NYSE:GL

Stock Analysis Report

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.


Snowflake Analysis

Fair value with acceptable track record.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.1%

GL

9.6%

US Insurance

5.3%

US Market


1 Year Return

-15.0%

GL

-18.1%

US Insurance

-10.7%

US Market

Return vs Industry: GL exceeded the US Insurance industry which returned -18.1% over the past year.

Return vs Market: GL underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

GLIndustryMarket
7 Day6.1%9.6%5.3%
30 Day-25.1%-19.5%-13.6%
90 Day-31.8%-27.0%-19.8%
1 Year-14.4%-15.0%-16.1%-18.1%-8.9%-10.7%
3 Year-3.4%-5.3%-4.1%-11.6%15.5%8.0%
5 Year34.6%29.5%21.2%6.4%35.2%20.4%

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?

49.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GL ($71.97) is trading below our estimate of fair value ($142.83)

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 (10.3x) compared to the Insurance industry average (9.2x).

PE vs Market: GL is good value based on its PE Ratio (10.3x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: GL is poor value based on its PEG Ratio (6.5x)


Price to Book Ratio

PB vs Industry: GL is overvalued based on its PB Ratio (1.1x) compared to the US Insurance industry average (0.9x).


Next Steps

Future Growth

How is Globe Life forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GL's forecast earnings growth (1.6% per year) is below the savings rate (1.7%).

Earnings vs Market: GL's earnings (1.6% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: GL's revenue (3.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: GL's revenue (3.5% 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 (9.4%).


Next Steps

Past Performance

How has Globe Life performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GL has high quality earnings.

Growing Profit Margin: GL's current net profit margins (16.8%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: GL's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: GL's earnings growth over the past year (8.5%) is below its 5-year average (15% per year).

Earnings vs Industry: GL earnings growth over the past year (8.5%) underperformed the Insurance industry 43.7%.


Return on Equity

High ROE: GL's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is Globe Life's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GL has a low level of unsold assets or inventory.

Debt Coverage by Assets: GL's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: GL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GL has a sufficient allowance for bad loans.

Low Risk Liabilities: GL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GL has an appropriate level of bad loans.


Next Steps

Dividend

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

1.04%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GL's dividend (1.04%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: GL's dividend (1.04%) is low compared to the top 25% of dividend payers in the US market (5.37%).


Stability and Growth of Payments

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

Growing Dividend: GL 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: GL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GL'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?

6.3yrs

Average management tenure


CEO

Gary Coleman (66yo)

7.83s

Tenure

US$8,342,279

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 ($USD8.34M) is about average for companies of similar size in the US market ($USD7.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Coleman
Co-Chairman & CEO7.83yrsUS$8.34m0.73% $56.5m
Larry Hutchison
Co-Chairman & CEO6yrsUS$8.34m0.66% $51.3m
Frank Svoboda
Executive VP & CFO7.83yrsUS$4.21m0.11% $8.7m
W. Pressley
Executive VP & Chief Investment Officer7.25yrsUS$3.40m0.077% $6.0m
James Darden
Executive VP & Chief Strategy Officer3.25yrsUS$2.56m0.023% $1.8m
Steven Greer
Chief Executive Officer of American Income Life Division2.25yrsUS$2.31m0.014% $1.1m
M. Henrie
Corporate Senior VP & Chief Accounting Officer1.17yrsno data0.000090% $7.0k
James McPartland
Executive VP & Chief Information Officer5.42yrsno data0.024% $1.8m
Michael Majors
Executive Vice President of Administration & Investor Relations2.25yrsno data0.021% $1.6m
Robert Mitchell
Executive VP7.83yrsno data0.054% $4.2m

6.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: GL's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Coleman
Co-Chairman & CEO7.83yrsUS$8.34m0.73% $56.5m
Larry Hutchison
Co-Chairman & CEO6yrsUS$8.34m0.66% $51.3m
Charles Adair
Independent Director17yrsUS$235.01k0.0072% $554.2k
Marilyn Alexander
Independent Director7.17yrsUS$247.52k0.014% $1.1m
Jane Buchan
Independent Director14.5yrsUS$235.01k0.075% $5.8m
Robert Ingram
Lead Independent Director2yrsUS$275.02k0.027% $2.1m
Mary Thigpen
Independent Director2.17yrsUS$255.86k0.0040% $311.5k
Darren Rebelez
Independent Director10.17yrsUS$247.52k0.017% $1.3m
Cheryl Alston
Independent Director2.17yrsUS$239.17k0.0011% $81.9k
Steven Johnson
Independent Director3.42yrsUS$270.02k0.0066% $511.7k

6.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GL's board of directors are considered experienced (6 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

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$7.729b
  • Shares outstanding: 107.40m
  • Website: https://www.globelifeinsurance.com

Number of Employees


Location

  • Globe Life Inc.
  • 3700 South Stonebridge Drive
  • Post Office Box 8080
  • McKinney
  • Texas
  • 75070
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
0Q1QLSE (London Stock Exchange)YesCommon StockGBEURJan 1980
TMJDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
GL.PRCNYSE (New York Stock Exchange)JR SUB DEB 56USUSDApr 2016
GLOBE LIFE IBOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

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 operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers term life, whole life, children's life, senior life, and family life insurance products; accidental benefits insurance; mortgage protection insurance; and medicare supplement plans. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was incorporated in 1979 and is based in McKinney, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 04:01
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.