RenaissanceRe Holdings Ltd. Common Stock (RNR)

FairStock Score: 85/100 — HIGH CONVICTION

Key Financials

Strengths

• Solid return on equity of 19.7% above cost of capital
• Conservative balance sheet with debt-to-equity of just 0.13, providing financial flexibility
• Revenue growth of 29.6% demonstrates strong top-line momentum
• FairStock composite score of 85/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of 0.6 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

RenaissanceRe Holdings Ltd. Common Stock is a mid-cap financial services company valued at $13.4 billion. The business generates $12.9 billion in annual revenue with a 5.8% net margin. From a quality standpoint, RenaissanceRe shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of 0.6 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 5.6x, with offers a 46% margin of safety vs Graham Number of $577. Growth dynamics show revenue growing at 29.6% and profit growth of 501.0%. Our composite FairStock Score of 85/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

RenaissanceRe's 30% revenue growth trajectory could accelerate as it captures additional market share in the financial services sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the financial services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer