Globe Life (GL) AI Stock Analysis

• Market Cap: $10.49B
• Dividend Yield: 0.79%
• Average Volume (3M): 623.91K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.66
• Revenue Growth: 3.73%
• EPS Growth: 17.47%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): N/A
• Shares Outstanding: 79,605,800
• 10 Day Avg. Volume: 666,292
• 30 Day Avg. Volume: 623,907
• PEG Ratio: 0.50
• Price to Book (P/B): 1.76
• Price to Sales (P/S): 1.62
• P/FCF Ratio: 7.03
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $167.88
• Price Target Upside: 26.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $148.00 ▲(11.92% Upside)

Globe Life's overall stock score reflects strong financial performance and positive earnings call highlights, including robust revenue growth and profitability. The attractive valuation further supports the score. However, technical indicators suggest short-term weakness, and challenges in specific segments were noted in the earnings call.

Positive Factors

Revenue Growth

Consistent revenue growth in both life and health insurance segments indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Exclusive Agency Force

A growing exclusive agency force enhances distribution capabilities and customer reach, providing a competitive edge in acquiring new policyholders and sustaining revenue growth.

Investment Portfolio Performance

Strong investment performance contributes to financial stability and profitability, allowing the company to effectively manage liabilities and support future growth initiatives.

Negative Factors

Decline in Direct-to-Consumer Life Premiums

A decline in direct-to-consumer premiums suggests challenges in this distribution channel, potentially impacting market share and revenue diversification efforts.

Negative Free Cash Flow Growth

Negative free cash flow growth could signal potential cash flow challenges, affecting the company's ability to invest in growth opportunities and manage debt efficiently.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, which could impact profitability and necessitate improved cost management strategies.

Globe Life Business Overview & Revenue Model

Company Description

Globe Life Inc. is a leading provider of life and supplemental health insurance in the United States. Founded in 1951 and headquartered in McKinney, Texas, the company operates primarily in the life insurance sector, offering a range of products that include term life, whole life, and accidental death insurance. Additionally, Globe Life provides various supplemental health insurance products, such as cancer, critical illness, and accident insurance, targeting individuals and families seeking financial protection against unforeseen circumstances.

How the Company Makes Money

Globe Life generates revenue primarily through the sale of insurance premiums. The company earns money by underwriting life and health insurance policies, collecting premiums from policyholders, and investing those premiums in various financial instruments, such as bonds and stocks, to yield investment income. The core revenue streams include individual life insurance products, which provide long-term financial protection, and supplemental health insurance products that cover specific health-related expenses. Furthermore, Globe Life benefits from a network of independent agents and marketing partnerships that help distribute its products, enhancing its reach and customer acquisition efforts. Additionally, the company may generate income from policy renewals and persistency, where customers continue to pay premiums for their policies over time.

Globe Life Financial Statement Overview

Summary

Globe Life exhibits strong financial performance with impressive revenue growth and solid profitability margins. The balance sheet is stable with a manageable debt level, although the rising debt trend should be monitored. Cash flow generation is robust, but the recent decline in free cash flow growth could pose a challenge if it continues.

Income Statement

Globe Life has demonstrated strong revenue growth with a TTM revenue growth rate of 70.4%, significantly higher than previous periods. The gross profit margin has improved to 60.86% in the TTM, indicating efficient cost management. However, the net profit margin slightly decreased to 18.11% from 18.53% in the previous year, suggesting some pressure on net profitability. Overall, the company shows robust revenue growth and solid profitability margins.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.51, reflecting a balanced approach to leveraging. Return on equity is strong at 20.50%, indicating effective use of equity to generate profits. The equity ratio stands at 18.18%, suggesting a moderate level of equity financing. While the balance sheet shows stability, the increase in total debt over the years could be a potential risk if not managed carefully.

Cash Flow

Operating cash flow remains strong with a coverage ratio of 3.05, indicating good cash generation relative to net income. However, free cash flow growth has been negative in the TTM, which could be a concern if it persists. The free cash flow to net income ratio is healthy at 95.13%, showing efficient cash conversion. Overall, cash flow is solid, but the decline in free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	5.78B	5.45B	5.21B	5.11B	4.74B
Gross Profit	2.05B	2.47B	5.10B	4.86B	4.79B	4.44B
EBITDA	1.56B	1.45B	1.30B	1.19B	1.36B	983.39M
Net Income	1.15B	1.07B	970.75M	894.39M	1.03B	731.77M
Balance Sheet
Total Assets	30.53B	29.08B	28.05B	25.54B	29.77B	29.05B
Cash, Cash Equivalents and Short-Term Investments	365.54M	250.36M	103.16M	16.71B	21.47B	21.42B
Total Debt	394.35M	2.74B	2.12B	2.08B	2.03B	1.92B
Total Liabilities	20.63B	23.77B	23.56B	20.64B	21.13B	20.28B
Stockholders Equity	5.69B	5.31B	4.49B	4.90B	8.64B	8.77B
Cash Flow
Free Cash Flow	1.25B	1.33B	1.43B	1.39B	1.40B	1.43B
Operating Cash Flow	1.38B	1.40B	1.48B	1.42B	1.44B	1.48B
Investing Cash Flow	-196.41M	-641.52M	-926.15M	-943.01M	-913.37M	-1.18B
Financing Cash Flow	-1.03B	-715.84M	-541.49M	-492.45M	-523.60M	-274.06M

Globe Life Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 132.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GL, the sentiment is Negative. The current price of 132.24 is below the 20-day moving average (MA) of 134.30, below the 50-day MA of 138.13, and above the 200-day MA of 128.14, indicating a neutral trend. The MACD of -1.65 indicates Positive momentum. The RSI at 42.04 is Neutral, neither overbought nor oversold. The STOCH value of 63.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GL.

Globe Life Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	77 Outperform	$4.03B	12.22	10.12%	2.86%	-4.56%	―
UNM	71 Outperform	$12.85B	14.96	8.35%	2.29%	1.80%	-44.44%
GL	71 Outperform	$10.49B	9.55	22.28%	0.79%	3.73%	17.47%
LNC	68 Neutral	$7.76B	3.67	21.66%	4.37%	35.76%	636.97%
PRI	68 Neutral	$8.11B	11.49	33.91%	1.54%	5.63%	67.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JXN	63 Neutral	$6.26B	12.74	5.50%	3.36%	24.94%	―

Globe Life Corporate Events

Globe Life Inc. Reports Strong Q3 Earnings Amid Challenges

In the recent earnings call, Globe Life Inc. presented a mixed sentiment with strong growth in net income and insurance operations, alongside positive investment yields and favorable mortality experience. However, the company faced challenges such as flat sales in certain segments, a decline in direct-to-consumer life premiums, low growth in net investment income, and a decrease in excess investment income.

Globe Life Inc. Reports Strong Q3 2025 Earnings

Globe Life Inc. is a Delaware-based company primarily engaged in offering life and supplemental health insurance products, known for its strong cash flow and stable financial performance in the insurance sector.