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Globe Life Inc. (GL)
:GL
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Globe Life
(NYSE:GL)
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Rating:77Outperform
Price Target:
$159.00
▲(9.99% Upside)
Globe Life's strong financial performance and positive earnings call are the most significant factors contributing to its score. The technical analysis supports a positive trend, although valuation metrics suggest the stock is fairly valued. The resolution of legal investigations further strengthens the company's position.
Positive Factors
Revenue Growth
Consistent revenue growth in life insurance indicates strong demand and market position, supporting long-term financial stability.
Agent Network Expansion
Growing agent network enhances distribution capabilities, potentially boosting sales and customer acquisition over time.
Regulatory Relief
Resolution of legal issues removes uncertainty, allowing management to focus on growth and operational improvements.
Negative Factors
Rising Debt Levels
Increasing debt levels may strain financial flexibility, impacting the company's ability to invest in growth opportunities.
Decline in Net Investment Income
Decreasing investment income could pressure overall profitability, affecting long-term financial performance.
Unrealized Loss in Investment Portfolio
Significant unrealized losses may impact balance sheet strength and limit future investment flexibility.
Globe Life (GL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.71B
Dividend Yield0.71%
Average Volume (3M)502.29K
Price to Earnings (P/E)11.5
Beta (1Y)0.69
Revenue Growth4.02%
EPS Growth13.01%
CountryUS
Employees3,732
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.27
Shares Outstanding81,003,530
10 Day Avg. Volume586,338
30 Day Avg. Volume502,288
Financial Highlights & Ratios
PEG Ratio0.50
Price to Book (P/B)1.76
Price to Sales (P/S)1.62
P/FCF Ratio7.03
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue2.22
Enterprise Value/Gross Profit3.65
Enterprise Value/Ebitda8.99
Forecast
1Y Price Target
$158.78Price Target Upside9.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Globe Life Business Overview & Revenue Model
Company DescriptionGlobe 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 MoneyGlobe 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 Key Performance Indicators (KPIs)
Globe Life Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive performance with significant growth in net operating income, life insurance operations, and agent count, alongside successful share repurchasing and improvements in the Direct to Consumer division. However, challenges remain in the form of declining net investment income, reduced sales in some segments, and a notable unrealized loss in the investment portfolio.Q2-2025 Updates
Positive Updates
Increase in Net Operating Income
Net operating income for the quarter was $271 million or $3.27 per share, an increase of 10% over the $2.97 per share from a year ago.
Growth in Life Insurance Operations
Life Insurance premium revenue for the second quarter increased 3% to $840 million, with a life underwriting margin of $340 million, up 6% from a year ago.
Increase in Average Agent Count
Average agent count increased by 6% from the first quarter to the second quarter, resulting in a total of 17,621 agents.
Family Heritage Health Sales Growth
Health premiums increased 9% to $116 million, and the health underwriting margin increased 12% to $41 million. Net health sales were up 20% to $30 million.
Successful Share Repurchase Program
The company repurchased approximately 1.9 million shares for $226 million at an average price of $121.13, returning almost $250 million to shareholders.
Positive Developments in Direct to Consumer Division
Net life sales were $31 million, up 2% from a year ago and up 24% from the first quarter, indicating a turnaround in a declining trend.
Negative Updates
Decline in Net Investment Income
Net investment income was $282 million, down 1% from the previous year, due to lower average earnings rates on commercial mortgage loans and limited partnership investments.
Decrease in Liberty National Sales
Net life sales at Liberty National decreased 5% to $25 million, with net health sales down 2% to $8 million, primarily due to lower agent productivity.
Health Underwriting Margin Decrease
Health underwriting margin was down 2% to $98 million due to higher obligations at United American.
Unrealized Loss in Investment Portfolio
The fixed maturity portfolio has a net unrealized loss position of approximately $1.6 billion, driven by higher market interest rates.
