NYSE:GL appears to be flying under the radar despite its strong fundamentals.

Last update: May 24, 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.

Valuation Assessment of NYSE:GL

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:GL boasts a 8 out of 10:

GL is valuated cheaply with a Price/Earnings ratio of 7.39.
Compared to the rest of the industry, the Price/Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 70.50% of the companies listed in the same industry.
GL is valuated cheaply when we compare the Price/Earnings ratio to 28.05, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 6.23 indicates a rather cheap valuation of GL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 76.26% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 19.81, GL is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than 76.26% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than the industry average as 64.75% 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.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:GL scores a 7 out of 10:

With a decent Return On Assets value of 3.50%, GL is doing good in the industry, outperforming 73.38% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.87%, GL belongs to the top of the industry, outperforming 82.73% of the companies in the same industry.
The Return On Invested Capital of GL (3.92%) is better than 74.82% of its industry peers.
The 3 year average ROIC (3.89%) for GL is below the current ROIC(3.92%), indicating increased profibility in the last year.
GL has a better Profit Margin (18.07%) than 82.01% of its industry peers.
GL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 24.21%, GL belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.

Deciphering NYSE:GL's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:GL, the assigned 5 for health provides valuable insights:

The Altman-Z score of GL (0.89) is better than 79.86% of its industry peers.
GL has a debt to FCF ratio of 1.81. This is a very positive value and a sign of high solvency as it would only need 1.81 years to pay back of all of its debts.
A Debt/Equity ratio of 0.44 indicates that GL is not too dependend on debt financing.
With a decent Current ratio value of 0.47, GL is doing good in the industry, outperforming 74.10% of the companies in the same industry.
GL has a better Quick ratio (0.47) than 74.10% of its industry peers.

Looking at the Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:GL was assigned a score of 5 for growth:

The Earnings Per Share has grown by an impressive 21.25% over the past year.
Measured over the past years, GL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.68% on average per year.
GL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.29% yearly.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of GL

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.