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REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52 (RZC) Stock Fundamental Analysis

NYSE:RZC - New York Stock Exchange, Inc. - US7593518852 - Currency: USD

25.86  +0.04 (+0.15%)

Fundamental Rating

4

Taking everything into account, RZC scores 4 out of 10 in our fundamental rating. RZC was compared to 143 industry peers in the Insurance industry. Both the profitability and financial health of RZC have multiple concerns. RZC may be a bit undervalued, certainly considering the very reasonable score on growth


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year RZC was profitable.
RZC had a positive operating cash flow in the past year.
Each year in the past 5 years RZC has been profitable.
Each year in the past 5 years RZC had a positive operating cash flow.
RZC Yearly Net Income VS EBIT VS OCF VS FCFRZC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

RZC has a worse Return On Assets (0.62%) than 69.93% of its industry peers.
RZC has a Return On Equity of 6.95%. This is in the lower half of the industry: RZC underperforms 64.34% of its industry peers.
Industry RankSector Rank
ROA 0.62%
ROE 6.95%
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
RZC Yearly ROA, ROE, ROICRZC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

With a Profit Margin value of 3.77%, RZC is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
RZC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.57%, RZC is not doing good in the industry: 62.24% of the companies in the same industry are doing better.
RZC's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 6.57%
PM (TTM) 3.77%
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
RZC Yearly Profit, Operating, Gross MarginsRZC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10

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3

2. Health

2.1 Basic Checks

RZC does not have a ROIC to compare to the WACC, probably because it is not profitable.
RZC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, RZC has more shares outstanding
RZC has a better debt/assets ratio than last year.
RZC Yearly Shares OutstandingRZC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
RZC Yearly Total Debt VS Total AssetsRZC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

RZC has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.13, RZC is doing good in the industry, outperforming 60.14% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that RZC is somewhat dependend on debt financing.
RZC has a Debt to Equity ratio of 0.50. This is in the lower half of the industry: RZC underperforms 65.03% of its industry peers.
Although RZC 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 RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.13
Altman-Z N/A
ROIC/WACCN/A
WACC6.28%
RZC Yearly LT Debt VS Equity VS FCFRZC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

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5

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 7.43% over the past year.
RZC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.09% yearly.
RZC shows a small growth in Revenue. In the last year, the Revenue has grown by 2.11%.
The Revenue has been growing by 9.06% on average over the past years. This is quite good.
EPS 1Y (TTM)7.43%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-5.98%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%-15.75%

3.2 Future

RZC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.38% yearly.
RZC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.35% yearly.
EPS Next Y1.93%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
EPS Next 5Y8.38%
Revenue Next Year2.96%
Revenue Next 2Y6.69%
Revenue Next 3Y6.97%
Revenue Next 5Y7.35%

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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
RZC Yearly Revenue VS EstimatesRZC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10B 20B 30B
RZC Yearly EPS VS EstimatesRZC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10 20 30

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8

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 1.16, the valuation of RZC can be described as very cheap.
93.01% of the companies in the same industry are more expensive than RZC, based on the Price/Earnings ratio.
RZC is valuated cheaply when we compare the Price/Earnings ratio to 24.29, which is the current average of the S&P500 Index.
RZC is valuated cheaply with a Price/Forward Earnings ratio of 1.01.
93.71% of the companies in the same industry are more expensive than RZC, based on the Price/Forward Earnings ratio.
RZC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.42.
Industry RankSector Rank
PE 1.16
Fwd PE 1.01
RZC Price Earnings VS Forward Price EarningsRZC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RZC indicates a rather cheap valuation: RZC is cheaper than 93.01% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, RZC is valued cheaper than 99.30% of the companies in the same industry.
Industry RankSector Rank
P/FCF 0.34
EV/EBITDA 1.6
RZC Per share dataRZC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100 200 300

4.3 Compensation for Growth

RZC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.6
PEG (5Y)0.1
EPS Next 2Y6.48%
EPS Next 3Y7.59%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.81%, RZC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, RZC has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.43, RZC is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.81%

