REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
196.73 USD
-1.3 (-0.66%)
196.73 USD
0 (0%)
Overall RGA gets a fundamental rating of 4 out of 10. We evaluated RGA against 146 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. RGA is not valued too expensively and it also shows a decent growth rate. RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- RGA had positive earnings in the past year.
- In the past year RGA had a positive cash flow from operations.
- Each year in the past 5 years RGA has been profitable.
- Each year in the past 5 years RGA had a positive operating cash flow.
1.2 Ratios
- RGA has a Return On Assets of 0.57%. This is in the lower half of the industry: RGA underperforms 69.18% of its industry peers.
- RGA's Return On Equity of 6.68% is on the low side compared to the rest of the industry. RGA is outperformed by 72.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 6.68% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.78%
ROE(3y)7.95%
ROE(5y)7.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.89%, RGA is doing worse than 70.55% of the companies in the same industry.
- RGA's Profit Margin has declined in the last couple of years.
- RGA has a worse Operating Margin (7.39%) than 69.86% of its industry peers.
- RGA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.39% | ||
| PM (TTM) | 3.89% | ||
| GM | N/A |
OM growth 3Y-10.39%
OM growth 5Y-9.28%
PM growth 3Y-23.03%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- RGA does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for RGA has been increased compared to 1 year ago.
- The number of shares outstanding for RGA has been increased compared to 5 years ago.
- Compared to 1 year ago, RGA has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of RGA is 1.18, which is an excellent value as it means it would take RGA, only 1.18 years of fcf income to pay off all of its debts.
- RGA has a Debt to FCF ratio of 1.18. This is in the better half of the industry: RGA outperforms 66.44% of its industry peers.
- RGA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of RGA (0.44) is worse than 63.70% of its industry peers.
- Although RGA 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 | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.35%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The earnings per share for RGA have decreased by -2.77% in the last year.
- RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
- RGA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.01%.
- RGA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
EPS 1Y (TTM)-2.77%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%3.92%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
3.2 Future
- Based on estimates for the next years, RGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
- Based on estimates for the next years, RGA will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.
EPS Next Y-4.85%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
EPS Next 5Y9.5%
Revenue Next Year3.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.45%
Revenue Next 5Y8.07%
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
- Based on the Price/Earnings ratio of 9.05, the valuation of RGA can be described as reasonable.
- Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 68.49% of the companies are valued more expensively.
- The average S&P500 Price/Earnings ratio is at 27.33. RGA is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.54, which indicates a rather cheap valuation of RGA.
- Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than 73.97% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. RGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.54 |
4.2 Price Multiples
- RGA's Enterprise Value to EBITDA is on the same level as the industry average.
- 84.93% of the companies in the same industry are more expensive than RGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.67 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 5.76%, RGA is a good candidate for dividend investing.
- RGA's Dividend Yield is rather good when compared to the industry average which is at 2.42. RGA pays more dividend than 87.67% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.91, RGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
5.2 History
- On average, the dividend of RGA grows each year by 6.13%, which is quite nice.
- RGA has been paying a dividend for at least 10 years, so it has a reliable track record.
- RGA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.13%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
- RGA pays out 27.34% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.34%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
196.73
-1.3 (-0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners99.74%
Inst Owner Change0.16%
Ins Owners0.2%
Ins Owner Change0.49%
Market Cap12.93B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.29
Price Target241.63 (22.82%)
Short Float %0.84%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP27.34%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.58%
Min EPS beat(2)-16.11%
Max EPS beat(2)8.95%
EPS beat(4)2
Avg EPS beat(4)-1.96%
Min EPS beat(4)-16.11%
Max EPS beat(4)8.95%
EPS beat(8)6
Avg EPS beat(8)6.13%
EPS beat(12)9
Avg EPS beat(12)9.49%
EPS beat(16)12
Avg EPS beat(16)19.04%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)3.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-8.36%
Max Revenue beat(4)3.8%
Revenue beat(8)4
Avg Revenue beat(8)5.03%
Revenue beat(12)7
Avg Revenue beat(12)4.65%
Revenue beat(16)9
Avg Revenue beat(16)3.59%
PT rev (1m)0.61%
PT rev (3m)1.45%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.05 | ||
| Fwd PE | 7.54 | ||
| P/S | 0.58 | ||
| P/FCF | 2.67 | ||
| P/OCF | 2.67 | ||
| P/B | 1 | ||
| P/tB | 1 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)21.74
EY11.05%
EPS(NY)26.09
Fwd EY13.26%
FCF(TTM)73.64
FCFY37.43%
OCF(TTM)73.64
OCFY37.43%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.82
Graham Number310.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 6.68% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 7.39% | ||
| PM (TTM) | 3.89% | ||
| GM | N/A | ||
| FCFM | 21.69% |
ROA(3y)0.71%
ROA(5y)0.78%
ROE(3y)7.95%
ROE(5y)7.15%
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
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-10.39%
OM growth 5Y-9.28%
PM growth 3Y-23.03%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.49 | ||
| Cash Conversion | 285.49% | ||
| Profit Quality | 558.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.35%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)670.03%
Profit Quality(5y)631.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.77%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%3.92%
EPS Next Y-4.85%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
EPS Next 5Y9.5%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
Revenue Next Year3.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.45%
Revenue Next 5Y8.07%
EBIT growth 1Y32.98%
EBIT growth 3Y-1.11%
EBIT growth 5Y-1.06%
EBIT Next Year-6.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y58.24%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y56.91%
OCF growth 3Y30.85%
OCF growth 5Y32.35%
REINSURANCE GROUP OF AMERICA / RGA FAQ
Can you provide the ChartMill fundamental rating for REINSURANCE GROUP OF AMERICA?
ChartMill assigns a fundamental rating of 4 / 10 to RGA.
Can you provide the valuation status for REINSURANCE GROUP OF AMERICA?
ChartMill assigns a valuation rating of 6 / 10 to REINSURANCE GROUP OF AMERICA (RGA). This can be considered as Fairly Valued.
How profitable is REINSURANCE GROUP OF AMERICA (RGA) stock?
REINSURANCE GROUP OF AMERICA (RGA) has a profitability rating of 2 / 10.
What is the valuation of REINSURANCE GROUP OF AMERICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REINSURANCE GROUP OF AMERICA (RGA) is 9.05 and the Price/Book (PB) ratio is 1.
Is the dividend of REINSURANCE GROUP OF AMERICA sustainable?
The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 9 / 10 and the dividend payout ratio is 27.34%.