REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - NYSE:RGA - US7593516047 - Common Stock
190.28 USD
+4.38 (+2.36%)
190.28 USD
0 (0%)
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 146 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
In the past year RGA had a positive cash flow from operations.
RGA had positive earnings in each of the past 5 years.
RGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGA's Return On Assets of 0.58% is on the low side compared to the rest of the industry. RGA is outperformed by 68.49% of its industry peers.
RGA has a worse Return On Equity (6.39%) than 71.92% 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
RGA has a worse Profit Margin (3.54%) than 73.97% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.90%, RGA is not doing good in the industry: 68.49% of the companies in the same industry are doing better.
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
Compared to 5 years ago, RGA has more shares outstanding
Compared to 1 year ago, RGA has an improved debt to assets ratio.
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.
With a decent Debt to FCF ratio value of 1.17, RGA is doing good in the industry, outperforming 66.44% of the companies in the same industry.
RGA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RGA has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: RGA underperforms 64.38% 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
WACC7.31%
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.
Looking at the last year, RGA shows a small growth in Revenue. The Revenue has grown by 2.01% in the last year.
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
RGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.11% yearly.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
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.
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
RGA is valuated reasonably with a Price/Earnings ratio of 8.75.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 67.12% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RGA to the average of the S&P500 Index (26.34), we can say RGA is valued rather cheaply.
RGA is valuated cheaply with a Price/Forward Earnings ratio of 7.31.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than the industry average as 73.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 7.31 |
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.
RGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RGA is cheaper than 86.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.56 | ||
| EV/EBITDA | 8.33 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y7.25%
EPS Next 3Y7.95%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.95%.
RGA's Dividend Yield is comparable with the industry average which is at 3.46.
Compared to an average S&P500 Dividend Yield of 2.36, RGA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
The dividend of RGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.52%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
190.28
+4.38 (+2.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change-1.69%
Ins Owners0.21%
Ins Owner Change0.2%
Market Cap12.58B
Revenue(TTM)22.31B
Net Income(TTM)770.00M
Analysts74.67
Price Target240.72 (26.51%)
Short Float %0.99%
Short Ratio1.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
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)1.07%
PT rev (3m)0.27%
EPS NQ rev (1m)-1.05%
EPS NQ rev (3m)-2.2%
EPS NY rev (1m)-2.17%
EPS NY rev (3m)-6.54%
Revenue NQ rev (1m)-0.6%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)1.64%
Revenue NY rev (3m)0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.75 | ||
| Fwd PE | 7.31 | ||
| P/S | 0.58 | ||
| P/FCF | 2.56 | ||
| P/OCF | 2.56 | ||
| P/B | 1.04 | ||
| P/tB | 1.04 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)21.74
EY11.43%
EPS(NY)26.02
Fwd EY13.67%
FCF(TTM)74.38
FCFY39.09%
OCF(TTM)74.38
OCFY39.09%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)N/A
PEG (5Y)0.79
Graham Number298.68
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
WACC7.31%
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-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
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%.