REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - NYSE:RGA - US7593516047 - Common Stock
189 USD
-0.61 (-0.32%)
189 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RGA. RGA was compared to 147 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. RGA has a decent growth rate and is not valued too expensively. RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RGA had positive earnings in the past year.
In the past year RGA had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.58%, RGA is doing worse than 68.03% of the companies in the same industry.
With a Return On Equity value of 6.39%, RGA is not doing good in the industry: 67.35% of the companies in the same industry are doing better.
| 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
The Profit Margin of RGA (3.54%) is worse than 70.75% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
RGA's Operating Margin of 6.90% is on the low side compared to the rest of the industry. RGA is outperformed by 68.71% 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
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 1.17, 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's Debt to FCF ratio of 1.17 is fine compared to the rest of the industry. RGA outperforms 61.22% of its industry peers.
RGA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RGA's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. RGA is outperformed by 65.31% 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 | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.26%
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%.
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 1.87%.
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
Based on estimates for the next years, RGA will show a small growth in Earnings Per Share. The EPS will grow by 7.67% on average per year.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
EPS Next Y-1.35%
EPS Next 2Y6.83%
EPS Next 3Y7.75%
EPS Next 5Y7.67%
Revenue Next Year1.25%
Revenue Next 2Y5.59%
Revenue Next 3Y6.62%
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.
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
Based on the Price/Earnings ratio of 8.79, the valuation of RGA can be described as reasonable.
68.03% of the companies in the same industry are more expensive than RGA, based on the Price/Earnings ratio.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.32, the valuation of RGA can be described as very cheap.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than 74.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.63. RGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 7.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGA is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaper than 88.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.54 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y6.83%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.96%.
Compared to an average industry Dividend Yield of 3.26, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
5.2 History
The dividend of RGA is nicely growing with an annual growth rate of 6.13%!
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 30.52% 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.
DP30.52%
EPS Next 2Y6.83%
EPS Next 3Y7.75%
189
-0.61 (-0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change-0.88%
Ins Owners0.21%
Ins Owner Change0.2%
Market Cap12.49B
Revenue(TTM)21.76B
Net Income(TTM)770.00M
Analysts75.71
Price Target238.17 (26.02%)
Short Float %0.99%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.96% |
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%
PT rev (3m)-3.36%
EPS NQ rev (1m)-0.22%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0.32%
EPS NY rev (3m)-4.16%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.17%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.79 | ||
| Fwd PE | 7.32 | ||
| P/S | 0.57 | ||
| P/FCF | 2.54 | ||
| P/OCF | 2.54 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.31 |
EPS(TTM)21.5
EY11.38%
EPS(NY)25.81
Fwd EY13.66%
FCF(TTM)74.38
FCFY39.36%
OCF(TTM)74.38
OCFY39.36%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)N/A
PEG (5Y)0.79
Graham Number297.02
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
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 Turnover0.16
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
WACC7.26%
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-1.35%
EPS Next 2Y6.83%
EPS Next 3Y7.75%
EPS Next 5Y7.67%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
Revenue Next Year1.25%
Revenue Next 2Y5.59%
Revenue Next 3Y6.62%
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%
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 7 / 10 and the dividend payout ratio is 30.52%.