GLOBE LIFE INC (GL)
US37959E1029 - Common Stock
Overall GL gets a fundamental rating of 6 out of 10. We evaluated GL against 141 industry peers in the Insurance industry. GL has an excellent profitability rating, but there are some minor concerns on its financial health. GL is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, GL could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
In the past year GL was profitable.
GL had a positive operating cash flow in the past year.
In the past 5 years GL has always been profitable.
Each year in the past 5 years GL had a positive operating cash flow.
1.2 Ratios
GL has a Return On Assets of 3.69%. This is in the better half of the industry: GL outperforms 68.57% of its industry peers.
GL's Return On Equity of 23.51% is amongst the best of the industry. GL outperforms 85.00% of its industry peers.
With a decent Return On Invested Capital value of 4.14%, GL is doing good in the industry, outperforming 76.43% of the companies in the same industry.
GL had an Average Return On Invested Capital over the past 3 years of 3.89%. This is in line with the industry average of 4.38%.
The 3 year average ROIC (3.89%) for GL is below the current ROIC(4.14%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 23.51% | ||
| ROIC | 4.14% |
ROA(3y)3.46%
ROA(5y)3.16%
ROE(3y)18.74%
ROE(5y)15%
ROIC(3y)3.89%
ROIC(5y)3.61%
1.3 Margins
With an excellent Profit Margin value of 19.04%, GL belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Profit Margin of GL has grown nicely.
GL has a Operating Margin of 25.75%. This is amongst the best in the industry. GL outperforms 85.71% of its industry peers.
GL's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.75% | ||
| PM (TTM) | 19.04% | ||
| GM | N/A |
OM growth 3Y4.56%
OM growth 5Y1.38%
PM growth 3Y4.89%
PM growth 5Y1.8%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
GL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GL has been reduced compared to 1 year ago.
Compared to 5 years ago, GL has less shares outstanding
The debt/assets ratio for GL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.95, we must say that GL is in the distress zone and has some risk of bankruptcy.
GL has a better Altman-Z score (0.95) 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.
Looking at the Debt to FCF ratio, with a value of 1.99, GL is in line with its industry, outperforming 50.71% of the companies in the same industry.
A Debt/Equity ratio of 0.60 indicates that GL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, GL is not doing good in the industry: 77.86% of the companies in the same industry are doing better.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 0.95 |
ROIC/WACC0.5
WACC8.22%
2.3 Liquidity
GL has a Current Ratio of 0.62. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Current ratio value of 0.62, GL is doing good in the industry, outperforming 77.14% of the companies in the same industry.
GL has a Quick Ratio of 0.62. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a decent Quick ratio value of 0.62, GL is doing good in the industry, outperforming 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
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.
The Earnings Per Share has been growing by 11.68% on average over the past years. This is quite good.
GL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.97%.
The Revenue has been growing slightly by 4.83% on average over the past years.
EPS 1Y (TTM)19.33%
EPS 3Y15.73%
EPS 5Y11.68%
EPS Q2Q%28.78%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y4.76%
Revenue growth 5Y4.83%
Sales Q2Q%5.15%
3.2 Future
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 is expected to grow by 6.99% on average over the next years.
EPS Next Y19.33%
EPS Next 2Y14.54%
EPS Next 3Y12.8%
EPS Next 5Y11.88%
Revenue Next Year9.53%
Revenue Next 2Y7.54%
Revenue Next 3Y7.6%
Revenue Next 5Y6.99%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
GL is valuated reasonably with a Price/Earnings ratio of 9.09.
69.29% of the companies in the same industry are more expensive than GL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, GL is valued rather cheaply.
The Price/Forward Earnings ratio is 7.83, 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 74.29% of the companies in the same industry.
GL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 7.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 74.29% of the companies are valued more expensively.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.62 | ||
| EV/EBITDA | 6.13 |
4.3 Compensation for Growth
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.
GL's earnings are expected to grow with 12.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.47
PEG (5Y)0.78
EPS Next 2Y14.54%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, GL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.33, GL is paying slightly less dividend.
With a Dividend Yield of 0.91, GL pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of GL grows each year by 6.92%, which is quite nice.
GL has been paying a dividend for at least 10 years, so it has a reliable track record.
GL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.92%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
7.93% of the earnings are spent on dividend by GL. This is a low number and sustainable payout ratio.
