Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 148 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. RGA has a correct valuation and a medium growth rate. Finally RGA also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
Each year in the past 5 years RGA had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 0.57%, RGA is doing worse than 69.59% of the companies in the same industry.
RGA has a Return On Equity of 6.68%. This is in the lower half of the industry: RGA underperforms 71.62% 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

Looking at the Profit Margin, with a value of 3.89%, RGA is doing worse than 70.95% of the companies in the same industry.
RGA's Profit Margin has declined in the last couple of years.
RGA has a worse Operating Margin (7.39%) than 70.27% of its industry peers.
In the last couple of years the Operating Margin of RGA has declined.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
RGA has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RGA has been reduced compared to a year ago.

2.2 Solvency

RGA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.18, RGA is in the better half of the industry, outperforming 66.89% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that RGA is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.44, RGA is not doing good in the industry: 62.84% of the companies in the same industry are doing better.
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

WACC7.46%

2.3 Liquidity

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

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WACC

Debt/Equity

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Altman-Z score

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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%.
RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
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

Based on estimates for the next years, RGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
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-6.19%

EPS Next 2Y7.1%

EPS Next 3Y7.89%

EPS Next 5Y9.5%

Revenue Next Year2.66%

Revenue Next 2Y5.98%

Revenue Next 3Y5.97%

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 9.33, the valuation of RGA can be described as reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 68.24% of the companies in the same industry.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.82, the valuation of RGA can be described as very cheap.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than 71.62% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RGA to the average of the S&P500 Index (25.57), we can say RGA is valued rather cheaply.

		Industry Rank	Sector Rank
PE	9.33
Fwd PE	7.82

4.2 Price Multiples

RGA's Enterprise Value to EBITDA ratio is in line with 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 85.14% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	2.75
EV/EBITDA	8.51

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.84

EPS Next 2Y7.1%

EPS Next 3Y7.89%

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5. Dividend

5.1 Amount

RGA has a Yearly Dividend Yield of 1.87%.
RGA's Dividend Yield is comparable with the industry average which is at 2.23.
Compared to an average S&P500 Dividend Yield of 1.83, RGA has a dividend comparable with the average S&P500 company.

		Industry Rank	Sector Rank
Dividend Yield	1.87%

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

27.34% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
RGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP27.34%

EPS Next 2Y7.1%

EPS Next 3Y7.89%

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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 9.33 and the Price/Book (PB) ratio is 1.03.

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%.