F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
NYSE:FG - New York Stock Exchange, Inc. - US30190A1043 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to FG. FG was compared to 143 industry peers in the Insurance industry. The financial health of FG is average, but there are quite some concerns on its profitability. FG is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year FG was profitable.
FG had a positive operating cash flow in the past year.
In multiple years FG reported negative net income over the last 5 years.
FG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FG has a worse Return On Assets (0.55%) than 67.13% of its industry peers.
Looking at the Return On Equity, with a value of 11.14%, FG is in line with its industry, outperforming 54.55% of the companies in the same industry.
FG has a worse Return On Invested Capital (0.72%) than 62.24% of its industry peers.
FG had an Average Return On Invested Capital over the past 3 years of 0.65%. This is below the industry average of 4.06%.
The 3 year average ROIC (0.65%) for FG is below the current ROIC(0.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 11.14% | ||
| ROIC | 0.72% |
ROA(3y)0.51%
ROA(5y)0.57%
ROE(3y)11.29%
ROE(5y)9.72%
ROIC(3y)0.65%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 9.46%, FG is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of FG has declined.
FG has a better Operating Margin (14.63%) than 68.53% of its industry peers.
FG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.63% | ||
| PM (TTM) | 9.46% | ||
| GM | N/A |
OM growth 3Y-17.37%
OM growth 5Y-8.02%
PM growth 3Y-21%
PM growth 5Y-11.75%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so FG is destroying value.
Compared to 1 year ago, FG has more shares outstanding
Compared to 1 year ago, FG has a worse debt to assets ratio.
2.2 Solvency
FG has an Altman-Z score of 0.14. This is a bad value and indicates that FG is not financially healthy and even has some risk of bankruptcy.
FG has a Altman-Z score of 0.14. This is in the better half of the industry: FG outperforms 69.93% of its industry peers.
The Debt to FCF ratio of FG is 0.41, which is an excellent value as it means it would take FG, only 0.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.41, FG belongs to the top of the industry, outperforming 83.22% of the companies in the same industry.
FG has a Debt/Equity ratio of 0.51. This is a neutral value indicating FG is somewhat dependend on debt financing.
FG has a worse Debt to Equity ratio (0.51) than 66.43% of its industry peers.
Even though the debt/equity ratio score it not favorable for FG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 0.14 |
ROIC/WACC0.09
WACC7.89%
2.3 Liquidity
FG has a Current Ratio of 0.39. This is a bad value and indicates that FG is not financially healthy enough and could expect problems in meeting its short term obligations.
FG has a Current ratio of 0.39. This is in the better half of the industry: FG outperforms 72.73% of its industry peers.
A Quick Ratio of 0.39 indicates that FG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.39, FG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.08% over the past year.
Measured over the past years, FG shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.33% on average per year.
The Revenue has decreased by -0.48% in the past year.
The Revenue has been growing by 24.99% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)35.08%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-16.28%
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%-42.13%
3.2 Future
The Earnings Per Share is expected to grow by 17.91% on average over the next years. This is quite good.
Based on estimates for the next years, FG will show a small growth in Revenue. The Revenue will grow by 5.15% on average per year.
EPS Next Y-17.87%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
EPS Next 5YN/A
Revenue Next Year-7.11%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FG is valuated cheaply with a Price/Earnings ratio of 7.83.
Based on the Price/Earnings ratio, FG is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.93, FG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.70, the valuation of FG can be described as very cheap.
FG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FG is cheaper than 78.32% of the companies in the same industry.
FG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 5.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FG is valued cheaper than 89.51% of the companies in the same industry.
FG's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FG is cheaper than 95.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.81 | ||
| EV/EBITDA | 2.43 |
4.3 Compensation for Growth
A more expensive valuation may be justified as FG's earnings are expected to grow with 17.91% in the coming years.
PEG (NY)N/A
PEG (5Y)0.84
EPS Next 2Y15.27%
EPS Next 3Y17.91%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, FG has a reasonable but not impressive dividend return.
FG's Dividend Yield is a higher than the industry average which is at 3.29.
