Globe Life Inc
Exchange: NYSESector: Financial ServicesIndustry: Insurance - Life
Globe Life is headquartered in McKinney, TX, and has more than 16,000 insurance agents and 3,600 corporate employees. With a mission to Make Tomorrow Better, Globe Life and its subsidiary companies issue more life insurance policies and have more policyholders than any other life insurance company in the country, with more than 17 million policies in force (excluding reinsurance companies; as reported by S&P Global Market Intelligence 2024). Globe Life's insurance subsidiaries include American Income Life Insurance Company, Family Heritage Life Insurance Company of America, Globe Life And Accident Insurance Company, Liberty National Life Insurance Company, and United American Insurance Company.
Did you know?
Net income compounded at 7.3% annually over 6 years.
Current Price
$152.72
-1.02%GoodMoat Value
$280.78
83.9% undervaluedProfile
Valuation (TTM)
Market Cap$12.16B
P/E10.47
EV$13.42B
P/B2.03
Shares Out79.61M
P/Sales2.03
Revenue$5.99B
EV/EBITDA9.28
Globe Life Inc (GL) Stock Analysis
GoodMoat Analysis
Globe Life is a life insurance company with a strong financial profile, including a high ROE of 19.4% and a robust free cash flow yield of 11.5%. However, its low Moat Score and modest growth profile place it in the 'unfavourable' category for the initial quality gate, suggesting it may lack the durable competitive advantages typically sought in this framework.
Read full analysis
Globe Life Inc operates in the life insurance sector, providing coverage to middle-income families in the US. Applying the GoodMoat Investment Framework, the initial assessment focuses on Moat Identification and the Decision Framework's quality gate. The company's financials show quality indicators: an ROE of 19.4% exceeds the 15-20% high-return threshold, and a Debt/Equity ratio of 0.44 indicates a conservative balance sheet. The 11.5% FCF Yield is also a strong positive. However, the framework's first step requires a Moat Score of 5+ to proceed. For a traditional insurer, likely moat sources like niche dominance or brand are difficult to score highly without more specific data on market share or pricing power. The provided 3.6% YoY revenue growth does not suggest a powerful growth engine reinforcing a moat. Based on the X-Ray Score translation, a likely Moat Score below 5 would result in a Business Score of 0-5/20, causing the analysis to fail the initial quality gate. While the stock appears cheap at a P/E of 9.4 and trades at a significant discount to the provided GoodMoat Target of $280.78, the framework prioritizes business quality over price. Therefore, for an investor focused on durable competitive advantages, Globe Life may not meet the initial criteria for further valuation analysis, rendering the overall assessment unfavourable under this specific analytical lens. Analysis based on data as of 2024-05-15.
Market Cap$12.16B
Current Price$152.72
P/E Ratio10.47
Forward P/E—
PEG Ratio0.96
EPS$14.07
Book Value$75.05
P/B Ratio2.03
GL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -0.9% FCF growth (CAGR)
Cash vs Debt
Net Debt: 2.5B
Revenue
4.5B
FY19
4.7B
FY20
5.1B
FY21
5.2B
FY22
5.4B
FY23
5.8B
FY24
6.0B
FY25
Net Income
761M
FY19
732M
FY20
1.0B
FY21
894M
FY22
971M
FY23
1.1B
FY24
1.2B
FY25
GL 52-Week Range
$116.87
$154.30
50-Day MA: $144.32200-Day MA: $139.06
Did you know?
GL's revenue grew at a 4.8% CAGR over the last 6 years.
Globe Life Inc (GL) Financial Summary
Globe Life Inc (GL) is a Financial Services company in the Insurance - Life industry, listed on NYSE. The stock currently trades at $152.72 with a market capitalization of $12.16B.
Key valuation metrics include a P/E ratio of 10.47, price-to-book ratio of 2.03, and EPS of $14.07. The company reports a profit margin of 19.4% and return on equity of 19.4%.
GL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $12.16B |
| P/E Ratio | 10.47 |
| EPS | $14.07 |
| P/B Ratio | 2.03 |
| P/S Ratio | 2.03 |
| EV/EBITDA | 9.28 |
| Dividend Yield | 0.71% |
| Profit Margin | 19.4% |
| Return on Equity | 19.4% |
| Debt/Equity | 0.44 |
GL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $4.53B | $760.79M |
| FY20 | $4.74B | $731.77M |
| FY21 | $5.11B | $1.03B |
| FY22 | $5.23B | $894.39M |
| FY23 | $5.45B | $970.75M |
| FY24 | $5.78B | $1.07B |
| FY25 | $5.99B | $1.16B |
Globe Life Inc (GL) Valuation
Based on GoodMoat's DCF model, Globe Life Inc has a fair value estimate of $280.78. At the current price of $152.72, the stock appears 45.6% undervalued relative to our intrinsic value estimate.
GL Quality Indicators
Globe Life Inc maintains a profit margin of 19.4% and an operating margin of 26.3%. Return on equity stands at 19.4%. Debt-to-equity ratio is 0.44.
About Globe Life Inc
Globe Life is headquartered in McKinney, TX, and has more than 16,000 insurance agents and 3,600 corporate employees. With a mission to Make Tomorrow Better, Globe Life and its subsidiary companies issue more life insurance policies and have more policyholders than any other life insurance company in the country, with more than 17 million policies in force (excluding reinsurance companies; as reported by S&P Global Market Intelligence 2024). Globe Life's insurance subsidiaries include American Income Life Insurance Company, Family Heritage Life Insurance Company of America, Globe Life And Accident Insurance Company, Liberty National Life Insurance Company, and United American Insurance Company.
GL Free Cash Flow
Globe Life Inc generated $1.25B in trailing twelve-month free cash flow, representing an FCF yield of 10.31%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
GL Shares Outstanding
Globe Life Inc has 0.08 billion shares outstanding at a share price of $152.72, giving it a market capitalization of $12.16B.
GL Recent Insider Trades
Recent insider transactions at Globe Life Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Darden James Matthew (Co-Chairman & CEO) | SELL | 4,663 | $717529.85 |
| MAJORS MICHAEL CLAY (EVP - Chief Strategy Officer) | SELL | 5,165 | $789436.68 |
| HENRIE MICHAEL SHANE (SVP & Chief Accounting Officer) | SELL | 526 | $81188.15 |