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

Last update: Dec 5, 2024

Uncover the hidden value in GLOBE LIFE INC (NYSE:GL) as our stock screening tool recommends it as an undervalued choice. NYSE:GL maintains a robust financial position and offers an attractive pricing perspective. Let's dig deeper into the analysis.

Valuation Analysis 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 8 out of 10:

With a Price/Earnings ratio of 8.81, the valuation of GL can be described as very reasonable.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than 70.00% 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 29.59.
The Price/Forward Earnings ratio is 7.59, which indicates a rather cheap valuation of GL.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than the industry average as 78.57% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.06. GL is valued rather cheaply when compared to this.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 75.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than 64.29% 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 more expensive valuation may be justified as GL's earnings are expected to grow with 12.80% in the coming years.

Assessing Profitability for NYSE:GL

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:

GL has a better Return On Assets (3.69%) than 69.29% of its industry peers.
GL has a Return On Equity of 23.51%. This is amongst the best in the industry. GL outperforms 85.00% of its industry peers.
GL's Return On Invested Capital of 4.14% is fine compared to the rest of the industry. GL outperforms 76.43% of its industry peers.
The 3 year average ROIC (3.89%) for GL is below the current ROIC(4.14%), indicating increased profibility in the last year.
The Profit Margin of GL (19.04%) is better than 82.14% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
The Operating Margin of GL (25.75%) is better than 85.71% of its industry peers.

Unpacking 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:

GL has a better Altman-Z score (0.95) than 82.14% of its industry peers.
The Debt to FCF ratio of GL is 1.99, which is an excellent value as it means it would take GL, only 1.99 years of fcf income to pay off all of its debts.
Even though the debt/equity ratio score it not favorable for GL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Looking at the Current ratio, with a value of 0.62, GL is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
GL has a Quick ratio of 0.62. This is in the better half of the industry: GL outperforms 77.14% of its industry peers.

Growth Analysis for 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:

The Earnings Per Share has grown by an nice 19.33% over the past year.
The Earnings Per Share has been growing by 11.68% on average over the past years. This is quite good.
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.

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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.