Despite its impressive fundamentals, NYSE:GL remains undervalued.

Last update: May 3, 2024

GLOBE LIFE INC (NYSE:GL) has caught the attention of our stock screener as a great value stock. NYSE:GL excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.

Valuation Analysis for NYSE:GL

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NYSE:GL, the assigned 8 reflects its valuation:

GL is valuated cheaply with a Price/Earnings ratio of 7.44.
Compared to the rest of the industry, the Price/Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 69.29% of the companies listed in the same industry.
GL is valuated cheaply when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.64, the valuation of GL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 74.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. GL is valued rather cheaply when compared to this.
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 79.29% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 69.29% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of GL may justify a higher PE ratio.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:GL was assigned a score of 7 for profitability:

With a decent Return On Assets value of 3.46%, GL is doing good in the industry, outperforming 72.86% of the companies in the same industry.
The Return On Equity of GL (21.64%) is better than 90.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.85%, GL is in the better half of the industry, outperforming 75.71% of the companies in the same industry.
With an excellent Profit Margin value of 17.82%, GL belongs to the best of the industry, outperforming 83.57% of the companies in the same industry.
GL's Profit Margin has improved in the last couple of years.
GL has a better Operating Margin (23.82%) than 83.57% of its industry peers.

Health Analysis for NYSE:GL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GL has received a 5 out of 10:

With an excellent Altman-Z score value of 0.89, GL belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
GL has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
GL has a better Debt to FCF ratio (1.48) than 62.14% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that GL is not too dependend on debt financing.
GL's Current ratio of 0.64 is fine compared to the rest of the industry. GL outperforms 75.71% of its industry peers.
GL's Quick ratio of 0.64 is fine compared to the rest of the industry. GL outperforms 75.71% of its industry peers.

How do we evaluate the Growth for NYSE:GL?

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:GL was assigned a score of 5 for growth:

GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.51%, which is quite impressive.
GL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.68% yearly.
The Earnings Per Share is expected to grow by 9.53% on average over the next years. This is quite good.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

For an up to date full fundamental analysis you can check the fundamental report of GL

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.