RYAN SPECIALTY HOLDINGS INC (RYAN) Stock Fundamental Analysis
NYSE:RYAN - New York Stock Exchange, Inc. - US78351F1075 - Common Stock - Currency: USD
RYAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. There are concerns on the financial health of RYAN while its profitability can be described as average. RYAN is valued quite expensive, but it does show an excellent growth.
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.
RYAN had positive earnings in each of the past 5 years.
Each year in the past 5 years RYAN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.68%, RYAN is not doing good in the industry: 62.07% of the companies in the same industry are doing better.
RYAN has a better Return On Equity (12.35%) than 62.07% of its industry peers.
With an excellent Return On Invested Capital value of 10.84%, RYAN belongs to the best of the industry, outperforming 96.55% 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 significantly above the industry average of 4.07%.
The 3 year average ROIC (10.21%) for RYAN is below the current ROIC(10.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 12.35% | ||
| ROIC | 10.84% |
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
Looking at the Profit Margin, with a value of 2.09%, RYAN is doing worse than 76.55% of the companies in the same industry.
RYAN's Profit Margin has declined in the last couple of years.
RYAN has a Operating Margin of 22.36%. This is amongst the best in the industry. RYAN outperforms 85.52% of its industry peers.
RYAN's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.36% | ||
| PM (TTM) | 2.09% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RYAN is creating some value.
RYAN has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RYAN has more shares outstanding
The debt/assets ratio for RYAN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.70, we must say that RYAN is in the distress zone and has some risk of bankruptcy.
RYAN's Altman-Z score of 1.70 is amongst the best of the industry. RYAN outperforms 90.34% of its industry peers.
The Debt to FCF ratio of RYAN is 8.54, which is on the high side as it means it would take RYAN, 8.54 years of fcf income to pay off all of its debts.
RYAN's Debt to FCF ratio of 8.54 is on the low side compared to the rest of the industry. RYAN is outperformed by 73.10% of its industry peers.
A Debt/Equity ratio of 6.73 is on the high side and indicates that RYAN has dependencies on debt financing.
RYAN has a worse Debt to Equity ratio (6.73) than 93.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 8.54 | ||
| Altman-Z | 1.7 |
ROIC/WACC1.28
WACC8.44%
2.3 Liquidity
RYAN has a Current Ratio of 1.05. This is a normal value and indicates that RYAN is financially healthy and should not expect problems in meeting its short term obligations.
RYAN has a better Current ratio (1.05) than 80.69% of its industry peers.
RYAN has a Quick Ratio of 1.05. This is a normal value and indicates that RYAN is financially healthy and should not expect problems in meeting its short term obligations.
RYAN's Quick ratio of 1.05 is amongst the best of the industry. RYAN outperforms 80.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
RYAN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.49%, which is quite impressive.
Measured over the past years, RYAN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.82% on average per year.
RYAN shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.61%.
RYAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.88% yearly.
EPS 1Y (TTM)24.49%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%11.43%
Revenue 1Y (TTM)47.61%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%25.02%
3.2 Future
RYAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.13% yearly.
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 Y19.35%
EPS Next 2Y20.86%
EPS Next 3Y20.97%
EPS Next 5Y20.13%
Revenue Next Year22.53%
Revenue Next 2Y18.91%
Revenue Next 3Y17.56%
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
The Price/Earnings ratio is 35.50, which means the current valuation is very expensive for RYAN.
Compared to the rest of the industry, the Price/Earnings ratio of RYAN indicates a slightly more expensive valuation: RYAN is more expensive than 77.24% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.51, RYAN is valued a bit more expensive.
A Price/Forward Earnings ratio of 24.85 indicates a rather expensive valuation of RYAN.
RYAN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. RYAN is more expensive than 76.55% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.58, RYAN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.5 | ||
| Fwd PE | 24.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RYAN is valued a bit more expensive than the industry average as 64.83% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, RYAN is valued a bit more expensive than 74.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.48 | ||
| EV/EBITDA | 22.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RYAN does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of RYAN may justify a higher PE ratio.
RYAN's earnings are expected to grow with 20.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.83
PEG (5Y)N/A
EPS Next 2Y20.86%
EPS Next 3Y20.97%
5. Dividend
5.1 Amount
RYAN has a yearly dividend return of 0.71%, which is pretty low.
