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Market Cap

US$11.7b

Last Updated

2021/04/13 22:11 UTC

Data Sources

Company Financials +

Executive Summary

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. More Details


Snowflake Analysis

Adequate balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Globe Life's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GL's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.7%

GL

1.3%

US Insurance

0.9%

US Market


1 Year Return

25.8%

GL

41.2%

US Insurance

57.9%

US Market

Return vs Industry: GL underperformed the US Insurance industry which returned 41.2% over the past year.

Return vs Market: GL underperformed the US Market which returned 57.9% over the past year.


Shareholder returns

GLIndustryMarket
7 Day1.7%1.3%0.9%
30 Day-0.7%1.4%2.3%
90 Day4.9%10.2%6.3%
1 Year26.9%25.8%44.9%41.2%60.8%57.9%
3 Year20.9%17.9%32.0%22.2%64.5%53.9%
5 Year86.2%78.7%77.4%55.2%120.9%96.4%

Long-Term Price Volatility Vs. Market

How volatile is Globe Life's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Globe Life undervalued compared to its fair value and its price relative to the market?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GL ($100.8) is trading below our estimate of fair value ($124.15)

Significantly Below Fair Value: GL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GL's PE Ratio (14.6x) is in line with the US Insurance industry average.

PE vs Market: GL is good value based on its PE Ratio (14.6x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: GL is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: GL is overvalued based on its PB Ratio (1.2x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Globe Life forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GL's forecast earnings growth (4.8% per year) is above the savings rate (2%).

Earnings vs Market: GL's earnings (4.8% per year) are forecast to grow slower than the US market (18.6% per year).

High Growth Earnings: GL's earnings are forecast to grow, but not significantly.

Revenue vs Market: GL's revenue (4.3% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: GL's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GL's Return on Equity is forecast to be low in 3 years time (8.7%).


Past Performance

How has Globe Life performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GL has high quality earnings.

Growing Profit Margin: GL's current net profit margins (15.4%) are lower than last year (16.8%).


Past Earnings Growth Analysis

Earnings Trend: GL's earnings have grown by 5.8% per year over the past 5 years.

Accelerating Growth: GL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GL had negative earnings growth (-3.8%) over the past year, making it difficult to compare to the Insurance industry average (-9.8%).


Return on Equity

High ROE: GL's Return on Equity (8.3%) is considered low.


Financial Health

How is Globe Life's financial position?


Financial Position Analysis

Short Term Liabilities: GL's short term assets ($925.8M) do not cover its short term liabilities ($2.6B).

Long Term Liabilities: GL's short term assets ($925.8M) do not cover its long term liabilities ($17.7B).


Debt to Equity History and Analysis

Debt Level: GL's debt to equity ratio (21.9%) is considered satisfactory.

Reducing Debt: GL's debt to equity ratio has reduced from 30.4% to 21.9% over the past 5 years.

Debt Coverage: GL's debt is well covered by operating cash flow (76.8%).

Interest Coverage: GL's interest payments on its debt are well covered by EBIT (11.4x coverage).


Balance Sheet


Dividend

What is Globe Life current dividend yield, its reliability and sustainability?

0.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GL's dividend (0.78%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.26%).

High Dividend: GL's dividend (0.78%) is low compared to the top 25% of dividend payers in the US market (3.5%).


Stability and Growth of Payments

Stable Dividend: GL's dividends per share have been stable in the past 10 years.

Growing Dividend: GL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.9%), GL's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GL's dividends in 3 years are forecast to be thoroughly covered by earnings (9.8% payout ratio).


Next Steps

Management

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

5.3yrs

Average management tenure


CEO

Gary Coleman (67 yo)

8.83yrs

Tenure

US$9,158,910

Compensation

Mr. Gary Lee Coleman has been the Co-Chief Executive Officer of Globe Life Inc. (formerly known as Torchmark Corporation) since June 1, 2012 and served as Executive Vice President and Chief Financial Offic...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD9.16M) is about average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

Experienced Management: GL's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: GL's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.


Top Shareholders

Company Information

Globe Life Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Globe Life Inc.
  • Ticker: GL
  • Exchange: NYSE
  • Founded: 1979
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$11.687b
  • Shares outstanding: 115.94m
  • Website: https://www.globelifeinsurance.com

Number of Employees


Location

  • Globe Life Inc.
  • 3700 South Stonebridge Drive
  • McKinney
  • Texas
  • 75070
  • United States

Listings


Biography

Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company oper...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 22:11
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
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.