REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - NYSE:RGA - US7593516047 - Common Stock
185.98 USD
-0.92 (-0.49%)
185.98 USD
0 (0%)
Overall RGA gets a fundamental rating of 4 out of 10. We evaluated RGA against 146 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. 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.
Each year in the past 5 years RGA has been profitable.
RGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGA has a worse Return On Assets (0.58%) than 65.75% of its industry peers.
RGA has a Return On Equity of 6.39%. This is in the lower half of the industry: RGA underperforms 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 6.39% | ||
| 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 3.54%, RGA is not doing good in the industry: 69.86% 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 worse Operating Margin (6.90%) than 67.81% of its industry peers.
In the last couple of years the Operating Margin of RGA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.9% | ||
| PM (TTM) | 3.54% | ||
| 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.
RGA has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RGA is 1.17, which is an excellent value as it means it would take RGA, only 1.17 years of fcf income to pay off all of its debts.
RGA has a Debt to FCF ratio of 1.17. This is in the better half of the industry: RGA outperforms 60.27% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that RGA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, RGA is doing worse than 65.75% of the companies in the same industry.
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 | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.22%
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 -1.38%.
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.
Looking at the last year, RGA shows a small growth in Revenue. The Revenue has grown by 1.87% in the last year.
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)-1.38%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-13.87%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
3.2 Future
The Earnings Per Share is expected to grow by 7.67% on average over the next years.
The Revenue is expected to grow by 7.55% on average over the next years.
EPS Next Y-1.25%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
EPS Next 5Y7.67%
Revenue Next Year1.14%
Revenue Next 2Y5.58%
Revenue Next 3Y6.71%
Revenue Next 5Y7.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 8.65, which indicates a very decent valuation of RGA.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 71.92% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.20. RGA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.23 indicates a rather cheap valuation of RGA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 74.66% of the companies listed in the same industry.
RGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 7.23 |
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 cheaply inside the industry as 89.04% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.5 | ||
| EV/EBITDA | 8.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y6.66%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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 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
30.52% 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.
DP30.52%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
185.98
-0.92 (-0.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change0.92%
Ins Owners0.24%
Ins Owner Change0.2%
Market Cap12.29B
Analysts77.33
Price Target238.17 (28.06%)
Short Float %0.58%
Short Ratio0.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP30.52%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.34%
Min EPS beat(2)-16.11%
Max EPS beat(2)5.42%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-16.11%
Max EPS beat(4)14.34%
EPS beat(8)6
Avg EPS beat(8)8.64%
EPS beat(12)9
Avg EPS beat(12)14.73%
EPS beat(16)11
Avg EPS beat(16)9.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.37%
Min Revenue beat(2)-8.36%
Max Revenue beat(2)-2.37%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-8.36%
Max Revenue beat(4)9.16%
Revenue beat(8)4
Avg Revenue beat(8)6.73%
Revenue beat(12)7
Avg Revenue beat(12)4.39%
Revenue beat(16)9
Avg Revenue beat(16)3.66%
PT rev (1m)-0.8%
PT rev (3m)-3.26%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)-2.17%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-2.35%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.65 | ||
| Fwd PE | 7.23 | ||
| P/S | 0.56 | ||
| P/FCF | 2.5 | ||
| P/OCF | 2.5 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 8.15 |
EPS(TTM)21.5
EY11.56%
EPS(NY)25.73
Fwd EY13.84%
FCF(TTM)74.38
FCFY40%
OCF(TTM)74.38
OCFY40%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 6.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.9% | ||
| PM (TTM) | 3.54% | ||
| GM | N/A | ||
| FCFM | 22.59% |
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-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.67 | ||
| Cash Conversion | 317.78% | ||
| Profit Quality | 638.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.22%
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)-1.38%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-13.87%
EPS Next Y-1.25%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
EPS Next 5Y7.67%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
Revenue Next Year1.14%
Revenue Next 2Y5.58%
Revenue Next 3Y6.71%
Revenue Next 5Y7.55%
EBIT growth 1Y8.69%
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 1Y69.87%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y68.41%
OCF growth 3Y30.85%
OCF growth 5Y32.35%