REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52 (RZC)
US7593518852
Taking everything into account, RZC scores 5 out of 10 in our fundamental rating. RZC was compared to 141 industry peers in the Insurance industry. RZC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RZC may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year RZC was profitable.
In the past year RZC had a positive cash flow from operations.
RZC had positive earnings in each of the past 5 years.
RZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.78%, RZC is doing worse than 60.43% of the companies in the same industry.
RZC's Return On Equity of 8.81% is in line compared to the rest of the industry. RZC outperforms 43.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 8.81% | ||
| 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
The Profit Margin of RZC (4.02%) is worse than 63.31% of its industry peers.
In the last couple of years the Profit Margin of RZC has declined.
RZC has a worse Operating Margin (6.47%) than 61.15% of its industry peers.
In the last couple of years the Operating Margin of RZC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.47% | ||
| PM (TTM) | 4.02% | ||
| 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
RZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RZC has been reduced compared to 1 year ago.
RZC has more shares outstanding than it did 5 years ago.
RZC has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of RZC is 0.57, which is an excellent value as it means it would take RZC, only 0.57 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.57, RZC belongs to the best of the industry, outperforming 82.73% of the companies in the same industry.
RZC has a Debt/Equity ratio of 0.52. This is a neutral value indicating RZC is somewhat dependend on debt financing.
The Debt to Equity ratio of RZC (0.52) is worse than 62.59% of its industry peers.
Although RZC 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 | 0.52 | ||
| Debt/FCF | 0.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC5.86%
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 22.82% 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 26.38% in the past year. This is a very strong growth!
RZC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.56% yearly.
EPS 1Y (TTM)22.82%
EPS 3Y38.53%
EPS 5Y10.24%
EPS Q2Q%24.55%
Revenue 1Y (TTM)26.38%
Revenue growth 3Y8.32%
Revenue growth 5Y7.56%
Sales Q2Q%17.37%
3.2 Future
RZC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 8.00% yearly.
The Revenue is expected to grow by 8.45% on average over the next years. This is quite good.
EPS Next Y11.11%
EPS Next 2Y7.4%
EPS Next 3Y7.61%
EPS Next 5Y8%
Revenue Next Year19.07%
Revenue Next 2Y8.22%
Revenue Next 3Y6.83%
Revenue Next 5Y8.45%
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 decreasing.
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 1.22, which indicates a rather cheap valuation of RZC.
Based on the Price/Earnings ratio, RZC is valued cheaply inside the industry as 96.40% of the companies are valued more expensively.
RZC is valuated cheaply when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 1.16, the valuation of RZC can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RZC indicates a rather cheap valuation: RZC is cheaper than 96.40% of the companies listed in the same industry.
RZC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.22 | ||
| Fwd PE | 1.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RZC is valued cheaply inside the industry as 94.96% of the companies are valued more expensively.
RZC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RZC is cheaper than 99.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.2 | ||
| EV/EBITDA | 1.57 |
4.3 Compensation for Growth
RZC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.11
PEG (5Y)0.12
EPS Next 2Y7.4%
EPS Next 3Y7.61%
5. Dividend
5.1 Amount
RZC has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 5.12, RZC has a dividend in line with its industry peers.
RZC's Dividend Yield is slightly below the S&P500 average, which is at 2.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
5.2 History
The dividend of RZC is nicely growing with an annual growth rate of 8.46%!
RZC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)8.46%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
26.11% of the earnings are spent on dividend by RZC. This is a low number and sustainable payout ratio.
RZC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.11%
EPS Next 2Y7.4%
EPS Next 3Y7.61%
REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52
NYSE:RZC (10/31/2024, 8:04:01 PM)
After market: 26.637 0 (-0.01%)26.64
-0.06 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.75B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.22 | ||
| Fwd PE | 1.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.11
PEG (5Y)0.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.78% | ||
| ROE | 8.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.47% | ||
| PM (TTM) | 4.02% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)22.82%
EPS 3Y38.53%
EPS 5Y
EPS Q2Q%
EPS Next Y11.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)26.38%
Revenue growth 3Y8.32%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y