GLOBE LIFE INC (GL) Stock Fundamental Analysis
USA - NYSE:GL - US37959E1029 - Common Stock
139.87 USD
+3.41 (+2.5%)
139.87 USD
0 (0%)
Overall GL gets a fundamental rating of 6 out of 10. We evaluated GL against 145 industry peers in the Insurance industry. While GL has a great profitability rating, there are some minor concerns on its financial health. GL may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year GL was profitable.
GL had a positive operating cash flow in the past year.
In the past 5 years GL has always been profitable.
Each year in the past 5 years GL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, GL is in the better half of the industry, outperforming 73.79% of the companies in the same industry.
GL has a better Return On Equity (19.66%) than 89.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.15%, GL is in the better half of the industry, outperforming 73.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GL is in line with the industry average of 4.40%.
The 3 year average ROIC (3.96%) for GL is below the current ROIC(4.15%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 19.66% | ||
| ROIC | 4.15% |
ROA(3y)3.53%
ROA(5y)3.31%
ROE(3y)21.49%
ROE(5y)16.95%
ROIC(3y)3.96%
ROIC(5y)3.76%
1.3 Margins
The Profit Margin of GL (18.11%) is better than 88.97% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
GL has a better Operating Margin (25.25%) than 89.66% of its industry peers.
In the last couple of years the Operating Margin of GL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 18.11% | ||
| GM | N/A |
OM growth 3Y-1.67%
OM growth 5Y2.45%
PM growth 3Y-2.72%
PM growth 5Y1.98%
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), GL is destroying value.
The number of shares outstanding for GL has been reduced compared to 1 year ago.
The number of shares outstanding for GL has been reduced compared to 5 years ago.
GL has a worse debt/assets ratio than last year.
2.2 Solvency
GL has an Altman-Z score of 1.01. This is a bad value and indicates that GL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of GL (1.01) is better than 78.62% of its industry peers.
GL has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as GL would need 2.07 years to pay back of all of its debts.
With a Debt to FCF ratio value of 2.07, GL perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
GL has a Debt/Equity ratio of 0.51. This is a neutral value indicating GL is somewhat dependend on debt financing.
GL's Debt to Equity ratio of 0.51 is on the low side compared to the rest of the industry. GL is outperformed by 69.66% of its industry peers.
Even though the debt/equity ratio score it not favorable for GL, 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 | 2.07 | ||
| Altman-Z | 1.01 |
ROIC/WACC0.53
WACC7.85%
2.3 Liquidity
A Current Ratio of 0.54 indicates that GL may have some problems paying its short term obligations.
GL's Current ratio of 0.54 is fine compared to the rest of the industry. GL outperforms 75.17% of its industry peers.
GL has a Quick Ratio of 0.54. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
GL has a better Quick ratio (0.54) than 75.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.19%, which is quite good.
GL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.93% yearly.
GL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.02%.
GL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)15.19%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.1%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%2.85%
3.2 Future
The Earnings Per Share is expected to grow by 10.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y19.84%
EPS Next 2Y11.8%
EPS Next 3Y11.01%
EPS Next 5Y10.78%
Revenue Next Year7.39%
Revenue Next 2Y6.3%
Revenue Next 3Y5.74%
Revenue Next 5Y5.69%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.78, which indicates a very decent valuation of GL.
GL's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GL to the average of the S&P500 Index (27.50), we can say GL is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.04, the valuation of GL can be described as very reasonable.
64.14% of the companies in the same industry are more expensive than GL, based on the Price/Forward Earnings ratio.
GL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.99, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 9.04 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 63.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than the industry average as 60.69% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.4 | ||
| EV/EBITDA | 6.93 |
4.3 Compensation for Growth
GL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
GL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.54
PEG (5Y)0.83
EPS Next 2Y11.8%
EPS Next 3Y11.01%
5. Dividend
5.1 Amount
GL has a yearly dividend return of 0.79%, which is pretty low.
GL's Dividend Yield is slightly below the industry average, which is at 3.54.
Compared to an average S&P500 Dividend Yield of 2.44, GL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of GL grows each year by 7.26%, which is quite nice.
GL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
7.91% of the earnings are spent on dividend by GL. This is a low number and sustainable payout ratio.
