Globe Life (NYSE:GL) - Share price, News & Analysis

GL fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	1/6
Past Performance	1/6
Financial Health	4/6
Dividends	4/6

GL Stock Overview

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.

Rewards

Trading at 52.1% below our estimate of its fair value

Earnings are forecast to grow 7.83% per year

Risk Analysis

Significant insider selling over the past 3 months

Globe Life Competitors

Prudential Financial

NYSE:PRU

US$37.0b

Aflac

NYSE:AFL

US$35.5b

Principal Financial Group

NasdaqGS:PFG

US$17.5b

Lincoln National

NYSE:LNC

US$9.1b

Price History & Performance

Summary of all time highs, changes and price drops for Globe Life
Historical stock prices
Current Share Price	US$93.56
52 Week High	US$108.61
52 Week Low	US$85.25
Beta	0.96
1 Month Change	-11.66%
3 Month Change	-10.96%
1 Year Change	-11.29%
3 Year Change	7.31%
5 Year Change	24.37%
Change since IPO	1,003.11%

Shareholder Returns

	GL	US Insurance	US Market
7D	-2.7%	-2.3%	-2.7%
1Y	-11.3%	-0.9%	-12.9%

Return vs Industry: GL underperformed the US Insurance industry which returned -0.9% over the past year.

Return vs Market: GL exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is GL's price volatile compared to industry and market?
GL volatility
GL Average Weekly Movement	3.9%
Insurance Industry Average Movement	5.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: GL is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1979	3,222	Gary Coleman	https://www.globelifeinsurance.com

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 operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities.

Globe Life Fundamentals Summary

How do Globe Life's earnings and revenue compare to its market cap?
GL fundamental statistics
Market Cap	US$9.22b
Earnings (TTM)	US$730.80m
Revenue (TTM)	US$5.15b

12.6x

P/E Ratio

1.8x

P/S Ratio

Is GL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GL income statement (TTM)
Revenue	US$5.15b
Cost of Revenue	US$3.85b
Gross Profit	US$1.30b
Other Expenses	US$571.83m
Earnings	US$730.80m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	7.41
Gross Margin	25.27%
Net Profit Margin	14.18%
Debt/Equity Ratio	30.0%

How did GL perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

11%

Payout Ratio

Does GL pay a reliable dividends?

See GL dividend history and benchmarks

When do you need to buy GL by to receive an upcoming dividend?
Globe Life dividend dates
Ex Dividend Date	Jul 01 2022
Dividend Pay Date	Aug 01 2022
Days until Ex dividend	39 days
Days until Dividend pay date	70 days

Does GL pay a reliable dividends?

See GL dividend history and benchmarks

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: GL ($93.56) is trading below our estimate of fair value ($195.3)

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

Price To Earnings Ratio

PE vs Industry: GL is poor value based on its PE Ratio (12.6x) compared to the US Insurance industry average (10.9x).

PE vs Market: GL is good value based on its PE Ratio (12.6x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: GL is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: GL is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1x).

Future Growth

How is Globe Life forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GL's forecast earnings growth (7.8% per year) is above the savings rate (1.9%).

Earnings vs Market: GL's earnings (7.8% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: GL's revenue (5.4% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: GL's revenue (5.4% 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 (11.3%).

Past Performance

How has Globe Life performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GL has high quality earnings.

Growing Profit Margin: GL's current net profit margins (14.2%) are lower than last year (15.3%).

Past Earnings Growth Analysis

Earnings Trend: GL's earnings have declined by 6.8% 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 (-1.9%) over the past year, making it difficult to compare to the Insurance industry average (-2.6%).

Return on Equity

High ROE: GL's Return on Equity (10.6%) is considered low.

Financial Health

How is Globe Life's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GL's short term assets ($942.9M) do not cover its short term liabilities ($2.3B).

Long Term Liabilities: GL's short term assets ($942.9M) do not cover its long term liabilities ($18.6B).

Debt to Equity History and Analysis

Debt Level: GL's net debt to equity ratio (27.3%) is considered satisfactory.

Reducing Debt: GL's debt to equity ratio has reduced from 30.7% to 30% over the past 5 years.

Debt Coverage: GL's debt is well covered by operating cash flow (70.7%).

Interest Coverage: GL's interest payments on its debt are well covered by EBIT (11.9x coverage).

Balance Sheet

Dividend

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

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

0.89%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: GL's dividend (0.89%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: GL's dividend (0.89%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (11.1%), GL's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (5.7%), GL's dividend payments are thoroughly covered by cash flows.

Discover strong dividend paying companies

Management

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

6.4yrs

Average management tenure

CEO

Gary Coleman (68 yo)

9.92yrs

Tenure

US$8,353,754

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 its Executive Vice President and Chief Financial O...

CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD8.35M) is about average for companies of similar size in the US market ($USD8.23M).

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 (6.4 years average tenure).

Board Members

Experienced Board: GL's board of directors are considered experienced (7.4 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31