NYSE:ORI

Stock Analysis Report

Old Republic International

Executive Summary

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada.

Snowflake

Fundamentals

Solid track record, good value and pays a dividend.


Similar Companies

Share Price & News

How has Old Republic International's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.5%

ORI

-1.2%

US Insurance

0.07%

US Market


1 Year Return

17.0%

ORI

15.3%

US Insurance

8.9%

US Market

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

Return vs Market: ORI exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

ORIIndustryMarket
7 Day0.5%-1.2%0.07%
30 Day3.5%-2.8%-0.3%
90 Day1.9%-3.7%-1.6%
1 Year26.6%17.0%18.2%15.3%11.3%8.9%
3 Year59.3%29.8%44.2%33.1%46.3%36.8%
5 Year118.7%63.1%66.2%46.3%62.1%44.3%

Price Volatility Vs. Market

How volatile is Old Republic International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Old Republic International undervalued compared to its fair value and its price relative to the market?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORI ($23.78) is trading below our estimate of fair value ($24.58)

Significantly Below Fair Value: ORI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ORI is good value based on its PE Ratio (9.5x) compared to the Insurance industry average (15.8x).

PE vs Market: ORI is good value based on its PE Ratio (9.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ORI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ORI is good value based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Old Republic International forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-2.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ORI's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if ORI's earnings are forecast to grow faster than the US market

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

Revenue vs Market: ORI's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: ORI's revenue is forecast to decline over the next 3 years (-2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ORI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Old Republic International performed over the past 5 years?

11.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ORI's earnings have grown by 11.6% per year over the past 5 years.

Accelerating Growth: ORI's earnings growth over the past year (36.3%) exceeds its 5-year average (11.6% per year).

Earnings vs Industry: ORI earnings growth over the past year (36.3%) exceeded the Insurance industry 2%.


Return on Equity

High ROE: ORI's Return on Equity (12.7%) is considered low.


Return on Assets

ROA vs Industry: ORI has a higher Return on Assets than the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: ORI has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Old Republic International'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: ORI has a low level of unsold assets or inventory.

Debt Coverage by Assets: ORI's debt is covered by short term assets (assets are 6.551050x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Old Republic International's current dividend yield, its reliability and sustainability?

3.36%

Current Dividend Yield


Dividend Yield vs Market

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

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ORI's dividend (3.36%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: ORI's dividend (3.36%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: ORI's dividends per share have been stable in the past 10 years.

Growing Dividend: ORI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.7%), ORI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Old Republic International's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Craig Smiddy (55yo)

0yrs

Tenure

US$1,372,762

Compensation

Mr. Craig Richard Smiddy has been President and Director of Republic Credit Indemnity Company since 2019. Mr. Smiddy serves as President and Chief Operating Officer at Old Republic International Corporatio ...


CEO Compensation Analysis

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

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


Management Age and Tenure

4.8yrs

Average Tenure

62yo

Average Age

Experienced Management: ORI's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

15.2yrs

Average Tenure

78yo

Average Age

Experienced Board: ORI's board of directors are seasoned and experienced ( 15.2 years average tenure).


Insider Trading

Insider Buying: ORI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,067,85012 Sep 19
Arnold Steiner
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares47,250
Max PriceUS$22.60
BuyUS$99,35028 Jan 19
Aldo Zucaro
EntityIndividual
Role
Chairman of the Board
Chairman
Shares5,000
Max PriceUS$19.87

Ownership Breakdown


Management Team

  • Charlie Boone (65yo)

    Senior Vice President of Investments

    • Tenure: 18.2yrs
  • Aaron Jacoby (48yo)

    Senior Vice President of Corporate Development & Finance

    • Tenure: 0yrs
  • Rande Yeager (70yo)

    Executive Chairman of Old Republic Title Companies

    • Tenure: 9.3yrs
    • Compensation: US$1.37m
  • Cheryl Jones (66yo)

    Senior VP & National Benefits Director

    • Tenure: 1.3yrs
  • Karl Mueller (60yo)

    Senior VP & CFO

    • Tenure: 15yrs
    • Compensation: US$896.08k
  • Craig Smiddy (55yo)

    President & CEO

    • Tenure: 0yrs
    • Compensation: US$1.37m
  • John Heitkamp (64yo)

    Senior VP

    • Tenure: 5.3yrs
  • Dana Loncar-Gakovic

    Human Resources Director

    • Tenure: 0yrs
  • Marilynn Meek

    Investor Relations Professional

    • Tenure: 4.8yrs
  • Phillip Schutt (58yo)

    Senior VP & Deputy Chief Investment Officer

    • Tenure: 1.3yrs

Board Members

  • Al Zucaro (80yo)

    Chairman

    • Tenure: 26.8yrs
    • Compensation: US$3.14m
  • Spencer LeRoy (72yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$132.00k
  • Tony Bischof (84yo)

    Independent Director

    • Tenure: 22.6yrs
    • Compensation: US$156.00k
  • Arnold Steiner (81yo)

    Lead Independent Director

    • Tenure: 13.8yrs
    • Compensation: US$168.00k
  • Fredricka Taubitz (75yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$162.00k
  • John Dixon (80yo)

    Independent Director

    • Tenure: 16.4yrs
    • Compensation: US$168.00k
  • Rande Yeager (70yo)

    Executive Chairman of Old Republic Title Companies

    • Tenure: 9.3yrs
    • Compensation: US$1.37m
  • Dennis Van Mieghem (79yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$156.00k
  • Charles Titterton (77yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$156.00k
  • Steven Walker (74yo)

    Independent Director

    • Tenure: 13.4yrs
    • Compensation: US$162.00k

Company Information

Old Republic International Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Old Republic International Corporation
  • Ticker: ORI
  • Exchange: NYSE
  • Founded: 1887
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$7.098b
  • Shares outstanding: 298.47m
  • Website: https://www.oldrepublic.com

Number of Employees


Location

  • Old Republic International Corporation
  • 307 North Michigan Avenue
  • Chicago
  • Illinois
  • 60601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ORINYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
ORJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969

Biography

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. The company operates through ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:39
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.