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.

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

-2.3%

JRVR

-1.2%

US Insurance

0.07%

US Market


1 Year Return

-3.6%

JRVR

15.3%

US Insurance

8.9%

US Market

Return vs Industry: JRVR underperformed the US Insurance industry which returned 15.3% over the past year.

Return vs Market: JRVR underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

JRVRIndustryMarket
7 Day-2.3%-1.2%0.07%
30 Day-27.6%-2.8%-0.3%
90 Day-23.7%-3.7%-1.6%
1 Year-0.9%-3.6%18.2%15.3%11.3%8.9%
3 Year8.3%-5.5%44.2%33.1%46.3%36.8%
5 Yearn/a66.2%46.3%62.1%44.3%

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?

14.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: JRVR ($36.23) is trading above our estimate of fair value ($33.11)

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


Price To Earnings Ratio

PE vs Industry: JRVR is good value based on its PE Ratio (14.7x) compared to the Insurance industry average (15.8x).

PE vs Market: JRVR is good value based on its PE Ratio (14.7x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: JRVR is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: JRVR is overvalued based on its PB Ratio (1.4x) 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 4 analysts?

31.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: JRVR's forecast earnings growth (31.3% per year) is above the savings rate (2.7%).

Earnings vs Market: JRVR's earnings (31.3% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: JRVR's revenue (1.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: JRVR's revenue (1.7% 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 (8.5%).


Next Steps

Past Performance

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

4.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: JRVR's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: JRVR's earnings growth over the past year (71.9%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: JRVR earnings growth over the past year (71.9%) exceeded the Insurance industry 2%.


Return on Equity

High ROE: JRVR's Return on Equity (9.4%) is considered low.


Return on Assets

ROA vs Industry: JRVR's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: JRVR's Return on Capital Employed has declined over the past 3 years.


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 6.6x 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

  • Explore more healthy companies in the Insurance industry.

Dividend

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

3.31%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.4%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: JRVR's dividend (3.31%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: JRVR's dividend (3.31%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 reasonably low payout ratio (48.6%), JRVR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: JRVR's dividends in 3 years are forecast to be well covered by earnings (49.5% 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?

2.0yrs

Average management tenure


CEO

Jonathan Abram (63yo)

0.2yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

2.0yrs

Average Tenure

52.5yo

Average Age

Experienced Management: JRVR's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

4.1yrs

Average Tenure

53yo

Average Age

Experienced Board: JRVR's board of directors are considered experienced (4.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Jonathan Abram (63yo)

    Chairman & CEO

    • Tenure: 0.2yrs
    • Compensation: US$532.29k
  • Bob Myron (50yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$4.93m
  • Richard Schmitzer (63yo)

    President & CEO of the Excess and Surplus Lines Segment

    • Tenure: 9.6yrs
    • Compensation: US$1.75m
  • Sarah Doran (45yo)

    Chief Financial Officer

    • Tenure: 2.8yrs
    • Compensation: US$952.12k
  • Kevin Copeland

    SVP Finance & Chief Investment Officer

    • Tenure: 2.4yrs
  • Daniel Heinlein (33yo)

    President & CEO of the Casualty Reinsurance Division

    • Tenure: 1.5yrs
    • Compensation: US$982.35k
  • Terry McCafferty (55yo)

    CEO & President of Specialty Admitted Insurance Segment

    • Tenure: 1yrs
    • Compensation: US$630.29k

Board Members

  • Bryan Martin (52yo)

    Lead Director

    • Tenure: 4.8yrs
    • Compensation: US$176.00k
  • Jonathan Abram (63yo)

    Chairman & CEO

    • Tenure: 0.2yrs
    • Compensation: US$532.29k
  • Michael Oakes (54yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$176.00k
  • Janet Cowell (50yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$176.00k
  • Jerry Masters (61yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$201.00k
  • Bob Myron (50yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$4.93m
  • Sundar Srinivasan

    Director

    • Tenure: 0.9yrs
    • Compensation: US$19.02k
  • Ollie Sherman (67yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$176.00k
  • Christopher Harris (49yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$19.02k
  • Patricia Roberts

    Director

    • Tenure: 0.3yrs

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$1.101b
  • Shares outstanding: 30.38m
  • 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 Analysis2019/10/23 00:21
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.