F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
NYSE:FG - US30190A1043 - Common Stock
34.69 USD
-0.03 (-0.09%)
34.69 USD
0 (0%)
Taking everything into account, FG scores 4 out of 10 in our fundamental rating. FG was compared to 143 industry peers in the Insurance industry. While FG seems to be doing ok healthwise, there are quite some concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on FG.
1. Profitability
1.1 Basic Checks
In the past year FG was profitable.
FG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: FG reported negative net income in multiple years.
Each year in the past 5 years FG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.35%, FG is doing worse than 70.63% of the companies in the same industry.
FG has a worse Return On Equity (7.28%) than 62.94% of its industry peers.
FG has a Return On Invested Capital of 0.53%. This is in the lower half of the industry: FG underperforms 62.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for FG is below the industry average of 4.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 7.28% | ||
| ROIC | 0.53% |
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
FG has a Profit Margin (6.09%) which is comparable to the rest of the industry.
FG's Profit Margin has declined in the last couple of years.
FG has a Operating Margin (10.70%) which is comparable to the rest of the industry.
FG's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.7% | ||
| PM (TTM) | 6.09% | ||
| 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.
FG has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, FG has a worse debt to assets ratio.
2.2 Solvency
FG has an Altman-Z score of 0.13. This is a bad value and indicates that FG is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of FG (0.13) is better than 68.53% of its industry peers.
FG has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
FG has a better Debt to FCF ratio (0.37) than 85.31% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that FG is somewhat dependend on debt financing.
The Debt to Equity ratio of FG (0.50) is worse than 67.13% of its industry peers.
Although FG 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 | 0.5 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.07
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.38 indicates that FG may have some problems paying its short term obligations.
The Current ratio of FG (0.38) is better than 72.03% of its industry peers.
A Quick Ratio of 0.38 indicates that FG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.38, FG is in the better half of the industry, outperforming 72.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.06% 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.
Looking at the last year, FG shows a small growth in Revenue. The Revenue has grown by 2.85% in the last year.
Measured over the past years, FG shows a very strong growth in Revenue. The Revenue has been growing by 24.99% on average per year.
EPS 1Y (TTM)10.06%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-27.36%
Revenue 1Y (TTM)2.85%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%16.38%
3.2 Future
The Earnings Per Share is expected to grow by 17.27% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.70% on average over the next years.
EPS Next Y-9.69%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
EPS Next 5YN/A
Revenue Next Year-6.63%
Revenue Next 2Y5.7%
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.
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
FG is valuated reasonably with a Price/Earnings ratio of 9.06.
Based on the Price/Earnings ratio, FG is valued a bit cheaper than 68.53% of the companies in the same industry.
FG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.14.
The Price/Forward Earnings ratio is 5.95, which indicates a rather cheap valuation of FG.
77.62% of the companies in the same industry are more expensive than FG, based on the Price/Forward Earnings ratio.
FG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 5.95 |
4.2 Price Multiples
83.22% of the companies in the same industry are more expensive than FG, based on the Enterprise Value to EBITDA ratio.
96.50% of the companies in the same industry are more expensive than FG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.78 | ||
| EV/EBITDA | 4.27 |
4.3 Compensation for Growth
FG's earnings are expected to grow with 17.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.97
EPS Next 2Y17.03%
EPS Next 3Y17.27%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.50%, FG is a good candidate for dividend investing.
FG's Dividend Yield is rather good when compared to the industry average which is at 3.52. FG pays more dividend than 94.41% of the companies in the same industry.
FG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
5.2 History
FG has been paying a dividend for over 5 years, so it has already some track record.
FG has decreased its dividend recently.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
39.94% of the earnings are spent on dividend by FG. This is a low number and sustainable payout ratio.
DP39.94%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
34.69
-0.03 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.76%
Inst Owner Change0%
Ins Owners2.09%
Ins Owner Change4.16%
Market Cap4.67B
Analysts42
Price Target39.27 (13.2%)
Short Float %0.43%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.5% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP39.94%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.81%
Min EPS beat(2)-27.3%
Max EPS beat(2)30.92%
EPS beat(4)2
Avg EPS beat(4)0.55%
Min EPS beat(4)-27.3%
Max EPS beat(4)30.92%
EPS beat(8)2
Avg EPS beat(8)-9.16%
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)-14.03%
Min Revenue beat(2)-40.15%
Max Revenue beat(2)12.08%
Revenue beat(4)3
Avg Revenue beat(4)-0.08%
Min Revenue beat(4)-40.15%
Max Revenue beat(4)14.6%
Revenue beat(8)5
Avg Revenue beat(8)3.16%
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)8.45%
PT rev (3m)-3.75%
EPS NQ rev (1m)3.91%
EPS NQ rev (3m)-23.43%
EPS NY rev (1m)9.95%
EPS NY rev (3m)-1.84%
Revenue NQ rev (1m)-1.7%
Revenue NQ rev (3m)1.83%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)-16.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 5.95 | ||
| P/S | 0.88 | ||
| P/FCF | 0.78 | ||
| P/OCF | 0.78 | ||
| P/B | 1.05 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.27 |
EPS(TTM)3.83
EY11.04%
EPS(NY)5.83
Fwd EY16.82%
FCF(TTM)44.3
FCFY127.7%
OCF(TTM)44.46
OCFY128.15%
SpS39.42
BVpS32.96
TBVpS-27.36
PEG (NY)N/A
PEG (5Y)0.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.35% | ||
| ROE | 7.28% | ||
| ROCE | 0.64% | ||
| ROIC | 0.53% | ||
| ROICexc | 0.54% | ||
| ROICexgc | 0.76% | ||
| OM | 10.7% | ||
| PM (TTM) | 6.09% | ||
| GM | N/A | ||
| FCFM | 112.38% |
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-Score4
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 0.37 | ||
| Debt/EBITDA | 1.9 | ||
| Cap/Depr | 3.44% | ||
| Cap/Sales | 0.4% | ||
| Interest Coverage | 3.94 | ||
| Cash Conversion | 508.15% | ||
| Profit Quality | 1846.75% | ||
| Current Ratio | 0.38 | ||
| Quick Ratio | 0.38 | ||
| Altman-Z | 0.13 |
F-Score4
WACC7.85%
ROIC/WACC0.07
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)10.06%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%-27.36%
EPS Next Y-9.69%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
EPS Next 5YN/A
Revenue 1Y (TTM)2.85%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%16.38%
Revenue Next Year-6.63%
Revenue Next 2Y5.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.59%
EBIT growth 3Y-6.3%
EBIT growth 5Y14.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y13.97%
FCF growth 3Y48.14%
FCF growth 5Y56.47%
OCF growth 1Y13.8%
OCF growth 3Y47.46%
OCF growth 5Y55.87%