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ORI

Old Republic International NYSE:ORI Stock Report

Last Price

US$20.93

Market Cap

US$6.3b

7D

-0.2%

1Y

-10.7%

Updated

30 Sep, 2022

Data

Company Financials +
ORI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends6/6

ORI Stock 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$20.93
52 Week HighUS$27.19
52 Week LowUS$20.28
Beta0.85
1 Month Change-4.17%
3 Month Change-7.47%
1 Year Change-10.71%
3 Year Change-10.90%
5 Year Change6.79%
Change since IPO695.98%

Recent News & Updates

Shareholder Returns

ORIUS InsuranceUS Market
7D-0.2%-1.1%-2.5%
1Y-10.7%-3.8%-23.2%

Return vs Industry: ORI underperformed the US Insurance industry which returned -7.5% over the past year.

Return vs Market: ORI exceeded the US Market which returned -21.5% over the past year.

Price Volatility

Is ORI's price volatile compared to industry and market?
ORI volatility
ORI Average Weekly Movement3.5%
Insurance Industry Average Movement4.5%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

Stable Share Price: ORI is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

FoundedEmployeesCEOWebsite
19239,600Craig 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, commercial property, 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$6.32b
Earnings (TTM)US$981.90m
Revenue (TTM)US$8.75b

6.4x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORI income statement (TTM)
RevenueUS$8.75b
Cost of RevenueUS$2.44b
Gross ProfitUS$6.31b
Other ExpensesUS$5.33b
EarningsUS$981.90m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.25
Gross Margin72.12%
Net Profit Margin11.22%
Debt/Equity Ratio24.9%

How did ORI perform over the long term?

See historical performance and comparison

Dividends

11.6%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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 ORI?

Other financial metrics that can be useful for relative valuation.

ORI 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/Revenue0.9x
Enterprise Value/EBITDA5.9x
PEG Ratio-1.1x

Price to Earnings Ratio vs Peers

How does ORI's PE Ratio compare to its peers?

ORI PE Ratio vs Peers
The above table shows the PE ratio for ORI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.4x
SIGI Selective Insurance Group
18.9x25.4%US$4.9b
FAF First American Financial
5.3x0.4%US$4.8b
RLI RLI
27.3x16.7%US$4.6b
THG Hanover Insurance Group
14x20.7%US$4.6b
ORI Old Republic International
6.4x-6.1%US$6.3b

Price-To-Earnings vs Peers: ORI is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (16.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: ORI is good value based on its Price-To-Earnings Ratio (6.4x) compared to the US Insurance industry average (13.5x)


Price to Earnings Ratio vs Fair Ratio

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

ORI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: ORI is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Share Price vs Fair Value

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

Below Fair Value: ORI ($20.93) is trading below our estimate of fair value ($81.41)

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


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.1%

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 (-6.1% per year).

Earnings vs Market: ORI's earnings are forecast to decline over the next 3 years (-6.1% 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 (-5.1% per year).

High Growth Revenue: ORI's revenue is forecast to decline over the next 3 years (-5.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ORI's Return on Equity is forecast to be low in 3 years time (10.9%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORI has high quality earnings.

Growing Profit Margin: ORI's current net profit margins (11.2%) are lower than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: ORI's earnings have grown significantly by 24.3% per year over the past 5 years.

Accelerating Growth: ORI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ORI had negative earnings growth (-38%) over the past year, making it difficult to compare to the Insurance industry average (-22.8%).


Return on Equity

High ROE: ORI's Return on Equity (15.4%) is considered low.


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Financial Health

How is Old Republic International's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ORI's short term assets ($8.9B) do not cover its short term liabilities ($16.5B).

Long Term Liabilities: ORI's short term assets ($8.9B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: ORI's net debt to equity ratio (11.8%) is considered satisfactory.

Reducing Debt: ORI's debt to equity ratio has reduced from 32.7% to 24.9% over the past 5 years.

Debt Coverage: ORI's debt is well covered by operating cash flow (75.2%).

Interest Coverage: ORI's interest payments on its debt are well covered by EBIT (19.3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


11.56%

Current Dividend Yield

Dividend Yield vs Market

Old Republic International Dividend Yield vs Market
How does Old Republic International dividend yield compare to the market?
SegmentDividend Yield
Company (Old Republic International)11.6%
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (Insurance)2.5%
Analyst forecast in 3 Years (Old Republic International)6.1%

Notable Dividend: ORI's dividend (11.56%) is higher than the bottom 25% of dividend payers in the US market (1.66%).

