Reinsurance Group of America Inc (RGA) stock analysis

P/E below its 5-year median

Reinsurance Group of America's P/E of 10.6 is below its own 5-year median of 15.8.

P/E below the industry

Reinsurance Group of America's P/E of 10.6 is below the Life Insurance median of 10.8.

P/S above the industry

Reinsurance Group of America's price-to-sales of 0.66 is above the Life Insurance median of 0.65.

P/B above the industry

Reinsurance Group of America's price-to-book of 1.54 is above the Life Insurance median of 1.11.

Trading below fair value

The share price of $275.15 is below our fair value estimate of $275.74.

Margin of safety under 20%

The price is 0.2% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 13.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 32.3% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 97.3% over the last twelve months, against a 5-year average of 23.3% a year.

Growing faster than the industry

Revenue grew 22.5% over the last twelve months; the Life Insurance median is 7.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 13.9% over the last twelve months and averaged 9.1% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.1%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

Reinsurance Group of America's return on equity of 13.9% is above the Life Insurance median of 12.6%.

Earnings grew over 5 years

Net income grew 23.3% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.3% over the last twelve months, against a 5-year average of 4.7%.

Net margin below the industry

Reinsurance Group of America's net margin of 6.3% is below the Life Insurance median of 8.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

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

Reinsurance Group of America paid dividends worth 1.0% of the share price over the last twelve months.

Yield below Treasuries

The 1.0% yield is below the 4.7% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Reinsurance Group of America yields 1.0%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 14.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.