Everest Re Group, Ltd.
Everest Re Group, Ltd. Fundamental Analysis
Everest Re Group, Ltd. (RE) shows moderate financial fundamentals with a PE ratio of 9.58, profit margin of 9.09%, and ROE of 10.61%. The company generates $17.5B in annual revenue with strong year-over-year growth of 18.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 80.9/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze RE's fundamental strength across five key dimensions:
Efficiency Score
WeakRE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRE trades at attractive valuation levels.
Growth Score
ModerateRE shows steady but slowing expansion.
Financial Health Score
ExcellentRE maintains a strong and stable balance sheet.
Profitability Score
WeakRE struggles to sustain strong margins.
Key Financial Metrics
Is RE Expensive or Cheap?
P/E Ratio
RE trades at 9.58 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RE's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values Everest Re Group, Ltd. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 53.97 times EBITDA. This signals the market has high growth expectations.
How Well Does RE Make Money?
Net Profit Margin
For every $100 in sales, Everest Re Group, Ltd. keeps $9.09 as profit after all expenses.
Operating Margin
Core operations generate 0.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.61 in profit for every $100 of shareholder equity.
ROA
Everest Re Group, Ltd. generates $2.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Everest Re Group, Ltd. produces operating cash flow of $3.07B, showing steady but balanced cash generation.
Free Cash Flow
Everest Re Group, Ltd. generates strong free cash flow of $3.07B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $70.69 in free cash annually.
FCF Yield
RE converts 20.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.00
vs 25 benchmark
How RE Stacks Against Its Sector Peers
| Metric | RE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.58 | 18.73 | Better (Cheaper) |
| ROE | 10.61% | 847.00% | Weak |
| Net Margin | 9.09% | 3919.00% | Weak |
| Debt/Equity | 0.00 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 10.97 | 674.76 | Strong Liquidity |
| ROA | 2.55% | -21563.00% (disorted) | Weak |
RE outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Everest Re Group, Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
96.10%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
27.04%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
150.01%
Industry Style: Value, Dividend, Cyclical
High Growth