Old Republic International Corporation
Old Republic International Corporation Fundamental Analysis
Old Republic International Corporation (ORI) shows strong financial fundamentals with a PE ratio of 10.88, profit margin of 10.30%, and ROE of 15.32%. The company generates $9.2B in annual revenue with strong year-over-year growth of 13.41%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze ORI's fundamental strength across five key dimensions:
Efficiency Score
WeakORI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentORI trades at attractive valuation levels.
Growth Score
ExcellentORI delivers strong and consistent growth momentum.
Financial Health Score
ModerateORI shows balanced financial health with some risks.
Profitability Score
ModerateORI maintains healthy but balanced margins.
Key Financial Metrics
Is ORI Expensive or Cheap?
P/E Ratio
ORI trades at 10.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ORI's PEG of 0.89 indicates potential undervaluation.
Price to Book
The market values Old Republic International Corporation at 1.72 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.29 times EBITDA. This is generally considered low.
How Well Does ORI Make Money?
Net Profit Margin
For every $100 in sales, Old Republic International Corporation keeps $10.30 as profit after all expenses.
Operating Margin
Core operations generate 13.02 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.32 in profit for every $100 of shareholder equity.
ROA
Old Republic International Corporation generates $3.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Old Republic International Corporation produces operating cash flow of $1.31B, showing steady but balanced cash generation.
Free Cash Flow
Old Republic International Corporation generates strong free cash flow of $1.31B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.30 in free cash annually.
FCF Yield
ORI converts 12.53% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.72
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.14
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How ORI Stacks Against Its Sector Peers
| Metric | ORI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.88 | 18.73 | Better (Cheaper) |
| ROE | 15.32% | 847.00% | Weak |
| Net Margin | 10.30% | 2562.00% | Weak |
| Debt/Equity | 0.27 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 3.13% | -21692.00% (disorted) | Weak |
ORI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Old Republic International Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
32.43%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-6.32%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
52.90%
Industry Style: Value, Dividend, Cyclical
High Growth