Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR (MURGY) AI Stock Analysis

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Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR

(OTC:MURGY)

77Outperform

Munchener Ruckversicherungs-Gesellschaft receives a strong overall stock score based on robust financial performance, characterized by solid profitability and a stable balance sheet with low leverage. Technical analysis indicates a bullish trend, supported by positive momentum and stock price performance above key moving averages. Valuation metrics suggest the stock is fairly valued, with a moderate dividend yield. The primary risks include inconsistent revenue growth and fluctuations in free cash flow, which the company could address to enhance investor confidence.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR (MURGY) vs. S&P 500 (SPY)

Market Cap

$77.55B

Dividend Yield1.9%

Average Volume (3M)17.97K

Price to Earnings (P/E)12.6

Beta (1Y)0.50

Revenue Growth6.69%

EPS Growth26.23%

CountryUS

Employees44,224

SectorFinancial

Sector Strength79

IndustryInsurance - Reinsurance

Share Statistics

EPS (TTM)0.92

Shares Outstanding6,688,014,000

10 Day Avg. Volume42,502

30 Day Avg. Volume17,969

Financial Highlights & Ratios

PEG Ratio0.48

Price to Book (P/B)N/A

Price to Sales (P/S)0.69

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Business Overview & Revenue Model

Company DescriptionMunchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR (MURGY), commonly known as Munich Re, is a leading global reinsurance company headquartered in Munich, Germany. It operates in the reinsurance, primary insurance, and asset management sectors. The company provides a wide range of reinsurance products, including life, health, property, and casualty coverages, as well as risk management solutions, to insurance companies worldwide. Munich Re also offers primary insurance through its subsidiaries, such as ERGO Group, and engages in investment management activities.

How the Company Makes MoneyMunich Re primarily generates revenue through its reinsurance and primary insurance operations. In the reinsurance sector, the company earns premiums by providing insurance for insurers, thus allowing them to manage risk and capital more effectively. Munich Re underwrites a variety of reinsurance products, such as life and health reinsurance, property and casualty reinsurance, and specialty coverages. In addition to reinsurance, Munich Re's primary insurance business, conducted through subsidiaries like ERGO Group, offers direct insurance products to end customers, generating premium income. Furthermore, Munich Re invests the premiums it collects, managing a substantial portfolio of assets. Investment income from these assets, including interest, dividends, and capital gains, forms another significant revenue stream for the company. Key partnerships with other insurers and a broad global presence enhance Munich Re's ability to diversify risk and optimize its earnings.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Financial Statement Overview

Summary

Munchener Ruckversicherungs-Gesellschaft shows strengths in financial stability with a strong equity base and improving cash flow. However, challenges in revenue growth and operational efficiency impact overall profitability.

Income Statement

Positive

The company has maintained a stable gross profit margin with a recent increase, reflecting effective cost management. However, net profit margin showed fluctuations, with a recent improvement to 7.67%. Revenue growth has been inconsistent, with a significant decline in the latest year, impacting overall performance. The EBIT margin is relatively low, and EBITDA margin is negative due to the recent negative EBITDA, indicating challenges in operational efficiency.

Balance Sheet

Positive

The company's balance sheet shows a strong equity base with an improving equity ratio, reflecting financial stability. The debt-to-equity ratio has decreased, indicating reduced leverage and risk. However, the return on equity remains moderate, showing room for improvement in generating returns for shareholders.

Cash Flow

Positive

The cash flow statement reveals a recovery in free cash flow, indicating improved cash generation. However, the operating cash flow to net income ratio is volatile, suggesting fluctuating operational efficiency. The free cash flow to net income ratio is positive, highlighting effective cash management despite past challenges.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
63.34B	60.09B	68.45B	63.86B	58.64B	57.31B
	Gross Profit
61.34B	64.73B	68.45B	63.86B	58.64B	57.31B
	EBIT
6.66B	365.00M	4.30B	2.41B	1.54B	2.98B
	EBITDA
408.00M	-244.00M	4.30B	128.00M	1.54B	2.98B
	Net Income Common Stockholders
5.47B	4.61B	3.43B	2.93B	1.21B	2.72B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
144.26B	8.57B	149.71B	171.24B	164.44B	160.17B
	Total Assets
270.17B	273.79B	298.57B	312.40B	297.95B	287.55B
	Total Debt
4.66B	4.71B	6.45B	6.80B	6.74B	5.07B
	Net Debt
-331.00M	-3.86B	-2.87B	-1.98B	-2.31B	-3.55B
	Total Liabilities
243.67B	244.02B	277.37B	281.46B	267.95B	256.98B
	Stockholders Equity
26.37B	29.65B	21.06B	30.83B	29.89B	30.46B
Cash Flow		Free Cash Flow
0.00	2.20B	-18.32B	5.23B	7.22B	15.68B
	Operating Cash Flow
0.00	2.54B	-7.64B	5.23B	7.22B	9.49B
	Investing Cash Flow
0.00	-329.00M	11.35B	-3.82B	-6.13B	-6.92B
	Financing Cash Flow
0.00	-2.98B	-2.70B	-1.68B	-323.00M	-2.50B

