REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
NYSE:RGA - US7593516047 - Common Stock
194.79 USD
+1.35 (+0.7%)
194.79 USD
0 (0%)
Overall RGA gets a fundamental rating of 4 out of 10. We evaluated RGA against 146 industry peers in the Insurance industry. RGA has a bad profitability rating. Also its financial health evaluation is rather negative. RGA has a decent growth rate and is not valued too expensively. Finally RGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year RGA was profitable.
RGA had a positive operating cash flow in the past year.
RGA had positive earnings in each of the past 5 years.
Each year in the past 5 years RGA had a positive operating cash flow.
1.2 Ratios
RGA has a worse Return On Assets (0.58%) than 65.75% of its industry peers.
Looking at the Return On Equity, with a value of 6.39%, RGA is doing worse than 67.12% of the companies in the same industry.
| 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
With a Profit Margin value of 3.54%, RGA is not doing good in the industry: 69.86% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of RGA has declined.
RGA has a Operating Margin of 6.90%. This is in the lower half of the industry: RGA underperforms 67.12% of its industry peers.
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 60.27% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that RGA is not too dependend on debt financing.
RGA has a Debt to Equity ratio of 0.48. This is in the lower half of the industry: RGA underperforms 65.75% 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
WACC7.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
RGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -1.38%.
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.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
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
RGA is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.67% yearly.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 7.55% on average per year.
EPS Next Y-1.25%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
EPS Next 5Y7.67%
Revenue Next Year1.37%
Revenue Next 2Y5.61%
Revenue Next 3Y6.71%
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
With a Price/Earnings ratio of 9.06, the valuation of RGA can be described as very reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 69.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.13. RGA is valued rather cheaply when compared to this.
RGA is valuated cheaply with a Price/Forward Earnings ratio of 7.57.
71.23% of the companies in the same industry are more expensive than RGA, based on the Price/Forward Earnings ratio.
RGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.57 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RGA indicates a rather cheap valuation: RGA is cheaper than 87.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.62 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.82
EPS Next 2Y6.66%
EPS Next 3Y7.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, RGA has a reasonable but not impressive dividend return.
RGA's Dividend Yield is comparable with the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.32, RGA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
The dividend of RGA is nicely growing with an annual growth rate of 6.13%!
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
RGA pays out 30.52% 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.
DP30.52%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
194.79
+1.35 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners100.3%
Inst Owner Change0.92%
Ins Owners0.24%
Ins Owner Change3.93%
Market Cap12.87B
Analysts77.33
Price Target238.17 (22.27%)
Short Float %0.51%
Short Ratio0.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
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)-3.36%
PT rev (3m)-2.57%
EPS NQ rev (1m)-2.8%
EPS NQ rev (3m)-1.13%
EPS NY rev (1m)-4.07%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)-2.43%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)-1.03%
Revenue NY rev (3m)-0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.06 | ||
| Fwd PE | 7.57 | ||
| P/S | 0.59 | ||
| P/FCF | 2.62 | ||
| P/OCF | 2.62 | ||
| P/B | 1.07 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 8.53 |
EPS(TTM)21.5
EY11.04%
EPS(NY)25.73
Fwd EY13.21%
FCF(TTM)74.38
FCFY38.19%
OCF(TTM)74.38
OCFY38.19%
SpS329.25
BVpS182.37
TBVpS182.37
PEG (NY)N/A
PEG (5Y)0.82
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
WACC7.41%
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-1.25%
EPS Next 2Y6.66%
EPS Next 3Y7.15%
EPS Next 5Y7.67%
Revenue 1Y (TTM)1.87%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%14.78%
Revenue Next Year1.37%
Revenue Next 2Y5.61%
Revenue Next 3Y6.71%
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%