In a market where value is scarce, NYSE:GL offers a refreshing opportunity with its solid fundamentals.

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.

Unpacking NYSE:GL's Valuation Rating

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NYSE:GL has achieved a 8 out of 10:

• Based on the Price/Earnings ratio of 9.19, the valuation of GL can be described as reasonable.
• Based on the Price/Earnings ratio, GL is valued a bit cheaper than 68.57% of the companies in the same industry.
• GL is valuated cheaply when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
• The Price/Forward Earnings ratio is 7.92, which indicates a rather cheap valuation of GL.
• GL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 72.86% of the companies in the same industry.
• GL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.99, which is the current average of the S&P500 Index.
• 74.29% 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 62.14% 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.
• 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.

Exploring NYSE:GL's 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:

• The Return On Assets of GL (3.69%) is better than 68.57% of its industry peers.
• The Return On Equity of GL (23.51%) is better than 85.00% of its industry peers.
• The Return On Invested Capital of GL (4.14%) is better than 76.43% of its industry peers.
• The last Return On Invested Capital (4.14%) for GL is above the 3 year average (3.89%), which is a sign of increasing profitability.
• GL's Profit Margin of 19.04% is amongst the best of the industry. GL outperforms 82.14% of its industry peers.
• GL's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 25.75%, GL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.

Unpacking NYSE:GL's Health Rating

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 (0.96) than 82.14% of its industry peers.
• GL has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of 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.
• GL has a Current ratio of 0.62. This is in the better half of the industry: GL outperforms 77.14% of its industry peers.
• GL has a better Quick ratio (0.62) than 77.14% of its industry peers.

Evaluating Growth: 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.
• Based on estimates for the next years, GL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.88% on average per year.
• The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More Decent Value stocks can be found in our Decent Value screener.

Check the latest full fundamental report of GL for a complete fundamental analysis.

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.