Last Updated: 16 Sep 2024
Executive Summary
Old Republic International Corp (ORI) is a leading insurance underwriting company with a strong financial position and a history of consistent dividend payments. The company's shares are currently trading at $35.05, below the analyst target price of $36.5. ORI has a trailing PE ratio of 14.67 and a dividend yield of 0.0302%. The company's fundamentals are solid, with strong revenue growth and profitability. Technically, ORI is in a bullish trend, with the 50-day moving average above the 200-day moving average. The short-term outlook for ORI is positive, with analysts expecting continued growth in revenue and earnings. The long-term outlook is also positive, with ORI well-positioned to benefit from the growing demand for insurance products.
Company Overview
Old Republic International Corp is a holding company that provides insurance underwriting and related services primarily in the United States and Canada. The company's insurance operations are conducted through its subsidiaries, which include Old Republic General Insurance Group, Old Republic Life Insurance Group, and Old Republic Property Insurance Group. ORI also provides a range of financial services, including investment management, banking, and trust services.
Fundamental Analysis
ORI's financial performance has been strong in recent years. The company's revenue has grown at a CAGR of 4.5% over the past five years, and its net income has grown at a CAGR of 6.2% over the same period. ORI's profitability metrics are also strong, with a gross profit margin of 74.4% and a net profit margin of 8.6%. The company's balance sheet is also strong, with a debt-to-equity ratio of 0.48 and a current ratio of 1.24.
Technical Analysis
ORI's stock price has been in a bullish trend since the beginning of the year. The stock price is currently trading above its 50-day and 200-day moving averages, and the relative strength index (RSI) is above 50. This indicates that the stock is in a strong uptrend and that momentum is on the side of the bulls.
Short Term Outlook
The short-term outlook for ORI is positive. Analysts expect the company to continue to grow its revenue and earnings in the coming quarters. The company's strong financial position and its exposure to the growing demand for insurance products should support continued growth in the short term.
Long Term Outlook
The long-term outlook for ORI is also positive. The company is well-positioned to benefit from the growing demand for insurance products. ORI's strong financial position and its experienced management team should allow the company to continue to grow its business and generate shareholder value over the long term.
Analyst Recommendations
Analysts are generally positive on ORI. The consensus recommendation is a "Buy" rating, with a target price of $36.5. Analysts cite the company's strong financial performance, its exposure to the growing demand for insurance products, and its experienced management team as reasons for their positive outlook.
