F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FG - US30190A1043 - Common Stock
33.38 USD
+0.98 (+3.02%)
33.38 USD
0 (0%)
Taking everything into account, FG scores 4 out of 10 in our fundamental rating. FG was compared to 148 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.
In the past year FG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: FG reported negative net income in multiple years.
FG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of FG (0.46%) is worse than 77.03% of its industry peers.
The Return On Equity of FG (9.27%) is comparable to the rest of the industry.
The Return On Invested Capital of FG (0.65%) is worse than 66.22% 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 4.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 9.27% | ||
| ROIC | 0.65% |
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 of 8.06%. This is comparable to the rest of the industry: FG outperforms 48.65% of its industry peers.
In the last couple of years the Profit Margin of FG has declined.
The Operating Margin of FG (13.25%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FG has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.25% | ||
| PM (TTM) | 8.06% | ||
| 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
FG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
FG has more shares outstanding than it did 1 year ago.
FG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.13, we must say that FG is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FG (0.13) is better than 65.54% of its industry peers.
FG has a debt to FCF ratio of 0.46. This is a very positive value and a sign of high solvency as it would only need 0.46 years to pay back of all of its debts.
FG's Debt to FCF ratio of 0.46 is amongst the best of the industry. FG outperforms 80.41% of its industry peers.
FG has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
FG's Debt to Equity ratio of 0.46 is on the low side compared to the rest of the industry. FG is outperformed by 66.89% 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 | 0.46 | ||
| Debt/FCF | 0.46 | ||
| Altman-Z | 0.13 |
ROIC/WACC0.08
WACC7.7%
2.3 Liquidity
A Current Ratio of 0.39 indicates that FG may have some problems paying its short term obligations.
FG has a Current ratio of 0.39. This is in the better half of the industry: FG outperforms 70.95% of its industry peers.
FG has a Quick 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.
Looking at the Quick ratio, with a value of 0.39, FG is in the better half of the industry, outperforming 70.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
FG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.41%.
The Earnings Per Share has been growing by 9.33% on average over the past years. This is quite good.
The Revenue has decreased by -2.94% 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)2.41%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%0%
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%17.31%
3.2 Future
Based on estimates for the next years, FG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.27% on average per year.
FG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y-10.9%
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 8.72, the valuation of FG can be described as very reasonable.
FG's Price/Earnings ratio is a bit cheaper when compared to the industry. FG is cheaper than 68.92% of the companies in the same industry.
When comparing the Price/Earnings ratio of FG to the average of the S&P500 Index (26.37), we can say FG is valued rather cheaply.
FG is valuated cheaply with a Price/Forward Earnings ratio of 5.72.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FG indicates a somewhat cheap valuation: FG is cheaper than 79.73% of the companies listed in the same industry.
FG is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 5.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FG is valued cheaply inside the industry as 86.49% of the companies are valued more expensively.
95.95% 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 | 0.93 | ||
| EV/EBITDA | 3.2 |
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)0.93
EPS Next 2Y17.03%
EPS Next 3Y17.27%
5. Dividend
5.1 Amount
FG has a Yearly Dividend Yield of 2.81%.
FG's Dividend Yield is a higher than the industry average which is at 3.32.
Compared to an average S&P500 Dividend Yield of 2.32, FG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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
29.31% of the earnings are spent on dividend by FG. This is a low number and sustainable payout ratio.
