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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Renasant Corporation (XNAS:RNST) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
RNST
Name:
Renasant Corporation (XNAS:RNST)
Sector:
203.79M
Industry:
Banks�Regional
CEO:
Mr. C. Mitchell Waycaster
Total Employees:
2,409
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 1451.70% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF RENASANT CORPORATION(RNST) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BANKS�REGIONAL INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
32.96
One Month Price Target:
$33.17
Six Month Price Target :
$34.19
Likely Price in One Year's Time:
Ticker:
$35.43
Likely Trading Range Today Under (Normal Volatility)
$32.82
Price Upper limit ($) :
$33.12
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$31.17
This week:
$28.97
This month :
$24.98
Other Primary facts
Market Cap:
1.82B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
55.95M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
14.39%
-11.08%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$41.25
$37.46
$24.67
$28.46
Medium risk (<10%) entry points
Buy Call
Sell Call
$36.23
Buy Put:
Sell Put:
$35.42
$29.68
$30.50
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
RNST
Sharpe Ratio:
0.55%
Comparison:
RNST, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -55.58% lower than the industry
& is -76.06% lower than the market/S&P 500 average
Average Returns/Yield of
RNST
Daily returns:
0.02%
Weekly returns:
0.12%
Monthly returns:
0.47%
Yearly returns:
10.91%
Comparison of returns:
Average annual returns/yield (last 3 years) is -48.75% below industry average
Classification:
RNST, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.92
Statistical test of Returns:
RNST has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
2.65%
Weekly Volatility:
5.92%
Monthly Volatility:
11.84%
Yearly Volatility:
41.03%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.88%
Volatility in last five trading days has been -66.95% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.42%
Weekly VaR:
-12.11%
Monthly VaR:
-24.22%
How Much Can the price of
RNST
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-21%
Worst case (decline):
-83.90%
This translates to price declining to:
$25.99
This translates to price declining to:
$5.31
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
RNST is a 70.95% riskier investment compared to the market/S&P 500 & is 46.45% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -7.29% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
RNST
Beta in relation to market/S&P 500--1.11
Expected beta in 1 year's time:
0.712
Expected beta in 3 year's time:
1.007
Unlevered (debt free) Beta:
0.958
Beta in relation to Nasdaq (XNAS):
0.484
Beta in relation to all global stocks::
0.771
Beta Comparison & Analysis
Beta of competitors/peers::
1.113
Beta is 0.09% higher than peers
Average Industry Beta:
0.964
Beta is 15.62% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
5.77%
Sustainable growth rate is -36.79% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.052
Alpha is -547.36% below industry average alpha yield
Alpha is -330% below the market average
Analysis of Cost of Capital of
RNST
Equity cost of capital:
0.108
Equity cost of capital is 10.58% above industry mean WACC
Unlevered (without debt) cost of capital:
9.27%
Before-tax cost of debt:
8.06%
After-tax cost of debt:
6.36%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
6.36%
WACC is -7.37% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$10.68
Revenue growth rate per share of (3Y):
0.86
Annual revenue growth rate is -54.69% below industry average
EPS:
$2.69
Expected Annual growth rate of EPS (3Y):
2.59%
Expected future EPS growth rate is -78.49% lower than the Banks�Regional industry
Free cash flow (FCF) per share:
$6.71
Balance sheet equity growth per share: 7.98%
Equity growth rate per share is -79.40% lower than the industry
Debt per share
$7.78
EBITDA per share
$5.05
Valuation Analysis Today of
RNST
P/E Ratio:
12.32
P/E Ratio of Competitors/Peers:
50.15
P/E ratio is -75.43% lower than main peers & is -0.69% lower than the industry
Stock price/value with industry average P/E ratio: $33.38
RNST is -1.26% undervalued if valued using industry average P/E ratio
Share value as per dividend discount (DDM) model: $26.52
Present value of the expected future dividends only: $8.16
P/S (Price to Sales ratio):
3.09
Price to sales ratio is -27.82% below the industry mean
