REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
205.7 USD
+1.92 (+0.94%)
205.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RGA. RGA was compared to 148 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. RGA has a correct valuation and a medium growth rate. Finally RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RGA had positive earnings in the past year.
RGA had a positive operating cash flow in the past year.
RGA had positive earnings in each of the past 5 years.
In the past 5 years RGA always reported a positive cash flow from operatings.
1.2 Ratios
RGA's Return On Assets of 0.57% is on the low side compared to the rest of the industry. RGA is outperformed by 70.27% 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 72.30% 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: 71.62% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RGA has declined.
RGA has a Operating Margin of 7.39%. This is in the lower half of the industry: RGA underperforms 70.95% 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
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.
RGA's Debt to FCF ratio of 1.18 is fine compared to the rest of the industry. RGA outperforms 66.89% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that RGA is not too dependend on debt financing.
RGA has a worse Debt to Equity ratio (0.44) than 63.51% 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
WACC7.41%
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.
Looking at the last year, RGA shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
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 9.50% on average over the next years. This is quite good.
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 Year3.32%
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
With a Price/Earnings ratio of 9.46, the valuation of RGA can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 68.24% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of RGA to the average of the S&P500 Index (26.39), we can say RGA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.88 indicates a rather cheap valuation of RGA.
72.97% of the companies in the same industry are more expensive than RGA, based on the Price/Forward Earnings ratio.
RGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 7.88 |
4.2 Price Multiples
RGA's Enterprise Value to EBITDA ratio is in line with the industry average.
RGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RGA is cheaper than 85.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.79 | ||
| EV/EBITDA | 8.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 2.30, RGA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, RGA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 27.34% of its income as dividend. This is a 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%
205.7
+1.92 (+0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change-2.13%
Ins Owners0.22%
Ins Owner Change0.49%
Market Cap13.52B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.67
Price Target240.15 (16.75%)
Short Float %0.69%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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)1.58%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 7.88 | ||
| P/S | 0.61 | ||
| P/FCF | 2.79 | ||
| P/OCF | 2.79 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.63 |
EPS(TTM)21.74
EY10.57%
EPS(NY)26.09
Fwd EY12.68%
FCF(TTM)73.64
FCFY35.8%
OCF(TTM)73.64
OCFY35.8%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.85
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
WACC7.41%
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%.