REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
NYSE:RGA - New York Stock Exchange, Inc. - US7593516047 - Common Stock - Currency: USD
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 144 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. RGA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year RGA was profitable.
RGA had a positive operating cash flow in the past year.
RGA had positive earnings in each of the past 5 years.
Each year in the past 5 years RGA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RGA (0.62%) is worse than 66.67% of its industry peers.
RGA's Return On Equity of 6.95% is on the low side compared to the rest of the industry. RGA is outperformed by 69.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.95% | ||
| 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
RGA's Profit Margin of 3.77% is on the low side compared to the rest of the industry. RGA is outperformed by 69.44% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.57%, RGA is not doing good in the industry: 67.36% of the companies in the same industry are doing better.
RGA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.57% | ||
| PM (TTM) | 3.77% | ||
| 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.
Compared to 1 year ago, RGA has more shares outstanding
Compared to 5 years ago, RGA has more shares outstanding
RGA has a better debt/assets ratio than last year.
2.2 Solvency
RGA has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
RGA has a Debt to FCF ratio of 1.13. This is in the better half of the industry: RGA outperforms 61.11% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that RGA is somewhat dependend on debt financing.
RGA's Debt to Equity ratio of 0.50 is on the low side compared to the rest of the industry. RGA is outperformed by 65.97% of its industry peers.
Even though the debt/equity ratio score it not favorable for RGA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.92%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.43% over the past 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 2.11%.
Measured over the past years, RGA shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
EPS 1Y (TTM)7.43%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-5.98%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%-17%
3.2 Future
RGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.90% yearly.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y3%
EPS Next 2Y6.74%
EPS Next 3Y7.98%
EPS Next 5Y8.9%
Revenue Next Year2.39%
Revenue Next 2Y6.26%
Revenue Next 3Y7.29%
Revenue Next 5Y7.79%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.95, which indicates a very decent valuation of RGA.
RGA's Price/Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 73.61% of the companies in the same industry.
RGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
With a Price/Forward Earnings ratio of 7.73, the valuation of RGA can be described as very cheap.
RGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 70.14% of the companies in the same industry.
RGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
RGA's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.6 | ||
| EV/EBITDA | 9.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RGA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.99
PEG (5Y)0.81
EPS Next 2Y6.74%
EPS Next 3Y7.98%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.79%.
RGA's Dividend Yield is comparable with the industry average which is at 3.51.
Compared to the average S&P500 Dividend Yield of 2.42, RGA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
5.2 History
On average, the dividend of RGA grows each year by 6.13%, which is quite nice.
RGA has paid a dividend for at least 10 years, which is 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 29.26% 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.
DP29.26%
EPS Next 2Y6.74%
EPS Next 3Y7.98%
199.23
+0.87 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.88%
Inst Owner Change1.73%
Ins Owners0.24%
Ins Owner Change5.29%
Market Cap13.17B
Analysts77.33
Price Target246.2 (23.58%)
Short Float %0.74%
Short Ratio1.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP29.26%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.34%
Min EPS beat(2)-6.11%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.09%
Min EPS beat(4)-6.11%
Max EPS beat(4)14.34%
EPS beat(8)7
Avg EPS beat(8)11.29%
EPS beat(12)10
Avg EPS beat(12)24.97%
EPS beat(16)12
Avg EPS beat(16)17.52%
Revenue beat(2)0
Avg Revenue beat(2)-6.67%
Min Revenue beat(2)-8.36%
Max Revenue beat(2)-4.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-8.36%
Max Revenue beat(4)9.16%
Revenue beat(8)4
Avg Revenue beat(8)6.55%
Revenue beat(12)7
Avg Revenue beat(12)4.25%
Revenue beat(16)10
Avg Revenue beat(16)4.4%
PT rev (1m)0.71%
PT rev (3m)-4.71%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-3.01%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-2.15%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.95 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.63 | ||
| P/FCF | 2.6 | ||
| P/OCF | 2.6 | ||
| P/B | 1.15 | ||
| P/tB | 1.15 | ||
| EV/EBITDA | 9.58 |
EPS(TTM)22.26
EY11.17%
EPS(NY)25.77
Fwd EY12.94%
FCF(TTM)76.61
FCFY38.45%
OCF(TTM)76.61
OCFY38.45%
SpS318.57
BVpS172.52
TBVpS172.52
PEG (NY)2.99
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 6.95% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.57% | ||
| PM (TTM) | 3.77% | ||
| GM | N/A | ||
| FCFM | 24.05% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score4
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.15 | ||
| Cash Conversion | 354.3% | ||
| Profit Quality | 638.46% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.92%
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)7.43%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-5.98%
EPS Next Y3%
EPS Next 2Y6.74%
EPS Next 3Y7.98%
EPS Next 5Y8.9%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%-17%
Revenue Next Year2.39%
Revenue Next 2Y6.26%
Revenue Next 3Y7.29%
Revenue Next 5Y7.79%
EBIT growth 1Y2.6%
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 1Y85.46%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y83.84%
OCF growth 3Y30.85%
OCF growth 5Y32.35%