GLOBE LIFE INC (GL) Stock Fundamental Analysis
USA - NYSE:GL - US37959E1029 - Common Stock
132.24 USD
+0.41 (+0.31%)
132.24 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GL. GL was compared to 146 industry peers in the Insurance industry. While GL has a great profitability rating, 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
In the past year GL was profitable.
In the past year GL had a positive cash flow from operations.
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
GL has a better Return On Assets (3.57%) than 72.60% of its industry peers.
GL's Return On Equity of 19.66% is amongst the best of the industry. GL outperforms 89.04% of its industry peers.
With a decent Return On Invested Capital value of 4.15%, GL is doing good in the industry, outperforming 71.23% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GL is in line with the industry average of 4.56%.
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 has a Profit Margin of 18.11%. This is amongst the best in the industry. GL outperforms 88.36% 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 25.25%, GL belongs to the top of the industry, outperforming 90.41% of the companies in the same industry.
GL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| 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.
Compared to 1 year ago, GL has less shares outstanding
GL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for GL is higher compared to a year ago.
2.2 Solvency
GL has an Altman-Z score of 1.00. 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 (1.00) is better than 78.77% of its industry peers.
The Debt to FCF ratio of GL is 2.07, which is a good value as it means it would take GL, 2.07 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.07, GL is in line with its industry, outperforming 54.11% of the companies in the same industry.
A Debt/Equity ratio of 0.51 indicates that 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 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
WACC7.85%
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 76.03% 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.
With a decent Quick ratio value of 0.54, GL is doing good in the industry, outperforming 76.03% of the companies in the same industry.
| 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.
GL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.93% yearly.
Looking at the last year, GL shows a small growth in Revenue. The Revenue has grown by 3.73% in the last year.
The Revenue has been growing slightly by 5.00% on average over the past years.
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
GL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.00% yearly.
GL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.74% yearly.
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
With a Price/Earnings ratio of 9.25, 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 63.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, GL is valued rather cheaply.
The Price/Forward Earnings ratio is 8.55, which indicates a very decent valuation of GL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GL indicates a somewhat cheap valuation: GL is cheaper than 67.12% of the companies listed in the same industry.
GL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.25 | ||
| Fwd PE | 8.55 |
4.2 Price Multiples
67.12% of the companies in the same industry are more expensive than GL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GL is valued a bit cheaper than 60.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.94 | ||
| EV/EBITDA | 6.75 |
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
GL has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.38, GL is paying slightly less dividend.
With a Dividend Yield of 0.82, GL pays less dividend than the S&P500 average, which is at 2.37.
| 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
GL pays out 7.91% 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.
DP7.91%
EPS Next 2Y11.76%
EPS Next 3Y11%
132.24
+0.41 (+0.31%)
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 Cap10.71B
Revenue(TTM)5.94B
Net Income(TTM)1.07B
Analysts81
Price Target169.78 (28.39%)
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 | 9.25 | ||
| Fwd PE | 8.55 | ||
| P/S | 1.82 | ||
| P/FCF | 7.94 | ||
| P/OCF | 7.56 | ||
| P/B | 1.98 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)14.29
EY10.81%
EPS(NY)15.46
Fwd EY11.69%
FCF(TTM)16.65
FCFY12.59%
OCF(TTM)17.5
OCFY13.23%
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
WACC7.85%
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)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.