RenaissanceRe may be undervalued with strong growth indicators, but the 15 analysts following the company give it an rating of hold. Their target prices range from $296.0 to $431.0 per share, for an average of $328.07. At today's price of $294.42, RenaissanceRe is trading -10.26% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
RenaissanceRe Holdings Ltd., together with its subsidiaries, provides reinsurance and insurance products in the United States and internationally. Based in Pembroke, Bermuda, the Large-Cap Finance company has 1,040 full time employees. RenaissanceRe has offered a 0.6% dividend yield over the last 12 months.
RenaissanceRe has a trailing twelve month P/E ratio of 5.0, compared to an average of 15.92 for the Finance sector. Considering its EPS guidance of $41.13, the company has a forward P/E ratio of 7.2.
Furthermore, the market is potentially undervaluing RenaissanceRe in terms of its book value because its P/B ratio is 1.18. In comparison, the sector average P/B ratio is 1.78. The company's shares are currently -47.5% above their Graham number, which suggests that they are not trading at a fair value in terms of earnings and net assets.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,172 | $5,278 | $5,060 | $9,135 | $11,695 | $12,848 |
| Interest Income (M) | $50 | $48 | $48 | $73 | $88 | $112 |
| Operating Margins | 19% | -2% | -24% | 34% | 26% | 31% |
| Net Margins | 15% | -1% | -21% | 28% | 16% | 21% |
| Net Income (M) | $762 | -$40 | -$1,061 | $2,561 | $1,870 | $2,682 |
| Depreciation & Amort. (M) | $17 | -$21 | -$27 | -$135 | $258 | -$14 |
| Diluted Shares (M) | 50 | 47 | 43 | 48 | 51 | 46 |
| Earnings Per Share | $15.31 | -$1.57 | -$25.5 | $52.27 | $35.21 | $56.03 |
| EPS Growth | n/a | -110.25% | -1524.2% | 304.98% | -32.64% | 59.13% |
| Avg. Price | $167.51 | $154.17 | $151.55 | $196.0 | $248.86 | $295.95 |
| P/E Ratio | 10.92 | -98.2 | -5.94 | 3.74 | 7.05 | 5.26 |
| Free Cash Flow (M) | $1,993 | $1,235 | $1,604 | $1,912 | $4,165 | $3,693 |
| EV / EBITDA | 6.71 | -76.55 | -5.57 | 2.67 | 4.1 | 3.77 |
| Total Debt (M) | $1,136 | $1,168 | $1,170 | $1,959 | $1,887 | $2,329 |
| Net Debt / EBITDA | -0.59 | 7.42 | 0.02 | 0.03 | 0.06 | 0.15 |
