Old Republic International Corporation (ORI) Fundamental Analysis: Bull vs. Bear Case

ORI

Old Republic International Corporation

Fundamental data last updated:November 2, 2026

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company profile

SECTOR

Financial Services

industry

Insurance - Diversified

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Old Republic International Corporation, through its subsidiaries, engages in the insurance underwriting and related services business primarily in the United States and Canada. The company operates through three segments: General Insurance, Title Insurance, and the Republic Financial Indemnity Group Run-off Business. The General Insurance segment offers automobile extended warranty, aviation, commercial automobile, commercial multi-peril, commercial property, general liability, home warranty, inland marine, travel accident, and workers' compensation insurance products; and financial indemnity products for specialty coverages, including errors and omissions, fidelity, guaranteed asset protection, and surety. This segment provides its insurance products to businesses, government, and other institutions in transportation, commercial construction, healthcare, education, retail and wholesale trade, forest products, energy, general manufacturing, and financial services industries. The Title Insurance segment offers lenders' and owners' title insurance policies to real estate purchasers and investors based upon searches of the public records. This segment also provides escrow closing and construction disbursement services; and real estate information products, national default management services, and various other services pertaining to real estate transfers and loan transactions. The Republic Financial Indemnity Group Run-off Business segment offers private mortgage insurance coverage that protects mortgage lenders and investors from default related losses on residential mortgage loans made primarily to homebuyers. The company was founded in 1923 and is based in Chicago, Illinois.

VALUATION

P/E

8.98 Market Cap ($M USD)

$9.16B

Forward P/E

11.23 PEG

-0.56

PRICE TO SALES

0.98 PRICE TO BOOK

1.55 EV / EBITDA

7.86 5-Year Average P/E

Free Cash Flow Yield

13.25%

DCF Value

$85.15

Graham Number

$47.81

Price to FCF

7.55 EV to FCF

8.69 Earnings Yield

11.13%

FCF Yield

13.25%

DIVIDEND

Yield

9.79%

Annual Payout

$3.69

Payout Ratio

88.97%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.19

Next Year EPS Growth Estimate

$3.35

Next Year Revenue Growth Estimate

$10.59B

Return on Equity (ROE)

16.72%

FREE CASH FLOW

Operating Margin

13.75%

Debt-to-Equity

0.27 Piotroski F-Score

6 Altman Z-Score

1.53 Return on Invested Capital (ROIC)

5.95%

Current Ratio

0.00 Quick Ratio

0.00 Net Debt to EBITDA

1.03 Interest Coverage

18.42 Gross Profit margin

51.13%

FCF PER SHARE

$4.98

REVENUE PER SHARE

$38.45

Gainseekers Quantitative Analysis

Summary

The market seems to be significantly undervaluing Old Republic International Corporation. With a DCF value of $86.76 and a Graham Number of $47.81, the stock’s recent pricing was well below these intrinsic valuations, suggesting a potential mispricing. The Forward P/E of 11.72 and an Earnings Yield of 10.67% indicate a reasonable valuation, yet the Altman Z-score of 1.53 raises concerns about financial stability. Despite these risks, the company’s robust Return on Equity of 16.72% showcases effective management and profitability.

AI Exposure / Tech Reliance

Operating in the diversified insurance industry, Old Republic is positioned to leverage AI for risk assessment and customer service enhancements. However, the traditional nature of insurance may slow tech adoption compared to more agile sectors. The company's resilience will depend on integrating AI into underwriting and claims processing efficiently.

The Bull Case

For value or GARP investors, Old Republic presents a compelling opportunity. The company boasts a solid ROIC of 5.95% and a healthy FCF Yield of 12.70%, indicating efficient capital use and strong cash generation. With a Piotroski F-Score of 6 and an Operating Margin of 13.75%, the firm demonstrates operational competence and pricing power, making it an attractive buy for those seeking undervalued growth.

The Bear Case

Despite its strengths, Old Republic faces structural risks. The Altman Z-score of 1.53 suggests potential financial distress, and the high Payout Ratio of 88.97% raises sustainability concerns for its 9.39% dividend yield. Additionally, trading near its 52-week high with a Price/Book of 1.62 could indicate limited upside and potential overvaluation.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$42.00

Institutional Ownership %

1-Year Beta

0.67 Insider Buying % (6 Mo)

Distance to 52-Week High

24.28%

Distance to 52-Week Low

5.38%

EARNINGS SURPRISE %

-13.92%

50-DAY SMA

$39.92

200-DAY SMA

$41.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.