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 4 out of 10. The analysis compared the fundamentals against 143 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
RYAN had positive earnings in the past year.
In the past year RYAN had a positive cash flow from operations.
Each year in the past 5 years RYAN has been profitable.
Each year in the past 5 years RYAN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.15%, RYAN is in line with its industry, outperforming 40.56% of the companies in the same industry.
With a decent Return On Equity value of 17.62%, RYAN is doing good in the industry, outperforming 76.22% of the companies in the same industry.
With an excellent Return On Invested Capital value of 11.81%, RYAN belongs to the best of the industry, outperforming 96.50% 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 4.47%.
The last Return On Invested Capital (11.81%) for RYAN is above the 3 year average (10.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 17.62% | ||
| ROIC | 11.81% |
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
The Profit Margin of RYAN (3.61%) is worse than 72.73% of its industry peers.
RYAN's Profit Margin has declined in the last couple of years.
RYAN has a better Operating Margin (23.65%) than 86.71% of its industry peers.
In the last couple of years the Operating Margin of RYAN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.65% | ||
| PM (TTM) | 3.61% | ||
| 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.
The number of shares outstanding for RYAN has been increased compared to 1 year ago.
RYAN has more shares outstanding than it did 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 1.84. This is not the best score and indicates that RYAN is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 1.84, RYAN belongs to the best of the industry, outperforming 91.61% of the companies in the same industry.
RYAN has a debt to FCF ratio of 7.02. This is a slightly negative value and a sign of low solvency as RYAN would need 7.02 years to pay back of all of its debts.
RYAN has a Debt to FCF ratio of 7.02. This is in the lower half of the industry: RYAN underperforms 69.23% of its industry peers.
A Debt/Equity ratio of 5.15 is on the high side and indicates that RYAN has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 5.15, RYAN is doing worse than 95.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.15 | ||
| Debt/FCF | 7.02 | ||
| Altman-Z | 1.84 |
ROIC/WACC1.41
WACC8.38%
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's Current ratio of 1.05 is fine compared to the rest of the industry. RYAN outperforms 79.02% 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 has a better Quick ratio (1.05) than 79.02% 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 29.71%, 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.
The Revenue has grown by 47.67% in the past year. This is a very strong growth!
RYAN shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.88% yearly.
EPS 1Y (TTM)29.71%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%28.57%
Revenue 1Y (TTM)47.67%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%24.52%
3.2 Future
The Earnings Per Share is expected to grow by 20.13% on average over the next years. This is a very strong growth
Based on estimates for the next years, RYAN will show a quite strong growth in Revenue. The Revenue will grow by 16.21% on average per year.
EPS Next Y19.32%
EPS Next 2Y21.41%
EPS Next 3Y21.58%
EPS Next 5Y20.13%
Revenue Next Year21.83%
Revenue Next 2Y19.04%
Revenue Next 3Y17.69%
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
A Price/Earnings ratio of 37.65 indicates a quite expensive valuation of RYAN.
Based on the Price/Earnings ratio, RYAN is valued expensively inside the industry as 80.42% of the companies are valued cheaper.
RYAN's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.29.
With a Price/Forward Earnings ratio of 31.56, RYAN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, RYAN is valued a bit more expensive than 76.92% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RYAN to the average of the S&P500 Index (21.32), we can say RYAN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.65 | ||
| Fwd PE | 31.56 |
4.2 Price Multiples
RYAN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RYAN is more expensive than 64.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, RYAN is valued a bit more expensive than the industry average as 69.93% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.73 | ||
| EV/EBITDA | 23.78 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
RYAN has a very decent profitability rating, which may justify a higher PE ratio.
RYAN's earnings are expected to grow with 21.58% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.95
PEG (5Y)N/A
EPS Next 2Y21.41%
EPS Next 3Y21.58%
5. Dividend
5.1 Amount
RYAN has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 3.28, RYAN is paying slightly less dividend.
With a Dividend Yield of 0.64, RYAN pays less dividend than the S&P500 average, which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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 72.53% of its income as dividend. This is not a sustainable payout ratio.
DP72.53%
EPS Next 2Y21.41%
EPS Next 3Y21.58%
67.4
-3.22 (-4.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners81.59%
Inst Owner Change0.52%
Ins Owners13.84%
Ins Owner Change-4.92%
Market Cap17.65B
Analysts75
Price Target77.6 (15.13%)
Short Float %4.94%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.31
Dividend Growth(5Y)N/A
DP72.53%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.89%
Min EPS beat(2)-3.27%
Max EPS beat(2)-2.5%
EPS beat(4)1
Avg EPS beat(4)-1.48%
Min EPS beat(4)-3.27%
Max EPS beat(4)1.45%
EPS beat(8)3
Avg EPS beat(8)-0.38%
EPS beat(12)6
Avg EPS beat(12)0.73%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.27%
Min Revenue beat(2)-1.3%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-1.4%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-1.24%
Revenue beat(8)1
Avg Revenue beat(8)-0.62%
Revenue beat(12)3
Avg Revenue beat(12)-0.23%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.39%
PT rev (3m)-1.68%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-9.26%
EPS NY rev (1m)-5.51%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.65 | ||
| Fwd PE | 31.56 | ||
| P/S | 5.75 | ||
| P/FCF | 37.73 | ||
| P/OCF | 34.29 | ||
| P/B | 28.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.78 |
EPS(TTM)1.79
EY2.66%
EPS(NY)2.14
Fwd EY3.17%
FCF(TTM)1.79
FCFY2.65%
OCF(TTM)1.97
OCFY2.92%
SpS11.71
BVpS2.4
TBVpS-13.34
PEG (NY)1.95
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.15% | ||
| ROE | 17.62% | ||
| ROCE | 14.22% | ||
| ROIC | 11.81% | ||
| ROICexc | 13.21% | ||
| ROICexgc | 137.5% | ||
| OM | 23.65% | ||
| PM (TTM) | 3.61% | ||
| GM | N/A | ||
| FCFM | 15.25% |
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-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.15 | ||
| Debt/FCF | 7.02 | ||
| Debt/EBITDA | 3.62 | ||
| Cap/Depr | 28.04% | ||
| Cap/Sales | 1.53% | ||
| Interest Coverage | 5.3 | ||
| Cash Conversion | 57.64% | ||
| Profit Quality | 422.96% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 1.84 |
F-Score6
WACC8.38%
ROIC/WACC1.41
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)29.71%
EPS 3Y4.83%
EPS 5Y-11.82%
EPS Q2Q%28.57%
EPS Next Y19.32%
EPS Next 2Y21.41%
EPS Next 3Y21.58%
EPS Next 5Y20.13%
Revenue 1Y (TTM)47.67%
Revenue growth 3Y20.64%
Revenue growth 5Y26.88%
Sales Q2Q%24.52%
Revenue Next Year21.83%
Revenue Next 2Y19.04%
Revenue Next 3Y17.69%
Revenue Next 5Y16.21%
EBIT growth 1Y55.6%
EBIT growth 3Y28.81%
EBIT growth 5Y43.25%
EBIT Next Year54.4%
EBIT Next 3Y29.16%
EBIT Next 5Y23%
FCF growth 1Y4.57%
FCF growth 3YN/A
FCF growth 5Y27.04%
OCF growth 1Y7.89%
OCF growth 3Y23.48%
OCF growth 5Y28.06%