GLOBE LIFE INC (GL) Stock Fundamental Analysis
NYSE:GL - New York Stock Exchange, Inc. - US37959E1029 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to GL. GL was compared to 143 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 has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years GL has been profitable.
GL 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 3.68%, GL is in the better half of the industry, outperforming 73.43% of the companies in the same industry.
With an excellent Return On Equity value of 20.18%, GL belongs to the best of the industry, outperforming 81.12% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 4.22%, GL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GL is in line with the industry average of 4.47%.
The 3 year average ROIC (3.96%) for GL is below the current ROIC(4.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 20.18% | ||
| ROIC | 4.22% |
ROA(3y)3.53%
ROA(5y)3.31%
ROE(3y)21.49%
ROE(5y)16.95%
ROIC(3y)3.96%
ROIC(5y)3.76%
1.3 Margins
The Profit Margin of GL (18.53%) is better than 86.01% 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 25.53%, GL belongs to the top of the industry, outperforming 88.81% of the companies in the same industry.
GL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.53% | ||
| PM (TTM) | 18.53% | ||
| GM | N/A |
OM growth 3Y-1.67%
OM growth 5Y2.45%
PM growth 3Y-2.72%
PM growth 5Y1.98%
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.
GL has less shares outstanding than it did 5 years ago.
GL has a worse debt/assets ratio than last year.
2.2 Solvency
GL has an Altman-Z score of 0.99. This is a bad value and indicates that GL is not financially healthy and even has some risk of bankruptcy.
GL has a Altman-Z score of 0.99. This is amongst the best in the industry. GL outperforms 80.42% of its industry peers.
The Debt to FCF ratio of GL is 2.06, which is a good value as it means it would take GL, 2.06 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of GL (2.06) is comparable to the rest of the industry.
GL has a Debt/Equity ratio of 0.52. This is a neutral value indicating GL is somewhat dependend on debt financing.
GL's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. GL is outperformed by 68.53% of its industry peers.
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 | 0.52 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 0.99 |
ROIC/WACC0.53
WACC8%
2.3 Liquidity
A Current Ratio of 0.60 indicates that GL may have some problems paying its short term obligations.
The Current ratio of GL (0.60) is better than 76.22% of its industry peers.
A Quick Ratio of 0.60 indicates that GL may have some problems paying its short term obligations.
GL has a better Quick ratio (0.60) than 76.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.24% over the past year.
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.
GL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.07%.
The Revenue has been growing slightly by 5.00% on average over the past years.
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 11.16% 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 5.65% on average per year.
EPS Next Y13.86%
EPS Next 2Y12.19%
EPS Next 3Y11%
EPS Next 5Y11.16%
Revenue Next Year4.82%
Revenue Next 2Y4.95%
Revenue Next 3Y5.47%
Revenue Next 5Y5.65%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.79, which indicates a very decent valuation of GL.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than the industry average as 67.13% of the companies are valued more expensively.
GL is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.60, the valuation of GL can be described as reasonable.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than 67.83% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GL to the average of the S&P500 Index (21.08), we can say GL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 70.63% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as GL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.58 | ||
| EV/EBITDA | 6.5 |
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)0.71
PEG (5Y)0.76
EPS Next 2Y12.19%
EPS Next 3Y11%
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 3.32, GL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.57, GL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of GL grows each year by 7.26%, which is quite nice.
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)7.26%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
7.98% 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.
DP7.98%
EPS Next 2Y12.19%
EPS Next 3Y11%
121.25
+0.03 (+0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.98%
Inst Owner Change0.08%
Ins Owners0.55%
Ins Owner Change2.58%
Market Cap10.09B
Analysts78
Price Target144.43 (19.12%)
Short Float %2%
Short Ratio2.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.96
Dividend Growth(5Y)7.26%
DP7.98%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.25%
Min EPS beat(2)-2.36%
Max EPS beat(2)10.85%
EPS beat(4)1
Avg EPS beat(4)1.12%
Min EPS beat(4)-3.21%
Max EPS beat(4)10.85%
EPS beat(8)1
Avg EPS beat(8)0.15%
EPS beat(12)2
Avg EPS beat(12)-0.45%
EPS beat(16)2
Avg EPS beat(16)-1.84%
Revenue beat(2)0
Avg Revenue beat(2)-3.54%
Min Revenue beat(2)-3.6%
Max Revenue beat(2)-3.49%
Revenue beat(4)0
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)-3.49%
Revenue beat(8)0
Avg Revenue beat(8)-3.88%
Revenue beat(12)0
Avg Revenue beat(12)-4.07%
Revenue beat(16)0
Avg Revenue beat(16)-3.34%
PT rev (1m)0%
PT rev (3m)5.94%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-2.86%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 8.6 | ||
| P/S | 1.75 | ||
| P/FCF | 7.58 | ||
| P/OCF | 7.2 | ||
| P/B | 1.9 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 6.5 |
EPS(TTM)12.38
EY10.21%
EPS(NY)14.1
Fwd EY11.63%
FCF(TTM)15.99
FCFY13.19%
OCF(TTM)16.85
OCFY13.9%
SpS69.41
BVpS63.74
TBVpS57.85
PEG (NY)0.71
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.68% | ||
| ROE | 20.18% | ||
| ROCE | 5.28% | ||
| ROIC | 4.22% | ||
| ROICexc | 4.24% | ||
| ROICexgc | 4.59% | ||
| OM | 25.53% | ||
| PM (TTM) | 18.53% | ||
| GM | N/A | ||
| FCFM | 23.04% |
ROA(3y)3.53%
ROA(5y)3.31%
ROE(3y)21.49%
ROE(5y)16.95%
ROIC(3y)3.96%
ROIC(5y)3.76%
ROICexc(3y)3.97%
ROICexc(5y)3.78%
ROICexgc(3y)4.24%
ROICexgc(5y)3.99%
ROCE(3y)4.95%
ROCE(5y)4.7%
ROICexcg growth 3Y2.76%
ROICexcg growth 5Y5.11%
ROICexc growth 3Y1.85%
ROICexc growth 5Y4.53%
OM growth 3Y-1.67%
OM growth 5Y2.45%
PM growth 3Y-2.72%
PM growth 5Y1.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.45 | ||
| Cap/Depr | 17.33% | ||
| Cap/Sales | 1.23% | ||
| Interest Coverage | 12.61 | ||
| Cash Conversion | 74.39% | ||
| Profit Quality | 124.34% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.99 |
F-Score7
WACC8%
ROIC/WACC0.53
Cap/Depr(3y)11.62%
Cap/Depr(5y)9.69%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.86%
Profit Quality(3y)142.61%
Profit Quality(5y)151.92%
High Growth Momentum
Growth
EPS 1Y (TTM)16.24%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%12.14%
EPS Next Y13.86%
EPS Next 2Y12.19%
EPS Next 3Y11%
EPS Next 5Y11.16%
Revenue 1Y (TTM)6.07%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%3.57%
Revenue Next Year4.82%
Revenue Next 2Y4.95%
Revenue Next 3Y5.47%
Revenue Next 5Y5.65%
EBIT growth 1Y13.71%
EBIT growth 3Y2.36%
EBIT growth 5Y7.57%
EBIT Next Year11.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-7.08%
FCF growth 3Y-1.65%
FCF growth 5Y0.15%
OCF growth 1Y-5.4%
OCF growth 3Y-0.82%
OCF growth 5Y0.56%