GLOBE LIFE INC (GL)
US37959E1029 - Common Stock
We assign a fundamental rating of 6 out of 10 to GL. GL was compared to 140 industry peers in the Insurance industry. While GL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. GL may be a bit undervalued, certainly considering the very reasonable score on growth This makes GL very considerable for value investing!
1. Profitability
1.1 Basic Checks
GL had positive earnings in the past year.
In the past year GL had a positive cash flow from operations.
In the past 5 years GL has always been profitable.
In the past 5 years GL always reported a positive cash flow from operatings.
1.2 Ratios
GL's Return On Assets of 3.69% is fine compared to the rest of the industry. GL outperforms 73.38% of its industry peers.
Looking at the Return On Equity, with a value of 19.98%, GL belongs to the top of the industry, outperforming 81.30% of the companies in the same industry.
The Return On Invested Capital of GL (4.17%) is better than 77.70% of its industry peers.
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 4.27%.
The last Return On Invested Capital (4.17%) for GL is above the 3 year average (3.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 19.98% | ||
| ROIC | 4.17% |
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
The Profit Margin of GL (18.47%) is better than 84.89% of its industry peers.
GL's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 24.89%, GL belongs to the top of the industry, outperforming 84.89% of the companies in the same industry.
GL's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.89% | ||
| PM (TTM) | 18.47% | ||
| 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.
GL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for GL has been reduced compared to 5 years ago.
GL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.97, we must say that GL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.97, GL belongs to the top of the industry, outperforming 82.01% of the companies in the same industry.
The Debt to FCF ratio of GL is 1.69, which is an excellent value as it means it would take GL, only 1.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GL (1.69) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.40 indicates that GL is not too dependend on debt financing.
The Debt to Equity ratio of GL (0.40) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.52
WACC8.08%
2.3 Liquidity
GL has a Current Ratio of 0.48. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
GL's Current ratio of 0.48 is fine compared to the rest of the industry. GL outperforms 74.10% of its industry peers.
GL has a Quick Ratio of 0.48. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, GL is in the better half of the industry, outperforming 74.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
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.
The Revenue has been growing slightly by 6.97% in the past year.
GL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.83% yearly.
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
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.
The Revenue is expected to grow by 6.77% on average over the next years.
EPS Next Y18.95%
EPS Next 2Y14.46%
EPS Next 3Y12.7%
EPS Next 5Y10.29%
Revenue Next Year9.59%
Revenue Next 2Y7.56%
Revenue Next 3Y7.63%
Revenue Next 5Y6.77%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 9.05.
Compared to the rest of the industry, the Price/Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 70.50% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GL to the average of the S&P500 Index (28.96), we can say GL is valued rather cheaply.
With a Price/Forward Earnings ratio of 7.81, the valuation of GL can be described as very cheap.
75.54% of the companies in the same industry are more expensive than GL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of GL to the average of the S&P500 Index (23.82), we can say GL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.81 |
4.2 Price Multiples
74.82% 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 62.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
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.
GL's earnings are expected to grow with 12.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.48
PEG (5Y)0.77
EPS Next 2Y14.46%
EPS Next 3Y12.7%
5. Dividend
5.1 Amount
GL has a yearly dividend return of 0.88%, which is pretty low.
Compared to an average industry Dividend Yield of 4.25, GL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.23, GL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
5.2 History
The dividend of GL is nicely growing with an annual growth rate of 6.92%!
GL has been paying a dividend for at least 10 years, so it has a reliable track record.
As GL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.92%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GL pays out 8.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of GL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP8.26%
EPS Next 2Y14.46%
EPS Next 3Y12.7%
GLOBE LIFE INC
NYSE:GL (11/21/2024, 8:04:01 PM)
After market: 108.99 0 (0%)108.99
+0.23 (+0.21%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.15B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.88% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.48
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 19.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.89% | ||
| PM (TTM) | 18.47% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.48 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.33%
EPS 3Y15.73%
EPS 5Y
EPS Q2Q%
EPS Next Y18.95%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.97%
Revenue growth 3Y4.76%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y