Everest Re Group Ltd

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RE : NYSE : Financial
$190.40 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 240,200
09/29/16 - 4:02 PM ET

Financial Analysis


EVEREST RE GROUP LTD's gross profit margin for the second quarter of its fiscal year 2016 has significantly decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.34% from the same quarter last year.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)1404.881383.79
EBITDA ($mil)0.00.0
EBIT ($mil)172.37247.26
Net Income ($mil)155.69209.06


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)2016.133303.13
Total Assets ($mil)21282.1821482.9
Total Debt ($mil)633.07638.37
Equity ($mil)7985.477726.66


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin12.2717.87
EBITDA Margin0.00.0
Operating Margin12.2717.87
Sales Turnover0.260.27
Return on Assets3.635.33
Return on Equity9.6814.84
Debt Q2 FY16 Q2 FY15
Current Ratio0.00.0
Debt/Capital0.070.08
Interest Expense9.079.03
Interest Coverage19.027.39


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)41.8844.19
Div / share1.150.95
EPS3.674.68
Book value / share190.66174.84
Institutional Own % n/a n/a
Avg Daily Volume252957.0342592.0

Valuation


BUY. EVEREST RE GROUP LTD's P/E ratio indicates a significant discount compared to an average of 42.44 for the Insurance industry and a significant discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 1.02 indicates a significant discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 1.57. The current price-to-sales ratio is below the S&P 500 average, but above the industry average. Upon assessment of these and other key valuation criteria, EVEREST RE GROUP LTD proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
RE 10.88 Peers 42.44   RE 6.24 Peers 11.90

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

RE is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

RE is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
RE 10.88 Peers 14.88   RE NM Peers 2.00

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

RE is trading at a discount to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

RE's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
RE 1.02 Peers 1.57   RE -29.25 Peers -5.86

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

RE is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, RE is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
RE 1.46 Peers 1.41   RE -4.13 Peers 4.35

Average. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

RE is trading at a valuation on par with its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

RE significantly trails its peers on the basis of sales growth

 

 

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