F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
USA - NYSE:FG - US30190A1043 - Common Stock
28.99 USD
-0.04 (-0.14%)
28.99 USD
0 (0%)
FG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. The financial health of FG is average, but there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on FG.
1. Profitability
1.1 Basic Checks
In the past year FG was profitable.
FG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FG reported negative net income in multiple years.
Each year in the past 5 years FG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.35%, FG is not doing good in the industry: 74.83% of the companies in the same industry are doing better.
With a Return On Equity value of 7.28%, FG is not doing good in the industry: 63.95% of the companies in the same industry are doing better.
The Return On Invested Capital of FG (0.53%) is worse than 65.99% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FG is below the industry average of 4.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 7.28% | ||
| ROIC | 0.53% |
ROA(3y)0.51%
ROA(5y)0.57%
ROE(3y)11.29%
ROE(5y)9.72%
ROIC(3y)0.65%
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 6.09%, FG perfoms like the industry average, outperforming 42.18% of the companies in the same industry.
FG's Profit Margin has declined in the last couple of years.
FG has a Operating Margin (10.70%) which is comparable to the rest of the industry.
FG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.7% | ||
| PM (TTM) | 6.09% | ||
| GM | N/A |
OM growth 3Y-17.37%
OM growth 5Y-8.02%
PM growth 3Y-21%
PM growth 5Y-11.75%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
FG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FG has more shares outstanding than it did 1 year ago.
The debt/assets ratio for FG is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.12, we must say that FG is in the distress zone and has some risk of bankruptcy.
FG's Altman-Z score of 0.12 is fine compared to the rest of the industry. FG outperforms 67.35% of its industry peers.
The Debt to FCF ratio of FG is 0.37, which is an excellent value as it means it would take FG, only 0.37 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FG (0.37) is better than 86.39% of its industry peers.
FG has a Debt/Equity ratio of 0.50. This is a neutral value indicating FG is somewhat dependend on debt financing.
FG has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: FG underperforms 67.35% of its industry peers.
Although FG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 0.12 |
ROIC/WACC0.07
WACC7.55%
2.3 Liquidity
A Current Ratio of 0.38 indicates that FG may have some problems paying its short term obligations.
The Current ratio of FG (0.38) is better than 71.43% of its industry peers.
FG has a Quick Ratio of 0.38. This is a bad value and indicates that FG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.38, FG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
FG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.06%, which is quite good.
FG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.33% yearly.
The Revenue has been growing slightly by 2.85% in the past year.
The Revenue has been growing by 24.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)10.06%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-27.36%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%16.38%
3.2 Future
Based on estimates for the next years, FG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.27% on average per year.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y-9.69%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
EPS Next 5YN/A
Revenue Next Year-6.63%
Revenue Next 2Y5.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FG is valuated cheaply with a Price/Earnings ratio of 7.57.
74.15% of the companies in the same industry are more expensive than FG, based on the Price/Earnings ratio.
FG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
With a Price/Forward Earnings ratio of 4.97, the valuation of FG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FG indicates a rather cheap valuation: FG is cheaper than 82.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, FG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 4.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FG is valued cheaply inside the industry as 85.03% of the companies are valued more expensively.
97.28% of the companies in the same industry are more expensive than FG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.65 | ||
| EV/EBITDA | 3.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as FG's earnings are expected to grow with 17.27% in the coming years.
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y17.03%
EPS Next 3Y17.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.03%, FG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.31, FG pays a bit more dividend than its industry peers.
FG's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
5.2 History
FG has been paying a dividend for over 5 years, so it has already some track record.
The dividend of FG decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.94% of the earnings are spent on dividend by FG. This is a low number and sustainable payout ratio.
DP39.94%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
28.99
-0.04 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.9%
Inst Owner Change0%
Ins Owners2%
Ins Owner Change0.05%
Market Cap3.90B
Analysts42
Price Target39.27 (35.46%)
Short Float %0.46%
Short Ratio3.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.03% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP39.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.81%
Min EPS beat(2)-27.3%
Max EPS beat(2)30.92%
EPS beat(4)2
Avg EPS beat(4)0.55%
Min EPS beat(4)-27.3%
Max EPS beat(4)30.92%
EPS beat(8)2
Avg EPS beat(8)-9.16%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-14.03%
Min Revenue beat(2)-40.15%
Max Revenue beat(2)12.08%
Revenue beat(4)3
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-40.15%
Max Revenue beat(4)14.6%
Revenue beat(8)5
Avg Revenue beat(8)3.16%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)4.05%
EPS NQ rev (1m)-4.84%
EPS NQ rev (3m)-1.12%
EPS NY rev (1m)0%
EPS NY rev (3m)9.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.57 | ||
| Fwd PE | 4.97 | ||
| P/S | 0.74 | ||
| P/FCF | 0.65 | ||
| P/OCF | 0.65 | ||
| P/B | 0.88 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.61 |
EPS(TTM)3.83
EY13.21%
EPS(NY)5.83
Fwd EY20.13%
FCF(TTM)44.3
FCFY152.81%
OCF(TTM)44.46
OCFY153.35%
SpS39.42
BVpS32.96
TBVpS-27.36
PEG (NY)N/A
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 7.28% | ||
| ROCE | 0.64% | ||
| ROIC | 0.53% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 0.76% | ||
| OM | 10.7% | ||
| PM (TTM) | 6.09% | ||
| GM | N/A | ||
| FCFM | 112.38% |
ROA(3y)0.51%
ROA(5y)0.57%
ROE(3y)11.29%
ROE(5y)9.72%
ROIC(3y)0.65%
ROIC(5y)N/A
ROICexc(3y)0.67%
ROICexc(5y)N/A
ROICexgc(3y)0.83%
ROICexgc(5y)N/A
ROCE(3y)0.79%
ROCE(5y)N/A
ROICexcg growth 3Y-16.01%
ROICexcg growth 5YN/A
ROICexc growth 3Y-22.32%
ROICexc growth 5YN/A
OM growth 3Y-17.37%
OM growth 5Y-8.02%
PM growth 3Y-21%
PM growth 5Y-11.75%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 0.37 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 3.44% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 508.15% | ||
| Profit Quality | 1846.75% | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 0.12 |
F-Score4
WACC7.55%
ROIC/WACC0.07
Cap/Depr(3y)6.83%
Cap/Depr(5y)13.24%
Cap/Sales(3y)0.8%
Cap/Sales(5y)1.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.06%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-27.36%
EPS Next Y-9.69%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
EPS Next 5YN/A
Revenue 1Y (TTM)2.85%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%16.38%
Revenue Next Year-6.63%
Revenue Next 2Y5.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.59%
EBIT growth 3Y-6.3%
EBIT growth 5Y14.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.97%
FCF growth 3Y48.14%
FCF growth 5Y56.47%
OCF growth 1Y13.8%
OCF growth 3Y47.46%
OCF growth 5Y55.87%