Globe Life (GL) AI Stock Analysis

• Market Cap: $10.30B
• Dividend Yield: 0.78%
• Average Volume (3M): 541.71K
• Price to Earnings (P/E): 10.2
• Beta (1Y): 0.64
• Revenue Growth: 5.41%
• EPS Growth: 16.60%
• Country: US
• Employees: 3,732
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Life
• EPS (TTM): 3.27
• Shares Outstanding: 82,542,880
• 10 Day Avg. Volume: 561,988
• 30 Day Avg. Volume: 541,706
• PEG Ratio: 3.60
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.70
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 2.03
• Enterprise Value/Ebitda: 10.58
• 1Y Price Target: $141.56
• Price Target Upside: 7.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: ―

Globe Life's overall score reflects strong financial performance, particularly in revenue growth and profitability. However, technical indicators suggest potential short-term challenges, and valuation metrics indicate the stock is relatively undervalued. Earnings call insights highlight growth in premiums and net income but also underline risks in health margins and sales, leading to a balanced outlook.

Positive Factors

Business Model

Globe's unique business model, which includes captive agent distribution and a focus on lower-/middle-income consumers, helps insulate it from severe competitive pressures.

Stock Repurchase

The company repurchased more stock than anticipated, which may indicate confidence in future prospects.

Underwriting Income

Life underwriting income showed strong performance with 9% year-over-year growth.

Negative Factors

Health Underwriting

Health underwriting income was below forecasts, contributing to a weaker overall result.

Investigations

Recent DOJ, SEC, and EEOC investigations remain an overhang on the shares.

Operating Earnings

GL's operating EPS was below expectations, which could pressure the stock.

Globe Life Business Overview & Revenue Model

Company Description

Globe Life Inc. is a leading financial services holding company, primarily operating in the life and health insurance sectors. The company, through its subsidiaries, offers a range of insurance products, including life insurance, supplemental health insurance, and annuities. Globe Life focuses on providing affordable coverage options to middle-income families across the United States, leveraging direct-to-consumer marketing strategies and a network of independent agencies to reach its customer base.

How the Company Makes Money

Globe Life Inc. generates revenue primarily through the sale of life and health insurance products. The company's key revenue streams include premium income from policyholders and investment income generated from its portfolio of invested assets. Globe Life employs a direct-to-consumer marketing approach, minimizing reliance on traditional brokerage channels, which helps reduce distribution costs and maximize profitability. Additionally, the company benefits from a strong underwriting process, maintaining low policy lapse rates and ensuring stable long-term cash flow. Significant factors contributing to Globe Life's earnings include its focus on serving underserved markets, efficient cost management, and strategic investment decisions that enhance the return on its investment portfolio.

Globe Life Financial Statement Overview

Summary

Globe Life is performing well financially with consistent revenue growth and strong profitability. The balance sheet reflects stability with low leverage, although declining equity is a concern. Cash flow remains robust, supporting operations and potential investments.

Income Statement

Globe Life has shown consistent revenue growth over the years, with a noticeable increase from 2023 to 2024. The net profit margin in 2024 was strong at approximately 18.5%, indicating efficient cost management and profitability. However, the absence of EBIT and EBITDA data for 2024 limits a complete analysis of operational efficiency.

Balance Sheet

The company exhibits a sound equity position with a debt-to-equity ratio of 0.078, indicating low leverage risk. The equity ratio of approximately 18.2% in 2024 suggests financial stability. However, the decrease in stockholders' equity over the years could be a concern if it continues.

Cash Flow

The cash flow position is robust with a stable operating cash flow. The free cash flow has been consistent, although the growth rate reduced from 2022 to 2023. The free cash flow to net income ratio suggests a strong ability to generate cash relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.78B	5.45B	5.21B	5.11B	4.74B
Gross Profit	2.47B	5.10B	4.86B	4.79B	4.44B
EBITDA	1.45B	0.00	0.00	1.02B	0.00
Net Income	1.07B	970.75M	894.39M	744.96M	731.77M
Balance Sheet
Total Assets	29.08B	28.05B	25.54B	29.77B	29.05B
Cash, Cash Equivalents and Short-Term Investments	250.36M	103.16M	16.71B	21.47B	21.42B
Total Debt	2.74B	2.12B	2.08B	2.03B	1.92B
Total Liabilities	23.77B	23.56B	20.64B	21.13B	20.28B
Stockholders Equity	5.31B	4.49B	4.90B	8.64B	8.77B
Cash Flow
Free Cash Flow	1.33B	1.43B	1.39B	1.40B	1.43B
Operating Cash Flow	1.40B	1.48B	1.42B	1.44B	1.48B
Investing Cash Flow	-641.52M	-926.15M	-943.01M	-913.37M	-1.18B
Financing Cash Flow	-715.84M	-541.49M	-492.45M	-523.60M	-274.06M

Globe Life Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 131.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GL, the sentiment is Positive. The current price of 131.52 is above the 20-day moving average (MA) of 121.74, above the 50-day MA of 121.04, and above the 200-day MA of 117.17, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 68.97 is Neutral, neither overbought nor oversold. The STOCH value of 94.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GL.

Globe Life Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GL	74 Outperform	$10.30B	10.16	20.47%	0.78%	5.41%	16.60%
UNM	74 Outperform	$13.95B	9.52	14.68%	2.15%	1.69%	25.54%
PRI	73 Outperform	$8.68B	18.05	23.90%	1.47%	10.18%	-9.75%
FG	70 Outperform	$4.30B	8.62	12.72%	2.73%	-1.72%	95.91%
JXN	69 Neutral	$6.39B	87.17	1.24%	3.35%	3.55%	8.91%
Sector *	68 Neutral	$17.10B	11.62	9.70%	3.86%	11.32%	-7.37%
LNC	65 Neutral	$5.93B	5.01	16.91%	5.18%	8.31%	-2.30%

Globe Life Corporate Events

Globe Life Introduces Executive Severance Plan

Globe Life Inc.’s Board of Directors has introduced the Executive Severance Plan, offering severance benefits to key executives, including Co-CEOs, in cases of employment termination without cause or for good reason. The plan provides cash severance based on salary and bonuses, along with support for health plans and future employment assistance. Amendments to stock options and performance shares ensure vesting aligns with termination conditions, protecting executives during changes in control. Compliance with confidentiality and other provisions is required to maintain benefits.