James River Group Holdings (NasdaqGS:JRVR) - Share price, News & Analysis

JRVR fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	4/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

JRVR Stock Overview

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

Rewards

Earnings are forecast to grow 59.86% per year

Analysts in good agreement that stock price will rise by 32.3%

Risk Analysis

No risks detected for JRVR from our risk checks.

James River Group Holdings Competitors

AMERISAFE

NasdaqGS:AMSF

US$903.0m

Employers Holdings

NYSE:EIG

US$977.8m

United Fire Group

NasdaqGS:UFCS

US$735.0m

Argo Group International Holdings

NYSE:ARGO

US$720.7m

Price History & Performance

Summary of all time highs, changes and price drops for James River Group Holdings
Historical stock prices
Current Share Price	US$23.55
52 Week High	US$39.60
52 Week Low	US$19.76
Beta	0.35
1 Month Change	-5.27%
3 Month Change	-4.27%
1 Year Change	-30.49%
3 Year Change	-53.77%
5 Year Change	-43.23%
Change since IPO	10.82%

Recent News & Updates

Sep 08

James River goes ex dividend tomorrow

James River (NASDAQ:JRVR) declares $0.05/share quarterly dividend, in line with previous. Payable Sept. 30; for shareholders of record Sept. 12; ex-div Sept. 9. See JRVR Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

	JRVR	US Insurance	US Market
7D	-2.2%	-4.2%	-5.2%
1Y	-30.5%	-2.9%	-23.1%

Return vs Industry: JRVR underperformed the US Insurance industry which returned -2.9% over the past year.

Return vs Market: JRVR underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is JRVR's price volatile compared to industry and market?
JRVR volatility
JRVR Average Weekly Movement	4.2%
Insurance Industry Average Movement	4.2%
Market Average Movement	6.9%
10% most volatile stocks in US Market	15.9%
10% least volatile stocks in US Market	2.8%

Stable Share Price: JRVR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: JRVR's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2002	638	Frank D’Orazio	https://www.jrgh.net

James River Group Holdings, Ltd., through its subsidiaries, provides specialty insurance and reinsurance services in the United States. It operates through Excess and Surplus Lines, Specialty Admitted Insurance, and Casualty Reinsurance segments. The Excess and Surplus Lines segment underwrites liability and property insurance on an excess and surplus commercial lines basis in all states and the District of Columbia.

James River Group Holdings Fundamentals Summary

How do James River Group Holdings's earnings and revenue compare to its market cap?
JRVR fundamental statistics
Market Cap	US$881.96m
Earnings (TTM)	-US$75.81m
Revenue (TTM)	US$785.09m

1.1x

P/S Ratio

-11.6x

P/E Ratio

Is JRVR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
JRVR income statement (TTM)
Revenue	US$785.09m
Cost of Revenue	US$665.83m
Gross Profit	US$119.26m
Other Expenses	US$195.07m
Earnings	-US$75.81m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-2.02
Gross Margin	15.19%
Net Profit Margin	-9.66%
Debt/Equity Ratio	44.1%

How did JRVR perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

-35%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is JRVR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JRVR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for JRVR. This is calculated by dividing JRVR's market cap by their current preferred multiple.
What is JRVR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$881.96m

JRVR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	-21.9x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does JRVR's PB Ratio compare to its peers?

JRVR PB Ratio vs Peers

The above table shows the PB ratio for JRVR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	1.2x
AMSF AMERISAFE	2.3x	-5.1%	US$903.0m
EIG Employers Holdings	1x	41.7%	US$977.8m
UFCS United Fire Group	0.9x	n/a	US$735.0m
ARGO Argo Group International Holdings	0.5x	109.6%	US$720.7m
JRVR James River Group Holdings	1.5x	59.9%	US$882.0m

Price-To-Book vs Peers: JRVR is expensive based on its Price-To-Book Ratio (1.5x) compared to the peer average (1.2x).

Price to Earnings Ratio vs Industry

How does JRVR's PE Ratio compare vs other companies in the US Insurance Industry?

Price-To-Book vs Industry: JRVR is expensive based on its Price-To-Book Ratio (1.5x) compared to the US Insurance industry average (1x)

Price to Book Ratio vs Fair Ratio

What is JRVR's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JRVR PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	1.5x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate JRVR's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of JRVR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate JRVR's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate JRVR's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

How is James River Group Holdings forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

59.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: JRVR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: JRVR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: JRVR is expected to become profitable in the next 3 years.

Revenue vs Market: JRVR's revenue (8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: JRVR's revenue (8% per year) is forecast to grow slower than 20% 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 (12.6%).

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Past Performance

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

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-64.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: JRVR is currently unprofitable.

Growing Profit Margin: JRVR is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: JRVR is unprofitable, and losses have increased over the past 5 years at a rate of 64.5% per year.

Accelerating Growth: Unable to compare JRVR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: JRVR is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (-22.8%).

Return on Equity

High ROE: JRVR has a negative Return on Equity (-9.78%), as it is currently unprofitable.

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Financial Health

How is James River Group Holdings's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: JRVR's short term assets ($2.9B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: JRVR's short term assets ($2.9B) do not cover its long term liabilities ($3.2B).

Debt to Equity History and Analysis

Debt Level: JRVR has more cash than its total debt.

Reducing Debt: JRVR's debt to equity ratio has increased from 26.7% to 44.1% over the past 5 years.

