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 143 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.
RZC had a positive operating cash flow in the past year.
In the past 5 years RZC has always been profitable.
RZC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RZC has a worse Return On Assets (0.60%) than 70.63% of its industry peers.
Looking at the Return On Equity, with a value of 6.63%, RZC is doing worse than 67.13% of the companies in the same industry.
| 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: 74.83% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RZC has declined.
RZC has a worse Operating Margin (5.85%) than 69.93% of its industry peers.
In the last couple of years the Operating Margin of RZC has declined.
| 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.
Looking at the Debt to FCF ratio, with a value of 0.54, RZC is in the better half of the industry, outperforming 76.22% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that RZC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, RZC is doing worse than 64.34% of the companies in the same industry.
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
WACC6.24%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RZC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.90%, which is quite good.
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
RZC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
The Revenue is expected to grow by 7.35% on average over the next years.
EPS Next Y1.93%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
EPS Next 5Y8.38%
Revenue Next Year2.25%
Revenue Next 2Y5.94%
Revenue Next 3Y6.97%
Revenue Next 5Y7.35%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 1.14, the valuation of RZC can be described as very cheap.
Based on the Price/Earnings ratio, RZC is valued cheaper than 92.31% of the companies in the same industry.
When comparing the Price/Earnings ratio of RZC to the average of the S&P500 Index (28.64), we can say RZC is valued rather cheaply.
With a Price/Forward Earnings ratio of 1.11, 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 93.71% of the companies listed in the same industry.
RZC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.14 | ||
| Fwd PE | 1.11 |
4.2 Price Multiples
88.11% of the companies in the same industry are more expensive than RZC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RZC indicates a rather cheap valuation: RZC is cheaper than 99.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.18 | ||
| EV/EBITDA | 2.54 |
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)0.59
PEG (5Y)0.1
EPS Next 2Y6.48%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
RZC has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
RZC's Dividend Yield is comparable with the industry average which is at 3.28.
RZC's Dividend Yield is slightly below the S&P500 average, which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
On average, the dividend of RZC grows each year by 6.13%, which is quite nice.
RZC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)6.13%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
31.94% of the earnings are spent on dividend by RZC. This is a low number and sustainable payout ratio.
RZC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP31.94%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52
NYSE:RZC (4/24/2025, 9:30:00 AM)
After market: 24.91 -0.79 (-3.07%)25.7
+0.13 (+0.51%)
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 Cap1.70B
Analysts80
Price Target33.75 (31.32%)
Short Float %0.11%
Short Ratio1.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)0.61%
PT rev (3m)1.86%
EPS NQ rev (1m)-2.06%
EPS NQ rev (3m)-7.13%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-1.24%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)1.97%
Revenue NY rev (1m)2.2%
Revenue NY rev (3m)3.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.14 | ||
| Fwd PE | 1.11 | ||
| P/S | 0.08 | ||
| P/FCF | 0.18 | ||
| P/OCF | 0.18 | ||
| P/B | 0.16 | ||
| P/tB | 0.16 | ||
| EV/EBITDA | 2.54 |
EPS(TTM)22.62
EY88.02%
EPS(NY)23.06
Fwd EY89.71%
FCF(TTM)141.78
FCFY551.66%
OCF(TTM)141.78
OCFY551.66%
SpS334.73
BVpS163.66
TBVpS163.66
PEG (NY)0.59
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
WACC6.24%
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 Y1.93%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
EPS Next 5Y8.38%
Revenue 1Y (TTM)19.09%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%4.21%
Revenue Next Year2.25%
Revenue Next 2Y5.94%
Revenue Next 3Y6.97%
Revenue Next 5Y7.35%
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%