NYSE:ORI

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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. More Details


Snowflake Analysis

6 star dividend payer with excellent balance sheet.


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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ORI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.5%

ORI

1.7%

US Insurance

2.8%

US Market


1 Year Return

-18.0%

ORI

-5.4%

US Insurance

19.7%

US Market

Return vs Industry: ORI underperformed the US Insurance industry which returned -5.4% over the past year.

Return vs Market: ORI underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

ORIIndustryMarket
7 Day2.5%1.7%2.8%
30 Day17.4%11.6%8.0%
90 Day13.3%10.2%6.8%
1 Year-14.3%-18.0%-2.9%-5.4%22.4%19.7%
3 Year10.0%-10.9%10.3%2.2%47.3%37.5%
5 Year33.5%0.9%48.9%30.2%93.6%72.3%

Long-Term 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?

35.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ORI ($18.69) is trading below our estimate of fair value ($28.93)

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


Price To Earnings Ratio

PE vs Industry: ORI is poor value based on its PE Ratio (17.8x) compared to the US Insurance industry average (14.4x).

PE vs Market: ORI is good value based on its PE Ratio (17.8x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: ORI is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: ORI's PB Ratio (0.9x) is in line with the US Insurance industry average.


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?

36.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ORI's forecast earnings growth (36.7% per year) is above the savings rate (2.2%).

Earnings vs Market: ORI's earnings (36.7% per year) are forecast to grow faster than the US market (22% per year).

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

Revenue vs Market: ORI's revenue (3.7% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: ORI's revenue (3.7% per year) is forecast to grow slower than 20% 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?

3.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ORI has high quality earnings.

Growing Profit Margin: ORI's current net profit margins (4.9%) are lower than last year (10.3%).


Past Earnings Growth Analysis

Earnings Trend: ORI's earnings have grown by 3.7% 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 (-53.6%) over the past year, making it difficult to compare to the Insurance industry average (6%).


Return on Equity

High ROE: ORI's Return on Equity (5.2%) 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 ($7.2B) do not cover its short term liabilities ($14.5B).

Long Term Liabilities: ORI's short term assets ($7.2B) exceed its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: ORI's debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: ORI's debt to equity ratio has reduced from 24.9% to 12% over the past 5 years.

Debt Coverage: ORI's debt is well covered by operating cash flow (148.2%).

Interest Coverage: ORI's interest payments on its debt are well covered by EBIT (10.3x coverage).


Balance Sheet


Next Steps

Dividend

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

4.49%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ORI's dividend (4.49%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: ORI's dividend (4.49%) is in the top 25% of dividend payers in the US market (4.05%)


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: At its current payout ratio (78.9%), ORI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ORI's dividends in 3 years are forecast to be well covered by earnings (48.2% payout ratio).


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Craig Smiddy (56 yo)

1.08yrs

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 ($USD1.65M) is below average for companies of similar size in the US market ($USD6.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Craig Smiddy
President1.08yrsUS$1.65m0.0076%
$ 427.2k
Karl Mueller
Senior VP & CFO16.08yrsUS$1.01m0.020%
$ 1.1m
Rande Yeager
Executive Chairman of Old Republic Title Companies10.33yrsUS$1.56m0.033%
$ 1.8m
Stephen Oberst
Executive Vice President1.08yrsUS$2.50m0.023%
$ 1.3m
William Gray
Senior VP & Treasurer2.33yrsUS$1.46m0.0073%
$ 406.5k
Charles Boone
Senior Vice President of Investments19.25yrsno data0.028%
$ 1.6m
Aaron Jacoby
Senior Vice President of Corporate Development & Financeno datano datano data
John Heitkamp
Senior VP6.33yrsno datano data
Dana Loncar-Gakovic
Human Resources Directorno datano datano data
Phillip Schutt
Senior VP & Deputy Chief Investment Officer2.42yrsno datano data
Cheryl Jones
Senior VP & National Benefits Director2.42yrsno data0.012%
$ 691.3k
Francis Sodaro
Deputy CFO & Senior VP3.42yrsno datano data

2.4yrs

Average Tenure

59yo

Average Age

Experienced Management: ORI's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Craig Smiddy
President1.08yrsUS$1.65m0.0076%
$ 427.2k
Rande Yeager
Executive Chairman of Old Republic Title Companies10.33yrsUS$1.56m0.033%
$ 1.8m
Aldo Zucaro
Chairman27.83yrsUS$2.85m0.68%
$ 38.0m
Spencer LeRoy
Independent Director5.75yrsUS$143.00k0.034%
$ 1.9m
Glenn Reed
Independent Director3.25yrsUS$169.00kno data
Harrington Bischof
Independent Director23.67yrsUS$169.00k0.0067%
$ 378.4k
Jimmy Dew
Independent Director40.5yrsUS$143.00k0.29%
$ 16.2m
Arnold Steiner
Lead Independent Director14.83yrsUS$182.00k0.20%
$ 11.5m
Fredricka Taubitz
Independent Director17.5yrsUS$183.08k0.0070%
$ 392.5k
John Dixon
Independent Director17.5yrsUS$182.00k0.0070%
$ 393.6k
Stephen Walker
Independent Director14.5yrsUS$175.50k0.022%
$ 1.3m
Steven Bateman
Independent Director3.75yrsUS$156.00k0.0078%
$ 439.0k

14.7yrs

Average Tenure

75.5yo

Average Age

Experienced Board: ORI's board of directors are seasoned and experienced ( 14.7 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:
  • Industry: Property and Casualty Insurance
  • Sector: Insurance
  • Market Cap: US$5.606b
  • 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
ORI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 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 Analysis2020/11/26 23:44
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.