The dividend of GL is growing, but earnings are growing more, so the dividend growth is sustainable.
DP7.91%
EPS Next 2Y11.8%
EPS Next 3Y11.01%
139.87
+3.41 (+2.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.79%
Inst Owner Change-0.01%
Ins Owners0.67%
Ins Owner Change0.48%
Market Cap11.33B
Analysts81
Price Target164.93 (17.92%)
Short Float %1.96%
Short Ratio2.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend0.96
Dividend Growth(5Y)7.26%
DP7.91%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.1%
Min EPS beat(2)-8.15%
Max EPS beat(2)-2.04%
EPS beat(4)1
Avg EPS beat(4)-0.43%
Min EPS beat(4)-8.15%
Max EPS beat(4)10.85%
EPS beat(8)1
Avg EPS beat(8)-0.87%
EPS beat(12)2
Avg EPS beat(12)-0.78%
EPS beat(16)2
Avg EPS beat(16)-1.9%
Revenue beat(2)0
Avg Revenue beat(2)-3.87%
Min Revenue beat(2)-4.43%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-4.43%
Max Revenue beat(4)-3.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.35%
Revenue beat(12)0
Avg Revenue beat(12)-4.02%
Revenue beat(16)0
Avg Revenue beat(16)-3.72%
PT rev (1m)0.94%
PT rev (3m)12.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)18.37%
EPS NY rev (1m)0.51%
EPS NY rev (3m)5.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.78 | ||
| Fwd PE | 9.04 | ||
| P/S | 1.93 | ||
| P/FCF | 8.4 | ||
| P/OCF | 7.99 | ||
| P/B | 2.09 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 6.93 |
EPS(TTM)12.97
EY9.27%
EPS(NY)15.48
Fwd EY11.06%
FCF(TTM)16.65
FCFY11.9%
OCF(TTM)17.5
OCFY12.51%
SpS72.63
BVpS66.9
TBVpS60.85
PEG (NY)0.54
PEG (5Y)0.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 19.66% | ||
| ROCE | 5.21% | ||
| ROIC | 4.15% | ||
| ROICexc | 4.18% | ||
| ROICexgc | 4.53% | ||
| OM | 25.25% | ||
| PM (TTM) | 18.11% | ||
| GM | N/A | ||
| FCFM | 22.92% |
ROA(3y)3.53%
ROA(5y)3.31%
ROE(3y)21.49%
ROE(5y)16.95%
ROIC(3y)3.96%
ROIC(5y)3.76%
ROICexc(3y)3.97%
ROICexc(5y)3.78%
ROICexgc(3y)4.24%
ROICexgc(5y)3.99%
ROCE(3y)4.95%
ROCE(5y)4.7%
ROICexcg growth 3Y2.76%
ROICexcg growth 5Y5.11%
ROICexc growth 3Y1.85%
ROICexc growth 5Y4.53%
OM growth 3Y-1.67%
OM growth 5Y2.45%
PM growth 3Y-2.72%
PM growth 5Y1.98%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 16.83% | ||
| Cap/Sales | 1.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 74.77% | ||
| Profit Quality | 126.55% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 1.01 |
F-Score5
WACC7.85%
ROIC/WACC0.53
Cap/Depr(3y)11.62%
Cap/Depr(5y)9.69%
Cap/Sales(3y)0.89%
Cap/Sales(5y)0.86%
Profit Quality(3y)142.61%
Profit Quality(5y)151.92%
High Growth Momentum
Growth
EPS 1Y (TTM)15.19%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.1%
EPS Next Y19.84%
EPS Next 2Y11.8%
EPS Next 3Y11.01%
EPS Next 5Y10.78%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%2.85%
Revenue Next Year7.39%
Revenue Next 2Y6.3%
Revenue Next 3Y5.74%
Revenue Next 5Y5.69%
EBIT growth 1Y5.53%
EBIT growth 3Y2.36%
EBIT growth 5Y7.57%
EBIT Next Year11.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-9.69%
FCF growth 3Y-1.65%
FCF growth 5Y0.15%
OCF growth 1Y-7.54%
OCF growth 3Y-0.82%
OCF growth 5Y0.56%