Old Republic International Corp (ORI) stock analysis

P/E below its 5-year median

Old Republic International's P/E of 9.0 is below its own 5-year median of 10.6.

P/E below the industry

Old Republic International's P/E of 9.0 is below the Insurance Carriers median of 11.2.

P/S below the industry

Old Republic International's price-to-sales of 0.97 is below the Insurance Carriers median of 2.96.

P/B above the industry

Old Republic International's price-to-book of 1.63 is above the Insurance Carriers median of 1.57.

Trading below fair value

The share price of $39.96 is below our fair value estimate of $42.49.

Margin of safety under 20%

The price is 5.9% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 4.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 18.1% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 32.1% over the last twelve months, against a 5-year average of 10.9% a year.

Growing faster than the industry

Revenue grew 12.5% over the last twelve months; the Insurance Carriers median is 11.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 17.9% over the last twelve months and averaged 14.8% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 3.6%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Old Republic International's return on equity of 17.9% is above the Insurance Carriers median of 14.0%.

Earnings grew over 5 years

Net income grew 10.9% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 11.2% over the last twelve months, against a 5-year average of 10.8%.

Net margin above the industry

Old Republic International's net margin of 11.2% is above the Insurance Carriers median of 10.6%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Old Republic International paid dividends worth 3.1% of the share price over the last twelve months.

Yield below Treasuries

The 3.1% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Old Republic International yields 3.1%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 83.2% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.