GLOBE LIFE INC (GL) Stock Fundamental Analysis
NYSE:GL - New York Stock Exchange, Inc. - US37959E1029 - Common Stock - Currency: USD
GL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 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.
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.
In the past 5 years GL has always been profitable.
GL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.61%, GL is in the better half of the industry, outperforming 76.22% of the companies in the same industry.
The Return On Equity of GL (19.74%) is better than 90.91% of its industry peers.
The Return On Invested Capital of GL (4.17%) is better than 79.02% 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 4.07%.
The last Return On Invested Capital (4.17%) for GL is above the 3 year average (3.96%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 19.74% | ||
| ROIC | 4.17% |
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
GL has a better Profit Margin (18.33%) than 86.01% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
Looking at the Operating Margin, with a value of 25.49%, GL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
GL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.49% | ||
| PM (TTM) | 18.33% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GL is destroying value.
GL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, GL has less shares outstanding
Compared to 1 year ago, GL has a worse debt to assets ratio.
2.2 Solvency
GL has an Altman-Z score of 0.97. This is a bad value and indicates that GL is not financially healthy and even has some risk of bankruptcy.
GL has a better Altman-Z score (0.97) than 81.12% of its industry peers.
GL has a debt to FCF ratio of 1.99. This is a very positive value and a sign of high solvency as it would only need 1.99 years to pay back of all of its debts.
With a Debt to FCF ratio value of 1.99, GL perfoms like the industry average, outperforming 47.55% of the companies in the same industry.
GL has a Debt/Equity ratio of 0.52. This is a neutral value indicating GL is somewhat dependend on debt financing.
GL has a Debt to Equity ratio of 0.52. This is in the lower half of the industry: GL underperforms 68.53% 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 | 0.52 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 0.97 |
ROIC/WACC0.45
WACC9.31%
2.3 Liquidity
GL has a Current 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.
Looking at the Current ratio, with a value of 0.54, GL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
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 76.92% 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 16.24%, which is quite good.
The Earnings Per Share has been growing by 12.93% on average over the past years. This is quite good.
GL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.41%.
The Revenue has been growing slightly by 5.00% on average over the past years.
EPS 1Y (TTM)16.24%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.43%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%4.54%
3.2 Future
GL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.68% yearly.
Based on estimates for the next years, GL will show a small growth in Revenue. The Revenue will grow by 6.05% on average per year.
EPS Next Y13.49%
EPS Next 2Y11.57%
EPS Next 3Y11.48%
EPS Next 5Y11.68%
Revenue Next Year7.56%
Revenue Next 2Y6.38%
Revenue Next 3Y5.84%
Revenue Next 5Y6.05%
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 stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.45, the valuation of GL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 69.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of GL to the average of the S&P500 Index (26.32), we can say GL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.77, the valuation of GL can be described as very cheap.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than the industry average as 67.83% of the companies are valued more expensively.
GL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than 72.73% of the companies in the same industry.
GL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. GL is cheaper than 62.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.01 | ||
| EV/EBITDA | 6.31 |
4.3 Compensation for Growth
The 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)0.7
PEG (5Y)0.73
EPS Next 2Y11.57%
EPS Next 3Y11.48%
5. Dividend
5.1 Amount
GL has a yearly dividend return of 0.89%, which is pretty low.
GL's Dividend Yield is slightly below the industry average, which is at 3.46.
With a Dividend Yield of 0.89, GL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
The dividend of GL is nicely growing with an annual growth rate of 7.26%!
GL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)7.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
7.89% 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.
DP7.89%
EPS Next 2Y11.57%
EPS Next 3Y11.48%
119.79
-0.98 (-0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.4%
Inst Owner Change-0.47%
Ins Owners0.65%
Ins Owner Change2.64%
Market Cap9.89B
Analysts78
Price Target143.82 (20.06%)
Short Float %1.67%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
Yearly Dividend0.96
Dividend Growth(5Y)7.26%
DP7.89%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.25%
Min EPS beat(2)-8.15%
Max EPS beat(2)-2.36%
EPS beat(4)1
Avg EPS beat(4)-0.12%
Min EPS beat(4)-8.15%
Max EPS beat(4)10.85%
EPS beat(8)1
Avg EPS beat(8)-0.81%
EPS beat(12)2
Avg EPS beat(12)-0.79%
EPS beat(16)2
Avg EPS beat(16)-1.86%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-3.6%
Max Revenue beat(2)-3.3%
Revenue beat(4)0
Avg Revenue beat(4)-3.48%
Min Revenue beat(4)-3.6%
Max Revenue beat(4)-3.3%
Revenue beat(8)0
Avg Revenue beat(8)-3.55%
Revenue beat(12)0
Avg Revenue beat(12)-4.09%
Revenue beat(16)0
Avg Revenue beat(16)-3.51%
PT rev (1m)0.57%
PT rev (3m)-0.42%
EPS NQ rev (1m)-0.79%
EPS NQ rev (3m)-3.93%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.28%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)-0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.45 | ||
| Fwd PE | 7.77 | ||
| P/S | 1.69 | ||
| P/FCF | 7.01 | ||
| P/OCF | 6.66 | ||
| P/B | 1.82 | ||
| P/tB | 2 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)12.67
EY10.58%
EPS(NY)15.41
Fwd EY12.87%
FCF(TTM)17.08
FCFY14.26%
OCF(TTM)17.97
OCFY15%
SpS70.78
BVpS65.73
TBVpS59.79
PEG (NY)0.7
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 19.74% | ||
| ROCE | 5.24% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.21% | ||
| ROICexgc | 4.55% | ||
| OM | 25.49% | ||
| PM (TTM) | 18.33% | ||
| GM | N/A | ||
| FCFM | 24.13% |
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-Score8
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.99 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 17.97% | ||
| Cap/Sales | 1.26% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.12% | ||
| Profit Quality | 131.62% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 | ||
| Altman-Z | 0.97 |
F-Score8
WACC9.31%
ROIC/WACC0.45
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)16.24%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.43%
EPS Next Y13.49%
EPS Next 2Y11.57%
EPS Next 3Y11.48%
EPS Next 5Y11.68%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%4.54%
Revenue Next Year7.56%
Revenue Next 2Y6.38%
Revenue Next 3Y5.84%
Revenue Next 5Y6.05%
EBIT growth 1Y10.96%
EBIT growth 3Y2.36%
EBIT growth 5Y7.57%
EBIT Next Year11.26%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-4.3%
FCF growth 3Y-1.65%
FCF growth 5Y0.15%
OCF growth 1Y-1.26%
OCF growth 3Y-0.82%
OCF growth 5Y0.56%