NYSE:GL: good value for what you're paying.

Last update: Jul 5, 2024

Uncover the potential of GLOBE LIFE INC (NYSE:GL) as our stock screener's choice for an undervalued stock. NYSE:GL maintains a strong financial position and offers an appealing valuation. We'll delve into the specifics below.

Looking at the Valuation

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:GL, the assigned 8 reflects its valuation:

The Price/Earnings ratio is 7.56, which indicates a rather cheap valuation of GL.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than the industry average as 69.78% of the companies are valued more expensively.
GL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
Based on the Price/Forward Earnings ratio of 6.22, the valuation of GL can be described as very cheap.
74.10% of the companies in the same industry are more expensive than GL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, GL is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 74.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than 62.59% 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.
GL has a very decent profitability rating, which may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GL was assigned a score of 7 for profitability:

Looking at the Return On Assets, with a value of 3.50%, GL is in the better half of the industry, outperforming 74.10% of the companies in the same industry.
With an excellent Return On Equity value of 19.87%, GL belongs to the best of the industry, outperforming 83.45% of the companies in the same industry.
GL has a better Return On Invested Capital (3.92%) than 76.98% 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.
With an excellent Profit Margin value of 18.07%, GL belongs to the best of the industry, outperforming 82.01% of the companies in the same industry.
In the last couple of years the Profit Margin of GL has grown nicely.
Looking at the Operating Margin, with a value of 24.21%, GL belongs to the top of the industry, outperforming 83.45% of the companies in the same industry.

A Closer Look at 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 better Altman-Z score (0.89) 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.
GL has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
GL has a better Current ratio (0.47) than 76.26% of its industry peers.
GL has a Quick ratio of 0.47. This is in the better half of the industry: GL outperforms 76.26% of its industry peers.

How We Gauge Growth for NYSE:GL

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:GL boasts 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.
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.
The Earnings Per Share is expected to grow by 10.29% 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.

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

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.