RenaissanceRe Holdings Ltd.
RenaissanceRe Holdings Ltd. Fundamental Analysis
RenaissanceRe Holdings Ltd. (RNR-PF) shows strong financial fundamentals with a PE ratio of 5.00, profit margin of 21.04%, and ROE of 24.24%. The company generates $88.9B in annual revenue with moderate year-over-year growth of 9.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.7/100 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 RNR-PF's fundamental strength across five key dimensions:
Efficiency Score
WeakRNR-PF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRNR-PF trades at attractive valuation levels.
Growth Score
ExcellentRNR-PF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRNR-PF maintains a strong and stable balance sheet.
Profitability Score
ExcellentRNR-PF achieves industry-leading margins.
Key Financial Metrics
Is RNR-PF Expensive or Cheap?
P/E Ratio
RNR-PF trades at 5.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RNR-PF's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values RenaissanceRe Holdings Ltd. at 1.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.00 times EBITDA. This is generally considered low.
How Well Does RNR-PF Make Money?
Net Profit Margin
For every $100 in sales, RenaissanceRe Holdings Ltd. keeps $21.04 as profit after all expenses.
Operating Margin
Core operations generate 31.49 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.24 in profit for every $100 of shareholder equity.
ROA
RenaissanceRe Holdings Ltd. generates $4.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RenaissanceRe Holdings Ltd. generates strong operating cash flow of $22.38B, reflecting robust business health.
Free Cash Flow
RenaissanceRe Holdings Ltd. generates strong free cash flow of $22.38B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $71.54 in free cash annually.
FCF Yield
RNR-PF converts 24.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.002
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.02
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.20
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How RNR-PF Stacks Against Its Sector Peers
| Metric | RNR-PF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.00 | 18.86 | Better (Cheaper) |
| ROE | 24.24% | 847.00% | Weak |
| Net Margin | 21.04% | 4202.00% | Weak |
| Debt/Equity | 0.20 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 1.58 | 667.17 | Neutral |
| ROA | 4.99% | -21543.00% (disorted) | Weak |
RNR-PF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RenaissanceRe Holdings Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
160.52%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
214.79%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining