Old Republic International Corporation (NYSE:ORI) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ORI, it is a financially-robust , dividend-paying company with a great history of performance. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Old Republic International here.
Solid track record with adequate balance sheet and pays a dividend
In the previous year, ORI has ramped up its bottom line by 36%, with its latest earnings level surpassing its average level over the last five years. Not only did ORI outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 13% earnings growth. This is an optimistic signal for the future. ORI’s debt-to-equity ratio stands at 17%, which means its debt level is acceptable. This indicates a good balance between taking advantage of low cost funding through debt financing, but having enough financial flexibility and headroom to grow debt in the future. ORI appears to have made good use of debt, producing operating cash levels of 0.79x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, ORI is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.5%.
For Old Republic International, I've put together three important factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for ORI’s future growth? Take a look at our free research report of analyst consensus for ORI’s outlook.
- Valuation: What is ORI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ORI is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ORI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.