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NWLI

National Western Life GroupNasdaqGS:NWLI Stock Report

Last Price

US$219.00

Market Cap

US$796.3m

7D

-0.9%

1Y

6.3%

Updated

16 Jan, 2022

Data

Company Financials
NWLI fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends0/6

NWLI Stock Overview

National Western Life Group, Inc., through its subsidiary, National Western Life Insurance Company, operates as a stock life insurance company.

Rewards

Trading at 66.4% below our estimate of its fair value

Earnings grew by 97% over the past year

Risk Analysis

No risks detected for NWLI from our risk checks.

National Western Life Group Competitors

Aflac

NYSE:AFL

US$42.4b

Principal Financial Group

NasdaqGS:PFG

US$20.4b

Globe Life

NYSE:GL

US$10.7b

Primerica

NYSE:PRI

US$6.2b

Price History & Performance

Summary of all time highs, changes and price drops for National Western Life Group
Historical stock prices
Current Share PriceUS$219.00
52 Week HighUS$260.00
52 Week LowUS$180.00
Beta1.12
1 Month Change2.82%
3 Month Change3.11%
1 Year Change6.31%
3 Year Change-27.36%
5 Year Change-27.49%
Change since IPO1,868.54%

Recent News & Updates

Nov 09
Is Now The Time To Put National Western Life Group (NASDAQ:NWLI) On Your Watchlist?

Is Now The Time To Put National Western Life Group (NASDAQ:NWLI) On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Sep 28

National Western Life Group: Deeply Undervalued Stock Similar To A 19% Yielding Bond

National Western Life Group (NWLI) is a life insurance company trading at historic lows relative to various valuation metrics. Low interest rates have been very challenging to NWLI and its peers. NWLI’s stock price performance has been disconnected from the company’s performance for many years. NWLI is controlled by the Moody family which has contributed to the market discounting its value.

Shareholder Returns

NWLIUS InsuranceUS Market
7D-0.9%-0.2%-0.5%
1Y6.3%23.5%13.7%

Return vs Industry: NWLI underperformed the US Insurance industry which returned 23.5% over the past year.

Return vs Market: NWLI underperformed the US Market which returned 13.7% over the past year.

Price Volatility

Is NWLI's price volatile compared to industry and market?
NWLI volatility
NWLI Average Weekly Movement4.4%
Insurance Industry Average Movement4.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

Stable Share Price: NWLI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: NWLI's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1956355Ross Moodyhttps://www.nwlgi.com

National Western Life Group, Inc., through its subsidiary, National Western Life Insurance Company, operates as a stock life insurance company. It operates through Domestic Life Insurance, International Life Insurance, Annuities, and Acquired Businesses segments. The company provides life insurance products for the savings and protection needs of policyholders; and annuity contracts for the asset accumulation and retirement needs of contract holders.

National Western Life Group Fundamentals Summary

How do National Western Life Group's earnings and revenue compare to its market cap?
NWLI fundamental statistics
Market CapUS$796.29m
Earnings (TTM)US$187.01m
Revenue (TTM)US$830.86m

4.3x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWLI income statement (TTM)
RevenueUS$830.86m
Cost of RevenueUS$478.15m
Gross ProfitUS$352.71m
ExpensesUS$165.70m
EarningsUS$187.01m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)51.43
Gross Margin42.45%
Net Profit Margin22.51%
Debt/Equity Ratio0%

How did NWLI perform over the long term?

See historical performance and comparison

Dividends

0.2%

Current Dividend Yield

0.699%

Payout Ratio

Valuation

Is National Western Life Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NWLI ($219) is trading below our estimate of fair value ($651.87)

Significantly Below Fair Value: NWLI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NWLI is good value based on its PE Ratio (4.3x) compared to the US Insurance industry average (11.4x).

PE vs Market: NWLI is good value based on its PE Ratio (4.3x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWLI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NWLI is good value based on its PB Ratio (0.3x) compared to the US Insurance industry average (1.2x).


Future Growth

How is National Western Life Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

3.7%

Forecasted Insurance industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as National Western Life Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has National Western Life Group performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NWLI has high quality earnings.

Growing Profit Margin: NWLI's current net profit margins (22.5%) are higher than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: NWLI's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: NWLI's earnings growth over the past year (97%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: NWLI earnings growth over the past year (97%) exceeded the Insurance industry 39.8%.


Return on Equity

High ROE: NWLI's Return on Equity (7.3%) is considered low.


Financial Health

How is National Western Life Group's financial position?


Financial Position Analysis

Short Term Liabilities: NWLI's short term assets ($3.5B) exceed its short term liabilities ($131.0M).

Long Term Liabilities: NWLI's short term assets ($3.5B) do not cover its long term liabilities ($11.7B).


Debt to Equity History and Analysis

Debt Level: NWLI is debt free.

Reducing Debt: NWLI has not had any debt for past 5 years.

Debt Coverage: NWLI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: NWLI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is National Western Life Group current dividend yield, its reliability and sustainability?

0.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NWLI's dividend (0.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: NWLI's dividend (0.16%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: NWLI is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: NWLI is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NWLI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NWLI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Ross Moody (59 yo)

30yrs

Tenure

US$11,169,082

Compensation

Mr. Ross Rankin Moody has been the President of National Western Life Group, Inc. since 1992 and Chief Executive Officer since 2015. Mr. Moody is Chairman of the Board at National Western Life Group, Inc....


CEO Compensation Analysis

Compensation vs Market: Ross's total compensation ($USD11.17M) is above average for companies of similar size in the US market ($USD2.31M).

Compensation vs Earnings: Ross's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: NWLI's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: NWLI's board of directors are seasoned and experienced ( 18 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

National Western Life Group, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: National Western Life Group, Inc.
  • Ticker: NWLI
  • Exchange: NasdaqGS
  • Founded: 1956
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Implied Market Cap: US$796.288m
  • Shares outstanding: 3.64m
  • Website: https://www.nwlgi.com

Number of Employees


Location

  • National Western Life Group, Inc.
  • Building 3
  • 10801 North Mopac Expressway
  • Austin
  • Texas
  • 78759-5415
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:19
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.