F&G ANNUITIES & LIFE INC (FG) Stock Fundamental Analysis
NYSE:FG - New York Stock Exchange, Inc. - US30190A1043 - Common Stock - Currency: USD
Taking everything into account, FG scores 5 out of 10 in our fundamental rating. FG was compared to 142 industry peers in the Insurance industry. While FG seems to be doing ok healthwise, there are quite some concerns on its profitability. FG has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
FG had positive earnings in the past year.
FG had a positive operating cash flow in the past year.
In multiple years FG reported negative net income over the last 5 years.
Each year in the past 5 years FG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.55%, FG is not doing good in the industry: 68.31% of the companies in the same industry are doing better.
FG has a Return On Equity of 11.14%. This is comparable to the rest of the industry: FG outperforms 55.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.72%, FG is doing worse than 61.97% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FG is below the industry average of 4.07%.
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
With a decent Profit Margin value of 9.46%, FG is doing good in the industry, outperforming 62.68% of the companies in the same industry.
FG's Profit Margin has declined in the last couple of years.
FG has a better Operating Margin (14.63%) than 66.90% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FG is destroying value.
The number of shares outstanding for FG has been increased compared to 1 year ago.
FG has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.14, we must say that FG is in the distress zone and has some risk of bankruptcy.
FG has a better Altman-Z score (0.14) than 69.72% 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 82.39% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that FG is somewhat dependend on debt financing.
The Debt to Equity ratio of FG (0.51) is worse than 68.31% 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
WACC7.99%
2.3 Liquidity
A Current Ratio of 0.39 indicates that FG may have some problems paying its short term obligations.
FG has a better Current ratio (0.39) than 73.24% 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.
FG's Quick ratio of 0.39 is fine compared to the rest of the industry. FG outperforms 73.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.39 | ||
| Quick Ratio | 0.39 |
3. Growth
3.1 Past
FG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.08%, which is quite impressive.
FG shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.33% yearly.
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
Based on estimates for the next years, FG will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.91% on average per year.
The Revenue is expected to grow by 10.39% on average over the next years. This is quite good.
EPS Next Y-8%
EPS Next 2Y17.19%
EPS Next 3Y17.91%
EPS Next 5YN/A
Revenue Next Year12.48%
Revenue Next 2Y10.39%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.07, which indicates a very decent valuation of FG.
76.06% of the companies in the same industry are more expensive than FG, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.52. FG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.68, which indicates a rather cheap valuation of FG.
Based on the Price/Forward Earnings ratio, FG is valued a bit cheaper than 77.46% of the companies in the same industry.
FG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.25.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 5.68 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FG is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FG indicates a rather cheap valuation: FG is cheaper than 94.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.83 | ||
| EV/EBITDA | 2.5 |
4.3 Compensation for Growth
FG's earnings are expected to grow with 17.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y17.19%
EPS Next 3Y17.91%
5. Dividend
5.1 Amount
FG has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.09, FG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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 2Y17.19%
EPS Next 3Y17.91%
33.24
+0.28 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners96.04%
Inst Owner Change0%
Ins Owners2.05%
Ins Owner Change4.16%
Market Cap4.48B
Analysts42
Price Target40.8 (22.74%)
Short Float %0.33%
Short Ratio1.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)0%
PT rev (3m)-14.89%
EPS NQ rev (1m)-26.83%
EPS NQ rev (3m)-37.59%
EPS NY rev (1m)-21.71%
EPS NY rev (3m)-29.3%
Revenue NQ rev (1m)9.43%
Revenue NQ rev (3m)27.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)20.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.07 | ||
| Fwd PE | 5.68 | ||
| P/S | 0.87 | ||
| P/FCF | 0.83 | ||
| P/OCF | 0.83 | ||
| P/B | 1.03 | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.5 |
EPS(TTM)4.12
EY12.39%
EPS(NY)5.85
Fwd EY17.6%
FCF(TTM)40.06
FCFY120.53%
OCF(TTM)40.23
OCFY121.02%
SpS38.13
BVpS32.38
TBVpS-26.25
PEG (NY)N/A
PEG (5Y)0.86
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
WACC7.99%
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-8%
EPS Next 2Y17.19%
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 Year12.48%
Revenue Next 2Y10.39%
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%