REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - NYSE:RGA - US7593516047 - Common Stock
191.99 USD
-2.7 (-1.39%)
191.99 USD
0 (0%)
Overall RGA gets a fundamental rating of 4 out of 10. We evaluated RGA against 145 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. RGA is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RGA was profitable.
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
With a Return On Assets value of 0.58%, RGA is not doing good in the industry: 68.28% of the companies in the same industry are doing better.
With a Return On Equity value of 6.39%, RGA is not doing good in the industry: 67.59% of the companies in the same industry are doing better.
| 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
The Profit Margin of RGA (3.54%) is worse than 71.03% of its industry peers.
In the last couple of years the Profit Margin of RGA has declined.
Looking at the Operating Margin, with a value of 6.90%, RGA is doing worse than 69.66% of the companies in the same industry.
In the last couple of years the Operating Margin of RGA has declined.
| 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.
Compared to 1 year ago, RGA has more shares outstanding
Compared to 5 years ago, RGA has more shares outstanding
RGA has a better debt/assets ratio than last year.
2.2 Solvency
RGA has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
RGA has a better Debt to FCF ratio (1.17) than 60.69% of its industry peers.
RGA has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
RGA's Debt to Equity ratio of 0.48 is on the low side compared to the rest of the industry. RGA is outperformed by 66.21% 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 | 0.48 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.26%
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.
Measured over the past years, RGA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.09% on average per year.
RGA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.87%.
RGA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.06% yearly.
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 7.67% on average over the next years.
The Revenue is expected to grow by 7.55% on average over the next years.
EPS Next Y-1.67%
EPS Next 2Y6.58%
EPS Next 3Y7%
EPS Next 5Y7.67%
Revenue Next Year1.28%
Revenue Next 2Y5.55%
Revenue Next 3Y6.6%
Revenue Next 5Y7.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.93, which indicates a very decent valuation of RGA.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 68.28% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of RGA to the average of the S&P500 Index (27.02), we can say RGA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.47 indicates a rather cheap valuation of RGA.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than the industry average as 73.79% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RGA to the average of the S&P500 Index (22.57), we can say RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 7.47 |
4.2 Price Multiples
RGA's Enterprise Value to EBITDA is on the same level as the industry average.
88.28% of the companies in the same industry are more expensive than RGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.58 | ||
| EV/EBITDA | 8.52 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.81
EPS Next 2Y6.58%
EPS Next 3Y7%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.91%.
Compared to an average industry Dividend Yield of 3.33, RGA has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, RGA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
5.2 History
On average, the dividend of RGA grows each year by 6.13%, which is quite nice.
RGA has been paying a dividend for at least 10 years, so it has a reliable track record.
RGA has not decreased their dividend for at least 10 years, which is a reliable track record.
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.
RGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.52%
EPS Next 2Y6.58%
EPS Next 3Y7%
191.99
-2.7 (-1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change0.2%
Market Cap12.69B
Analysts75.71
Price Target238.17 (24.05%)
Short Float %0.87%
Short Ratio1.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.91% |
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)0%
PT rev (3m)-3.26%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-1.57%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)-4.53%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)-3.59%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.93 | ||
| Fwd PE | 7.47 | ||
| P/S | 0.58 | ||
| P/FCF | 2.58 | ||
| P/OCF | 2.58 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.52 |
EPS(TTM)21.5
EY11.2%
EPS(NY)25.7
Fwd EY13.38%
FCF(TTM)74.38
FCFY38.74%
OCF(TTM)74.38
OCFY38.74%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)N/A
PEG (5Y)0.81
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
WACC7.26%
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 Y-1.67%
EPS Next 2Y6.58%
EPS Next 3Y7%
EPS Next 5Y7.67%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
Revenue Next Year1.28%
Revenue Next 2Y5.55%
Revenue Next 3Y6.6%
Revenue Next 5Y7.55%
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%