Now trading at a price of $201.65, Reinsurance has moved 5.5% so far today.
Reinsurance returned gains of 28.9% last year, with its stock price reaching a high of $202.06 and a low of $135.07. Over the same period, the stock outperformed the S&P 500 index by 6.5%. More recently, the company's 50-day average price was $185.62. Reinsurance Group of America, Incorporated engages in reinsurance business. Based in Chesterfield, MO, the Large-Cap Finance company has 3,900 full time employees. Reinsurance has offered a 1.3% dividend yield over the last 12 months.
Exceptional EPS Growth Obtained Primarily Through Share Buybacks:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $12,876 | $14,300 | $14,596 | $16,667 | $16,227 | $18,567 |
| Interest Income (M) | $147 | $173 | $170 | $139 | $191 | $257 |
| Operating Margins | 7% | 8% | 4% | 8% | 4% | 6% |
| Net Margins | 6% | 6% | 3% | 7% | 3% | 5% |
| Net Income (M) | $716 | $870 | $415 | $1,170 | $517 | $902 |
| Depreciation & Amort. (M) | $45 | $49 | $49 | $32 | $38 | $41 |
| Diluted Shares (M) | 65,100,000,000 | 63,900,000,000 | 65,800,000,000 | 68,300,000 | 67,700,000 | 67,100,000 |
| Earnings Per Share | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 | $0.0 |
| EPS Growth | n/a | n/a | n/a | n/a | n/a | n/a |
| Avg. Price | $131.94 | $139.13 | $98.49 | $111.94 | $110.27 | $201.65 |
| P/E Ratio | 11.73 | 10.02 | 15.51 | 6.49 | 14.27 | 14.83 |
| Free Cash Flow (M) | $1,552 | $2,273 | $3,294 | $4,163 | $1,318 | $4,044 |
| CAPEX (M) | $29 | $34 | $28 | $19 | $25 | n/a |
| EV / EBITDA | 9550386154.06 | 7402973824.37 | 10239026617.25 | 5369721.7 | 9800309.02 | 11225992.88 |
| Total Debt (M) | $2,788 | $2,981 | $3,573 | $3,667 | $3,961 | $4,427 |
| Net Debt / EBITDA | 1.5 | -0.36 | 0.27 | 0.51 | 1.37 | 1.21 |
Reinsurance's Valuation Is in Line With Its Sector Averages:
Reinsurance has a trailing twelve month P/E ratio of 14.4, compared to an average of 12.38 for the Finance sector. Based on its EPS guidance of $21.61, the company has a forward P/E ratio of 8.6. The inf% compound average growth rate of Reinsurance's historical and projected earnings per share yields a PEG ratio of 0.0. This suggests that its shares are undervalued. Additionally, the market is possibly undervaluing Reinsurance in terms of its equity because its P/B ratio is 1.46 whereas the sector average is 1.58.
Reinsurance Has an Analyst Consensus of Some Upside Potential:
The 10 analysts following Reinsurance have set target prices ranging from $185.0 to $225.0 per share, for an average of $211.9 with a buy rating. The company is trading -4.8% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Reinsurance has a very low short interest because 0.7% of the company's shares are sold short. Institutions own 96.5% of the company's shares, and the insider ownership rate stands at 0.41%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 12% stake in the company is worth $1,534,209,212.
