GLOBE LIFE INC (GL) Stock Fundamental Analysis
NYSE:GL - New York Stock Exchange, Inc. - US37959E1029 - Common Stock - Currency: USD
Taking everything into account, GL scores 5 out of 10 in our fundamental rating. GL was compared to 143 industry peers in the Insurance industry. While GL has a great profitability rating, there are some minor concerns on its financial health. GL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GL had positive earnings in the past year.
GL had a positive operating cash flow in the past year.
Each year in the past 5 years GL has been profitable.
Each year in the past 5 years GL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of GL (3.61%) is better than 74.83% of its industry peers.
The Return On Equity of GL (19.74%) is better than 89.51% of its industry peers.
GL's Return On Invested Capital of 4.17% is fine compared to the rest of the industry. GL outperforms 77.62% 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 4.06%.
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 Profit Margin of 18.33%. This is amongst the best in the industry. GL outperforms 88.11% 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 93.01% of the companies in the same industry.
In the last couple of years the Operating Margin of GL has grown nicely.
| 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.
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 1.01. 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 (1.01) 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.
GL has a Debt to FCF ratio of 1.99. This is comparable to the rest of the industry: GL outperforms 50.35% of its industry peers.
GL has a Debt/Equity ratio of 0.52. This is a neutral value indicating 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 67.13% 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 | 1.01 |
ROIC/WACC0.52
WACC8.01%
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.
GL has a better Current ratio (0.54) than 76.92% of its industry peers.
A Quick Ratio of 0.54 indicates that GL may have some problems paying its short term obligations.
GL's Quick ratio of 0.54 is fine compared to the rest of the industry. GL outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.19% over the past year.
The Earnings Per Share has been growing by 12.93% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.02% in the past 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)15.19%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.1%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%2.85%
3.2 Future
The Earnings Per Share is expected to grow by 11.68% on average over the next years. This is quite good.
The Revenue is expected to grow by 6.05% on average over the next years.
EPS Next Y13.32%
EPS Next 2Y11.44%
EPS Next 3Y11%
EPS Next 5Y11.68%
Revenue Next Year7.53%
Revenue Next 2Y6.37%
Revenue Next 3Y5.73%
Revenue Next 5Y6.05%
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
Based on the Price/Earnings ratio of 10.84, the valuation of GL can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of GL is on the same level as its industry peers.
GL is valuated cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of GL.
GL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.04. GL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GL is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GL is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.23 | ||
| EV/EBITDA | 7.21 |
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)0.81
PEG (5Y)0.84
EPS Next 2Y11.44%
EPS Next 3Y11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.77%, GL is not a good candidate for dividend investing.
GL's Dividend Yield is slightly below the industry average, which is at 3.35.
Compared to an average S&P500 Dividend Yield of 2.40, GL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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.
Dividend Growth(5Y)7.26%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
GL pays out 7.89% of its income as dividend. This is a sustainable payout ratio.
GL's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP7.89%
EPS Next 2Y11.44%
EPS Next 3Y11%
140.55
+0.05 (+0.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners84.4%
Inst Owner Change0.6%
Ins Owners0.65%
Ins Owner Change2.3%
Market Cap11.60B
Analysts78.95
Price Target148.41 (5.59%)
Short Float %1.61%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
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)1.04%
PT rev (3m)3.34%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-4.32%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-0.46%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.84 | ||
| Fwd PE | 9.14 | ||
| P/S | 1.99 | ||
| P/FCF | 8.23 | ||
| P/OCF | 7.82 | ||
| P/B | 2.14 | ||
| P/tB | 2.35 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)12.97
EY9.23%
EPS(NY)15.37
Fwd EY10.94%
FCF(TTM)17.08
FCFY12.15%
OCF(TTM)17.97
OCFY12.79%
SpS70.78
BVpS65.73
TBVpS59.79
PEG (NY)0.81
PEG (5Y)0.84
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 | 1.01 |
F-Score8
WACC8.01%
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)15.19%
EPS 3Y21.75%
EPS 5Y12.93%
EPS Q2Q%10.1%
EPS Next Y13.32%
EPS Next 2Y11.44%
EPS Next 3Y11%
EPS Next 5Y11.68%
Revenue 1Y (TTM)4.02%
Revenue growth 3Y4.1%
Revenue growth 5Y5%
Sales Q2Q%2.85%
Revenue Next Year7.53%
Revenue Next 2Y6.37%
Revenue Next 3Y5.73%
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%