REINSURANCE GROUP OF AMERICA (RGA)
US7593516047 - Common Stock
RGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. RGA is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year RGA was profitable.
In the past year RGA had a positive cash flow from operations.
In the past 5 years RGA has always been profitable.
In the past 5 years RGA always reported a positive cash flow from operatings.
1.2 Ratios
RGA has a worse Return On Assets (0.60%) than 67.86% of its industry peers.
With a Return On Equity value of 6.53%, RGA is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.53% | ||
| ROIC | N/A |
ROA(3y)0.93%
ROA(5y)0.89%
ROE(3y)8.74%
ROE(5y)7.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 3.32%, RGA is not doing good in the industry: 66.43% of the companies in the same industry are doing better.
RGA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.67%, RGA is doing worse than 65.00% of the companies in the same industry.
RGA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.67% | ||
| PM (TTM) | 3.32% | ||
| GM | N/A |
OM growth 3Y13.82%
OM growth 5Y-1.18%
PM growth 3Y19.59%
PM growth 5Y-2.63%
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 reduced compared to 1 year ago.
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 0.56, which is an excellent value as it means it would take RGA, only 0.56 years of fcf income to pay off all of its debts.
RGA's Debt to FCF ratio of 0.56 is fine compared to the rest of the industry. RGA outperforms 78.57% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that RGA is not too dependend on debt financing.
The Debt to Equity ratio of RGA (0.46) is worse than 64.29% 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 | 0.46 | ||
| Debt/FCF | 0.56 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.96%
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 23.40%, which is quite impressive.
The Earnings Per Share has been growing by 10.24% on average over the past years. This is quite good.
Looking at the last year, RGA shows a very strong growth in Revenue. The Revenue has grown by 21.75%.
Measured over the past years, RGA shows a small growth in Revenue. The Revenue has been growing by 7.56% on average per year.
EPS 1Y (TTM)23.4%
EPS 3Y38.53%
EPS 5Y10.24%
EPS Q2Q%10.05%
Revenue 1Y (TTM)21.75%
Revenue growth 3Y8.32%
Revenue growth 5Y7.56%
Sales Q2Q%9.66%
3.2 Future
The Earnings Per Share is expected to grow by 8.65% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.97% on average over the next years. This is quite good.
EPS Next Y7.7%
EPS Next 2Y8.34%
EPS Next 3Y8.41%
EPS Next 5Y8.65%
Revenue Next Year24.59%
Revenue Next 2Y10.57%
Revenue Next 3Y9.39%
Revenue Next 5Y9.97%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.28, the valuation of RGA can be described as very reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 67.86% of the companies in the same industry.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.90 indicates a reasonable valuation of RGA.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than 67.86% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RGA to the average of the S&P500 Index (22.83), we can say RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 8.9 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGA.
89.29% of the companies in the same industry are more expensive than RGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.52 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.21
PEG (5Y)0.91
EPS Next 2Y8.34%
EPS Next 3Y8.41%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.74%.
RGA's Dividend Yield is comparable with the industry average which is at 4.24.
Compared to the average S&P500 Dividend Yield of 2.24, RGA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of RGA is nicely growing with an annual growth rate of 8.46%!
RGA has paid a dividend for at least 10 years, which is a reliable track record.
RGA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.46%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
RGA pays out 31.22% 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.
DP31.22%
EPS Next 2Y8.34%
EPS Next 3Y8.41%
REINSURANCE GROUP OF AMERICA
NYSE:RGA (12/20/2024, 8:04:00 PM)
After market: 207.54 0 (0%)207.54
+2.83 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner Change-0.86%
Ins Owners0.21%
Ins Owner Change0%
Market Cap13.67B
Analysts80
Price Target260.19 (25.37%)
Short Float %0.48%
Short Ratio0.91
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Dividend Growth(5Y)8.46%
DP31.22%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.52%
Min EPS beat(2)6.69%
Max EPS beat(2)14.34%
EPS beat(4)4
Avg EPS beat(4)14.22%
Min EPS beat(4)4.95%
Max EPS beat(4)30.88%
EPS beat(8)7
Avg EPS beat(8)15.21%
EPS beat(12)10
Avg EPS beat(12)26.04%
EPS beat(16)12
Avg EPS beat(16)-4.89%
Revenue beat(2)1
Avg Revenue beat(2)2.89%
Min Revenue beat(2)-3.37%
Max Revenue beat(2)9.16%
Revenue beat(4)3
Avg Revenue beat(4)13.05%
Min Revenue beat(4)-3.37%
Max Revenue beat(4)37.64%
Revenue beat(8)6
Avg Revenue beat(8)8.47%
Revenue beat(12)8
Avg Revenue beat(12)5.78%
Revenue beat(16)12
Avg Revenue beat(16)6.53%
PT rev (1m)3.79%
PT rev (3m)5.8%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)2.33%
EPS NY rev (1m)-3.88%
EPS NY rev (3m)-3.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.52%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.28 | ||
| Fwd PE | 8.9 | ||
| P/S | 0.62 | ||
| P/FCF | 1.52 | ||
| P/OCF | 1.52 | ||
| P/B | 1.23 | ||
| P/tB | 1.23 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)22.36
EY10.77%
EPS(NY)23.31
Fwd EY11.23%
FCF(TTM)136.9
FCFY65.96%
OCF(TTM)136.59
OCFY65.82%
SpS332.13
BVpS168.95
TBVpS168.95
PEG (NY)1.21
PEG (5Y)0.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.67% | ||
| PM (TTM) | 3.32% | ||
| GM | N/A | ||
| FCFM | 41.22% |
ROA(3y)0.93%
ROA(5y)0.89%
ROE(3y)8.74%
ROE(5y)7.32%
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 3Y13.82%
OM growth 5Y-1.18%
PM growth 3Y19.59%
PM growth 5Y-2.63%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 0.56 | ||
| Debt/EBITDA | 3.96 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.39 | ||
| Cash Conversion | 702.26% | ||
| Profit Quality | 1240.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.96%
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)353.03%
Profit Quality(5y)422.82%
High Growth Momentum
Growth
EPS 1Y (TTM)23.4%
EPS 3Y38.53%
EPS 5Y10.24%
EPS Q2Q%10.05%
EPS Next Y7.7%
EPS Next 2Y8.34%
EPS Next 3Y8.41%
EPS Next 5Y8.65%
Revenue 1Y (TTM)21.75%
Revenue growth 3Y8.32%
Revenue growth 5Y7.56%
Sales Q2Q%9.66%
Revenue Next Year24.59%
Revenue Next 2Y10.57%
Revenue Next 3Y9.39%
Revenue Next 5Y9.97%
EBIT growth 1Y-19.53%
EBIT growth 3Y23.29%
EBIT growth 5Y6.29%
EBIT Next Year0%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y537.17%
FCF growth 3Y7.08%
FCF growth 5Y21.11%
OCF growth 1Y525.59%
OCF growth 3Y6.78%
OCF growth 5Y20.66%