Our stock screening tool has pinpointed GLOBE LIFE INC (NYSE:GL) as an undervalued stock option. NYSE:GL retains a strong financial foundation and an attractive price tag. Let's delve into the specifics below.
Valuation Analysis for NYSE:GL
ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NYSE:GL scores a 8 out of 10:
- Based on the Price/Earnings ratio of 7.31, the valuation of GL can be described as very cheap.
- GL's Price/Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 69.34% of the companies in the same industry.
- GL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.56.
- Based on the Price/Forward Earnings ratio of 6.02, the valuation of GL can be described as very cheap.
- GL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 75.91% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 20.00, GL is valued rather cheaply.
- Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 77.37% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than 65.69% of the companies in the same industry.
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of GL may justify a higher PE ratio.
A Closer Look at Profitability for NYSE:GL
ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:GL, the assigned 7 is a significant indicator of profitability:
- GL's Return On Assets of 3.50% is fine compared to the rest of the industry. GL outperforms 73.72% of its industry peers.
- GL's Return On Equity of 19.87% is amongst the best of the industry. GL outperforms 83.21% of its industry peers.
- GL has a Return On Invested Capital of 3.92%. This is in the better half of the industry: GL outperforms 76.64% of its industry peers.
- The last Return On Invested Capital (3.92%) for GL is above the 3 year average (3.89%), which is a sign of increasing profitability.
- GL's Profit Margin of 18.07% is amongst the best of the industry. GL outperforms 81.75% of its industry peers.
- In the last couple of years the Profit Margin of GL has grown nicely.
- GL has a better Operating Margin (24.21%) than 83.21% of its industry peers.
Analyzing Health Metrics
A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GL has received a 5 out of 10:
- GL has a better Altman-Z score (0.88) than 80.29% of its industry peers.
- The Debt to FCF ratio of GL is 1.81, which is an excellent value as it means it would take GL, only 1.81 years of fcf income to pay off all of its debts.
- A Debt/Equity ratio of 0.44 indicates that GL is not too dependend on debt financing.
- The Current ratio of GL (0.47) is better than 76.64% of its industry peers.
- The Quick ratio of GL (0.47) is better than 76.64% of its industry peers.
Growth Analysis for NYSE:GL
ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:GL scores a 5 out of 10:
- GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.25%, which is quite impressive.
- The Earnings Per Share has been growing by 11.68% on average over the past years. This is quite good.
- Based on estimates for the next years, GL will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.29% on average per year.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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For an up to date full fundamental analysis you can check the fundamental report of GL
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.