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price12.44

Price Trends

50DMA

11.80

Positive

100DMA

11.11

Positive

200DMA

10.70

Positive

Market Momentum

MACD

0.35

Positive

RSI

68.29

Neutral

STOCH

81.86

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MURGY, the sentiment is Positive. The current price of 12.44 is below the 20-day moving average (MA) of 12.48, above the 50-day MA of 11.80, and above the 200-day MA of 10.70, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 68.29 is Neutral, neither overbought nor oversold. The STOCH value of 81.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MURGY.

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AJG	79 Outperform	$82.81B	49.81	9.46%	0.79%	15.21%	46.99%
MURGY	77 Outperform	$77.55B	12.61	18.47%	1.90%	6.69%	26.23%
RGA	75 Outperform	$12.01B	16.97	7.21%	2.09%	19.29%	-19.91%
EG	74 Outperform	$16.65B	10.95	10.14%	2.41%	18.47%	-46.75%
AON	73 Outperform	$80.65B	29.89	100.25%	0.75%	17.51%	1.31%
RNR	73 Outperform	$11.71B	6.78	18.40%	0.69%	28.22%	-31.48%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%

* Financial Sector Average

Performance Comparison

MURGY

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR

11.67

2.98

34.29%

AON

Aon

369.02

60.54

19.63%

AJG

Arthur J Gallagher & Co

325.72

89.52

37.90%

Everest Group

341.40

-17.08

-4.76%

RGA

Reinsurance Group

173.57

-8.24

-4.53%

RNR

Renaissancere Holdings

232.05

15.80

7.31%

Munchener Ruckversicherungs-Gesellschaft Aktiengesellschaft Unsponsored ADR Earnings Call Summary

Earnings Call Date: Feb 26, 2025 | % Change Since: 12.48% | Next Earnings Date: May 13, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong overall performance with significant ROE and investment results. Life reinsurance showed exceptional results, and the Solvency II ratio improved. However, natural catastrophes and specific challenges in international segments like ERGO and Spanish health business impacted results. Overall, positive developments slightly outweigh the challenges.

Highlights

Strong Group ROE

The group's Return on Equity (ROE) was 20% after 9 months, well above the target.

Life Reinsurance Success

Life & Health reinsurance surpassed initial full year guidance by almost EUR 200 million after 9 months.

Positive Investment Return

Munich Re posted a Return on Investment (ROI) of 3.6% for Q3, supported by rising stock markets and lower bond yields.

Solvency II Ratio Improvement

The Solvency II ratio slightly increased to 292% in Q3, driven by good operating performance.

Increased Full Year Profit Guidance

Munich Re expects net profit to exceed the full year target of EUR 5 billion, driven by higher earnings in reinsurance.

Lowlights

Impact of Natural Catastrophes

The net result of EUR 930 million in Q3 was impacted by above-average major losses from natural catastrophes.

Elevated Combined Ratio in P&C Reinsurance

The combined ratio in Property Casualty reinsurance was 90.5% in Q3, elevated due to above-average major claims.

ERGO International Losses

ERGO International was affected by major losses related to Storm Boris, impacting the total technical result by minus EUR 52 million.

Spanish Health Business Challenges

Unfavorable claims development in the Spanish health business led to an elevated combined ratio of 96.1%.

Company Guidance

During the Q3 2024 earnings call, Munich Re provided detailed guidance on its financial performance and outlook. The company achieved a net result of EUR 930 million for the quarter, impacted by significant natural catastrophe losses. Despite this, the group maintained strong overall profitability with a 20% ROE over nine months. The investment return was robust, with an ROI of 3.6% in Q3, supported by positive fair value changes. The life and health reinsurance segment exceeded initial full-year guidance by nearly EUR 200 million, while the property and casualty reinsurance segment reported a normalized combined ratio of 80.4% after nine months, better than the 82% guidance. ERGO's net result was EUR 164 million, with the international segment affected by Storm Boris. The Solvency II ratio slightly increased to 292%, reflecting a strong economic position. Looking ahead, Munich Re expects higher revenues and net profit for the full year, with combined ratio targets adjusted due to various factors, including Hurricane Milton's expected lower impact compared to Helene. The company remains committed to maintaining a prudent reserve strategy and optimizing capital returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.