RYAN's Dividend Yield is slightly below the industry average, which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.35, RYAN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
5.2 History
RYAN is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
RYAN pays out 82.49% of its income as dividend. This is not a sustainable payout ratio.
DP82.49%
EPS Next 2Y20.86%
EPS Next 3Y20.97%
64.96
-0.36 (-0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners83.36%
Inst Owner Change0%
Ins Owners13.69%
Ins Owner Change-4.23%
Market Cap17.05B
Analysts77
Price Target80.92 (24.57%)
Short Float %5.79%
Short Ratio6.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.71% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP82.49%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.38%
Min EPS beat(2)-2.5%
Max EPS beat(2)-2.26%
EPS beat(4)1
Avg EPS beat(4)-1.65%
Min EPS beat(4)-3.27%
Max EPS beat(4)1.45%
EPS beat(8)2
Avg EPS beat(8)-0.99%
EPS beat(12)5
Avg EPS beat(12)0%
EPS beat(16)9
Avg EPS beat(16)2.81%
Revenue beat(2)0
Avg Revenue beat(2)-0.9%
Min Revenue beat(2)-1.24%
Max Revenue beat(2)-0.57%
Revenue beat(4)0
Avg Revenue beat(4)-1.18%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.57%
Revenue beat(8)0
Avg Revenue beat(8)-0.89%
Revenue beat(12)2
Avg Revenue beat(12)-0.48%
Revenue beat(16)4
Avg Revenue beat(16)0.05%
PT rev (1m)2.65%
PT rev (3m)4.27%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-2.47%
EPS NY rev (1m)-0.5%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)0.11%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.5 | ||
| Fwd PE | 24.85 | ||
| P/S | 5.32 | ||
| P/FCF | 39.48 | ||
| P/OCF | 34.89 | ||
| P/B | 31.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.37 |
EPS(TTM)1.83
EY2.82%
EPS(NY)2.61
Fwd EY4.02%
FCF(TTM)1.65
FCFY2.53%
OCF(TTM)1.86
OCFY2.87%
SpS12.22
BVpS2.07
TBVpS-15.75
PEG (NY)1.83
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.68% | ||
| ROE | 12.35% | ||
| ROCE | 13.05% | ||
| ROIC | 10.84% | ||
| ROICexc | 11.26% | ||
| ROICexgc | 97.45% | ||
| OM | 22.36% | ||
| PM (TTM) | 2.09% | ||
| GM | N/A | ||
| FCFM | 13.47% |
ROA(3y)0.93%
ROA(5y)1.1%
ROE(3y)12.97%
ROE(5y)16.02%
ROIC(3y)10.21%
ROIC(5y)9.27%
ROICexc(3y)13.17%
ROICexc(5y)11.62%
ROICexgc(3y)93.16%
ROICexgc(5y)N/A
ROCE(3y)12.29%
ROCE(5y)11.17%
ROICexcg growth 3Y9.66%
ROICexcg growth 5Y-25.48%
ROICexc growth 3Y0.3%
ROICexc growth 5Y-1.24%
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
F-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 6.73 | ||
| Debt/FCF | 8.54 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | 27.67% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 4.26 | ||
| Cash Conversion | 52.99% | ||
| Profit Quality | 644.28% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.7 |
F-Score4
WACC8.44%
ROIC/WACC1.28
Cap/Depr(3y)24.87%
Cap/Depr(5y)82.79%
Cap/Sales(3y)1.54%
Cap/Sales(5y)6.2%
Profit Quality(3y)577.52%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)24.49%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%11.43%
EPS Next Y19.35%
EPS Next 2Y20.86%
EPS Next 3Y20.97%
EPS Next 5Y20.13%
Revenue 1Y (TTM)47.61%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%25.02%
Revenue Next Year22.53%
Revenue Next 2Y18.91%
Revenue Next 3Y17.56%
Revenue Next 5Y16.21%
EBIT growth 1Y45.14%
EBIT growth 3Y28.81%
EBIT growth 5Y43.25%
EBIT Next Year54.25%
EBIT Next 3Y28.75%
EBIT Next 5Y23%
FCF growth 1Y97.72%
FCF growth 3YN/A
FCF growth 5Y27.04%
OCF growth 1Y102.06%
OCF growth 3Y23.48%
OCF growth 5Y28.06%