Compared to an average S&P500 Dividend Yield of 2.32, FG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
FG has been paying a dividend for over 5 years, so it has already some track record.
The dividend of FG decreased recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
25.72% of the earnings are spent on dividend by FG. This is a low number and sustainable payout ratio.
DP25.72%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
32.27
+0.03 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.54%
Inst Owner Change0%
Ins Owners2.09%
Ins Owner Change4.16%
Market Cap4.35B
Analysts42
Price Target36.21 (12.21%)
Short Float %0.44%
Short Ratio2.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP25.72%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-18.45%
Min EPS beat(2)-27.3%
Max EPS beat(2)-9.61%
EPS beat(4)1
Avg EPS beat(4)-8.47%
Min EPS beat(4)-27.3%
Max EPS beat(4)8.17%
EPS beat(8)1
Avg EPS beat(8)-17.39%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-13.5%
Min Revenue beat(2)-40.15%
Max Revenue beat(2)13.14%
Revenue beat(4)2
Avg Revenue beat(4)-6.09%
Min Revenue beat(4)-40.15%
Max Revenue beat(4)14.6%
Revenue beat(8)5
Avg Revenue beat(8)7.23%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-4.05%
PT rev (3m)-11.25%
EPS NQ rev (1m)-29.68%
EPS NQ rev (3m)-48.54%
EPS NY rev (1m)-10.72%
EPS NY rev (3m)-30.1%
Revenue NQ rev (1m)-12.32%
Revenue NQ rev (3m)-15.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-17.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.83 | ||
| Fwd PE | 5.7 | ||
| P/S | 0.85 | ||
| P/FCF | 0.81 | ||
| P/OCF | 0.8 | ||
| P/B | 1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.43 |
EPS(TTM)4.12
EY12.77%
EPS(NY)5.66
Fwd EY17.54%
FCF(TTM)40.06
FCFY124.15%
OCF(TTM)40.23
OCFY124.66%
SpS38.13
BVpS32.38
TBVpS-26.25
PEG (NY)N/A
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.55% | ||
| ROE | 11.14% | ||
| ROCE | 0.88% | ||
| ROIC | 0.72% | ||
| ROICexc | 0.75% | ||
| ROICexgc | 1.06% | ||
| OM | 14.63% | ||
| PM (TTM) | 9.46% | ||
| GM | N/A | ||
| FCFM | 105.06% |
ROA(3y)0.51%
ROA(5y)0.57%
ROE(3y)11.29%
ROE(5y)9.72%
ROIC(3y)0.65%
ROIC(5y)N/A
ROICexc(3y)0.67%
ROICexc(5y)N/A
ROICexgc(3y)0.83%
ROICexgc(5y)N/A
ROCE(3y)0.79%
ROCE(5y)N/A
ROICexcg growth 3Y-16.01%
ROICexcg growth 5YN/A
ROICexc growth 3Y-22.32%
ROICexc growth 5YN/A
OM growth 3Y-17.37%
OM growth 5Y-8.02%
PM growth 3Y-21%
PM growth 5Y-11.75%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 3.67% | ||
| Cap/Sales | 0.43% | ||
| Interest Coverage | 6.06 | ||
| Cash Conversion | 401.26% | ||
| Profit Quality | 1110.91% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.14 |
F-Score5
WACC7.89%
ROIC/WACC0.09
Cap/Depr(3y)6.83%
Cap/Depr(5y)13.24%
Cap/Sales(3y)0.8%
Cap/Sales(5y)1.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)35.08%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-16.28%
EPS Next Y-17.87%
EPS Next 2Y15.27%
EPS Next 3Y17.91%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.48%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%-42.13%
Revenue Next Year-7.11%
Revenue Next 2Y5.15%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y81.2%
EBIT growth 3Y-6.3%
EBIT growth 5Y14.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.85%
FCF growth 3Y48.14%
FCF growth 5Y56.47%
OCF growth 1Y29.53%
OCF growth 3Y47.46%
OCF growth 5Y55.87%