REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
NYSE:RGA - New York Stock Exchange, Inc. - US7593516047 - Common Stock - Currency: USD
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 144 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. RGA is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years RGA had a positive operating cash flow.
1.2 Ratios
RGA's Return On Assets of 0.60% is on the low side compared to the rest of the industry. RGA is outperformed by 69.23% of its industry peers.
RGA's Return On Equity of 6.63% is on the low side compared to the rest of the industry. RGA is outperformed by 65.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.63% | ||
| 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 (3.24%) than 72.03% of its industry peers.
In the last couple of years the Profit Margin of RGA has declined.
With a Operating Margin value of 5.85%, RGA is not doing good in the industry: 70.63% of the companies in the same industry are doing better.
RGA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 3.24% | ||
| 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.
The number of shares outstanding for RGA has been increased compared to 1 year ago.
Compared to 5 years ago, RGA has more shares outstanding
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 0.54, which is an excellent value as it means it would take RGA, only 0.54 years of fcf income to pay off all of its debts.
RGA's Debt to FCF ratio of 0.54 is fine compared to the rest of the industry. RGA outperforms 78.32% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that RGA is not too dependend on debt financing.
RGA has a worse Debt to Equity ratio (0.47) than 64.34% of its industry peers.
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 | 0.47 | ||
| Debt/FCF | 0.54 | ||
| 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
RGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.90%, which is quite good.
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 quite strong growth in Revenue. The Revenue has grown by 19.09% 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)13.9%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%5.5%
Revenue 1Y (TTM)19.09%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%4.21%
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 6.46% on average per year.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y2.2%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue Next Year0.05%
Revenue Next 2Y4.15%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
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 decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.43, the valuation of RGA can be described as very reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 73.43% of the companies are valued more expensively.
RGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 8.24, the valuation of RGA can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 71.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. RGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 8.24 |
4.2 Price Multiples
RGA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGA indicates a rather cheap valuation: RGA is cheaper than 88.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.34 | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)3.82
PEG (5Y)0.76
EPS Next 2Y5.46%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.84%, RGA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.17, RGA has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.33, RGA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
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
RGA pays out 31.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of RGA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP31.94%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
190.59
-2.41 (-1.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner Change2.44%
Ins Owners0.19%
Ins Owner Change1.64%
Market Cap12.58B
Analysts80
Price Target260.3 (36.58%)
Short Float %0.47%
Short Ratio0.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP31.94%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.11%
Min EPS beat(2)-6.11%
Max EPS beat(2)14.34%
EPS beat(4)3
Avg EPS beat(4)11.45%
Min EPS beat(4)-6.11%
Max EPS beat(4)30.88%
EPS beat(8)7
Avg EPS beat(8)17.02%
EPS beat(12)10
Avg EPS beat(12)39.88%
EPS beat(16)11
Avg EPS beat(16)-6.09%
Revenue beat(2)1
Avg Revenue beat(2)2.09%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)9.16%
Revenue beat(4)2
Avg Revenue beat(4)9.61%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)37.64%
Revenue beat(8)5
Avg Revenue beat(8)7.62%
Revenue beat(12)7
Avg Revenue beat(12)4.91%
Revenue beat(16)11
Avg Revenue beat(16)5.67%
PT rev (1m)-0.56%
PT rev (3m)0.05%
EPS NQ rev (1m)-4.83%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)3.24%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.43 | ||
| Fwd PE | 8.24 | ||
| P/S | 0.57 | ||
| P/FCF | 1.34 | ||
| P/OCF | 1.34 | ||
| P/B | 1.16 | ||
| P/tB | 1.16 | ||
| EV/EBITDA | 10.67 |
EPS(TTM)22.62
EY11.87%
EPS(NY)23.12
Fwd EY12.13%
FCF(TTM)141.93
FCFY74.47%
OCF(TTM)141.93
OCFY74.47%
SpS335.08
BVpS163.83
TBVpS163.83
PEG (NY)3.82
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.85% | ||
| PM (TTM) | 3.24% | ||
| GM | N/A | ||
| FCFM | 42.36% |
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-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.08 | ||
| Cash Conversion | 699.25% | ||
| Profit Quality | 1306.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
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)13.9%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%5.5%
EPS Next Y2.2%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue 1Y (TTM)19.09%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%4.21%
Revenue Next Year0.05%
Revenue Next 2Y4.15%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y-9.26%
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 1Y131.7%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y131.7%
OCF growth 3Y30.85%
OCF growth 5Y32.35%