REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - NYSE:RGA - US7593516047 - Common Stock
189.21 USD
+1.34 (+0.71%)
RGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. RGA has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year RGA was profitable.
In the past year RGA had a positive cash flow from operations.
Each year in the past 5 years RGA has been profitable.
In the past 5 years RGA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.57%, RGA is doing worse than 69.39% of the companies in the same industry.
RGA has a Return On Equity of 6.68%. This is in the lower half of the industry: RGA underperforms 72.11% 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 72.11% of the companies in the same industry.
In the last couple of years the Profit Margin of RGA has declined.
RGA has a worse Operating Margin (7.39%) than 68.71% 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.
The debt/assets ratio for RGA has been reduced compared to a year ago.
2.2 Solvency
RGA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.18, RGA is doing good in the industry, outperforming 65.31% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that RGA is not too dependend on debt financing.
RGA's Debt to Equity ratio of 0.44 is on the low side compared to the rest of the industry. RGA is outperformed by 63.95% 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
WACC7.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.77%.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.11% on average over the next years. This is quite good.
RGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.50% yearly.
EPS Next Y-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 8.70, the valuation of RGA can be described as reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.47, RGA is valued rather cheaply.
RGA is valuated cheaply with a Price/Forward Earnings ratio of 7.27.
RGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 72.79% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RGA to the average of the S&P500 Index (35.42), we can say RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.27 |
4.2 Price Multiples
RGA's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaper than 87.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.58 | ||
| EV/EBITDA | 7.98 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y7.25%
EPS Next 3Y7.95%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 3.51, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is slightly below the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
The dividend of RGA is nicely growing with an annual growth rate of 6.13%!
RGA has been paying a dividend for at least 10 years, so it has a reliable track record.
RGA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.13%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
27.34% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
RGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP27.34%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
NYSE:RGA (11/20/2025, 9:30:02 AM)
189.21
+1.34 (+0.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change-2.1%
Ins Owners0.21%
Ins Owner Change0.4%
Market Cap12.50B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.67
Price Target240.72 (27.22%)
Short Float %0.81%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP27.34%
Div Incr Years15
Div Non Decr Years15
Ex-Date
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)1.07%
PT rev (3m)0.27%
EPS NQ rev (1m)1.81%
EPS NQ rev (3m)1.63%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-6.54%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.7 | ||
| Fwd PE | 7.27 | ||
| P/S | 0.56 | ||
| P/FCF | 2.58 | ||
| P/OCF | 2.58 | ||
| P/B | 0.96 | ||
| P/tB | 0.96 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)21.74
EY11.49%
EPS(NY)26.02
Fwd EY13.75%
FCF(TTM)73.22
FCFY38.7%
OCF(TTM)73.22
OCFY38.7%
SpS337.62
BVpS196.37
TBVpS196.37
PEG (NY)N/A
PEG (5Y)0.78
Graham Number309.93
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
WACC7.28%
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-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
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.
What is the valuation status for RGA stock?
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.
Can you provide the financial health for RGA stock?
The financial health rating of REINSURANCE GROUP OF AMERICA (RGA) is 3 / 10.
How sustainable is the dividend of REINSURANCE GROUP OF AMERICA (RGA) stock?
The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 6 / 10 and the dividend payout ratio is 27.34%.