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REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis

NYSE:RGA - New York Stock Exchange, Inc. - US7593516047 - Common Stock - Currency: USD

226.71  -1.28 (-0.56%)

Premarket: 228.5 +1.79 (+0.79%)

Fundamental Rating

4

RGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 144 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. RGA is growing strongly while it is still valued neutral. This is a good combination!


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year RGA was profitable.
RGA had a positive operating cash flow in the past year.
Each year in the past 5 years RGA has been profitable.
In the past 5 years RGA always reported a positive cash flow from operatings.
RGA Yearly Net Income VS EBIT VS OCF VS FCFRGA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

1.2 Ratios

RGA has a worse Return On Assets (0.60%) than 69.01% of its industry peers.
Looking at the Return On Equity, with a value of 6.53%, RGA is doing worse than 65.49% of the companies in the same industry.
Industry RankSector 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
RGA Yearly ROA, ROE, ROICRGA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

RGA's Profit Margin of 3.32% is on the low side compared to the rest of the industry. RGA is outperformed by 67.61% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
The Operating Margin of RGA (5.67%) is worse than 66.20% of its industry peers.
RGA's Operating Margin has been stable in the last couple of years.
Industry RankSector 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
RGA Yearly Profit, Operating, Gross MarginsRGA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10

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3

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 less shares outstanding
Compared to 5 years ago, RGA has more shares outstanding
RGA has a better debt/assets ratio than last year.
RGA Yearly Shares OutstandingRGA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
RGA Yearly Total Debt VS Total AssetsRGA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

RGA has a debt to FCF ratio of 0.56. This is a very positive value and a sign of high solvency as it would only need 0.56 years to pay back of all of its debts.
RGA has a Debt to FCF ratio of 0.56. This is in the better half of the industry: RGA outperforms 78.87% of its industry peers.
RGA has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.46, RGA is doing worse than 65.49% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0.46
Debt/FCF 0.56
Altman-Z N/A
ROIC/WACCN/A
WACC8.02%
RGA Yearly LT Debt VS Equity VS FCFRGA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 23.40% over the past year.
RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.24% yearly.
Looking at the last year, RGA shows a very strong growth in Revenue. The Revenue has grown by 21.75%.
The Revenue has been growing slightly by 7.56% on average over the past years.
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

Based on estimates for the next years, RGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.65% on average per year.
RGA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.97% yearly.
EPS Next Y3.54%
EPS Next 2Y8.59%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue Next Year24.13%
Revenue Next 2Y10.06%
Revenue Next 3Y8.85%
Revenue Next 5Y9.97%

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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
RGA Yearly Revenue VS EstimatesRGA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5B 10B 15B 20B 25B
RGA Yearly EPS VS EstimatesRGA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15 20 25

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.14, which indicates a very decent valuation of RGA.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 65.49% of the companies are valued more expensively.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.68, the valuation of RGA can be described as very reasonable.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than 63.38% of the companies in the same industry.
RGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.14
Fwd PE 9.68
RGA Price Earnings VS Forward Price EarningsRGA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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 cheaply inside the industry as 87.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.66
EV/EBITDA 11.56
RGA Per share dataRGA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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)2.86
PEG (5Y)0.99
EPS Next 2Y8.59%
EPS Next 3Y8.71%

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6

5. Dividend

5.1 Amount

RGA has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
RGA's Dividend Yield is comparable with the industry average which is at 3.13.
RGA's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.54%

5.2 History

On average, the dividend of RGA grows each year by 8.46%, 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)8.46%
Div Incr Years15
Div Non Decr Years15
RGA Yearly Dividends per shareRGA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

31.22% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
RGA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP31.22%
EPS Next 2Y8.59%
EPS Next 3Y8.71%
RGA Yearly Income VS Free CF VS DividendRGA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
RGA Dividend Payout.RGA Dividend Payout, showing the Payout Ratio.RGA Dividend Payout.PayoutRetained Earnings

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REINSURANCE GROUP OF AMERICA

NYSE:RGA (2/4/2025, 8:04:41 PM)

Premarket: 228.5 +1.79 (+0.79%)

226.71

-1.28 (-0.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)10-31 2024-10-31/amc
Earnings (Next)02-06 2025-02-06/amc
Inst Owners97.03%
Inst Owner Change-0.31%
Ins Owners0.21%
Ins Owner Change1.64%
Market Cap14.93B
Analysts80
Price Target261.77 (15.46%)
Short Float %0.64%
Short Ratio1.05
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Yearly Dividend3.31
Dividend Growth(5Y)8.46%
DP31.22%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
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)0.61%
PT rev (3m)4.42%
EPS NQ rev (1m)-0.23%
EPS NQ rev (3m)2.1%
EPS NY rev (1m)-3.15%
EPS NY rev (3m)-7.73%
Revenue NQ rev (1m)-1.53%
Revenue NQ rev (3m)2.93%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)3.63%
Valuation
Industry RankSector Rank
PE 10.14
Fwd PE 9.68
P/S 0.68
P/FCF 1.66
P/OCF 1.66
P/B 1.34
P/tB 1.34
EV/EBITDA 11.56
EPS(TTM)22.36
EY9.86%
EPS(NY)23.42
Fwd EY10.33%
FCF(TTM)136.9
FCFY60.38%
OCF(TTM)136.59
OCFY60.25%
SpS332.13
BVpS168.95
TBVpS168.95
PEG (NY)2.86
PEG (5Y)0.99
Profitability
Industry RankSector 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 RankSector 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
WACC8.02%
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 Y3.54%
EPS Next 2Y8.59%
EPS Next 3Y8.71%
EPS Next 5Y8.65%
Revenue 1Y (TTM)21.75%
Revenue growth 3Y8.32%
Revenue growth 5Y7.56%
Sales Q2Q%9.66%
Revenue Next Year24.13%
Revenue Next 2Y10.06%
Revenue Next 3Y8.85%
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%