REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
202.13 USD
+0.66 (+0.33%)
202.13 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. 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
In the past year RGA was profitable.
RGA had a positive operating cash flow in the past year.
In the past 5 years RGA has always 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 (0.57%) than 69.18% 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 72.60% 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: 70.55% 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 (7.39%) than 69.86% 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.
The number of shares outstanding for RGA has been increased compared to 1 year ago.
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 1.18, which is an excellent value as it means it would take RGA, only 1.18 years of fcf income to pay off all of its debts.
RGA has a better Debt to FCF ratio (1.18) than 66.44% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that RGA is not too dependend on debt financing.
RGA's Debt to Equity ratio of 0.44 is on the low side compared to the rest of the industry. RGA is outperformed by 63.70% 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 | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.4%
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 -2.77%.
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.
The Revenue has been growing slightly by 2.01% in the past 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 9.50% yearly.
RGA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 9.30, which indicates a very decent valuation of RGA.
Compared to the rest of the industry, the Price/Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 67.81% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. RGA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.75, the valuation of RGA can be described as very cheap.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than the industry average as 73.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGA.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaper than 84.93% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.74 | ||
| EV/EBITDA | 8.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 5.76%, which is a nice return.
RGA's Dividend Yield is rather good when compared to the industry average which is at 2.42. RGA pays more dividend than 87.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.92, RGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
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 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
27.34% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
The dividend of RGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.34%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
202.13
+0.66 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.74%
Inst Owner Change0.16%
Ins Owners0.2%
Ins Owner Change0.49%
Market Cap13.28B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.29
Price Target241.63 (19.54%)
Short Float %0.84%
Short Ratio1.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.76% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP27.34%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
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)0.61%
PT rev (3m)1.45%
EPS NQ rev (1m)-0.58%
EPS NQ rev (3m)1.6%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.23%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.3 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.6 | ||
| P/FCF | 2.74 | ||
| P/OCF | 2.74 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 8.46 |
EPS(TTM)21.74
EY10.76%
EPS(NY)26.09
Fwd EY12.91%
FCF(TTM)73.64
FCFY36.43%
OCF(TTM)73.64
OCFY36.43%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.84
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
WACC7.4%
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.
Can you provide the valuation status for REINSURANCE GROUP OF AMERICA?
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.
What is the valuation of REINSURANCE GROUP OF AMERICA based on its PE and PB ratios?
The Price/Earnings (PE) ratio for REINSURANCE GROUP OF AMERICA (RGA) is 9.3 and the Price/Book (PB) ratio is 1.02.
Is the dividend of REINSURANCE GROUP OF AMERICA sustainable?
The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 9 / 10 and the dividend payout ratio is 27.34%.