NasdaqGS:JRVR

Stock Analysis Report

James River Group Holdings

Executive Summary

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States.

Rewards

Earnings are forecast to grow 38.16% per year

Risk Analysis

Dividend of 2.89% is not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (3.4%) are lower than last year (5.9%)



Snowflake Analysis

Moderate growth potential with questionable track record.


Similar Companies

Share Price & News

How has James River Group Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JRVR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.2%

JRVR

0.9%

US Insurance

0.8%

US Market


1 Year Return

13.4%

JRVR

21.5%

US Insurance

17.8%

US Market

Return vs Industry: JRVR underperformed the US Insurance industry which returned 21.5% over the past year.

Return vs Market: JRVR underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

JRVRIndustryMarket
7 Day4.2%0.9%0.8%
30 Day16.0%0.07%1.8%
90 Day-16.4%-0.09%4.1%
1 Year15.7%13.4%24.4%21.5%20.4%17.8%
3 Year18.2%7.5%32.6%22.4%45.9%36.4%
5 Year142.6%96.6%66.0%46.1%68.1%49.6%

Price Volatility Vs. Market

How volatile is James River Group Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is James River Group Holdings undervalued compared to its fair value and its price relative to the market?

42.44x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JRVR ($41.5) is trading above our estimate of fair value ($34.74)

Significantly Below Fair Value: JRVR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: JRVR is poor value based on its PE Ratio (42.4x) compared to the Insurance industry average (16.8x).

PE vs Market: JRVR is poor value based on its PE Ratio (42.4x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: JRVR is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: JRVR is overvalued based on its PB Ratio (1.6x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is James River Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

38.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JRVR's forecast earnings growth (38.2% per year) is above the savings rate (1.7%).

Earnings vs Market: JRVR's earnings (38.2% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: JRVR's revenue is expected to decline over the next 3 years (-21.1% per year).

High Growth Revenue: JRVR's revenue is forecast to decline over the next 3 years (-21.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: JRVR's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has James River Group Holdings performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JRVR has high quality earnings.

Growing Profit Margin: JRVR's current net profit margins (3.4%) are lower than last year (5.9%).


Past Earnings Growth Analysis

Earnings Trend: JRVR's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: JRVR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: JRVR had negative earnings growth (-43.7%) over the past year, making it difficult to compare to the Insurance industry average (-10.4%).


Return on Equity

High ROE: JRVR's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is James River Group Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: JRVR has a low level of unsold assets or inventory.

Debt Coverage by Assets: JRVR's debt is covered by short term assets (assets are 7.4x debt).


Financial Institutions Analysis

Asset Level: JRVR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if JRVR has a sufficient allowance for bad loans.

Low Risk Liabilities: JRVR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if JRVR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: JRVR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if JRVR has an appropriate level of bad loans.


Next Steps

Dividend

What is James River Group Holdings's current dividend yield, its reliability and sustainability?

2.89%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: JRVR's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: JRVR's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.72%).


Stability and Growth of Payments

Stable Dividend: JRVR has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: JRVR's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (122.7%), JRVR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JRVR's dividends in 3 years are forecast to be covered by earnings (55.8% payout ratio).


Next Steps

Management

What is the CEO of James River Group Holdings's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Jonathan Abram (63yo)

0.3yrs

Tenure

US$532,285

Compensation

Mr. Jonathan Adam Abram has been the Chief Executive Officer and Executive Chairman of James River Group Holdings, Ltd. since August 2019. Mr. Abram served as Non-Executive Chairman of James River Group Ho ...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD532.29K) is below average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Jonathan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: JRVR's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

53yo

Average Age

Experienced Board: JRVR's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: JRVR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,96815 Nov 19
Janet Cowell
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares699
Max PriceUS$35.72
BuyUS$505,85613 Nov 19
Jonathan Abram
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares14,285
Max PriceUS$35.46

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jonathan Abram (63yo)

    Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: US$532.29k
  • Bob Myron (50yo)

    President

    • Tenure: 9yrs
    • Compensation: US$4.93m
  • Richard Schmitzer (63yo)

    President & CEO of the Excess and Surplus Lines Segment

    • Tenure: 9.8yrs
    • Compensation: US$1.75m
  • Sarah Doran (45yo)

    Chief Financial Officer

    • Tenure: 2.9yrs
    • Compensation: US$952.12k
  • Kevin Copeland

    SVP Finance & Chief Investment Officer

    • Tenure: 2.6yrs
  • Daniel Heinlein (33yo)

    President & CEO of the Casualty Reinsurance Division

    • Tenure: 1.7yrs
    • Compensation: US$982.35k
  • Terry McCafferty (55yo)

    CEO & President of Specialty Admitted Insurance Segment

    • Tenure: 1.2yrs
    • Compensation: US$630.29k

Board Members

  • Bryan Martin (52yo)

    Lead Director

    • Tenure: 5yrs
    • Compensation: US$176.00k
  • Jonathan Abram (63yo)

    Chairman & CEO

    • Tenure: 0.3yrs
    • Compensation: US$532.29k
  • Michael Oakes (54yo)

    Director

    • Tenure: 12yrs
    • Compensation: US$176.00k
  • Janet Cowell (50yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$176.00k
  • Jerry Masters (61yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$201.00k
  • Bob Myron (50yo)

    President

    • Tenure: 9yrs
    • Compensation: US$4.93m
  • Sundar Srinivasan

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$19.02k
  • Ollie Sherman (67yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$176.00k
  • Christopher Harris (49yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$19.02k
  • Patricia Roberts

    Director

    • Tenure: 0.4yrs

Company Information

James River Group Holdings, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: James River Group Holdings, Ltd.
  • Ticker: JRVR
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$1.262b
  • Shares outstanding: 30.41m
  • Website: https://www.jrgh.net

Number of Employees


Location

  • James River Group Holdings, Ltd.
  • Wellesley House
  • 2nd Floor
  • Pembroke
  • HM 08
  • Bermuda

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JRVRNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 2014
0JRDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 2014

Biography

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. Its Excess and Surplus Lines segment underwrites liability and proper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:47
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.