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RE

Everest Re Group NYSE:RE Stock Report

Last Price

US$275.55

Market Cap

US$10.9b

7D

7.8%

1Y

1.0%

Updated

12 Aug, 2022

Data

Company Financials +
RE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance2/6
Financial Health4/6
Dividends5/6

RE Stock Overview

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally.

Everest Re Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Everest Re Group
Historical stock prices
Current Share PriceUS$275.55
52 Week HighUS$308.20
52 Week LowUS$248.63
Beta0.54
1 Month Change-0.50%
3 Month Change-1.60%
1 Year Change0.96%
3 Year Change10.53%
5 Year Change4.76%
Change since IPO1,304.08%

Recent News & Updates

Jul 28

Everest Re stock falls as Q2 net income slumps 82% Y/Y

Everest Re (NYSE:RE) stock fell ~7% on July 28 after the company's Q2 results a day ago. Net operating income per share declined -33% Y/Y to $9.79. Net income decreased ~82% Y/Y to $123M. "We expanded margins across our insurance and reinsurance businesses with disciplined growth, continued to scale our insurance platform and in reinsurance capitalized on strategic market opportunities that improved the diversity and economics of our book, while reducing volatility," said Group President & CEO Juan Andrade. Revenues from premiums earned increased +14% Y/Y to $2.92B. The company said gross written premium grew +8% Y/Y  to $3.45B.

Jul 27
If EPS Growth Is Important To You, Everest Re Group (NYSE:RE) Presents An Opportunity

If EPS Growth Is Important To You, Everest Re Group (NYSE:RE) Presents An Opportunity

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...

Shareholder Returns

REUS InsuranceUS Market
7D7.8%5.7%1.3%
1Y1.0%3.0%-11.7%

Return vs Industry: RE underperformed the US Insurance industry which returned 3% over the past year.

Return vs Market: RE exceeded the US Market which returned -11.7% over the past year.

Price Volatility

Is RE's price volatile compared to industry and market?
RE volatility
RE Average Weekly Movement4.1%
Insurance Industry Average Movement5.0%
Market Average Movement7.8%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

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

About the Company

FoundedEmployeesCEOWebsite
19731,947Juan Andradehttps://www.everestre.com

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through Reinsurance Operations and Insurance Operations segments. The Reinsurance Operations segment writes property and casualty reinsurance; and specialty lines of business through reinsurance brokers, as well as directly with ceding companies in the United States, Bermuda, Ireland, Canada, Singapore, Switzerland, and the United Kingdom.

Everest Re Group Fundamentals Summary

How do Everest Re Group's earnings and revenue compare to its market cap?
RE fundamental statistics
Market CapUS$10.86b
Earnings (TTM)US$767.46m
Revenue (TTM)US$11.86b

14.2x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RE income statement (TTM)
RevenueUS$11.86b
Cost of RevenueUS$10.79b
Gross ProfitUS$1.07b
Other ExpensesUS$305.55m
EarningsUS$767.46m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)19.47
Gross Margin9.05%
Net Profit Margin6.47%
Debt/Equity Ratio34.9%

How did RE perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

32%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 RE?

Other financial metrics that can be useful for relative valuation.

RE 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/Revenue1x
Enterprise Value/EBITDAn/a
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

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

RE PE Ratio vs Peers
The above table shows the PE ratio for RE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.4x
Y Alleghany
31.8x50.2%US$11.3b
RGA Reinsurance Group of America
32.8x18.6%US$8.8b
BAMR Brookfield Asset Management Reinsurance Partners
23.1xn/aUS$1.8b
GLRE Greenlight Capital Re
14xn/aUS$273.6m
RE Everest Re Group
14.2x35.6%US$10.9b

Price-To-Earnings vs Peers: RE is good value based on its Price-To-Earnings Ratio (14.2x) compared to the peer average (25.4x).


Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: RE is expensive based on its Price-To-Earnings Ratio (14.2x) compared to the US Insurance industry average (13.8x)


Price to Earnings Ratio vs Fair Ratio

What is RE'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.

RE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.2x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: RE is good value based on its Price-To-Earnings Ratio (14.2x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).


Share Price vs Fair Value

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

Below Fair Value: RE ($275.55) is trading below our estimate of fair value ($791.05)

Significantly Below Fair Value: RE 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: Target price is less than 20% higher than the current share price.


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Future Growth

How is Everest Re Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RE's forecast earnings growth (35.6% per year) is above the savings rate (1.9%).

Earnings vs Market: RE's earnings (35.6% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: RE's revenue (7.4% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: RE's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RE's Return on Equity is forecast to be low in 3 years time (16.8%).


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Past Performance

How has Everest Re Group 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


18.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RE has high quality earnings.

Growing Profit Margin: RE's current net profit margins (6.5%) are lower than last year (11.8%).


Past Earnings Growth Analysis

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

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

Earnings vs Industry: RE had negative earnings growth (-41.5%) over the past year, making it difficult to compare to the Insurance industry average (-22.2%).


Return on Equity

High ROE: RE's Return on Equity (8.8%) is considered low.


Discover strong past performing companies

Financial Health

How is Everest Re Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RE's short term assets ($9.0B) exceed its short term liabilities ($5.7B).

Long Term Liabilities: RE's short term assets ($9.0B) do not cover its long term liabilities ($23.3B).


Debt to Equity History and Analysis

Debt Level: RE's net debt to equity ratio (7.6%) is considered satisfactory.

Reducing Debt: RE's debt to equity ratio has increased from 7.4% to 34.9% over the past 5 years.

Debt Coverage: RE's debt is well covered by operating cash flow (121.9%).

Interest Coverage: RE's interest payments on its debt are well covered by EBIT (11.5x coverage).


Balance Sheet


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Dividend

What is Everest Re Group current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RE's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.49%).

High Dividend: RE's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (4%).


Stability and Growth of Payments

Stable Dividend: RE's dividends per share have been stable in the past 10 years.

Growing Dividend: RE's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (32%), RE's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (6.9%), RE's dividend payments are thoroughly covered by cash flows.


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Management

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

1.8yrs

Average management tenure


CEO

Juan Andrade (56 yo)

2.58yrs

Tenure

US$8,866,126

Compensation

Mr. Juan Carlos Andrade has been Chief Executive Officer and President at Everest Re Group, Ltd. since January 1, 2020. He serves as a Director of Everest Re Group, Ltd.since February 26, 2020. He is Chai...


CEO Compensation Analysis

Compensation vs Market: Juan's total compensation ($USD8.87M) is below average for companies of similar size in the US market ($USD12.88M).

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


Leadership Team

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


Board Members

Experienced Board: RE's board of directors are considered experienced (9.9 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

Ownership Breakdown

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


Top Shareholders

Company Information

Everest Re Group, Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Everest Re Group, Ltd.
  • Ticker: RE
  • Exchange: NYSE
  • Founded: 1973
  • Industry: Reinsurance
  • Sector: Insurance
  • Implied Market Cap: US$10.860b
  • Shares outstanding: 39.41m
  • Website: https://www.everestre.com

Number of Employees


Location

  • Everest Re Group, Ltd.
  • Seon Place
  • 4th Floor
  • Hamilton
  • HM 19
  • Bermuda

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/12 00:00
End of Day Share Price2022/08/12 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.