GLOBE LIFE INC (GL) Stock Fundamental Analysis
NYSE:GL - New York Stock Exchange, Inc. - US37959E1029 - Common Stock
Overall GL gets a fundamental rating of 6 out of 10. We evaluated GL against 143 industry peers in the Insurance industry. GL scores excellent on profitability, but there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GL. These ratings would make GL suitable for value investing!
1. Profitability
1.1 Basic Checks
GL had positive earnings in the past year.
GL had a positive operating cash flow in the past year.
GL had positive earnings in each of the past 5 years.
Each year in the past 5 years GL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GL (3.69%) is better than 68.09% of its industry peers.
GL's Return On Equity of 23.51% is amongst the best of the industry. GL outperforms 85.11% of its industry peers.
GL's Return On Invested Capital of 4.14% is fine compared to the rest of the industry. GL outperforms 75.18% 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 4.61%.
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.
| 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
GL has a Profit Margin of 19.04%. This is amongst the best in the industry. GL outperforms 82.98% 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 85.82% 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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GL is destroying value.
Compared to 1 year ago, GL has less shares outstanding
Compared to 5 years ago, GL has less shares outstanding
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.
GL has a better Altman-Z score (0.97) than 80.85% 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.
GL's Debt to FCF ratio of 1.99 is in line compared to the rest of the industry. GL outperforms 50.35% of its industry peers.
GL has a Debt/Equity ratio of 0.60. This is a neutral value indicating GL is somewhat dependend on debt financing.
The Debt to Equity ratio of GL (0.60) is worse than 78.01% of its industry peers.
Although GL 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 | 0.6 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.5
WACC8.32%
2.3 Liquidity
A Current Ratio of 0.62 indicates that GL may have some problems paying its short term obligations.
With a decent Current ratio value of 0.62, GL is doing good in the industry, outperforming 75.89% 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.
GL has a better Quick ratio (0.62) than 75.89% of its industry peers.
| 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.
Looking at the last year, GL shows a small growth in Revenue. The Revenue has grown by 6.97% in the last 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 11.88% yearly.
Based on estimates for the next years, GL will show a small growth in Revenue. The Revenue will grow by 6.99% on average per year.
EPS Next Y19.33%
EPS Next 2Y14.54%
EPS Next 3Y12.8%
EPS Next 5Y11.88%
Revenue Next Year9.53%
Revenue Next 2Y7.56%
Revenue Next 3Y7.62%
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
A Price/Earnings ratio of 9.97 indicates a reasonable valuation of GL.
GL's Price/Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 67.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.29. GL is valued rather cheaply when compared to this.
GL is valuated reasonably with a Price/Forward Earnings ratio of 8.59.
GL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 68.79% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 24.44. GL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 8.59 |
4.2 Price Multiples
73.05% 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 60.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 6.59 |
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.
GL has a very decent profitability rating, which 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)0.52
PEG (5Y)0.85
EPS Next 2Y14.54%
EPS Next 3Y12.8%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, GL is not a good candidate for dividend investing.
GL's Dividend Yield is slightly below the industry average, which is at 2.99.
With a Dividend Yield of 0.82, GL pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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.
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 (1/22/2025, 2:00:30 PM)
120.025
+0.48 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change-0.82%
Ins Owners0.5%
Ins Owner Change0.86%
Market Cap10.08B
Analysts77.89
Price Target136.34 (13.59%)
Short Float %2.05%
Short Ratio2.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend0.88
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)1.01%
PT rev (3m)25.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.29%
EPS NY rev (1m)0%
EPS NY rev (3m)3.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.97 | ||
| Fwd PE | 8.59 | ||
| P/S | 1.76 | ||
| P/FCF | 7.26 | ||
| P/OCF | 6.92 | ||
| P/B | 2.17 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 6.59 |
EPS(TTM)12.04
EY10.03%
EPS(NY)13.97
Fwd EY11.64%
FCF(TTM)16.53
FCFY13.77%
OCF(TTM)17.35
OCFY14.46%
SpS68.22
BVpS55.25
TBVpS49.41
PEG (NY)0.52
PEG (5Y)0.85
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 | 0.97 |
F-Score7
WACC8.32%
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 2Y7.56%
Revenue Next 3Y7.62%
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%