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ORI

Old Republic InternationalNYSE:ORI Stock Report

Market Cap

US$6.9b

7D

3.4%

1Y

55.8%

Updated

27 Sep, 2021

Data

Company Financials +
ORI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends6/6

ORI Overview

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

Old Republic International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Old Republic International
Historical stock prices
Current Share PriceUS$23.28
52 Week HighUS$14.40
52 Week LowUS$26.69
Beta0.86
1 Month Change-11.48%
3 Month Change-6.39%
1 Year Change55.82%
3 Year Change5.39%
5 Year Change32.57%
Change since IPO785.35%

Recent News & Updates

Shareholder Returns

ORIUS InsuranceUS Market
7D3.4%2.9%2.0%
1Y55.8%39.8%32.8%

Return vs Industry: ORI exceeded the US Insurance industry which returned 39.8% over the past year.

Return vs Market: ORI exceeded the US Market which returned 32.8% over the past year.

Price Volatility

Is ORI's price volatile compared to industry and market?
ORI volatility
ORI Beta0.86
Industry Beta0.97
Market Beta1

Stable Share Price: ORI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ORI's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19239,000Craig Smiddyhttps://www.oldrepublic.com

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 three segments: General Insurance, Title Insurance, and the Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers automobile extended warranty, aviation, commercial automobile, commercial multi-peril, general liability, home warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, guaranteed asset protection, and surety.

Old Republic International Fundamentals Summary

How do Old Republic International's earnings and revenue compare to its market cap?
ORI fundamental statistics
Market CapUS$6.93b
Earnings (TTM)US$1.58b
Revenue (TTM)US$8.98b

4.4x

P/E Ratio

0.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORI income statement (TTM)
RevenueUS$8.98b
Cost of RevenueUS$2.47b
Gross ProfitUS$6.51b
ExpensesUS$4.93b
EarningsUS$1.58b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.32
Gross Margin72.47%
Net Profit Margin17.63%
Debt/Equity Ratio23.5%

How did ORI perform over the long term?

See historical performance and comparison

Dividends

10.2%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

45.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORI ($23.28) is trading below our estimate of fair value ($42.63)

Significantly Below Fair Value: ORI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ORI is good value based on its PE Ratio (4.4x) compared to the US Insurance industry average (9.7x).

PE vs Market: ORI is good value based on its PE Ratio (4.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: ORI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ORI is good value based on its PB Ratio (1x) compared to the US Insurance industry average (1.1x).


Future Growth

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

-31.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORI's earnings are forecast to decline over the next 3 years (-31.6% per year).

Earnings vs Market: ORI's earnings are forecast to decline over the next 3 years (-31.6% per year).

High Growth Earnings: ORI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ORI's revenue is expected to decline over the next 3 years (-6.5% per year).

High Growth Revenue: ORI's revenue is forecast to decline over the next 3 years (-6.5% 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


Past Performance

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

18.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORI has high quality earnings.

Growing Profit Margin: ORI's current net profit margins (17.6%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: ORI's earnings have grown by 18.8% per year over the past 5 years.

Accelerating Growth: ORI's earnings growth over the past year (483%) exceeds its 5-year average (18.8% per year).

Earnings vs Industry: ORI earnings growth over the past year (483%) exceeded the Insurance industry 76%.


Return on Equity

High ROE: ORI's Return on Equity (23.4%) is considered high.


Financial Health

How is Old Republic International's financial position?


Financial Position Analysis

Short Term Liabilities: ORI's short term assets ($7.8B) do not cover its short term liabilities ($15.4B).

Long Term Liabilities: ORI's short term assets ($7.8B) exceed its long term liabilities ($2.5B).


Debt to Equity History and Analysis

Debt Level: ORI's debt to equity ratio (23.5%) is considered satisfactory.

Reducing Debt: ORI's debt to equity ratio has increased from 22.6% to 23.5% over the past 5 years.

Debt Coverage: ORI's debt is well covered by operating cash flow (79.4%).

Interest Coverage: ORI's interest payments on its debt are well covered by EBIT (45.9x coverage).


Balance Sheet


Dividend

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

10.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORI's dividend (10.22%) is higher than the bottom 25% of dividend payers in the US market (1.3%).

High Dividend: ORI's dividend (10.22%) is in the top 25% of dividend payers in the US market (3.57%)


Stability and Growth of Payments

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 low payout ratio (16.2%), ORI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORI's dividends in 3 years are forecast to be well covered by earnings (36.7% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

Craig Smiddy (57 yo)

1.92yrs

Tenure

US$1,882,098

Compensation

Mr. Craig Richard Smiddy has been President and Director of Republic Credit Indemnity Company since 2019. Mr. Smiddy has been Chief Executive Officer and Director of Old Republic International Corporation...


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.88M) is below average for companies of similar size in the US market ($USD6.38M).

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


Leadership Team

Experienced Management: ORI's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: ORI's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Old Republic International Corporation
  • Ticker: ORI
  • Exchange: NYSE
  • Founded: 1923
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$6.932b
  • Shares outstanding: 297.76m
  • Website: https://www.oldrepublic.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 22:56
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.