GLOBE LIFE INC (GL)
US37959E1029 - Common Stock
Taking everything into account, GL scores 6 out of 10 in our fundamental rating. GL was compared to 140 industry peers in the Insurance industry. While GL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on GL. This makes GL very considerable for value investing!
1. Profitability
1.1 Basic Checks
GL had positive earnings in the past year.
In the past year GL had a positive cash flow from operations.
GL had positive earnings in each of the past 5 years.
Each year in the past 5 years GL had a positive operating cash flow.
1.2 Ratios
GL's Return On Assets of 3.46% is fine compared to the rest of the industry. GL outperforms 71.22% of its industry peers.
GL's Return On Equity of 21.64% is amongst the best of the industry. GL outperforms 89.93% of its industry peers.
The Return On Invested Capital of GL (3.85%) is better than 76.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GL is in line with the industry average of 4.09%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 21.64% | ||
| ROIC | 3.85% |
ROA(3y)3.46%
ROA(5y)3.16%
ROE(3y)18.74%
ROE(5y)15%
ROIC(3y)3.89%
ROIC(5y)3.61%
1.3 Margins
GL has a better Profit Margin (17.82%) than 83.45% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
GL's Operating Margin of 23.82% is amongst the best of the industry. GL outperforms 83.45% of its industry peers.
GL's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.82% | ||
| PM (TTM) | 17.82% | ||
| GM | N/A |
OM growth 3Y4.56%
OM growth 5Y1.38%
PM growth 3Y4.89%
PM growth 5Y1.8%
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 GL is destroying value.
Compared to 1 year ago, GL has less shares outstanding
The number of shares outstanding for GL has been reduced compared to 5 years ago.
Compared to 1 year ago, GL has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.86, we must say that GL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GL (0.86) is better than 81.30% of its industry peers.
GL has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
GL has a better Debt to FCF ratio (1.48) than 61.87% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that GL is not too dependend on debt financing.
GL has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 0.86 |
ROIC/WACC0.49
WACC7.86%
2.3 Liquidity
GL has a Current Ratio of 0.64. This is a bad value and indicates that GL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GL (0.64) is better than 74.82% of its industry peers.
A Quick Ratio of 0.64 indicates that GL may have some problems paying its short term obligations.
GL has a better Quick ratio (0.64) than 74.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 |
3. Growth
3.1 Past
GL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.51%, which is quite impressive.
Measured over the past years, GL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.68% on average per year.
GL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.46%.
GL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.83% yearly.
EPS 1Y (TTM)30.51%
EPS 3Y15.73%
EPS 5Y11.68%
EPS growth Q2Q25%
Revenue 1Y (TTM)4.46%
Revenue growth 3Y4.76%
Revenue growth 5Y4.83%
Revenue growth Q2Q7.03%
3.2 Future
Based on estimates for the next years, GL will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.53% on average per year.
Based on estimates for the next years, GL will show a small growth in Revenue. The Revenue will grow by 7.51% on average per year.
EPS Next Y12.17%
EPS Next 2Y10.17%
EPS Next 3Y9.53%
EPS Next 5YN/A
Revenue Next Year13.22%
Revenue Next 2Y8.89%
Revenue Next 3Y7.51%
Revenue Next 5YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GL is valuated cheaply with a Price/Earnings ratio of 6.10.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than 73.38% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 24.80. GL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 5.44 indicates a rather cheap valuation of GL.
79.14% of the companies in the same industry are more expensive than GL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.27. GL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 5.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GL indicates a rather cheap valuation: GL is cheaper than 80.58% of the companies listed in the same industry.
GL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GL is cheaper than 75.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.27 | ||
| EV/EBITDA | 4.66 |
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.
The decent profitability rating of GL may justify a higher PE ratio.
PEG (NY)0.5
PEG (5Y)0.52
EPS Next 2Y10.17%
EPS Next 3Y9.53%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.95%, GL has a reasonable but not impressive dividend return.
The stock price of GL dropped by -46.64% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.31, GL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, GL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
5.2 History
On average, the dividend of GL grows each year by 6.92%, which is quite nice.
GL has been paying a dividend for at least 10 years, so it has a reliable track record.
GL has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.92%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
8.67% of the earnings are spent on dividend by GL. This is a low number and sustainable payout ratio.
GL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP8.67%
EPS Next 2Y10.17%
EPS Next 3Y9.53%
GLOBE LIFE INC
NYSE:GL (4/18/2024, 7:04:01 PM)
After market: 65.51 +0.51 (+0.78%)65
+1.77 (+2.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.11B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.1 | ||
| Fwd PE | 5.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.5
PEG (5Y)0.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 21.64% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.82% | ||
| PM (TTM) | 17.82% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.64 | ||
| Quick Ratio | 0.64 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.51%
EPS 3Y15.73%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.46%
Revenue growth 3Y4.76%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y