P/B (Price to book value ratio):
0.86
Price to free cash flow: 4.91
Price to free cash flow ratio is -1.85% lower than the industry
Net income growth rate (3Y):
12.72%
Net income growth rate is -76.90% lower than the industry average net income growth rate
Dividend Analysis
Dividend payout rate: 8.25%
Dividend yeild: 2.67%
Previous Dividend: $0.22
Previous adjusted dividend: $0.22
Previous Dividend: $0.88
-
-
Average dividend payment (long-term): $0.22
Average dividend increase/decrease (growth rate) % per period: 0.00%
Expected next dividend payment date: 28/09/2022
Expected next dividend record date: 14/09/2022
-
Previous dividend payment date: 30/06/2022
Previous dividend record date: 16/06/2022
-
Dividend History:
2022-06-15--$0.22
2021-12-16--$0.22
2021-06-15--$0.22
2022-03-16--$0.22
2021-09-15--$0.22
2021-03-16--$0.22
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
20.37%
Net debt to equity ratio:
-50.15%
Debt to assets ratio:
2.58%
Net debt to assets ratio:
-6.36%
Debt-to-asset ratio is -98.45% below industry average
Ability to repay debt:
Interest coverage ratio:
6.56
Interest coverage ratio is 691.05% more than industry average
Looking forward:
Debt growth rate:
-0.79%
Annual debt growth is -350% lower than industry average debt growth rate
Debt repayment rate in last quarter: 6.85%
Analysis of Key Statistics
Correlation of price movement with the market:
0.484
Statistical significance of correlation:
RNST has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.501
Stock price is -3.37% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.501
Correlation of price movement with Nasdaq (^IXIC):
0.004
Covariance of price movement with the market:
0.007
Kurtosis
4.211
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
0.248
Returns are, approximately, symmetrical
Fundamental Analysis & Dupont Analysis of
RNST
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
0.00%
-
Net Profit Margin Ratio:
-
Effective Tax Rate:
20.06%
Effective tax rate is -6.90% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
7.09%
Return on equity (ROE) is -40.58% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
0.90%
Return on assets (ROA) is -61.01% lower than the industry
Financial Leverage:
1.0x
Current Ratio:
0
-
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 3.9 years
Stock based compensation to net income ratio:
2.20%
In-depth Efficiency Analysis
Revenue generated per employee:
248.0K
Each employee generates -35% less revenue than industry average revenue per employee
EBITDA generated per employee:
117.4K
Each employee generates -48% less EBITDA than industry average revenue per employee
Profit generated per employee:
62.9K
Each employee generates -56% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
84.6K
Each employee generates 2% more free cash flow than industry average revenue per employee
Assets/Capital per employee
1.8M
Each employee generates 2% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
RNST
BRP GROUP, INC. (XNAS:BRP)
LENDINGTREE, INC. (XNAS:TREE)
GCM Grosvenor Inc. (XNAS:GCMG)
FIRST FINANCIAL BANCORP. (XNAS:FFBC)
GOLUB CAPITAL BDC, INC. (XNAS:GBDC)
FIRST MERCHANTS CORPORATION (XNAS:FRME)
FIRST MIDWEST BANCORP, INC. (XNAS:FMBI)
INSTIL BIO, INC. (XNAS:TIL)
UP FINTECH HOLDING LIMITED (XNAS:TIGR)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�25%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Hold
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
597.39M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
-
-
293.31M
306.32M
13.01M
-
-
457.11M
43.13M
50.10M
282.79M
-
151.53M
189.56M
38.03M
151.53M
Statement of Cash Flow
Date:
Period:
12.80M
Differed Income Tax :
4.65M
Stock Based Compensation :
3.34M
Change in Working Capital :
- 18723.00K
Accounts Receivables:
-
Other Working Capital:
-
Other Non-Cash Items:
170.20M
Net Cash Provided by Operating Activities:
205.82M
Investments in PP&E:
- 2030.00K
Net Acquisitions:
- 10066.00K
Purchases of Investments:
- 365069.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
1.61B
2.41B
4.01B
93.37M
-
-
-
285.34M
946.29M
114.46M
2.89B
-
-
4.24B
21.10B
16.86B
-
100.00M
-
-
-
100.00M
435.42M
-
435.42M
15.06B
14.73B
296.48M
762.69M
- 104569.0K
1.18B
March 31, 2022 at 6:00:00 AM
-
2.14B
16.86B
5.30B
535.42M
- 1072077.0K
135.78M
- 343410.00K
- 584800.00K
- 32008.00K
-
-
- 12505.00K
153.03M
108.51M
-
- 270472.00K
1.61B
1.88B
205.82M
- 2030.00K
203.79M
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
RNST
2023
2024
2025
2026
2027
$35.61
$70.13
$75.38
$81.03
$87.09