Why I Like Old Republic International Corporation (NYSE:ORI)

Old Republic International Corporation (NYSE:ORI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ORI, it is a financially-robust company with a an impressive track record superior dividend payments, trading at a great value. Below, I’ve touched on some key aspects you should know on a high level. If you’re interested in understanding beyond my broad commentary, read the full report on Old Republic International here.

6 star dividend payer and good value

ORI’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that ORI manages its cash and cost levels well, which is a key determinant of the company’s health. ORI appears to have made good use of debt, producing operating cash levels of 0.77x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated. ORI’s shares are now trading at a price below its true value based on its PE ratio of 16.59x, compared to the industry and wider stock market ratio, which means it is relatively cheaper than its peers.

NYSE:ORI Price Estimation Relative to Market, March 15th 2019
NYSE:ORI Price Estimation Relative to Market, March 15th 2019

ORI’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 3.8%.

NYSE:ORI Historical Dividend Yield, March 15th 2019
NYSE:ORI Historical Dividend Yield, March 15th 2019

Next Steps:

For Old Republic International, I’ve compiled three relevant aspects you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for ORI’s future growth? Take a look at our free research report of analyst consensus for ORI’s outlook.
  2. Historical Performance: What has ORI’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.