Debt Coverage: JRVR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if JRVR's interest payments on its debt are well covered by EBIT.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

0.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: JRVR's dividend (0.85%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: JRVR's dividend (0.85%) is low compared to the top 25% of dividend payers in the US market (4.57%).

Stability and Growth of Payments

Stable Dividend: JRVR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: JRVR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: JRVR is not paying a notable dividend for the US market.

Cash Payout to Shareholders

Cash Flow Coverage: JRVR is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure

CEO

Frank D’Orazio (53 yo)

1.83yrs

Tenure

US$1,317,980

Compensation

Mr. Frank N. D'Orazio has been Chief Executive Officer and Director of James River Group Holdings, Ltd. since November 2, 2020. Mr. D'Orazio was the President of Underwriting & Global Risk at Allied World...

CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD1.32M) is below average for companies of similar size in the US market ($USD4.14M).

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

Leadership Team

Experienced Management: JRVR's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.

Board Members

Experienced Board: JRVR's board of directors are considered experienced (3.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

NasdaqGS:JRVR Recent Insider Transactions by Companies or Individuals
Date	Value	Name	Entity	Shares	Max Price
11 Mar 22	BuyUS$24,507	Patricia Roberts	Individual	1,105	US$22.18
10 Mar 22	BuyUS$19,910	Janet Cowell	Individual	915	US$21.76
10 Mar 22	BuyUS$103,152	Ollie Sherman	Individual	4,800	US$21.49
04 Mar 22	BuyUS$84,646	Kirstin Gould	Individual	4,150	US$21.35
04 Mar 22	BuyUS$254,059	Sundar Srinivasan	Individual	12,500	US$20.72
04 Mar 22	BuyUS$39,959	Thomas Brown	Individual	2,000	US$19.98
04 Mar 22	BuyUS$252,878	Richard Schmitzer	Individual	12,450	US$20.31
04 Mar 22	BuyUS$96,779	Sarah Doran	Individual	4,800	US$20.16
03 Mar 22	BuyUS$489,463	Jonathan Abram	Individual	24,000	US$20.39
03 Mar 22	BuyUS$1,031,865	Frank D’Orazio	Individual	50,000	US$20.64
10 Nov 21	BuyUS$87,480	Thomas Brown	Individual	3,000	US$29.16

Ownership Breakdown

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

Top Shareholders

Top 25 shareholders own 82.94% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
14.56%	BlackRock, Inc.	5,451,490	$128.4m	-0.25%	no data
8.88%	T. Rowe Price Group, Inc.	3,325,366	$78.3m	3.54%	0.01%
6.65%	The Vanguard Group, Inc.	2,489,190	$58.6m	-1.98%	no data
5.67%	Champlain Investment Partners, LLC	2,122,215	$50.0m	14.36%	0.33%
4.44%	Wellington Management Group LLP	1,664,257	$39.2m	78.04%	0.01%
3.58%	State Street Global Advisors, Inc.	1,341,221	$31.6m	2.91%	no data
3.51%	Fuller & Thaler Asset Management, Inc.	1,316,130	$31.0m	-4.67%	0.22%
3.37%	Royce & Associates, LP	1,261,559	$29.7m	22.06%	0.28%
3.31%	Bank of America Corporation, Asset Management Arm	1,239,382	$29.2m	-23.82%	0.01%
2.74%	Bernzott Capital Advisors	1,026,107	$24.2m	0.18%	2.97%
2.69%	Cramer Rosenthal McGlynn, LLC	1,008,566	$23.8m	-11.92%	1.11%
2.47%	Polar Capital Holdings plc	925,000	$21.8m	2.78%	0.12%
2.47%	Dimensional Fund Advisors LP	923,360	$21.7m	2.57%	0.01%
2.3%	Morgan Stanley, Investment Banking and Brokerage Investments	861,958	$20.3m	249.17%	no data
2.24%	Granahan Investment Management, LLC	839,381	$19.8m	7.94%	0.64%
1.78%	Geode Capital Management, LLC	668,331	$15.7m	4.88%	no data
1.77%	Jennison Associates LLC	662,682	$15.6m	73.56%	0.01%
1.46%	Rothschild & Co Asset Management US Inc.	547,241	$12.9m	-2.43%	0.19%
1.4%	Healthcare of Ontario Pension Plan Trust Fund	524,500	$12.4m	663.46%	0.06%
1.38%	State of Wisconsin Investment Board	518,318	$12.2m	1.11%	0.03%
1.31%	Nuveen Investments, Inc.	489,107	$11.5m	19.36%	0.04%
1.29%	Jonathan Abram	482,943	$11.4m	0%	no data
1.23%	Schroder Investment Management North America Inc.	458,909	$10.8m	3.9%	0.04%
1.22%	Charles Schwab Investment Management, Inc.	458,492	$10.8m	4.97%	no data
1.22%	Peregrine Capital Management, LLC	457,423	$10.8m	-1.42%	0.3%

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
JRVR	NasdaqGS (Nasdaq Global Select)	Yes	Common Shares	US	USD	Dec 2014
0JR	DB (Deutsche Boerse AG)	Yes	Common Shares	DE	EUR	Dec 2014

Data	Last Updated (UTC time)
Company Analysis	2022/09/24 00:00
End of Day Share Price	2022/09/23 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31