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 Analysis

Undervalued with solid track record 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

Stable Share Price: ORI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

21.8%

ORI

13.0%

US Insurance

9.4%

US Market


1 Year Return

-18.9%

ORI

-15.4%

US Insurance

-6.8%

US Market

Return vs Industry: ORI underperformed the US Insurance industry which returned -17% over the past year.

Return vs Market: ORI underperformed the US Market which returned -8.1% over the past year.


Shareholder returns

ORIIndustryMarket
7 Day21.8%13.0%9.4%
30 Day-5.5%-8.8%-3.9%
90 Day-23.3%-23.6%-16.5%
1 Year-12.2%-18.9%-13.3%-15.4%-4.8%-6.8%
3 Year5.7%-13.8%2.3%-5.9%23.4%15.2%
5 Year50.2%12.6%25.8%10.5%41.3%25.7%

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?

47.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORI ($16.33) is trading below our estimate of fair value ($32.96)

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 (4.6x) compared to the Insurance industry average (8.8x).

PE vs Market: ORI is good value based on its PE Ratio (4.6x) compared to the US market (13.3x).


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 (0.8x) compared to the US Insurance industry average (0.8x).


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?

-39.6%

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 (-39.6% per year).

Earnings vs Market: ORI's earnings are forecast to decline over the next 3 years (-39.6% 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 (-3.8% per year).

High Growth Revenue: ORI's revenue is forecast to decline over the next 3 years (-3.8% 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 (9%).


Next Steps

Past Performance

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

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORI has high quality earnings.

Growing Profit Margin: ORI's current net profit margins (14.6%) are higher than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: ORI's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: ORI's earnings growth over the past year (185.1%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: ORI earnings growth over the past year (185.1%) exceeded the Insurance industry 43.7%.


Return on Equity

High ROE: ORI's Return on Equity (17.6%) is considered low.


Next Steps

Financial Health

How is Old Republic International's financial position?


Financial Position Analysis

Short Term Liabilities: ORI's short term assets ($6.1B) exceed its short term liabilities ($6.1B).

Long Term Liabilities: ORI's short term assets ($6.1B) do not cover its long term liabilities ($9.0B).


Debt to Equity History and Analysis

Debt Level: ORI's debt to equity ratio (16.2%) is considered satisfactory.

Reducing Debt: ORI's debt to equity ratio has reduced from 24.6% to 16.2% over the past 5 years.

Debt Coverage: ORI's debt is well covered by operating cash flow (96.1%).

Interest Coverage: ORI's interest payments on its debt are well covered by EBIT (34.1x coverage).


Balance Sheet


Next Steps

Dividend

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

4.92%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORI's dividend (5.14%) is higher than the bottom 25% of dividend payers in the US market (1.89%).

High Dividend: ORI's dividend (5.14%) is low compared to the top 25% of dividend payers in the US market (5.26%).


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 (22.7%), 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 (43.2% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Craig Smiddy (55yo)

0.50

Tenure

US$1,646,775

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Craig's total compensation ($USD1.65M) is below average for companies of similar size in the US market ($USD7.40M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Smiddy
President0.50yrUS$1.65m0.0076% $390.0k
Karl Mueller
Senior VP & CFO15.5yrsUS$1.01m0.020% $1.0m
Rande Yeager
Executive Chairman of Old Republic Title Companies9.75yrsUS$1.56m0.033% $1.7m
Stephen Oberst
Executive Vice President0.50yrUS$2.50m0.0076% $388.4k
William Gray
Senior VP & Treasurer1.75yrsUS$1.46m0.0073% $371.0k
Charles Boone
Senior Vice President of Investments18.67yrsno data0.028% $1.4m
Aaron Jacoby
Senior Vice President of Corporate Development & Financeno datano datano data
John Heitkamp
Senior VP5.75yrsno data0.00033% $16.9k
Dana Loncar-Gakovic
Human Resources Directorno datano datano data
Phillip Schutt
Senior VP & Deputy Chief Investment Officer1.83yrsno datano data

1.8yrs

Average Tenure

58yo

Average Age

Experienced Management: ORI's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Craig Smiddy
President0.50yrUS$1.65m0.0076% $390.0k
Rande Yeager
Executive Chairman of Old Republic Title Companies9.75yrsUS$1.56m0.033% $1.7m
Aldo Zucaro
Chairman27.25yrsUS$2.85m0.66% $33.8m
Spencer LeRoy
Independent Director5.17yrsUS$143.00k0.034% $1.7m
Harrington Bischof
Independent Director23.08yrsUS$169.00k0.0067% $345.4k
Jimmy Dew
Independent Director39.92yrsUS$143.00k0.29% $14.8m
Arnold Steiner
Lead Independent Director14.25yrsUS$182.00k0.24% $12.0m
Fredricka Taubitz
Independent Director16.92yrsUS$183.08k0.0063% $323.9k
John Dixon
Independent Director16.92yrsUS$182.00k0.0070% $359.2k
Stephen Walker
Independent Director13.92yrsUS$175.50k0.022% $1.1m

15.6yrs

Average Tenure

76.5yo

Average Age

Experienced Board: ORI's board of directors are seasoned and experienced ( 15.6 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 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$5.117b
  • Shares outstanding: 299.97m
  • 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 three segments: General Insurance Group, Title Insurance Group, and the Republic Financial Indemnity Group Run-off Business. The General Insurance Group 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. This segment provides its insurance products to businesses, government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance Group segment offers lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. It is also involved in the consumer credit indemnity run-off business. Old Republic International Corporation was founded in 1887 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/10 04:29
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.