REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
192.76 USD
+0.15 (+0.08%)
192.76 USD
0 (0%)
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 147 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. RGA has a decent growth rate and is not valued too expensively. 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 72.11% of its industry peers.
With a Return On Equity value of 6.68%, RGA is not doing good in the industry: 73.47% of the companies in the same industry are doing better.
| 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
RGA has a worse Profit Margin (3.89%) than 74.15% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
RGA has a Operating Margin of 7.39%. This is in the lower half of the industry: RGA underperforms 71.43% 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.
Compared to 1 year ago, RGA has more shares outstanding
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.
Looking at the Debt to FCF ratio, with a value of 1.18, RGA is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
RGA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, RGA is not doing good in the industry: 63.27% of the companies in the same industry are doing better.
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
WACC7.32%
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.
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%.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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
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
Based on the Price/Earnings ratio of 8.87, the valuation of RGA can be described as reasonable.
RGA's Price/Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 67.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.49. RGA is valued rather cheaply when compared to this.
RGA is valuated cheaply with a Price/Forward Earnings ratio of 7.39.
RGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. RGA is cheaper than 74.83% 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 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.39 |
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 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.62 | ||
| EV/EBITDA | 8.13 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.8
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 5.78%, which is a nice return.
RGA's Dividend Yield is rather good when compared to the industry average which is at 3.48. RGA pays more dividend than 88.44% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, RGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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
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 2Y7.4%
EPS Next 3Y8.07%
192.76
+0.15 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change-2.14%
Ins Owners0.22%
Ins Owner Change0.49%
Market Cap12.67B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.67
Price Target240.15 (24.58%)
Short Float %0.83%
Short Ratio1.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.78% |
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)-0.24%
PT rev (3m)0.83%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)1.48%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.87 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.57 | ||
| P/FCF | 2.62 | ||
| P/OCF | 2.62 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)21.74
EY11.28%
EPS(NY)26.09
Fwd EY13.53%
FCF(TTM)73.64
FCFY38.2%
OCF(TTM)73.64
OCFY38.2%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.8
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
WACC7.32%
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.
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 9 / 10 and the dividend payout ratio is 27.34%.