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GL

Insights on Investing in GL – Analyst Recommendations

Now trading at a price of $135.49, Globe Life has moved 0.0% so far today.

Globe Life returned gains of 38.0% last year, with its stock price reaching a high of $144.0 and a low of $96.73. Over the same period, the stock outperformed the S&P 500 index by 23.0%. More recently, the company's 50-day average price was $127.0. Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle- and middle-income families in the United States. Based in McKinney, TX, the Large-Cap Finance company has 3,732 full time employees. Globe Life has offered a 0.8% dividend yield over the last 12 months.

Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:

2019 2020 2021 2022 2023 2024
Revenue (M) $4,528 $4,738 $5,112 $5,227 $5,448 $5,778
Interest Income (M) $84 $87 $83 $90 $102 $127
Operating Margins 20% 19% 24% 23% 23% 23%
Net Margins 17% 15% 20% 17% 18% 19%
Net Income (M) $761 $732 $1,031 $894 $971 $1,071
Depreciation & Amort. (M) $16 $17 $20 $21 $21 $27
Diluted Shares (M) 111 107 103 99 96 90
Earnings Per Share $6.83 $6.82 $9.99 $9.04 $10.07 $11.94
EPS Growth n/a -0.15% 46.48% -9.51% 11.39% 18.57%
Avg. Price $86.96 $82.56 $94.38 $98.61 $121.72 $135.43
P/E Ratio 12.6 12.12 9.46 10.96 12.1 11.85
Free Cash Flow (M) $1,322 $1,435 $1,399 $1,394 $1,433 $1,331
CAPEX (M) $42 $42 $38 $28 $50 $71
EV / EBITDA 11.93 11.61 9.49 9.89 10.7 11.28
Total Debt (M) $1,657 $1,923 $2,176 $2,243 $2,116 $2,740
Net Debt / EBITDA 1.69 1.98 1.67 1.78 1.56 1.9
Current Ratio 0.25 0.37 0.19 0.21 0.21 0.4

Globe Life has growing revenues and increasing reinvestment in the business and strong operating margins with a stable trend. Additionally, the company's financial statements display low leverage levels and positive EPS growth. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.4. Finally, we note that Globe Life has positive cash flows.

Globe Life Is Reasonably Valued:

Globe Life has a trailing twelve month P/E ratio of 10.2, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $13.55, the company has a forward P/E ratio of 9.4. The 10.3% compound average growth rate of Globe Life's historical and projected earnings per share yields a PEG ratio of 0.99. This suggests that its shares are undervalued. In contrast, Globe Life is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.03 is higher than the sector average of 1.78. The company's shares are currently trading 7.5% below their Graham number.

Globe Life Has an Average Rating of Buy:

The 11 analysts following Globe Life have set target prices ranging from $145.0 to $188.0 per share, for an average of $160.18 with a buy rating. The company is trading -15.4% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Globe Life has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 85.7% of the company's shares, and the insider ownership rate stands at 0.61%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 13% stake in the company is worth $1,392,766,801.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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