Globe Life Inc. (GL) stock analysis

P/E above its 5-year median

Globe Life's P/E of 10.8 is above its own 5-year median of 10.5.

P/E above the industry

Globe Life's P/E of 10.8 is above the Life Insurance median of 10.8.

P/S above the industry

Globe Life's price-to-sales of 1.98 is above the Life Insurance median of 0.67.

P/B above the industry

Globe Life's price-to-book of 1.88 is above the Life Insurance median of 1.11.

Trading above fair value

The share price of $161.80 is above our fair value estimate of $159.06.

Margin of safety under 20%

The price is 1.7% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 15.9% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 3.1% over the last twelve months, against a 5-year average of 9.7% a year.

Growing slower than the industry

Revenue grew 5.6% over the last twelve months; the Life Insurance median is 7.1%.

Guidance raised

Globe Life raised its full-year 2026 earnings guidance outlook on Jul 22, 2026.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 19.3% over the last twelve months and averaged 22.9% over five years.

Return on assets over 1%

Return on assets was 3.9%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Globe Life's return on equity of 19.3% is above the Life Insurance median of 12.6%.

Earnings grew over 5 years

Net income grew 9.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 18.9% over the last twelve months, against a 5-year average of 18.6%.

Net margin above the industry

Globe Life's net margin of 18.9% is above the Life Insurance median of 8.1%.

High debt

Debt is 45.1% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 21.9% five years ago to 45.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 47.3% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

Globe Life paid dividends worth 0.8% of the share price over the last twelve months.

Yield below Treasuries

The 0.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Globe Life yields 0.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 7.9% of net income.

Covered by free cash flow

Dividends take 7.1% of free cash flow.