Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty reinsurer Montpelier Re Holdings (NYSE: MRH ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Montpelier's business and see what CAPS investors are saying about the stock right now.
Montpelier facts
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Headquarters (Founded)
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Pembroke, Bermuda (2001)
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Market Cap
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$1.15 billion
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Industry
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Reinsurance
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Trailing-12-Month Revenue
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$740.5 million
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Management
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President/CEO Christopher Harris (since 2008)
CFO Michael Paquette (since 2008)
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Return on Equity (Average, Past 3 Years)
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9.5%
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Cash/Debt
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$323.1 million / $327.8 million
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Dividend Yield
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2.2%
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Competitors
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Aspen Insurance (NYSE: AHL )
PartnerRe (NYSE: PRE )
RenaissanceRe (NYSE: RNR )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 2,400 members who have rated Montpelier believe the stock will outperform the S&P 500 going forward. These bulls include dmspiff and All-Star NeedaClue7, who is ranked in the top 20% of our community.
Earlier this year, dmspiff listed several of Montpelier's positives: "Great management, reasonable valuations, clean balance sheet. Disaster claims impossible to predict but considering the managements discipline ... this is likely to be a good pick for the long-haul."
Currently, Montpelier even sports a cheapish forward P/E of 7.8. That represents a slight discount to other reinsurance stocks like Aspen (8.5), PartnerRe (9.3), and RenaissanceRe (8.7).
CAPS All-Star NeedaClue7 elaborates on the Montpelier bull case:
After several benign hurricane seasons, the market seems to be getting past its aversion to this stock which originated with their large underwriting losses from Hurricane Katrina. MRH seems on a run to return to more traditional reinsurance company valuation levels which could lead to a mid-$20's stock value .... After that, MRH has to show that it can continue a disciplined approach to pricing and, of course, can diversify its risk portfolio so another Katrina event doesn't happen. I believe they have the right people in place to succeed on all counts.
What do you think about Montpelier -- or any other stock, for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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