Company Overview
Everest Group, Ltd. operates as a provider of reinsurance and insurance products serving markets in the United States, Europe, and international locations through two primary segments: Insurance and Reinsurance. The company focuses on writing property and casualty reinsurance, including treaty and facultative reinsurance products, which allows it to manage risk exposure for other insurers globally. Operating within the Financial Services sector and specifically the Insurance - Reinsurance industry, the entity functions as a critical intermediary that facilitates risk transfer across diverse geographic borders. With a market capitalization of $12.84B and annual revenue of $17.54B, the company represents a significant capital entity supported by a workforce of 3,064 employees. These valuation and revenue figures indicate that Everest Group, Ltd. maintains a substantial market footprint, reflecting its established role in the global reinsurance landscape where capital adequacy and operational reach are paramount.
Financial Health
The company reported revenue of $17.54B over the trailing twelve months, generating net income of $1.57B, while EBITDA figures are not disclosed in the available data. The substantial gap between the $17.54B revenue and the $1.57B net income reveals a distinct cost structure where approximately 89% of top-line revenue is consumed by operating expenses, taxes, and other deductions before arriving at the bottom line. Free cash flow stands at -$22.33B, which indicates a significant outflow of cash from operations relative to capital expenditures or a specific accounting classification of cash burn within this reporting period. This negative free cash flow suggests limited immediate financial flexibility for internal expansion without external capital raising, though the company holds $4.31B in cash reserves. The gross margin is 12.5%, the operating margin is 12.3%, and the profit margin is 9.1%, indicating that for every dollar of revenue, only 9.1 cents remains as profit after all costs, while operating expenses are slightly lower than gross costs. Comparing total cash of $4.31B against total debt of $3.78B shows a net cash position, yet the debt-to-equity ratio is 24.48, suggesting a highly leveraged balance sheet structure where debt significantly outweighs shareholder equity. The current ratio of 1.12 indicates that the company possesses just enough current assets to cover its current liabilities, pointing to a tight but technically sufficient short-term liquidity position. Return on equity is 10.8% and return on assets is 2.2%, revealing that management is generating more profit per dollar of shareholder equity than per dollar of total assets, which is typical for capital-intensive or leveraged financial models.
Valuation Assessment
The trailing twelve-month P/E ratio is 8.41, while the forward P/E is 5.16, implying that the market expects a significant expansion in earnings per share to reach the lower multiple, or that current earnings are unusually high relative to future expectations. The price-to-book ratio of 0.84 indicates that the company is trading below its book value, suggesting the market values the firm at less than the net asset value recorded on its balance sheet. The price-to-sales ratio is 0.73, and the EV/EBITDA metric is not available, meaning alternative valuation metrics rely heavily on revenue multiples rather than earnings multiples in this specific reporting cycle. The 52-week high is $370.21 and the 52-week low is $302.44, and without a specific current price provided in the facts, the trading range establishes the volatility bounds within which the stock has moved over the last year. The beta value is 0.33, which means the stock's price volatility is significantly lower than the broader market, exhibiting a defensive characteristic that dampens price swings during market turbulence.
Growth & Income
Revenue growth year-over-year is -2.9%, while earnings growth year-over-year is not available in the provided data, preventing a direct comparison of the speed at which earnings and revenue are expanding. Despite the decline in revenue, the positive net income implies that cost management has been effective enough to maintain profitability even as sales contracted. For dividend payers, the dividend yield is 2.5% with a payout ratio of 21.2%, indicating that the company retains the majority of its earnings for reinvestment rather than distributing them to shareholders. A payout ratio of 21.2% is generally considered highly sustainable given the company's positive net income, allowing for consistent dividend coverage even in periods of lower revenue. The overall growth and income profile reflects a mature, low-volatility business model that prioritizes capital retention and shareholder returns via dividends rather than aggressive revenue expansion.