Ryan Specialty Holdings, Inc. Fundamental Analysis (NYSE: RYAN)
Ryan Specialty Holdings, Inc. Fundamental Analysis (NYSE: RYAN)
Ryan Specialty Holdings, Inc. (NYSE: RYAN) shows moderate financial fundamentals with a PE ratio of 43.87, profit margin of 5.84%, and ROE of 31.03%. The company generates $3.3B in annual revenue with strong year-over-year growth of 21.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.3/100 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 RYAN's fundamental strength across five key dimensions:
Efficiency Score
WeakRYAN struggles to generate sufficient returns from assets.
Valuation Score
ModerateRYAN shows balanced valuation metrics.
Growth Score
ModerateRYAN shows steady but slowing expansion.
Financial Health Score
ModerateRYAN shows balanced financial health with some risks.
Profitability Score
ModerateRYAN maintains healthy but balanced margins.
Key Financial Metrics
Is RYAN Expensive or Cheap?
P/E Ratio
RYAN trades at 43.87 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RYAN's PEG of 0.53 indicates potential undervaluation.
Price to Book
The market values Ryan Specialty Holdings, Inc. at 10.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2.20 times EBITDA. This is generally considered low.
How Well Does RYAN Make Money?
Net Profit Margin
For every $100 in sales, Ryan Specialty Holdings, Inc. keeps $5.84 as profit after all expenses.
Operating Margin
Core operations generate 20.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $31.03 in profit for every $100 of shareholder equity.
ROA
Ryan Specialty Holdings, Inc. generates $1.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ryan Specialty Holdings, Inc. produces operating cash flow of $577.23M, showing steady but balanced cash generation.
Free Cash Flow
Ryan Specialty Holdings, Inc. generates strong free cash flow of $513.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.96 in free cash annually.
FCF Yield
RYAN converts 9.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
43.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.53
vs 25 benchmark
P/B Ratio
Price to book value ratio
10.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
7.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
73.50
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.31
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How RYAN Stacks Against Its Sector Peers
| Metric | RYAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 43.87 | 21.28 | Worse (Expensive) |
| ROE | 31.03% | 667.00% | Weak |
| Net Margin | 5.84% | -489.00% (disorted) | Weak |
| Debt/Equity | 7.47 | 0.80 | Weak (High Leverage) |
| Current Ratio | 73.50 | 911.52 | Strong Liquidity |
| ROA | 1.57% | 4469169.00% | Weak |
RYAN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ryan Specialty Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
150.72%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-22.11%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
297.79%
Industry Style: Value, Dividend, Cyclical
High Growth