NYSE:GL is a prime example of a stock that offers more than what meets the eye in terms of fundamentals.

Last update: Nov 13, 2024

GLOBE LIFE INC (NYSE:GL) has caught the attention of our stock screener as a great value stock. NYSE:GL excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Insights: 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:

A Price/Earnings ratio of 9.17 indicates a reasonable valuation of GL.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than the industry average as 69.57% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of GL to the average of the S&P500 Index (29.12), we can say GL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.91, the valuation of GL can be described as very cheap.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than the industry average as 73.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, GL is valued rather cheaply.
74.64% 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 a bit cheaper than the industry average as 62.32% 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.
GL's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.

Profitability Analysis for NYSE:GL

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:

With a decent Return On Assets value of 3.69%, GL is doing good in the industry, outperforming 73.91% of the companies in the same industry.
GL's Return On Equity of 19.98% is amongst the best of the industry. GL outperforms 81.16% of its industry peers.
The Return On Invested Capital of GL (4.17%) is better than 77.54% of its industry peers.
The 3 year average ROIC (3.89%) for GL is below the current ROIC(4.17%), indicating increased profibility in the last year.
GL has a better Profit Margin (18.47%) than 84.06% of its industry peers.
GL's Profit Margin has improved in the last couple of years.
GL's Operating Margin of 24.89% is amongst the best of the industry. GL outperforms 84.06% of its industry peers.

How do we evaluate the 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:

The Altman-Z score of GL (0.97) is better than 82.61% of its industry peers.
GL has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
A Debt/Equity ratio of 0.40 indicates that GL is not too dependend on debt financing.
With a decent Current ratio value of 0.48, GL is doing good in the industry, outperforming 74.64% of the companies in the same industry.
GL has a better Quick ratio (0.48) than 74.64% of its industry peers.

A Closer Look at Growth for NYSE:GL

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:

GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.33%, which is quite good.
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.
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.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of GL contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.