GLOBE LIFE INC (GL) Stock Fundamental Analysis
NYSE:GL - New York Stock Exchange, Inc. - US37959E1029 - Common Stock - Currency: USD
GL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and the financial health of GL get a neutral evaluation. Nothing too spectacular is happening here. GL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year GL was profitable.
In the past year GL had a positive cash flow from operations.
GL had positive earnings in each of the past 5 years.
Of the past 5 years GL 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 3.69%, GL is doing good in the industry, outperforming 67.38% of the companies in the same industry.
GL has a better Return On Equity (23.51%) than 87.23% of its industry peers.
GL's Return On Invested Capital of 4.13% is fine compared to the rest of the industry. GL outperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 23.51% | ||
| ROIC | 4.13% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of GL (19.04%) is better than 82.98% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
The Operating Margin of GL (25.75%) is better than 87.94% of its industry peers.
GL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.75% | ||
| PM (TTM) | 19.04% | ||
| GM | N/A |
OM growth 3Y-2.15%
OM growth 5Y2.15%
PM growth 3Y-2.72%
PM growth 5Y1.98%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GL is destroying value.
GL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that GL is in the distress zone and has some risk of bankruptcy.
GL has a Altman-Z score of 0.98. This is amongst the best in the industry. GL outperforms 80.14% of its industry peers.
The Debt to FCF ratio of GL is 1.99, which is an excellent value as it means it would take GL, only 1.99 years of fcf income to pay off all of its debts.
GL has a Debt to FCF ratio of 1.99. This is comparable to the rest of the industry: GL outperforms 51.77% of its industry peers.
A Debt/Equity ratio of 0.60 indicates that GL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.60, GL is doing worse than 78.01% of the companies in the same industry.
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 | 0.98 |
ROIC/WACC0.5
WACC8.18%
2.3 Liquidity
A Current Ratio of 0.62 indicates that GL may have some problems paying its short term obligations.
GL has a Current ratio of 0.62. This is in the better half of the industry: GL outperforms 76.60% of its industry peers.
A Quick Ratio of 0.62 indicates that GL may have some problems paying its short term obligations.
The Quick ratio of GL (0.62) is better than 76.60% 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 16.24%, which is quite good.
Measured over the past years, GL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.93% on average per year.
The Revenue has been growing slightly by 6.07% in the past year.
GL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)16.24%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%12.14%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%3.57%
3.2 Future
The Earnings Per Share is expected to grow by 10.69% on average over the next years. This is quite good.
Based on estimates for the next years, GL will show a small growth in Revenue. The Revenue will grow by 6.15% on average per year.
EPS Next Y13.54%
EPS Next 2Y11.91%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue Next Year6.01%
Revenue Next 2Y6.74%
Revenue Next 3Y6.15%
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 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
Based on the Price/Earnings ratio of 9.90, the valuation of GL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 67.38% of the companies listed in the same industry.
GL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
The Price/Forward Earnings ratio is 8.72, which indicates a very decent valuation of GL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 66.67% of the companies listed in the same industry.
GL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as GL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | N/A |
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.
GL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.73
PEG (5Y)0.77
EPS Next 2Y11.91%
EPS Next 3Y10.69%
5. Dividend
5.1 Amount
GL has a yearly dividend return of 0.78%, which is pretty low.
GL's Dividend Yield is slightly below the industry average, which is at 3.09.
With a Dividend Yield of 0.78, GL pays less dividend than the S&P500 average, which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
On average, the dividend of GL grows each year by 6.92%, which is quite nice.
GL has paid a dividend for at least 10 years, which is 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
7.93% of the earnings are spent on dividend by GL. This is a low number and sustainable payout ratio.
The dividend of GL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.93%
EPS Next 2Y11.91%
EPS Next 3Y10.69%
122.59
-1.68 (-1.35%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.54%
Inst Owner Change0.17%
Ins Owners0.5%
Ins Owner Change0.71%
Market Cap10.29B
Analysts78
Price Target135.25 (10.33%)
Short Float %1.86%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
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)-0.8%
PT rev (3m)9.29%
EPS NQ rev (1m)0.34%
EPS NQ rev (3m)0.09%
EPS NY rev (1m)0.61%
EPS NY rev (3m)0.74%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 8.72 | ||
| P/S | 1.8 | ||
| P/FCF | 7.42 | ||
| P/OCF | 7.06 | ||
| P/B | 2.22 | ||
| P/tB | 2.48 | ||
| EV/EBITDA | N/A |
EPS(TTM)12.38
EY10.1%
EPS(NY)14.06
Fwd EY11.47%
FCF(TTM)16.53
FCFY13.48%
OCF(TTM)17.35
OCFY14.16%
SpS68.22
BVpS55.25
TBVpS49.41
PEG (NY)0.73
PEG (5Y)0.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.69% | ||
| ROE | 23.51% | ||
| ROCE | 5.17% | ||
| ROIC | 4.13% | ||
| ROICexc | 4.15% | ||
| ROICexgc | 4.4% | ||
| OM | 25.75% | ||
| PM (TTM) | 19.04% | ||
| GM | N/A | ||
| FCFM | 24.23% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-2.15%
OM growth 5Y2.15%
PM growth 3Y-2.72%
PM growth 5Y1.98%
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 | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 127.27% | ||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 | ||
| Altman-Z | 0.98 |
F-Score7
WACC8.18%
ROIC/WACC0.5
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)16.24%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%12.14%
EPS Next Y13.54%
EPS Next 2Y11.91%
EPS Next 3Y10.69%
EPS Next 5YN/A
Revenue 1Y (TTM)6.07%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%3.57%
Revenue Next Year6.01%
Revenue Next 2Y6.74%
Revenue Next 3Y6.15%
Revenue Next 5YN/A
EBIT growth 1Y21.11%
EBIT growth 3Y1.86%
EBIT growth 5Y7.25%
EBIT Next Year11.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-0.41%
OCF growth 3YN/A
OCF growth 5YN/A