5.2 History

On average, the dividend of RZC grows each year by 6.13%, which is quite nice.
RZC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)6.13%
Div Incr Years1
Div Non Decr Years1
RZC Yearly Dividends per shareRZC Yearly Dividends per shareYearly Dividends per share 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

RZC pays out 29.26% of its income as dividend. This is a sustainable payout ratio.
The dividend of RZC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP29.26%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
RZC Yearly Income VS Free CF VS DividendRZC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
RZC Dividend Payout.RZC Dividend Payout, showing the Payout Ratio.RZC Dividend Payout.PayoutRetained Earnings

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REINSURANCE GRP OF AMER - RGA 7 1/8 10/15/52

NYSE:RZC (5/6/2025, 8:04:01 PM)

25.86

+0.04 (+0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners99.27%
Inst Owner ChangeN/A
Ins Owners0.19%
Ins Owner ChangeN/A
Market Cap1.71B
Analysts80
Price Target32.17 (24.4%)
Short Float %0.06%
Short Ratio0.78
Dividend
Industry RankSector Rank
Dividend Yield 1.81%
Yearly Dividend3.48
Dividend Growth(5Y)6.13%
DP29.26%
Div Incr Years1
Div Non Decr Years1
Ex-Date04-01 2025-04-01 (0.4453)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.34%
Min EPS beat(2)-6.11%
Max EPS beat(2)5.42%
EPS beat(4)3
Avg EPS beat(4)5.09%
Min EPS beat(4)-6.11%
Max EPS beat(4)14.34%
EPS beat(8)7
Avg EPS beat(8)11.29%
EPS beat(12)10
Avg EPS beat(12)24.97%
EPS beat(16)12
Avg EPS beat(16)17.52%
Revenue beat(2)0
Avg Revenue beat(2)-5.99%
Min Revenue beat(2)-6.99%
Max Revenue beat(2)-4.99%
Revenue beat(4)1
Avg Revenue beat(4)-1.55%
Min Revenue beat(4)-6.99%
Max Revenue beat(4)9.16%
Revenue beat(8)4
Avg Revenue beat(8)6.72%
Revenue beat(12)7
Avg Revenue beat(12)4.36%
Revenue beat(16)10
Avg Revenue beat(16)4.48%
PT rev (1m)-5%
PT rev (3m)0.25%
EPS NQ rev (1m)-2.71%
EPS NQ rev (3m)-7.5%
EPS NY rev (1m)-0.25%
EPS NY rev (3m)-1.56%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)3.37%
Revenue NY rev (1m)1.48%
Revenue NY rev (3m)5.5%
Valuation
Industry RankSector Rank
PE 1.16
Fwd PE 1.01
P/S 0.08
P/FCF 0.34
P/OCF 0.34
P/B 0.15
P/tB 0.15
EV/EBITDA 1.6
EPS(TTM)22.26
EY86.08%
EPS(NY)25.65
Fwd EY99.18%
FCF(TTM)76.61
FCFY296.24%
OCF(TTM)76.61
OCFY296.24%
SpS318.57
BVpS172.52
TBVpS172.52
PEG (NY)0.6
PEG (5Y)0.1
Profitability
Industry RankSector Rank
ROA 0.62%
ROE 6.95%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM 6.57%
PM (TTM) 3.77%
GM N/A
FCFM 24.05%
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-Score4
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.13
Debt/EBITDA 4.01
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 6.15
Cash Conversion 354.3%
Profit Quality 638.46%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC6.28%
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)7.43%
EPS 3Y174.8%
EPS 5Y11.09%
EPS Q2Q%-5.98%
EPS Next Y1.93%
EPS Next 2Y6.48%
EPS Next 3Y7.59%
EPS Next 5Y8.38%
Revenue 1Y (TTM)2.11%
Revenue growth 3Y10.36%
Revenue growth 5Y9.06%
Sales Q2Q%-15.75%
Revenue Next Year2.96%
Revenue Next 2Y6.69%
Revenue Next 3Y6.97%
Revenue Next 5Y7.35%
EBIT growth 1Y2.6%
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 1Y85.46%
FCF growth 3Y31.05%
FCF growth 5Y32.75%
OCF growth 1Y83.84%
OCF growth 3Y30.85%
OCF growth 5Y32.35%