REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52 (RZC) Stock Fundamental Analysis
NYSE:RZC - New York Stock Exchange, Inc. - US7593518852 - Currency: USD
We assign a fundamental rating of 4 out of 10 to RZC. RZC was compared to 144 industry peers in the Insurance industry. RZC has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on RZC.
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.
Each year in the past 5 years RZC has been profitable.
RZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RZC's Return On Assets of 0.60% is on the low side compared to the rest of the industry. RZC is outperformed by 68.53% of its industry peers.
RZC's Return On Equity of 6.63% is on the low side compared to the rest of the industry. RZC is outperformed by 65.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.63% | ||
| 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
With a Profit Margin value of 3.24%, RZC is not doing good in the industry: 71.33% of the companies in the same industry are doing better.
RZC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 5.85%, RZC is doing worse than 69.93% of the companies in the same industry.
RZC's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.85% | ||
| PM (TTM) | 3.24% | ||
| 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
2. Health
2.1 Basic Checks
RZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RZC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RZC has more shares outstanding
Compared to 1 year ago, RZC has an improved debt to assets ratio.
2.2 Solvency
RZC has a debt to FCF ratio of 0.54. This is a very positive value and a sign of high solvency as it would only need 0.54 years to pay back of all of its debts.
RZC has a better Debt to FCF ratio (0.54) than 79.02% of its industry peers.
RZC has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, RZC is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
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 | 0.47 | ||
| Debt/FCF | 0.54 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC6.45%
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 nice 13.90% over the past year.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
Looking at the last year, RZC shows a quite strong growth in Revenue. The Revenue has grown by 19.09% in the last year.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
EPS 1Y (TTM)13.9%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%5.5%
Revenue 1Y (TTM)19.09%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%4.21%
3.2 Future
The Earnings Per Share is expected to grow by 6.46% on average over the next years.
RZC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.49% yearly.
EPS Next Y2.2%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue Next Year0.05%
Revenue Next 2Y4.15%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 1.15, the valuation of RZC can be described as very cheap.
92.31% of the companies in the same industry are more expensive than RZC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 29.35. RZC is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 1.13, the valuation of RZC can be described as very cheap.
Based on the Price/Forward Earnings ratio, RZC is valued cheaper than 93.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of RZC to the average of the S&P500 Index (22.10), we can say RZC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.15 | ||
| Fwd PE | 1.13 |
4.2 Price Multiples
90.21% of the companies in the same industry are more expensive than RZC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, RZC is valued cheaper than 99.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.18 | ||
| EV/EBITDA | 2.56 |
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)0.52
PEG (5Y)0.1
EPS Next 2Y5.46%
EPS Next 3Y6.46%
5. Dividend
5.1 Amount
RZC has a Yearly Dividend Yield of 1.84%.
RZC's Dividend Yield is comparable with the industry average which is at 3.17.
Compared to the average S&P500 Dividend Yield of 2.33, RZC is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
5.2 History
On average, the dividend of RZC grows each year by 6.13%, which is quite nice.
RZC has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)6.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
RZC pays out 31.94% of its income as dividend. This is a sustainable payout ratio.
The dividend of RZC is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP31.94%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52
NYSE:RZC (3/7/2025, 8:04:01 PM)
26.05
-0.02 (-0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.27%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap1.72B
Analysts80
Price Target33.54 (28.75%)
Short Float %0.18%
Short Ratio2.21
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.84% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP31.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.11%
Min EPS beat(2)-6.11%
Max EPS beat(2)14.34%
EPS beat(4)3
Avg EPS beat(4)11.45%
Min EPS beat(4)-6.11%
Max EPS beat(4)30.88%
EPS beat(8)7
Avg EPS beat(8)17.02%
EPS beat(12)10
Avg EPS beat(12)39.88%
EPS beat(16)11
Avg EPS beat(16)-6.09%
Revenue beat(2)1
Avg Revenue beat(2)2.09%
Min Revenue beat(2)-4.99%
Max Revenue beat(2)9.16%
Revenue beat(4)2
Avg Revenue beat(4)9.61%
Min Revenue beat(4)-4.99%
Max Revenue beat(4)37.64%
Revenue beat(8)5
Avg Revenue beat(8)7.62%
Revenue beat(12)7
Avg Revenue beat(12)4.91%
Revenue beat(16)11
Avg Revenue beat(16)5.67%
PT rev (1m)1.24%
PT rev (3m)9.88%
EPS NQ rev (1m)-4.83%
EPS NQ rev (3m)-5.16%
EPS NY rev (1m)-1.29%
EPS NY rev (3m)-0.82%
Revenue NQ rev (1m)3.24%
Revenue NQ rev (3m)1.47%
Revenue NY rev (1m)2.73%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.15 | ||
| Fwd PE | 1.13 | ||
| P/S | 0.08 | ||
| P/FCF | 0.18 | ||
| P/OCF | 0.18 | ||
| P/B | 0.16 | ||
| P/tB | 0.16 | ||
| EV/EBITDA | 2.56 |
EPS(TTM)22.62
EY86.83%
EPS(NY)23.12
Fwd EY88.75%
FCF(TTM)141.93
FCFY544.83%
OCF(TTM)141.93
OCFY544.83%
SpS335.08
BVpS163.83
TBVpS163.83
PEG (NY)0.52
PEG (5Y)0.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 6.63% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 5.85% | ||
| PM (TTM) | 3.24% | ||
| GM | N/A | ||
| FCFM | 42.36% |
ROA(3y)0.71%
ROA(5y)0.78%
ROE(3y)7.95%
ROE(5y)7.15%
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 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
F-Score5
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 0.54 | ||
| Debt/EBITDA | 3.76 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.08 | ||
| Cash Conversion | 699.25% | ||
| Profit Quality | 1306.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC6.45%
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)670.03%
Profit Quality(5y)631.93%
High Growth Momentum
Growth
EPS 1Y (TTM)13.9%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%5.5%
EPS Next Y2.2%
EPS Next 2Y5.46%
EPS Next 3Y6.46%
EPS Next 5YN/A
Revenue 1Y (TTM)19.09%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%4.21%
Revenue Next Year0.05%
Revenue Next 2Y4.15%
Revenue Next 3Y4.49%
Revenue Next 5YN/A
EBIT growth 1Y-9.26%
EBIT growth 3Y-1.11%
EBIT growth 5Y-1.06%
EBIT Next Year-6.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y131.7%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y131.7%
OCF growth 3Y30.85%
OCF growth 5Y32.35%