F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
NYSE:FG - New York Stock Exchange, Inc. - US30190A1043 - Common Stock - Currency: USD
FG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. While FG seems to be doing ok healthwise, there are quite some concerns on its profitability. FG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
FG had positive earnings in the past year.
FG had a positive operating cash flow in the past year.
In multiple years FG reported negative net income over the last 5 years.
FG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.55%, FG is doing worse than 67.59% of the companies in the same industry.
FG's Return On Equity of 11.14% is in line compared to the rest of the industry. FG outperforms 55.86% of its industry peers.
The Return On Invested Capital of FG (0.72%) is worse than 61.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FG is below the industry average of 4.07%.
The last Return On Invested Capital (0.72%) for FG is above the 3 year average (0.65%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 11.14% | ||
| ROIC | 0.72% |
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
FG's Profit Margin of 9.46% is fine compared to the rest of the industry. FG outperforms 62.76% of its industry peers.
FG's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.63%, FG is doing good in the industry, outperforming 66.90% of the companies in the same industry.
FG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.63% | ||
| PM (TTM) | 9.46% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FG is destroying value.
FG has more shares outstanding than it did 1 year ago.
FG has a worse debt/assets ratio than last year.
2.2 Solvency
FG has an Altman-Z score of 0.13. This is a bad value and indicates that FG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FG (0.13) is better than 70.34% of its industry peers.
FG has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
FG has a Debt to FCF ratio of 0.41. This is amongst the best in the industry. FG outperforms 82.76% of its industry peers.
FG has a Debt/Equity ratio of 0.51. This is a neutral value indicating FG is somewhat dependend on debt financing.
FG has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: FG underperforms 67.59% 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 | 0.51 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.09
WACC7.87%
2.3 Liquidity
A Current Ratio of 0.39 indicates that FG may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.39, FG is in the better half of the industry, outperforming 73.79% of the companies in the same industry.
FG has a Quick Ratio of 0.39. This is a bad value and indicates that FG is not financially healthy enough and could expect problems in meeting its short term obligations.
FG's Quick ratio of 0.39 is fine compared to the rest of the industry. FG outperforms 73.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
FG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.08%, which is quite impressive.
Measured over the past years, FG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.33% on average per year.
The Revenue has decreased by -0.48% 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)35.08%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-16.28%
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%-42.13%
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 17.91% on average per year.
The Revenue is expected to grow by 5.15% on average over the next years.
EPS Next Y-17.87%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
EPS Next 5YN/A
Revenue Next Year-7.11%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 7.47, which indicates a rather cheap valuation of FG.
77.24% of the companies in the same industry are more expensive than FG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of FG to the average of the S&P500 Index (27.30), we can say FG is valued rather cheaply.
The Price/Forward Earnings ratio is 5.43, which indicates a rather cheap valuation of FG.
FG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FG is cheaper than 77.24% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. FG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 5.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FG indicates a rather cheap valuation: FG is cheaper than 90.34% of the companies listed in the same industry.
94.48% 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 | 0.77 | ||
| EV/EBITDA | 2.28 |
4.3 Compensation for Growth
FG's earnings are expected to grow with 17.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y15.27%
EPS Next 3Y17.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.62%, FG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.67, FG pays a better dividend. On top of this FG pays more dividend than 93.10% of the companies listed in the same industry.
FG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.62% |
5.2 History
FG has been paying a dividend for over 5 years, so it has already some track record.
FG has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
25.72% of the earnings are spent on dividend by FG. This is a low number and sustainable payout ratio.
DP25.72%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
30.76
-0.16 (-0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.54%
Inst Owner Change0%
Ins Owners2.09%
Ins Owner Change4.16%
Market Cap4.15B
Analysts42
Price Target37.74 (22.69%)
Short Float %0.43%
Short Ratio2.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.62% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP25.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.45%
Min EPS beat(2)-27.3%
Max EPS beat(2)-9.61%
EPS beat(4)1
Avg EPS beat(4)-8.47%
Min EPS beat(4)-27.3%
Max EPS beat(4)8.17%
EPS beat(8)1
Avg EPS beat(8)-17.39%
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)-13.5%
Min Revenue beat(2)-40.15%
Max Revenue beat(2)13.14%
Revenue beat(4)2
Avg Revenue beat(4)-6.09%
Min Revenue beat(4)-40.15%
Max Revenue beat(4)14.6%
Revenue beat(8)5
Avg Revenue beat(8)7.23%
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)-16.54%
EPS NQ rev (1m)-29.68%
EPS NQ rev (3m)-48.54%
EPS NY rev (1m)-10.72%
EPS NY rev (3m)-35.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.47 | ||
| Fwd PE | 5.43 | ||
| P/S | 0.81 | ||
| P/FCF | 0.77 | ||
| P/OCF | 0.76 | ||
| P/B | 0.95 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.28 |
EPS(TTM)4.12
EY13.39%
EPS(NY)5.66
Fwd EY18.4%
FCF(TTM)40.06
FCFY130.25%
OCF(TTM)40.23
OCFY130.78%
SpS38.13
BVpS32.38
TBVpS-26.25
PEG (NY)N/A
PEG (5Y)0.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 11.14% | ||
| ROCE | 0.88% | ||
| ROIC | 0.72% | ||
| ROICexc | 0.75% | ||
| ROICexgc | 1.06% | ||
| OM | 14.63% | ||
| PM (TTM) | 9.46% | ||
| GM | N/A | ||
| FCFM | 105.06% |
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-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 3.67% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 6.06 | ||
| Cash Conversion | 401.26% | ||
| Profit Quality | 1110.91% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.13 |
F-Score5
WACC7.87%
ROIC/WACC0.09
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)35.08%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-16.28%
EPS Next Y-17.87%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%-42.13%
Revenue Next Year-7.11%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y81.2%
EBIT growth 3Y-6.3%
EBIT growth 5Y14.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.85%
FCF growth 3Y48.14%
FCF growth 5Y56.47%
OCF growth 1Y29.53%
OCF growth 3Y47.46%
OCF growth 5Y55.87%