REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
196.16 USD
+1.74 (+0.89%)
196.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RGA. RGA was compared to 149 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. Finally RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year RGA was profitable.
- RGA had a positive operating cash flow in the past year.
- In the past 5 years RGA has always been profitable.
- In the past 5 years RGA always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of RGA (0.57%) is worse than 69.80% of its industry peers.
- RGA has a Return On Equity of 6.68%. This is in the lower half of the industry: RGA underperforms 71.81% 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
- With a Profit Margin value of 3.89%, RGA is not doing good in the industry: 71.14% of the companies in the same industry are doing better.
- RGA's Profit Margin has declined in the last couple of years.
- RGA has a worse Operating Margin (7.39%) than 70.47% 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.
- RGA has more shares outstanding than it did 1 year ago.
- RGA has more shares outstanding than it did 5 years ago.
- The debt/assets ratio for RGA has been reduced compared to a year ago.
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.
- With a decent Debt to FCF ratio value of 1.18, RGA is doing good in the industry, outperforming 67.11% 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 has a Debt to Equity ratio of 0.44. This is in the lower half of the industry: RGA underperforms 62.42% 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 | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.45%
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.
- Measured over the past years, RGA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
- 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
- RGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.50% yearly.
- The Revenue is expected to grow by 8.07% on average over the next years. This is quite good.
EPS Next Y-4.85%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
EPS Next 5Y9.5%
Revenue Next Year3.33%
Revenue Next 2Y6.74%
Revenue Next 3Y6.41%
Revenue Next 5Y8.07%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- 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
- With a Price/Earnings ratio of 9.02, the valuation of RGA can be described as very reasonable.
- RGA's Price/Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 69.80% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, RGA is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.52 indicates a rather cheap valuation of RGA.
- RGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 74.50% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. RGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 7.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RGA is valued a bit cheaper than 61.07% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGA indicates a rather cheap valuation: RGA is cheaper than 85.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.66 | ||
| EV/EBITDA | 8.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
- RGA has a Yearly Dividend Yield of 1.89%.
- RGA's Dividend Yield is comparable with the industry average which is at 2.53.
- RGA's Dividend Yield is comparable with the S&P500 average which is at 1.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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 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.
- 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%
196.16
+1.74 (+0.89%)
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 Change0.15%
Ins Owners0.2%
Ins Owner Change0.49%
Market Cap12.89B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.29
Price Target240.72 (22.72%)
Short Float %1%
Short Ratio1.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.89% |
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)0.24%
PT rev (3m)1.07%
EPS NQ rev (1m)-1.2%
EPS NQ rev (3m)-0.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.62%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.02 | ||
| Fwd PE | 7.52 | ||
| P/S | 0.58 | ||
| P/FCF | 2.66 | ||
| P/OCF | 2.66 | ||
| P/B | 0.99 | ||
| P/tB | 0.99 | ||
| EV/EBITDA | 8.19 |
EPS(TTM)21.74
EY11.08%
EPS(NY)26.09
Fwd EY13.3%
FCF(TTM)73.64
FCFY37.54%
OCF(TTM)73.64
OCFY37.54%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.81
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
WACC7.45%
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 Year3.33%
Revenue Next 2Y6.74%
Revenue Next 3Y6.41%
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 9.02 and the Price/Book (PB) ratio is 0.99.
Is the dividend of REINSURANCE GROUP OF AMERICA sustainable?
The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 7 / 10 and the dividend payout ratio is 27.34%.