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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

26.43  +0.01 (+0.04%)

Fundamental Rating

4

RZC 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 RZC have multiple concerns. RZC is evaluated to be cheap and growing strongly. This does not happen too often!


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

RZC had positive earnings in the past year.
In the past year RZC had a positive cash flow from operations.
Each year in the past 5 years RZC has been profitable.
Each year in the past 5 years RZC had a positive operating cash flow.
RZC Yearly Net Income VS EBIT VS OCF VS FCFRZC 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

Looking at the Return On Assets, with a value of 0.60%, RZC is doing worse than 68.31% of the companies in the same industry.
RZC has a Return On Equity of 6.53%. This is in the lower half of the industry: RZC underperforms 64.79% of its industry peers.
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
RZC Yearly ROA, ROE, ROICRZC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15

1.3 Margins

With a Profit Margin value of 3.32%, RZC is not doing good in the industry: 66.90% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RZC has declined.
With a Operating Margin value of 5.67%, RZC is not doing good in the industry: 65.49% of the companies in the same industry are doing better.
RZC'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
RZC Yearly Profit, Operating, Gross MarginsRZC 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

RZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RZC has less shares outstanding than it did 1 year ago.
RZC has more shares outstanding than it did 5 years ago.
RZC has a better debt/assets ratio than last year.
RZC Yearly Shares OutstandingRZC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M
RZC Yearly Total Debt VS Total AssetsRZC 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

The Debt to FCF ratio of RZC is 0.56, which is an excellent value as it means it would take RZC, only 0.56 years of fcf income to pay off all of its debts.
RZC has a Debt to FCF ratio of 0.56. This is in the better half of the industry: RZC outperforms 79.58% of its industry peers.
RZC has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
RZC has a Debt to Equity ratio of 0.46. This is in the lower half of the industry: RZC underperforms 64.79% of its industry peers.
Even though the debt/equity ratio score it not favorable for RZC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.46
Debt/FCF 0.56
Altman-Z N/A
ROIC/WACCN/A
WACC6.54%
RZC Yearly LT Debt VS Equity VS FCFRZC 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.
Measured over the past years, RZC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.24% on average per year.
The Revenue has grown by 21.75% in the past year. This is a very strong growth!
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, RZC will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.65% on average per year.
Based on estimates for the next years, RZC will show a quite strong growth in Revenue. The Revenue will grow by 9.97% on average per year.
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

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
RZC Yearly Revenue VS EstimatesRZC 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
RZC Yearly EPS VS EstimatesRZC 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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8

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 1.18, which indicates a rather cheap valuation of RZC.
92.25% 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 28.47. RZC is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 1.13 indicates a rather cheap valuation of RZC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RZC indicates a rather cheap valuation: RZC is cheaper than 93.66% 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 92.74.
Industry RankSector Rank
PE 1.18
Fwd PE 1.13
RZC Price Earnings VS Forward Price EarningsRZC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RZC is valued cheaper than 94.37% of the companies in the same industry.
99.30% of the companies in the same industry are more expensive than RZC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 0.19
EV/EBITDA 1.26
RZC Per share dataRZC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

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)0.33
PEG (5Y)0.12
EPS Next 2Y8.59%
EPS Next 3Y8.71%

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4

5. Dividend

5.1 Amount

RZC has a Yearly Dividend Yield of 1.54%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.13, RZC has a dividend in line with its industry peers.
RZC's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.54%

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
RZC Yearly Dividends per shareRZC Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

31.22% of the earnings are spent on dividend by RZC. This is a low number and 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.
DP31.22%
EPS Next 2Y8.59%
EPS Next 3Y8.71%
RZC Yearly Income VS Free CF VS DividendRZC 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
RZC Dividend Payout.RZC Dividend Payout, showing the Payout Ratio.RZC Dividend Payout.PayoutRetained Earnings

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REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52

NYSE:RZC (2/4/2025, 8:06:17 PM)

26.43

+0.01 (+0.04%)

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 ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap1.74B
Analysts80
Price Target33.13 (25.35%)
Short Float %0.06%
Short Ratio1.03
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Yearly Dividend3.31
Dividend Growth(5Y)8.46%
DP31.22%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01 2025-04-01 (0.4453)
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)7.62%
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 1.18
Fwd PE 1.13
P/S 0.08
P/FCF 0.19
P/OCF 0.19
P/B 0.16
P/tB 0.16
EV/EBITDA 1.26
EPS(TTM)22.36
EY84.6%
EPS(NY)23.42
Fwd EY88.61%
FCF(TTM)136.9
FCFY517.96%
OCF(TTM)136.59
OCFY516.81%
SpS332.13
BVpS168.95
TBVpS168.95
PEG (NY)0.33
PEG (5Y)0.12
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
WACC6.54%
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%