Globe Life (GL) AI Stock Analysis

• Market Cap: $10.74B
• Dividend Yield: 0.79%
• Average Volume (3M): 573.07K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.65
• 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: 496,264
• 30 Day Avg. Volume: 573,073
• 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: $167.63
• Price Target Upside: 24.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 14.48
• Revenue Forecast (FY): $5.87B

• Rating: 71 Outperform
• Price Target: $148.00 ▲(9.74% 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., through its subsidiaries, provides various life and supplemental health insurance products, and annuities to lower middle to middle income households in the United States. The company operates through four segments: Life Insurance, Supplemental Health Insurance, Annuities, and Investments. It offers whole life, term life, and other life insurance products; Medicare supplement and supplemental health insurance, such as critical illness and accident plans; and single-premium and flexible-premium deferred annuities. The company was formerly known as Torchmark Corporation and changed its name to Globe Life Inc. in August 2019. Globe Life Inc. was incorporated in 1979 and is headquartered in McKinney, Texas.

How the Company Makes Money

Globe Life generates revenue primarily through the sale of life insurance policies and related products. The company earns premiums from policyholders, which constitute a significant portion of its revenue. In addition to premiums, Globe Life also earns investment income from the assets it holds, which include bonds and other investment vehicles. A key revenue stream comes from the renewal of existing policies, as many customers maintain their coverage over time. The company has established partnerships with various agents and brokers who help sell its products, contributing to its earnings. Additionally, Globe Life benefits from its efficient underwriting processes and a strong focus on customer retention, which enhances its profitability.

Globe Life Financial Statement Overview

Summary

Globe Life demonstrates strong revenue growth and profitability, supported by efficient operations and a stable balance sheet. While leverage is moderate and return on equity is high, the decline in gross profit margin and negative free cash flow growth are areas to monitor. Overall, the company is financially sound but should address cost management and cash flow sustainability.

Income Statement

Globe Life shows a strong revenue growth trajectory with a TTM revenue growth rate of 97.9%, indicating robust expansion. However, the gross profit margin has decreased from 42.8% in 2024 to 34.4% in TTM, suggesting increased costs or pricing pressures. The net profit margin remains healthy at 19.4%, reflecting good profitability. EBIT and EBITDA margins are stable, indicating efficient operations.

Balance Sheet

The company's debt-to-equity ratio is stable around 0.51, indicating moderate leverage. Return on equity is strong at 22.1%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly calculated, but the balance sheet reflects a solid equity base relative to assets, supporting financial stability.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 3.05, indicating good cash generation relative to net income. However, free cash flow growth is negative at -7.6% TTM, which could signal potential cash flow challenges. The free cash flow to net income ratio is high at 95.1%, suggesting efficient conversion of income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.94B	5.78B	5.45B	5.23B	5.12B	4.74B
Gross Profit	2.01B	1.87B	1.64B	1.54B	1.69B	1.28B
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	25.99B	29.77B	29.05B
Cash, Cash Equivalents and Short-Term Investments	18.16B	250.36M	103.16M	16.71B	21.47B	21.42B
Total Debt	2.71B	2.74B	2.12B	2.08B	2.03B	1.92B
Total Liabilities	24.84B	23.77B	23.56B	22.04B	21.13B	20.28B
Stockholders Equity	5.69B	5.31B	4.49B	3.95B	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: Positive
• Last Price: 134.87
• 50DMA: Negative
• 100DMA: Negative
• 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 134.87 is above the 20-day moving average (MA) of 132.51, below the 50-day MA of 136.03, and above the 200-day MA of 128.89, indicating a neutral trend. The MACD of -0.48 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 80.74 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
PRI	76 Outperform	$8.24B	11.85	33.91%	1.61%	5.63%	67.39%
FG	74 Outperform	$4.37B	9.69	10.12%	2.78%	-4.58%	―
UNM	72 Outperform	$12.78B	14.88	8.35%	2.30%	1.80%	-44.44%
GL	71 Outperform	$10.74B	9.77	22.28%	0.79%	3.73%	17.47%
LNC	70 Outperform	$7.85B	3.71	21.66%	4.39%	35.76%	636.97%
JXN	69 Neutral	$6.65B	13.53	5.50%	3.36%	24.94%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.