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ORI

Navigating Old Republic International (ORI) Stock – Key Considerations for Investors

Now trading at a price of $42.28, Old Republic International has moved 1.7% so far today.

Old Republic International returned gains of 5.1% last year, with its stock price reaching a high of $46.76 and a low of $36.65. Over the same period, the stock underperformed the S&P 500 index by -14.1%. The company's 50-day average price was $41.61. Old Republic International Corporation, through its subsidiaries, provides insurance underwriting and related services in the United States and Canada. Based in Chicago, IL, the Large-Cap Finance company has 9,500 full time employees. Old Republic International has offered a 2.9% dividend yield over the last 12 months.

Low Leverage Levels but Positive Cash Flows:

2020 2021 2022 2023 2024 2025
Revenue (M) $7,166 $9,342 $8,084 $7,258 $8,232 $9,136
Interest Income (M) $42 $56 $67 $67 $80 $70
Operating Margins 10% 21% 11% 10% 13% 13%
Net Margins 8% 16% 8% 8% 10% 10%
Net Income (M) $559 $1,534 $686 $599 $853 $935
Depreciation & Amort. (M) $27 $27 $28 $33 $39 $35
Diluted Shares (M) 298 304 296 277 253 251
Earnings Per Share $1.87 $5.05 $2.26 $2.1 $3.24 $3.72
EPS Growth n/a 170.05% -55.25% -7.08% 54.29% 14.81%
Avg. Price $13.18 $20.16 $22.2 $29.4 $36.08 $41.43
P/E Ratio 7.05 3.97 9.74 13.87 10.93 10.85
Free Cash Flow (M) $1,185 $1,312 $1,171 $880 $1,233 $1,164
EV / EBITDA 6.78 3.88 9.42 12.97 10.3 9.52
Total Debt (M) $966 $1,588 $1,597 $1,591 $1,589 $1,590
Net Debt / EBITDA 1.19 0.73 1.71 1.78 1.25 1.09

Old Republic International's Valuation Is in Line With Its Sector Averages:

Old Republic International has a trailing twelve month P/E ratio of 9.1, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $3.3, the company has a forward P/E ratio of 12.6. The 8.5% compound average growth rate of Old Republic International's historical and projected earnings per share yields a PEG ratio of 1.08. This implies that the shares are fairly valued. Additionally, the market is possibly undervaluing Old Republic International in terms of its equity because its P/B ratio is 1.67 whereas the sector average is 1.78. The company's shares are currently trading -4.8% above their Graham number.

Old Republic International Has a Large Amount of Insider Shareholders:

Old Republic International has an average amount of shares sold short because 5.2% of the company's shares are sold short. Institutions own 79.2% of the company's shares, and the insider ownership rate stands at 7.73%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 11% stake in the company is worth $1,112,292,060.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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