We assign a fundamental rating of 4 out of 10 to RGA. RGA was compared to 148 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. RGA has a correct valuation and a medium growth rate. Finally RGA also has an excellent dividend rating.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year RGA was profitable.
In the past year RGA had a positive cash flow from operations.
In the past 5 years RGA has always been profitable.
RGA had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

RGA has a worse Return On Assets (0.57%) than 69.59% of its industry peers.
RGA's Return On Equity of 6.68% is on the low side compared to the rest of the industry. RGA is outperformed by 71.62% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.57%
ROE	6.68%
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

With a Profit Margin value of 3.89%, RGA is not doing good in the industry: 70.95% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RGA has declined.
With a Operating Margin value of 7.39%, RGA is not doing good in the industry: 70.27% of the companies in the same industry are doing better.
RGA's Operating Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	7.39%
PM (TTM)	3.89%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

RGA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RGA has been increased compared to 1 year ago.
RGA has more shares outstanding than it did 5 years ago.
RGA has a better debt/assets ratio than last year.

2.2 Solvency

RGA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
RGA has a better Debt to FCF ratio (1.18) than 66.89% of its industry peers.
RGA has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
RGA has a worse Debt to Equity ratio (0.44) than 62.84% of its industry peers.
Although RGA 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	0.44
Debt/FCF	1.18
Altman-Z	N/A

ROIC/WACCN/A

WACC7.46%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

RGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.77%.
RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
RGA shows a small growth in Revenue. In the last year, the Revenue has grown by 2.01%.
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)-2.77%

EPS 3Y174.8%

EPS 5Y11.09%

EPS Q2Q%3.92%

Revenue 1Y (TTM)2.01%

Revenue growth 3Y10.36%

Revenue growth 5Y9.06%

Sales Q2Q%9.79%

3.2 Future

The Earnings Per Share is expected to grow by 9.50% on average over the next years. This is quite good.
Based on estimates for the next years, RGA will show a quite strong growth in Revenue. The Revenue will grow by 8.07% on average per year.

EPS Next Y-6.19%

EPS Next 2Y7.1%

EPS Next 3Y7.89%

EPS Next 5Y9.5%

Revenue Next Year2.66%

Revenue Next 2Y5.98%

Revenue Next 3Y5.97%

Revenue Next 5Y8.07%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.33, the valuation of RGA can be described as very reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 68.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of RGA to the average of the S&P500 Index (28.32), we can say RGA is valued rather cheaply.
RGA is valuated cheaply with a Price/Forward Earnings ratio of 7.82.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than the industry average as 71.62% of the companies are valued more expensively.
RGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	9.33
Fwd PE	7.82

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGA is on the same level as its industry peers.
RGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. RGA is cheaper than 85.14% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	2.75
EV/EBITDA	8.51

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.84

EPS Next 2Y7.1%

EPS Next 3Y7.89%

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5. Dividend

5.1 Amount

RGA has a Yearly Dividend Yield of 1.87%. Purely for dividend investing, there may be better candidates out there.
RGA's Dividend Yield is comparable with the industry average which is at 2.23.
RGA's Dividend Yield is comparable with the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	1.87%

5.2 History

The dividend of RGA is nicely growing with an annual growth rate of 6.13%!
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

RGA pays out 27.34% of its income as dividend. This is a sustainable payout ratio.
The dividend of RGA is growing, but earnings are growing more, so the dividend growth is sustainable.

DP27.34%

EPS Next 2Y7.1%

EPS Next 3Y7.89%

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REINSURANCE GROUP OF AMERICA / RGA FAQ

Can you provide the ChartMill fundamental rating for REINSURANCE GROUP OF AMERICA?

ChartMill assigns a fundamental rating of 4 / 10 to RGA.

Can you provide the valuation status for REINSURANCE GROUP OF AMERICA?

ChartMill assigns a valuation rating of 6 / 10 to REINSURANCE GROUP OF AMERICA (RGA). This can be considered as Fairly Valued.

How profitable is REINSURANCE GROUP OF AMERICA (RGA) stock?

REINSURANCE GROUP OF AMERICA (RGA) has a profitability rating of 2 / 10.

What is the valuation of REINSURANCE GROUP OF AMERICA based on its PE and PB ratios?

The Price/Earnings (PE) ratio for REINSURANCE GROUP OF AMERICA (RGA) is 9.33 and the Price/Book (PB) ratio is 1.03.

Is the dividend of REINSURANCE GROUP OF AMERICA sustainable?

The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 9 / 10 and the dividend payout ratio is 27.34%.