REINSURANCE GRP OF AMER - RGA 5 3/4 06/15/56 (RZB) Stock Fundamental Analysis
NYSE:RZB - New York Stock Exchange, Inc. - US7593518027 - Currency: USD
Taking everything into account, RZB scores 5 out of 10 in our fundamental rating. RZB was compared to 144 industry peers in the Insurance industry. The financial health of RZB is average, but there are quite some concerns on its profitability. RZB is evaluated to be cheap and growing strongly. This does not happen too often!
1. Profitability
1.1 Basic Checks
RZB had positive earnings in the past year.
RZB had a positive operating cash flow in the past year.
RZB had positive earnings in each of the past 5 years.
In the past 5 years RZB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.60%, RZB is doing worse than 67.61% of the companies in the same industry.
The Return On Equity of RZB (6.53%) is worse than 64.08% of its industry peers.
| 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
RZB has a worse Profit Margin (3.32%) than 66.20% of its industry peers.
In the last couple of years the Profit Margin of RZB has declined.
RZB's Operating Margin of 5.67% is on the low side compared to the rest of the industry. RZB is outperformed by 64.79% of its industry peers.
In the last couple of years the Operating Margin of RZB has remained more or less at the same level.
| 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
RZB does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RZB has been reduced compared to 1 year ago.
Compared to 5 years ago, RZB has more shares outstanding
The debt/assets ratio for RZB has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of RZB is 0.56, which is an excellent value as it means it would take RZB, only 0.56 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.56, RZB belongs to the best of the industry, outperforming 80.28% of the companies in the same industry.
A Debt/Equity ratio of 0.46 indicates that RZB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.46, RZB is doing worse than 64.08% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for RZB, 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
WACC6.53%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 23.40% over the past year.
The Earnings Per Share has been growing by 10.24% on average over the past years. This is quite good.
The Revenue has grown by 21.75% in the past year. This is a very strong growth!
Measured over the past years, RZB 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
RZB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.65% yearly.
The Revenue is expected to grow by 9.97% on average over the next years. This is quite good.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 1.11, which indicates a rather cheap valuation of RZB.
RZB's Price/Earnings ratio is rather cheap when compared to the industry. RZB is cheaper than 92.96% of the companies in the same industry.
When comparing the Price/Earnings ratio of RZB to the average of the S&P500 Index (28.47), we can say RZB is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.06, the valuation of RZB can be described as very cheap.
95.07% of the companies in the same industry are more expensive than RZB, based on the Price/Forward Earnings ratio.
RZB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.11 | ||
| Fwd PE | 1.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RZB indicates a rather cheap valuation: RZB is cheaper than 95.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RZB is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.18 | ||
| EV/EBITDA | 1.17 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.31
PEG (5Y)0.11
EPS Next 2Y8.59%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
RZB has a Yearly Dividend Yield of 1.54%.
RZB's Dividend Yield is comparable with the industry average which is at 3.13.
RZB's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
The dividend of RZB is nicely growing with an annual growth rate of 8.46%!
RZB has been paying a dividend for over 5 years, so it has already some track record.
The dividend of RZB decreased in the last 3 years.
Dividend Growth(5Y)8.46%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
RZB pays out 31.22% of its income as dividend. This is a sustainable payout ratio.
RZB'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%
REINSURANCE GRP OF AMER - RGA 5 3/4 06/15/56
NYSE:RZB (2/4/2025, 8:06:17 PM)
After market: 24.75 +0.01 (+0.04%)24.74
+0.02 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners97.03%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap1.63B
Analysts80
Price Target30.75 (24.29%)
Short Float %0.01%
Short Ratio0.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend3.31
Dividend Growth(5Y)8.46%
DP31.22%
Div Incr Years0
Div Non Decr Years2
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)0%
PT rev (3m)5.55%
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.11 | ||
| Fwd PE | 1.06 | ||
| P/S | 0.07 | ||
| P/FCF | 0.18 | ||
| P/OCF | 0.18 | ||
| P/B | 0.15 | ||
| P/tB | 0.15 | ||
| EV/EBITDA | 1.17 |
EPS(TTM)22.36
EY90.38%
EPS(NY)23.42
Fwd EY94.66%
FCF(TTM)136.9
FCFY553.34%
OCF(TTM)136.59
OCFY552.11%
SpS332.13
BVpS168.95
TBVpS168.95
PEG (NY)0.31
PEG (5Y)0.11
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
WACC6.53%
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%