DP29.31%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
33.38
+0.98 (+3.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.9%
Inst Owner Change0%
Ins Owners2%
Ins Owner Change0.57%
Market Cap4.49B
Revenue(TTM)5.55B
Net Income(TTM)447.00M
Analysts42
Price Target34.68 (3.89%)
Short Float %0.51%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend0.96
Dividend Growth(5Y)N/A
DP29.31%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.36%
Min EPS beat(2)21.8%
Max EPS beat(2)30.92%
EPS beat(4)2
Avg EPS beat(4)3.95%
Min EPS beat(4)-27.3%
Max EPS beat(4)30.92%
EPS beat(8)3
Avg EPS beat(8)-5.36%
EPS beat(12)4
Avg EPS beat(12)-6.88%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)14.7%
Min Revenue beat(2)12.08%
Max Revenue beat(2)17.31%
Revenue beat(4)3
Avg Revenue beat(4)0.6%
Min Revenue beat(4)-40.15%
Max Revenue beat(4)17.31%
Revenue beat(8)6
Avg Revenue beat(8)6.89%
Revenue beat(12)8
Avg Revenue beat(12)3.79%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-11.69%
PT rev (3m)-11.69%
EPS NQ rev (1m)9.92%
EPS NQ rev (3m)9.92%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.34%
Revenue NQ rev (1m)6.34%
Revenue NQ rev (3m)6.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.72 | ||
| Fwd PE | 5.72 | ||
| P/S | 0.81 | ||
| P/FCF | 0.93 | ||
| P/OCF | 0.93 | ||
| P/B | 0.93 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.2 |
EPS(TTM)3.83
EY11.47%
EPS(NY)5.83
Fwd EY17.48%
FCF(TTM)35.77
FCFY107.17%
OCF(TTM)35.9
OCFY107.55%
SpS41.2
BVpS35.83
TBVpS-25.65
PEG (NY)N/A
PEG (5Y)0.93
Graham Number55.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 9.27% | ||
| ROCE | 0.79% | ||
| ROIC | 0.65% | ||
| ROICexc | 0.66% | ||
| ROICexgc | 0.94% | ||
| OM | 13.25% | ||
| PM (TTM) | 8.06% | ||
| GM | N/A | ||
| FCFM | 86.82% |
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
ROICexgc growth 3Y-16.01%
ROICexgc 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-Score7
Asset Turnover0.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 0.46 | ||
| Debt/EBITDA | 1.62 | ||
| Cap/Depr | 2.64% | ||
| Cap/Sales | 0.31% | ||
| Interest Coverage | 5.14 | ||
| Cash Conversion | 350.73% | ||
| Profit Quality | 1077.4% | ||
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 | ||
| Altman-Z | 0.13 |
F-Score7
WACC7.7%
ROIC/WACC0.08
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)2.41%
EPS 3Y-11.8%
EPS 5Y9.33%
EPS Q2Q%0%
EPS Next Y-10.9%
EPS Next 2Y17.03%
EPS Next 3Y17.27%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.94%
Revenue growth 3Y13.4%
Revenue growth 5Y24.99%
Sales Q2Q%17.31%
Revenue Next Year-6.63%
Revenue Next 2Y5.7%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y562.16%
EBIT growth 3Y-6.3%
EBIT growth 5Y14.97%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-1.09%
FCF growth 3Y48.14%
FCF growth 5Y56.47%
OCF growth 1Y-1.29%
OCF growth 3Y47.46%
OCF growth 5Y55.87%
F&G ANNUITIES & LIFE INC / FG FAQ
What is the ChartMill fundamental rating of F&G ANNUITIES & LIFE INC (FG) stock?
ChartMill assigns a fundamental rating of 4 / 10 to FG.
What is the valuation status for FG stock?
ChartMill assigns a valuation rating of 7 / 10 to F&G ANNUITIES & LIFE INC (FG). This can be considered as Undervalued.
What is the profitability of FG stock?
F&G ANNUITIES & LIFE INC (FG) has a profitability rating of 2 / 10.
Can you provide the expected EPS growth for FG stock?
The Earnings per Share (EPS) of F&G ANNUITIES & LIFE INC (FG) is expected to decline by -10.9% in the next year.
Is the dividend of F&G ANNUITIES & LIFE INC sustainable?
The dividend rating of F&G ANNUITIES & LIFE INC (FG) is 4 / 10 and the dividend payout ratio is 29.31%.