Globe Life logged a 2.0% change during today's morning session, and is now trading at a price of $174.25 per share.
Globe Life returned gains of 39.8% last year, with its stock price reaching a high of $175.62 and a low of $116.73. Over the same period, the stock outperformed the S&P 500 index by 15.4%. More recently, the company's 50-day average price was $154.99. Globe Life Inc., through its subsidiaries, provides various life and supplemental health insurance products to lower middle- and middle-income families in the United States. Based in McKinney, TX, the Large-Cap Finance company has 3,695 full time employees. Globe Life has offered a 0.7% dividend yield over the last 12 months.
Growing Revenues but Not Enough Current Assets to Cover Current Liabilities:
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,738 | $5,112 | $5,227 | $5,448 | $5,778 | $5,994 |
| Interest Income (M) | $87 | $83 | $90 | $102 | $127 | $141 |
| Operating Margins | 19% | 24% | 23% | 23% | 23% | 24% |
| Net Margins | 15% | 20% | 17% | 18% | 19% | 19% |
| Net Income (M) | $732 | $1,031 | $894 | $971 | $1,071 | $1,161 |
| Depreciation & Amort. (M) | $17 | $20 | $21 | $21 | $27 | $30 |
| Diluted Shares (M) | 107 | 103 | 99 | 96 | 90 | 83 |
| Earnings Per Share | $6.82 | $9.99 | $9.04 | $10.07 | $11.94 | $14.07 |
| EPS Growth | n/a | 46.48% | -9.51% | 11.39% | 18.57% | 17.84% |
| Avg. Price | $82.56 | $94.38 | $98.61 | $121.72 | $111.18 | $159.18 |
| P/E Ratio | 12.12 | 9.46 | 10.96 | 12.1 | 9.73 | 11.49 |
| Free Cash Flow (M) | $1,435 | $1,399 | $1,394 | $1,433 | $1,331 | $1,254 |
| CAPEX (M) | $42 | $38 | $28 | $50 | $71 | $142 |
| EV / EBITDA | 11.61 | 9.49 | 9.89 | 10.7 | 9.6 | 10.8 |
| Total Debt (M) | $1,923 | $2,176 | $2,243 | $2,116 | $2,740 | $2,625 |
| Net Debt / EBITDA | 1.98 | 1.67 | 1.78 | 1.56 | 1.9 | 1.69 |
| Current Ratio | 0.37 | 0.19 | 0.21 | 0.21 | 0.4 | 0.47 |
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 a strong EPS growth trend. However, the firm has not enough current assets to cover current liabilities because its current ratio is 0.47. Finally, we note that Globe Life has positive cash flows.
Globe Life Is Fairly Valued:
Globe Life has a trailing twelve month P/E ratio of 10.7, compared to an average of 15.92 for the Finance sector. Based on its EPS guidance of $16.65, the company has a forward P/E ratio of 9.3. The 13.6% compound average growth rate of Globe Life's historical and projected earnings per share yields a PEG ratio of 0.79. 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 2.23 is higher than the sector average of 1.78. The company's shares are currently trading 15.1% below their Graham number.
Analysts Give Globe Life an Average Rating of Buy:
The 11 analysts following Globe Life have set target prices ranging from $147.0 to $208.0 per share, for an average of $175.91 with a buy rating.
Globe Life has a very low short interest because 0.0% of the company's shares are sold short. Institutions own 86.5% of the company's shares, and the insider ownership rate stands at 0.69%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 7% stake in the company is worth $965,797,105.
