REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
NYSE:RGA - New York Stock Exchange, Inc. - US7593516047 - Common Stock - Currency: USD
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 143 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. RGA is not valued too expensively and it also shows a decent growth rate. Finally RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
RGA had positive earnings in the past year.
RGA had a positive operating cash flow in the past year.
Each year in the past 5 years RGA has been profitable.
Each year in the past 5 years RGA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.58%, RGA is doing worse than 64.34% of the companies in the same industry.
RGA has a Return On Equity of 6.39%. This is in the lower half of the industry: RGA underperforms 66.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 6.39% | ||
| ROIC | N/A |
ROA(3y)0.71%
ROA(5y)0.78%
ROE(3y)7.95%
ROE(5y)7.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RGA's Profit Margin of 3.54% is on the low side compared to the rest of the industry. RGA is outperformed by 67.83% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
RGA has a worse Operating Margin (6.90%) than 66.43% of its industry peers.
RGA's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.9% | ||
| PM (TTM) | 3.54% | ||
| GM | N/A |
OM growth 3Y-10.39%
OM growth 5Y-9.28%
PM growth 3Y-23.03%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
RGA does not have a ROIC to compare to the WACC, probably because it is not profitable.
RGA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RGA has been increased compared to 5 years ago.
The debt/assets ratio for RGA has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of RGA is 1.17, which is an excellent value as it means it would take RGA, only 1.17 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1.17, RGA perfoms like the industry average, outperforming 58.04% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that RGA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, RGA is doing worse than 64.34% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for RGA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for RGA have decreased by -1.38% in the last year.
RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
The Revenue has been growing slightly by 1.87% in the past year.
Measured over the past years, RGA shows a quite strong growth in Revenue. The Revenue has been growing by 9.06% on average per year.
EPS 1Y (TTM)-1.38%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-13.87%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
3.2 Future
The Earnings Per Share is expected to grow by 8.90% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.79% on average over the next years.
EPS Next Y2.94%
EPS Next 2Y6.8%
EPS Next 3Y7.17%
EPS Next 5Y8.9%
Revenue Next Year2.43%
Revenue Next 2Y6.28%
Revenue Next 3Y6.57%
Revenue Next 5Y7.79%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
RGA is valuated reasonably with a Price/Earnings ratio of 8.67.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 69.93% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, RGA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.23 indicates a rather cheap valuation of RGA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 71.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.23 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 60.14% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaply inside the industry as 86.01% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.51 | ||
| EV/EBITDA | 8.17 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RGA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.95
PEG (5Y)0.78
EPS Next 2Y6.8%
EPS Next 3Y7.17%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 2.04%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.30, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
On average, the dividend of RGA grows each year by 6.13%, which is quite nice.
RGA has paid a dividend for at least 10 years, which is a reliable track record.
RGA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.13%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
30.52% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
The dividend of RGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.52%
EPS Next 2Y6.8%
EPS Next 3Y7.17%
186.45
+4.54 (+2.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change-0.14%
Ins Owners0.24%
Ins Owner Change3.93%
Market Cap12.32B
Analysts77.33
Price Target240.08 (28.76%)
Short Float %0.81%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP30.52%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-5.34%
Min EPS beat(2)-16.11%
Max EPS beat(2)5.42%
EPS beat(4)2
Avg EPS beat(4)-0.61%
Min EPS beat(4)-16.11%
Max EPS beat(4)14.34%
EPS beat(8)6
Avg EPS beat(8)8.64%
EPS beat(12)9
Avg EPS beat(12)14.73%
EPS beat(16)11
Avg EPS beat(16)9.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.37%
Min Revenue beat(2)-8.36%
Max Revenue beat(2)-2.37%
Revenue beat(4)1
Avg Revenue beat(4)-1.64%
Min Revenue beat(4)-8.36%
Max Revenue beat(4)9.16%
Revenue beat(8)4
Avg Revenue beat(8)6.73%
Revenue beat(12)7
Avg Revenue beat(12)4.39%
Revenue beat(16)9
Avg Revenue beat(16)3.66%
PT rev (1m)-2.49%
PT rev (3m)-1.79%
EPS NQ rev (1m)-0.39%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)0.99%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)-0.23%
Revenue NY rev (3m)-0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.67 | ||
| Fwd PE | 7.23 | ||
| P/S | 0.57 | ||
| P/FCF | 2.51 | ||
| P/OCF | 2.51 | ||
| P/B | 1.02 | ||
| P/tB | 1.02 | ||
| EV/EBITDA | 8.17 |
EPS(TTM)21.5
EY11.53%
EPS(NY)25.8
Fwd EY13.84%
FCF(TTM)74.38
FCFY39.89%
OCF(TTM)74.38
OCFY39.89%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)2.95
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 6.39% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 6.9% | ||
| PM (TTM) | 3.54% | ||
| GM | N/A | ||
| FCFM | 22.59% |
ROA(3y)0.71%
ROA(5y)0.78%
ROE(3y)7.95%
ROE(5y)7.15%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-10.39%
OM growth 5Y-9.28%
PM growth 3Y-23.03%
PM growth 5Y-11.78%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 3.71 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.67 | ||
| Cash Conversion | 317.78% | ||
| Profit Quality | 638.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.39%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)670.03%
Profit Quality(5y)631.93%
High Growth Momentum
Growth
EPS 1Y (TTM)-1.38%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-13.87%
EPS Next Y2.94%
EPS Next 2Y6.8%
EPS Next 3Y7.17%
EPS Next 5Y8.9%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
Revenue Next Year2.43%
Revenue Next 2Y6.28%
Revenue Next 3Y6.57%
Revenue Next 5Y7.79%
EBIT growth 1Y8.69%
EBIT growth 3Y-1.11%
EBIT growth 5Y-1.06%
EBIT Next Year-6.91%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y69.87%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y68.41%
OCF growth 3Y30.85%
OCF growth 5Y32.35%