REINSURANCE GROUP OF AMERICA (RGA)
US7593516047 - Common Stock
Taking everything into account, RGA scores 4 out of 10 in our fundamental rating. RGA was compared to 141 industry peers in the Insurance industry. Both the profitability and financial health of RGA have multiple concerns. RGA has a correct valuation and a medium growth rate.
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.
RGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
RGA's Return On Assets of 0.92% is in line compared to the rest of the industry. RGA outperforms 45.32% of its industry peers.
The Return On Equity of RGA (9.93%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 9.93% | ||
| ROIC | N/A |
ROA(3y)0.93%
ROA(5y)0.89%
ROE(3y)8.74%
ROE(5y)7.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
RGA has a Profit Margin (4.86%) which is in line with its industry peers.
RGA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 7.68%, RGA perfoms like the industry average, outperforming 46.76% of the companies in the same industry.
RGA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.68% | ||
| PM (TTM) | 4.86% | ||
| GM | N/A |
OM growth 3Y13.82%
OM growth 5Y-1.18%
PM growth 3Y19.59%
PM growth 5Y-2.63%
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 reduced compared to 1 year ago.
Compared to 5 years ago, RGA has more shares outstanding
The debt/assets ratio for RGA has been reduced compared to a year ago.
2.2 Solvency
RGA has a debt to FCF ratio of 1.09. This is a very positive value and a sign of high solvency as it would only need 1.09 years to pay back of all of its debts.
RGA has a better Debt to FCF ratio (1.09) than 69.78% of its industry peers.
RGA has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
RGA has a worse Debt to Equity ratio (0.49) than 61.87% 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 | 0.49 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.91%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 37.53% over the past year.
RGA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.24% yearly.
The Revenue has grown by 14.25% in the past year. This is quite good.
Measured over the past years, RGA shows a small growth in Revenue. The Revenue has been growing by 7.56% on average per year.
EPS 1Y (TTM)37.53%
EPS 3Y38.53%
EPS 5Y10.24%
EPS growth Q2Q58.19%
Revenue 1Y (TTM)14.25%
Revenue growth 3Y8.32%
Revenue growth 5Y7.56%
Revenue growth Q2Q13.92%
3.2 Future
The Earnings Per Share is expected to grow by 6.25% on average over the next years.
Based on estimates for the next years, RGA will show a small growth in Revenue. The Revenue will grow by 5.21% on average per year.
EPS Next Y-0.24%
EPS Next 2Y4.24%
EPS Next 3Y6.25%
EPS Next 5YN/A
Revenue Next Year2.73%
Revenue Next 2Y4.29%
Revenue Next 3Y5.21%
Revenue Next 5YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.57, the valuation of RGA can be described as very reasonable.
Based on the Price/Earnings ratio, RGA is valued a bit cheaper than the industry average as 64.75% of the companies are valued more expensively.
RGA is valuated cheaply when we compare the Price/Earnings ratio to 25.20, which is the current average of the S&P500 Index.
RGA is valuated reasonably with a Price/Forward Earnings ratio of 9.59.
Based on the Price/Forward Earnings ratio, RGA is valued a bit cheaper than the industry average as 62.59% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of RGA to the average of the S&P500 Index (21.60), we can say RGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 9.59 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RGA indicates a somewhat cheap valuation: RGA is cheaper than 62.59% of the companies listed in the same industry.
82.73% 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 | 3.09 | ||
| EV/EBITDA | 9.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y4.24%
EPS Next 3Y6.25%
5. Dividend
5.1 Amount
RGA has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.36, RGA has a dividend in line with its industry peers.
RGA's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
5.2 History
The dividend of RGA is nicely growing with an annual growth rate of 8.46%!
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)8.46%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
24.28% of the earnings are spent on dividend by RGA. This is a low number and sustainable payout ratio.
The dividend of RGA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.28%
EPS Next 2Y4.24%
EPS Next 3Y6.25%
REINSURANCE GROUP OF AMERICA
NYSE:RGA (4/23/2024, 7:22:26 PM)
After market: 190.04 0 (0%)190.04
+1.26 (+0.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.57 | ||
| Fwd PE | 9.59 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.92% | ||
| ROE | 9.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.68% | ||
| PM (TTM) | 4.86% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)37.53%
EPS 3Y38.53%
EPS 5Y
EPS growth Q2Q
EPS Next Y-0.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)14.25%
Revenue growth 3Y8.32%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y