GL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.93%
EPS Next 2Y14.54%
EPS Next 3Y12.8%
GLOBE LIFE INC
NYSE:GL (12/20/2024, 8:14:51 PM)
After market: 109.39 0 (0%)109.39
+3.48 (+3.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-5.71%
Ins Owners0.5%
Ins Owner Change0.23%
Market Cap9.18B
Analysts77.89
Price Target134.98 (23.39%)
Short Float %2.34%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Dividend Growth(5Y)6.92%
DP7.93%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.01%
Min EPS beat(2)-0.82%
Max EPS beat(2)10.85%
EPS beat(4)1
Avg EPS beat(4)1.59%
Min EPS beat(4)-3.21%
Max EPS beat(4)10.85%
EPS beat(8)2
Avg EPS beat(8)0.48%
EPS beat(12)2
Avg EPS beat(12)-0.78%
EPS beat(16)2
Avg EPS beat(16)-1.81%
Revenue beat(2)0
Avg Revenue beat(2)-3.51%
Min Revenue beat(2)-3.53%
Max Revenue beat(2)-3.49%
Revenue beat(4)0
Avg Revenue beat(4)-3.09%
Min Revenue beat(4)-3.53%
Max Revenue beat(4)-1.82%
Revenue beat(8)0
Avg Revenue beat(8)-3.91%
Revenue beat(12)0
Avg Revenue beat(12)-3.92%
Revenue beat(16)0
Avg Revenue beat(16)-3.16%
PT rev (1m)9.07%
PT rev (3m)24.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.09 | ||
| Fwd PE | 7.83 | ||
| P/S | 1.6 | ||
| P/FCF | 6.62 | ||
| P/OCF | 6.3 | ||
| P/B | 1.98 | ||
| P/tB | 2.21 | ||
| EV/EBITDA | 6.13 |
EPS(TTM)12.04
EY11.01%
EPS(NY)13.97
Fwd EY12.77%
FCF(TTM)16.53
FCFY15.11%
OCF(TTM)17.35
OCFY15.86%
SpS68.22
BVpS55.25
TBVpS49.41
PEG (NY)0.47
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 23.51% | ||
| ROCE | 5.17% | ||
| ROIC | 4.14% | ||
| ROICexc | 4.16% | ||
| ROICexgc | 4.41% | ||
| OM | 25.75% | ||
| PM (TTM) | 19.04% | ||
| GM | N/A | ||
| FCFM | 24.23% |
ROA(3y)3.46%
ROA(5y)3.16%
ROE(3y)18.74%
ROE(5y)15%
ROIC(3y)3.89%
ROIC(5y)3.61%
ROICexc(3y)3.91%
ROICexc(5y)3.62%
ROICexgc(3y)4.13%
ROICexgc(5y)3.8%
ROCE(3y)4.85%
ROCE(5y)4.49%
ROICexcg growth 3Y10.01%
ROICexcg growth 5Y2%
ROICexc growth 3Y9.31%
ROICexc growth 5Y1.72%
OM growth 3Y4.56%
OM growth 5Y1.38%
PM growth 3Y4.89%
PM growth 5Y1.8%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 18.21% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.57% | ||
| Profit Quality | 127.27% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.95 |
F-Score7
WACC8.22%
ROIC/WACC0.5
Cap/Depr(3y)7.95%
Cap/Depr(5y)7.75%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.8%
Profit Quality(3y)146.41%
Profit Quality(5y)161.8%
High Growth Momentum
Growth
EPS 1Y (TTM)19.33%
EPS 3Y15.73%
EPS 5Y11.68%
EPS Q2Q%28.78%
EPS Next Y19.33%
EPS Next 2Y14.54%
EPS Next 3Y12.8%
EPS Next 5Y11.88%
Revenue 1Y (TTM)6.97%
Revenue growth 3Y4.76%
Revenue growth 5Y4.83%
Sales Q2Q%5.15%
Revenue Next Year9.53%
Revenue Next 2Y7.54%
Revenue Next 3Y7.6%
Revenue Next 5Y6.99%
EBIT growth 1Y21.11%
EBIT growth 3Y9.53%
EBIT growth 5Y6.27%
EBIT Next Year6%
EBIT Next 3Y4.98%
EBIT Next 5YN/A
FCF growth 1Y-0.93%
FCF growth 3Y-0.04%
FCF growth 5Y3.06%
OCF growth 1Y2.02%
OCF growth 3Y0.14%
OCF growth 5Y3.02%