GLOBE LIFE INC (GL) Stock Fundamental Analysis
USA - NYSE:GL - US37959E1029 - Common Stock
133.16 USD
-0.81 (-0.6%)
133.16 USD
0 (0%)
Overall GL gets a fundamental rating of 6 out of 10. We evaluated GL against 146 industry peers in the Insurance industry. While GL has a great profitability rating, there are some minor concerns on its financial health. GL scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
In the past 5 years GL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GL (3.57%) is better than 71.92% of its industry peers.
GL's Return On Equity of 19.66% is amongst the best of the industry. GL outperforms 88.36% of its industry peers.
GL has a better Return On Invested Capital (4.15%) than 71.23% of its industry peers.
The Average Return On Invested Capital over the past 3 years for GL is in line with the industry average of 4.51%.
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
GL's Profit Margin of 18.11% is amongst the best of the industry. GL outperforms 86.30% of its industry peers.
In the last couple of years the Profit Margin of GL has grown nicely.
GL's Operating Margin of 25.25% is amongst the best of the industry. GL outperforms 89.04% 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
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.
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
Based on the Altman-Z score of 1.00, we must say that GL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GL (1.00) is better than 78.77% 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 55.48% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that GL is somewhat dependend on debt financing.
GL has a Debt to Equity ratio of 0.51. This is in the lower half of the industry: GL underperforms 68.49% 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 |
ROIC/WACC0.53
WACC7.84%
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.
The Current ratio of GL (0.54) is better than 76.03% 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's Quick ratio of 0.54 is fine compared to the rest of the industry. GL outperforms 76.03% 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 18.69%, 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.
The Revenue has been growing slightly by 3.73% in the past year.
GL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.00% yearly.
EPS 1Y (TTM)18.69%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%37.82%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%3.96%
3.2 Future
The Earnings Per Share is expected to grow by 10.00% on average over the next years. This is quite good.
Based on estimates for the next years, GL will show a small growth in Revenue. The Revenue will grow by 5.74% on average per year.
EPS Next Y21.13%
EPS Next 2Y11.76%
EPS Next 3Y11%
EPS Next 5Y10%
Revenue Next Year7.27%
Revenue Next 2Y6.21%
Revenue Next 3Y5.75%
Revenue Next 5Y5.74%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 9.32, which indicates a very decent valuation of GL.
Based on the Price/Earnings ratio, GL is valued a bit cheaper than the industry average as 63.70% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.34, GL is valued rather cheaply.
A Price/Forward Earnings ratio of 8.61 indicates a reasonable valuation of GL.
Based on the Price/Forward Earnings ratio, GL is valued a bit cheaper than 67.81% of the companies in the same industry.
GL is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.43, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 68.49% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 61.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8 | ||
| EV/EBITDA | 6.83 |
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)0.44
PEG (5Y)0.72
EPS Next 2Y11.76%
EPS Next 3Y11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, GL is not a good candidate for dividend investing.
GL's Dividend Yield is slightly below the industry average, which is at 3.46.
With a Dividend Yield of 0.82, GL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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
7.91% 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 2Y11.76%
EPS Next 3Y11%
133.16
-0.81 (-0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners85.79%
Inst Owner Change-2.39%
Ins Owners0.67%
Ins Owner Change0.48%
Market Cap10.79B
Revenue(TTM)5.94B
Net Income(TTM)1.07B
Analysts81
Price Target169.78 (27.5%)
Short Float %1.81%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)2.94%
PT rev (3m)14.4%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)1.08%
EPS NY rev (3m)6.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.61 | ||
| P/S | 1.83 | ||
| P/FCF | 8 | ||
| P/OCF | 7.61 | ||
| P/B | 1.99 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 6.83 |
EPS(TTM)14.29
EY10.73%
EPS(NY)15.46
Fwd EY11.61%
FCF(TTM)16.65
FCFY12.5%
OCF(TTM)17.5
OCFY13.14%
SpS72.63
BVpS66.9
TBVpS60.85
PEG (NY)0.44
PEG (5Y)0.72
Graham Number146.67
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%
ROICexgc growth 3Y2.76%
ROICexgc 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 |
F-Score5
WACC7.84%
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)18.69%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%37.82%
EPS Next Y21.13%
EPS Next 2Y11.76%
EPS Next 3Y11%
EPS Next 5Y10%
Revenue 1Y (TTM)3.73%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%3.96%
Revenue Next Year7.27%
Revenue Next 2Y6.21%
Revenue Next 3Y5.75%
Revenue Next 5Y5.74%
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%
GLOBE LIFE INC / GL FAQ
What is the ChartMill fundamental rating of GLOBE LIFE INC (GL) stock?
ChartMill assigns a fundamental rating of 6 / 10 to GL.
What is the valuation status of GLOBE LIFE INC (GL) stock?
ChartMill assigns a valuation rating of 7 / 10 to GLOBE LIFE INC (GL). This can be considered as Undervalued.
Can you provide the profitability details for GLOBE LIFE INC?
GLOBE LIFE INC (GL) has a profitability rating of 7 / 10.
What is the financial health of GLOBE LIFE INC (GL) stock?
The financial health rating of GLOBE LIFE INC (GL) is 4 / 10.
What is the earnings growth outlook for GLOBE LIFE INC?
The Earnings per Share (EPS) of GLOBE LIFE INC (GL) is expected to grow by 21.13% in the next year.