAN SPECIALTY HOLDINGS INC (RYAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RYAN - US78351F1075 - Common Stock
50 USD
-0.4 (-0.79%)
50 USD
0 (0%)
Overall RYAN gets a fundamental rating of 3 out of 10. We evaluated RYAN against 149 industry peers in the Insurance industry. While RYAN is still in line with the averages on profitability rating, there are concerns on its financial health. While showing a medium growth rate, RYAN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- In the past year RYAN was profitable.
- In the past year RYAN had a positive cash flow from operations.
- In the past 5 years RYAN has always been profitable.
- Each year in the past 5 years RYAN had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.72%, RYAN is not doing good in the industry: 66.44% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 11.18%, RYAN is in line with its industry, outperforming 49.66% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 10.10%, RYAN belongs to the best of the industry, outperforming 92.62% of the companies in the same industry.
- RYAN had an Average Return On Invested Capital over the past 3 years of 10.21%. This is below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 11.18% | ||
| ROIC | 10.1% |
ROA(3y)0.93%
ROA(5y)1.1%
ROE(3y)12.97%
ROE(5y)16.02%
ROIC(3y)10.21%
ROIC(5y)9.27%
1.3 Margins
- RYAN's Profit Margin of 2.38% is on the low side compared to the rest of the industry. RYAN is outperformed by 79.19% of its industry peers.
- RYAN's Profit Margin has declined in the last couple of years.
- RYAN has a better Operating Margin (22.14%) than 78.52% of its industry peers.
- RYAN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.14% | ||
| PM (TTM) | 2.38% | ||
| GM | N/A |
OM growth 3Y6.77%
OM growth 5Y12.9%
PM growth 3Y-6.47%
PM growth 5Y-14.82%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RYAN is still creating some value.
- RYAN has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for RYAN has been increased compared to 5 years ago.
- Compared to 1 year ago, RYAN has a worse debt to assets ratio.
2.2 Solvency
- RYAN has an Altman-Z score of 1.40. This is a bad value and indicates that RYAN is not financially healthy and even has some risk of bankruptcy.
- With an excellent Altman-Z score value of 1.40, RYAN belongs to the best of the industry, outperforming 82.55% of the companies in the same industry.
- RYAN has a debt to FCF ratio of 5.96. This is a neutral value as RYAN would need 5.96 years to pay back of all of its debts.
- RYAN has a Debt to FCF ratio of 5.96. This is in the lower half of the industry: RYAN underperforms 65.77% of its industry peers.
- RYAN has a Debt/Equity ratio of 5.31. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 5.31, RYAN is not doing good in the industry: 94.63% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.31 | ||
| Debt/FCF | 5.96 | ||
| Altman-Z | 1.4 |
ROIC/WACC1.24
WACC8.12%
2.3 Liquidity
- RYAN has a Current Ratio of 1.00. This is a bad value and indicates that RYAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- RYAN has a better Current ratio (1.00) than 78.52% of its industry peers.
- RYAN has a Quick Ratio of 1.00. This is a bad value and indicates that RYAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- RYAN's Quick ratio of 1.00 is fine compared to the rest of the industry. RYAN outperforms 78.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.57% over the past year.
- The earnings per share for RYAN have been decreasing by -11.82% on average. This is quite bad
- Looking at the last year, RYAN shows a small growth in Revenue. The Revenue has grown by 0.90% in the last year.
- Measured over the past years, RYAN shows a very strong growth in Revenue. The Revenue has been growing by 26.88% on average per year.
EPS 1Y (TTM)16.57%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%14.63%
Revenue 1Y (TTM)0.9%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%24.79%
3.2 Future
- The Earnings Per Share is expected to grow by 19.63% on average over the next years. This is quite good.
- RYAN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.21% yearly.
EPS Next Y14.79%
EPS Next 2Y17.1%
EPS Next 3Y18.13%
EPS Next 5Y19.63%
Revenue Next Year22.57%
Revenue Next 2Y19.51%
Revenue Next 3Y18.14%
Revenue Next 5Y16.21%
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 accelerating.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 25.38, RYAN can be considered very expensive at the moment.
- 74.50% of the companies in the same industry are cheaper than RYAN, based on the Price/Earnings ratio.
- RYAN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- RYAN is valuated rather expensively with a Price/Forward Earnings ratio of 20.37.
- RYAN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RYAN is more expensive than 72.48% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, RYAN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.38 | ||
| Fwd PE | 20.37 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RYAN is valued a bit more expensive than 66.44% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RYAN indicates a slightly more expensive valuation: RYAN is more expensive than 67.11% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.18 | ||
| EV/EBITDA | 17.72 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- RYAN's earnings are expected to grow with 18.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)N/A
EPS Next 2Y17.1%
EPS Next 3Y18.13%
5. Dividend
5.1 Amount
- RYAN has a yearly dividend return of 0.95%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.53, RYAN is paying slightly less dividend.
- Compared to an average S&P500 Dividend Yield of 1.82, RYAN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.95% |
5.2 History
- RYAN does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- RYAN pays out 85.88% of its income as dividend. This is not a sustainable payout ratio.
DP85.88%
EPS Next 2Y17.1%
EPS Next 3Y18.13%
RYAN SPECIALTY HOLDINGS INC / RYAN FAQ
What is the fundamental rating for RYAN stock?
ChartMill assigns a fundamental rating of 3 / 10 to RYAN.
What is the valuation status for RYAN stock?
ChartMill assigns a valuation rating of 1 / 10 to RYAN SPECIALTY HOLDINGS INC (RYAN). This can be considered as Overvalued.
Can you provide the profitability details for RYAN SPECIALTY HOLDINGS INC?
RYAN SPECIALTY HOLDINGS INC (RYAN) has a profitability rating of 4 / 10.
What is the financial health of RYAN SPECIALTY HOLDINGS INC (RYAN) stock?
The financial health rating of RYAN SPECIALTY HOLDINGS INC (RYAN) is 2 / 10.
What is the expected EPS growth for RYAN SPECIALTY HOLDINGS INC (RYAN) stock?
The Earnings per Share (EPS) of RYAN SPECIALTY HOLDINGS INC (RYAN) is expected to grow by 14.79% in the next year.