REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
206.52 USD
+0.07 (+0.03%)
206.52 USD
0 (0%)
Overall RGA gets a fundamental rating of 4 out of 10. We evaluated RGA against 148 industry peers in the Insurance industry. RGA may be in some trouble as it scores bad on both profitability and health. 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
RGA had positive earnings in the past year.
In the past year RGA had a positive cash flow from operations.
RGA had positive earnings in each of the past 5 years.
In the past 5 years RGA always reported a positive cash flow from operatings.
1.2 Ratios
RGA's Return On Assets of 0.57% is on the low side compared to the rest of the industry. RGA is outperformed by 70.27% 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 72.30% 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
RGA has a Profit Margin of 3.89%. This is in the lower half of the industry: RGA underperforms 71.62% of its industry peers.
RGA's Profit Margin has declined in the last couple of years.
RGA's Operating Margin of 7.39% is on the low side compared to the rest of the industry. RGA is outperformed by 70.95% of its industry peers.
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
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.
Compared to 1 year ago, RGA has an improved debt to assets ratio.
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.
A Debt/Equity ratio of 0.44 indicates that RGA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, RGA is doing worse than 63.51% of the companies in the same industry.
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
WACC7.4%
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 -2.77%.
The Earnings Per Share has been growing by 11.09% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.01% 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)-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
Based on estimates for the next years, RGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.50% on average per year.
RGA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.07% yearly.
EPS Next Y-4.85%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
EPS Next 5Y9.5%
Revenue Next Year3.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.45%
Revenue Next 5Y8.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 9.50, 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 68.24% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.59, RGA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.92 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 72.97% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.92 |
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 85.14% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.8 | ||
| EV/EBITDA | 8.66 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.86
EPS Next 2Y7.4%
EPS Next 3Y8.07%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.83%.
Compared to an average industry Dividend Yield of 2.30, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is comparable with the S&P500 average which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
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 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 2Y7.4%
EPS Next 3Y8.07%
206.52
+0.07 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.7%
Inst Owner Change-2.13%
Ins Owners0.22%
Ins Owner Change0.49%
Market Cap13.57B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.67
Price TargetN/A
Short Float %0.69%
Short Ratio1.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.83% |
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP27.34%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.58%
Min EPS beat(2)-16.11%
Max EPS beat(2)8.95%
EPS beat(4)2
Avg EPS beat(4)-1.96%
Min EPS beat(4)-16.11%
Max EPS beat(4)8.95%
EPS beat(8)6
Avg EPS beat(8)6.13%
EPS beat(12)9
Avg EPS beat(12)9.49%
EPS beat(16)12
Avg EPS beat(16)19.04%
Revenue beat(2)1
Avg Revenue beat(2)0.71%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)3.8%
Revenue beat(4)1
Avg Revenue beat(4)-2.98%
Min Revenue beat(4)-8.36%
Max Revenue beat(4)3.8%
Revenue beat(8)4
Avg Revenue beat(8)5.03%
Revenue beat(12)7
Avg Revenue beat(12)4.65%
Revenue beat(16)9
Avg Revenue beat(16)3.59%
PT rev (1m)-0.24%
PT rev (3m)0.83%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)-3.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.92 | ||
| P/S | 0.61 | ||
| P/FCF | 2.8 | ||
| P/OCF | 2.8 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 8.66 |
EPS(TTM)21.74
EY10.53%
EPS(NY)26.09
Fwd EY12.63%
FCF(TTM)73.64
FCFY35.66%
OCF(TTM)73.64
OCFY35.66%
SpS339.57
BVpS197.5
TBVpS197.5
PEG (NY)N/A
PEG (5Y)0.86
Graham Number310.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.57% | ||
| ROE | 6.68% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 7.39% | ||
| PM (TTM) | 3.89% | ||
| GM | N/A | ||
| FCFM | 21.69% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.49 | ||
| Cash Conversion | 285.49% | ||
| Profit Quality | 558.13% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.4%
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)-2.77%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%3.92%
EPS Next Y-4.85%
EPS Next 2Y7.4%
EPS Next 3Y8.07%
EPS Next 5Y9.5%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
Revenue Next Year3.32%
Revenue Next 2Y6.78%
Revenue Next 3Y6.45%
Revenue Next 5Y8.07%
EBIT growth 1Y32.98%
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 1Y58.24%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y56.91%
OCF growth 3Y30.85%
OCF growth 5Y32.35%
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.
What is the valuation status for RGA stock?
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.
Can you provide the financial health for RGA stock?
The financial health rating of REINSURANCE GROUP OF AMERICA (RGA) is 3 / 10.
How sustainable is the dividend of REINSURANCE GROUP OF AMERICA (RGA) stock?
The dividend rating of REINSURANCE GROUP OF AMERICA (RGA) is 7 / 10 and the dividend payout ratio is 27.34%.