High Dividend: ORI's dividend (11.56%) is in the top 25% of dividend payers in the US market (4.7%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.9%), ORI's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61%), ORI's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

2.9yrs

Average management tenure


CEO

Craig Smiddy (58 yo)

2.92yrs

Tenure

US$2,392,292

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

Craig Smiddy's Compensation vs Old Republic International Earnings
How has Craig Smiddy's remuneration changed compared to Old Republic International's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$982m

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$2mUS$863k

US$2b

Sep 30 2021n/an/a

US$1b

Jun 30 2021n/an/a

US$2b

Mar 31 2021n/an/a

US$2b

Dec 31 2020US$2mUS$808k

US$559m

Sep 30 2020n/an/a

US$315m

Jun 30 2020n/an/a

US$272m

Mar 31 2020n/an/a

US$39m

Dec 31 2019US$2mUS$664k

US$1b

Sep 30 2019n/an/a

US$674m

Jun 30 2019n/an/a

US$746m

Mar 31 2019n/an/a

US$779m

Dec 31 2018US$1mUS$582k

US$371m

Sep 30 2018n/an/a

US$777m

Jun 30 2018n/an/a

US$548m

Mar 31 2018n/an/a

US$451m

Dec 31 2017US$1mUS$495k

US$561m

Sep 30 2017n/an/a

US$393m

Jun 30 2017n/an/a

US$458m

Mar 31 2017n/an/a

US$457m

Dec 31 2016US$1mUS$485k

US$467m

Sep 30 2016n/an/a

US$426m

Jun 30 2016n/an/a

US$441m

Mar 31 2016n/an/a

US$442m

Dec 31 2015US$951kUS$475k

US$422m

Compensation vs Market: Craig's total compensation ($USD2.39M) is below average for companies of similar size in the US market ($USD8.64M).

Compensation vs Earnings: Craig's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: ORI's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: ORI's board of directors are considered experienced (6.5 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

NYSE:ORI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
27 May 22BuyUS$234,410Lisa CaldwellIndividual9,920US$23.63
02 May 22BuyUS$53,968Stephen WalkerIndividual2,500US$21.60

Ownership Breakdown

What is the ownership structure of ORI?
Owner TypeNumber of SharesOwnership Percentage
Private Companies12,4250.004%
State or Government119,6150.04%
Individual Insiders4,455,2721.5%
Employee Share Scheme17,937,1045.9%
General Public53,679,93417.8%
Institutions225,950,16774.8%

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


Top Shareholders

Top 25 shareholders own 60.12% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
11.14%
BlackRock, Inc.
33,657,644$704.5m6%0.02%
9.25%
The Vanguard Group, Inc.
27,944,495$584.9m2.04%0.01%
8.04%
State Street Global Advisors, Inc.
24,305,893$508.7m4.52%0.03%
5.94%
Old Republic International Corporation, ESOP
17,937,104$375.4m0%no data
3.51%
Victory Capital Management Inc.
10,602,065$221.9m122.63%0.25%
3.31%
FMR LLC
9,994,059$209.2m0.66%0.02%
2.44%
Dimensional Fund Advisors LP
7,365,033$154.2m1.58%0.04%
1.71%
Geode Capital Management, LLC
5,163,703$108.1m10.51%0.01%
1.5%
Hamlin Capital Management, LLC
4,527,647$94.8m-10.22%3.83%
1.34%
BNY Mellon Asset Management
4,047,199$84.7m4.31%0.02%
1.17%
Invesco Capital Management LLC
3,541,595$74.1m11.03%0.06%
1.09%
AQR Capital Management, LLC
3,295,364$69.0m59.85%0.15%
0.96%
Alleghany Corp., Asset Management Arm
2,908,365$60.9m0%2.4%
0.93%
Norges Bank Investment Management
2,804,084$58.7m0%0.01%
0.89%
WR Berkley Corp., Asset Management Arm
2,679,739$56.1m0%3.02%
0.83%
Miller/Howard Investments, Inc.
2,498,914$52.3m1.16%2.07%
0.82%
Thompson, Siegel & Walmsley LLC
2,472,906$51.8m11.54%0.66%
0.78%
Northern Trust Global Investments
2,366,757$49.5m-1.66%0.01%
0.77%
Brandes Investment Partners, LP
2,321,717$48.6m0.14%0.57%
0.73%
First Trust Advisors LP
2,203,467$46.1m-0.93%0.05%
0.67%
Aldo Zucaro
2,035,000$42.6m0%no data
0.63%
Goldman Sachs Asset Management, L.P.
1,896,270$39.7m-21.92%0.02%
0.61%
Allianz Asset Management AG
1,852,664$38.8m-4.21%0.03%
0.58%
Charles Schwab Investment Management, Inc.
1,747,017$36.6m2.28%0.01%
0.49%
Eaton Vance Management
1,474,776$30.9m12.26%0.01%

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
  • Implied Market Cap: US$6.324b
  • Shares outstanding: 302.15m
  • 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
ORI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 1969

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.