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. GL scores excellent on profitability, but there are some minor concerns on its financial health. GL 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 GL was profitable.
In the past year GL had a positive cash flow from operations.
GL had positive earnings in each of the past 5 years.
GL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.61%, GL is doing good in the industry, outperforming 76.22% of the companies in the same industry.
With an excellent Return On Equity value of 19.74%, GL belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.17%, GL is doing good in the industry, outperforming 77.62% 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 4.27%.
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
The Profit Margin of GL (18.33%) is better than 86.01% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
GL has a Operating Margin of 25.49%. This is amongst the best in the industry. GL outperforms 90.21% of its industry peers.
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
GL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GL has been reduced compared to 1 year ago.
GL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GL has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.98, we must say that GL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.98, GL belongs to the top of the industry, outperforming 80.42% of the companies in the same industry.
The Debt to FCF ratio of GL is 1.99, which is an excellent value as it means it would take GL, only 1.99 years of fcf income to pay off all of its debts.
GL has a Debt to FCF ratio (1.99) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.52 indicates that GL is somewhat dependend on debt financing.
GL's Debt to Equity ratio of 0.52 is on the low side compared to the rest of the industry. GL is outperformed by 69.23% of its industry peers.
Although GL 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 | 0.52 | ||
| Debt/FCF | 1.99 | ||
| Altman-Z | 0.98 |
ROIC/WACC0.52
WACC8.1%
2.3 Liquidity
A Current Ratio of 0.54 indicates that GL may have some problems paying 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 76.22% of the companies in the same industry.
A Quick Ratio of 0.54 indicates that GL may have some problems paying its short term obligations.
The Quick ratio of GL (0.54) is better than 76.22% 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.
Measured over the past years, GL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.93% on average per year.
Looking at the last year, GL shows a small growth in Revenue. The Revenue has grown by 5.41% in the last year.
Measured over the past years, GL shows a small growth in Revenue. The Revenue has been growing by 5.00% on average per year.
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
Based on estimates for the next years, GL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.16% on average per year.
GL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y13.49%
EPS Next 2Y11.57%
EPS Next 3Y11.48%
EPS Next 5Y11.16%
Revenue Next Year7.72%
Revenue Next 2Y6.53%
Revenue Next 3Y5.93%
Revenue Next 5Y5.65%
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.
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
A Price/Earnings ratio of 9.49 indicates a reasonable valuation of GL.
GL's Price/Earnings ratio is a bit cheaper when compared to the industry. GL is cheaper than 71.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. GL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.80 indicates a rather cheap valuation of GL.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than 69.23% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of GL to the average of the S&P500 Index (21.94), we can say GL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.8 |
4.2 Price Multiples
GL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. GL is cheaper than 72.03% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.1 | ||
| EV/EBITDA | 6.46 |
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.
The decent profitability rating of GL 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 0.90%, which is pretty low.
Compared to an average industry Dividend Yield of 3.17, GL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, GL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
5.2 History
On average, the dividend of GL grows each year by 7.26%, which is quite nice.
GL has been paying a dividend for at least 10 years, so it has a reliable track record.
As GL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)7.26%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GL pays out 7.89% of its income as dividend. This is a 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%
120.2
-1.99 (-1.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.98%
Inst Owner Change-0.51%
Ins Owners0.55%
Ins Owner Change2.59%
Market Cap10.01B
Analysts78
Price Target143 (18.97%)
Short Float %1.57%
Short Ratio1.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.9% |
Yearly Dividend0.96
Dividend Growth(5Y)7.26%
DP7.89%
Div Incr Years8
Div Non Decr Years8
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)-0.99%
PT rev (3m)5.73%
EPS NQ rev (1m)-3.03%
EPS NQ rev (3m)-3.07%
EPS NY rev (1m)-0.3%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)2.77%
Revenue NY rev (3m)1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.49 | ||
| Fwd PE | 7.8 | ||
| P/S | 1.71 | ||
| P/FCF | 7.1 | ||
| P/OCF | 6.74 | ||
| P/B | 1.84 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 6.46 |
EPS(TTM)12.67
EY10.54%
EPS(NY)15.41
Fwd EY12.82%
FCF(TTM)16.94
FCFY14.09%
OCF(TTM)17.82
OCFY14.83%
SpS70.19
BVpS65.18
TBVpS59.29
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 | 0.98 |
F-Score8
WACC8.1%
ROIC/WACC0.52
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 5Y11.16%
Revenue 1Y (TTM)5.41%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%4.54%
Revenue Next Year7.72%
Revenue Next 2Y6.53%
Revenue Next 3Y5.93%
Revenue Next 5Y5.65%
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%