REINSURANCE GROUP OF AMERICA (RGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:RGA - US7593516047 - Common Stock
189.87 USD
-0.89 (-0.47%)
189.87 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to RGA. RGA was compared to 147 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
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
The Return On Assets of RGA (0.57%) is worse than 69.39% of its industry peers.
With a Return On Equity value of 6.68%, RGA is not doing good in the industry: 73.47% of the companies in the same industry are doing better.
| 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: 72.79% 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 7.39%. This is in the lower half of the industry: RGA underperforms 70.07% 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.
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 1.18. 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.
The Debt to FCF ratio of RGA (1.18) is better than 65.31% 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.
The Debt to Equity ratio of RGA (0.44) is worse than 63.95% of its industry peers.
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 | 0.44 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.21%
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 -2.77% 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 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
Based on estimates for the next years, RGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.11% on average per year.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 7.50% on average per year.
EPS Next Y-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
Based on the Price/Earnings ratio of 8.73, the valuation of RGA can be described as reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than 67.35% of the companies in the same industry.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 26.15, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.30, the valuation of RGA can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 74.15% of the companies listed in the same industry.
RGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 7.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RGA.
Based on the Price/Free Cash Flow ratio, RGA is valued cheaper than 87.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.59 | ||
| EV/EBITDA | 8.09 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.79
EPS Next 2Y7.25%
EPS Next 3Y7.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.75%, RGA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.46, RGA pays a better dividend. On top of this RGA pays more dividend than 88.44% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, RGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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 2Y7.25%
EPS Next 3Y7.95%
189.87
-0.89 (-0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners99.9%
Inst Owner Change-2.15%
Ins Owners0.21%
Ins Owner Change0%
Market Cap12.55B
Revenue(TTM)22.31B
Net Income(TTM)867.00M
Analysts74.67
Price Target240.15 (26.48%)
Short Float %0.81%
Short Ratio1.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.75% |
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)0.83%
PT rev (3m)0.83%
EPS NQ rev (1m)1.81%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)-2.48%
EPS NY rev (3m)-2.58%
Revenue NQ rev (1m)1.72%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)1.67%
Revenue NY rev (3m)1.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.73 | ||
| Fwd PE | 7.3 | ||
| P/S | 0.56 | ||
| P/FCF | 2.59 | ||
| P/OCF | 2.59 | ||
| P/B | 0.97 | ||
| P/tB | 0.97 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)21.74
EY11.45%
EPS(NY)26.02
Fwd EY13.7%
FCF(TTM)73.22
FCFY38.56%
OCF(TTM)73.22
OCFY38.56%
SpS337.62
BVpS196.37
TBVpS196.37
PEG (NY)N/A
PEG (5Y)0.79
Graham Number309.93
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
WACC7.21%
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-3.8%
EPS Next 2Y7.25%
EPS Next 3Y7.95%
EPS Next 5Y8.11%
Revenue 1Y (TTM)2.01%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%9.79%
Revenue Next Year2.94%
Revenue Next 2Y6.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.5%
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 9 / 10 and the dividend payout ratio is 27.34%.