Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Old Republic International Corporation (NYSE:ORI) due to its excellent fundamentals in more than one area. ORI is a financially-robust , dividend-paying company with a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Old Republic International here.
6 star dividend payer with solid track record
ORI delivered a bottom-line expansion of 98% in the prior year, with its most recent earnings level surpassing its average level over the last five years. Not only did ORI outperformed its past performance, its growth also surpassed the Insurance industry expansion, which generated a 10% earnings growth. This is an optimistic signal for the future. ORI’s debt-to-equity ratio stands at 18%, 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 0.49x 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 3.6%, making it one of the best dividend companies in the market.
For Old Republic International, I’ve put together three important aspects you should further research:
- 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!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.