Despite its impressive fundamentals, NYSE:GL remains undervalued.

Last update: Apr 12, 2024

Our stock screening tool has identified GLOBE LIFE INC (NYSE:GL) as an undervalued gem with strong fundamentals. NYSE:GL boasts decent financial health and profitability while maintaining an attractive price point. We'll break it down further.

How We Gauge Valuation for NYSE:GL

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:GL has received a 9 out of 10:

A Price/Earnings ratio of 4.62 indicates a rather cheap valuation of GL.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than the industry average as 79.86% of the companies are valued more expensively.
GL is valuated cheaply when we compare the Price/Earnings ratio to 25.85, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.12, the valuation of GL can be described as very cheap.
GL's Price/Forward Earnings ratio is rather cheap when compared to the industry. GL is cheaper than 84.17% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, GL is valued rather cheaply.
83.45% of the companies in the same industry are more expensive than GL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GL is valued cheaply inside the industry as 82.01% of the companies are valued more expensively.
GL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GL has a very decent profitability rating, which may justify a higher PE ratio.

Exploring NYSE:GL's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:GL, the assigned 7 is noteworthy for profitability:

GL has a Return On Assets of 3.46%. This is in the better half of the industry: GL outperforms 71.22% of its industry peers.
Looking at the Return On Equity, with a value of 21.64%, GL belongs to the top of the industry, outperforming 89.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.85%, GL is in the better half of the industry, outperforming 76.26% of the companies in the same industry.
GL has a Profit Margin of 17.82%. This is amongst the best in the industry. GL outperforms 83.45% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
GL has a Operating Margin of 23.82%. This is amongst the best in the industry. GL outperforms 83.45% of its industry peers.

How We Gauge Health for NYSE:GL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:GL was assigned a score of 5 for health:

GL has a Altman-Z score of 0.82. This is amongst the best in the industry. GL outperforms 80.58% of its industry peers.
GL has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
The Debt to FCF ratio of GL (1.48) is better than 61.15% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that GL is not too dependend on debt financing.
GL has a better Current ratio (0.64) than 74.82% of its industry peers.
With a decent Quick ratio value of 0.64, GL is doing good in the industry, outperforming 74.82% of the companies in the same industry.

Evaluating Growth: NYSE:GL

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:GL has received a 5 out of 10:

GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.51%, which is quite impressive.
The Earnings Per Share has been growing by 11.68% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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Check the latest full fundamental report of GL for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.