Company Guidance
In the second quarter of 2025, Globe Life Inc. reported net income of $253 million, or $3.05 per share, a slight decrease from $258 million or $2.83 per share a year prior. Net operating income rose by 10% to $271 million, or $3.27 per share. The company's GAAP return on equity reached 18.8%, while book value per share excluding AOCI was $90.26, a 10% increase from the previous year. Life insurance premium revenue grew by 3% to $840 million, with underwriting margins up 6% to $340 million. Health insurance saw an 8% rise in premium revenue to $378 million, though underwriting margin declined by 2% to $98 million. Administrative expenses increased by 5% to $86 million, but these are expected to grow by only about 4% for the full year. The average agent count increased by 6% sequentially, promising sustainable future growth. The investment portfolio maintained a yield of 5.26%, with $263 million invested in fixed maturities at 6.44% and $68 million in other investments at a 9.7% expected return. The company projected net operating earnings per share to grow 17% for the year, particularly due to favorable mortality rates and assumption updates.Globe Life Financial Statement Overview
Summary
Globe Life demonstrates strong financial performance with consistent revenue growth and a robust net profit margin. The balance sheet shows stability with low leverage, though declining equity is a concern. Cash flow generation remains healthy, 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.85
Very Positive
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.78
Positive
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.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.88B | 5.78B | 5.45B | 5.21B | 5.11B | 4.74B |
| Gross Profit | 3.58B | 2.47B | 5.10B | 4.86B | 4.79B | 4.44B |
| EBITDA | 1.46B | 1.45B | 1.30B | 1.19B | 1.36B | 983.39M |
| Net Income | 1.07B | 1.07B | 970.75M | 894.39M | 1.03B | 731.77M |
Balance Sheet | ||||||
| Total Assets | 29.81B | 29.08B | 28.05B | 25.54B | 29.77B | 29.05B |
| Cash, Cash Equivalents and Short-Term Investments | 17.72B | 250.36M | 103.16M | 16.71B | 21.47B | 21.42B |
| Total Debt | 2.79B | 2.74B | 2.12B | 2.08B | 2.03B | 1.92B |
| Total Liabilities | 24.39B | 23.77B | 23.56B | 20.64B | 21.13B | 20.28B |
| Stockholders Equity | 5.42B | 5.31B | 4.49B | 4.90B | 8.64B | 8.77B |
Cash Flow | ||||||
| Free Cash Flow | 1.35B | 1.33B | 1.43B | 1.39B | 1.40B | 1.43B |
| Operating Cash Flow | 1.42B | 1.40B | 1.48B | 1.42B | 1.44B | 1.48B |
| Investing Cash Flow | -318.91M | -641.52M | -926.15M | -943.01M | -913.37M | -1.18B |
| Financing Cash Flow | -951.30M | -715.84M | -541.49M | -492.45M | -523.60M | -274.06M |
Globe Life Technical Analysis
Positive
144.56
Price Trends
138.85
Positive
129.77
Positive
124.55
Positive
Market Momentum
1.82
Positive
59.55
Neutral
43.17
Neutral
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 144.56 is above the 20-day moving average (MA) of 142.21, above the 50-day MA of 138.85, and above the 200-day MA of 124.55, indicating a bullish trend. The MACD of 1.82 indicates Positive momentum. The RSI at 59.55 is Neutral, neither overbought nor oversold. The STOCH value of 43.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GL.
Globe Life Risk Analysis
Globe Life disclosed 23 risk factors in its most recent earnings report. Globe Life reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Globe Life Peers Comparison
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.30B | 13.03 | 16.17% | 2.76% | 1.78% | 0.77% | |
77 Outperform | $11.71B | 11.55 | 20.02% | 0.71% | 4.02% | 13.01% | |
74 Outperform | $8.99B | 13.74 | 29.42% | 1.45% | 5.70% | 61.69% | |
73 Outperform | $13.33B | 9.37 | 13.42% | 2.20% | 1.69% | 22.65% | |
71 Outperform | $7.71B | 7.10 | 39.61% | 4.43% | 11.33% | -38.17% | |
63 Neutral | $7.23B | -1,632.08 | ― | 2.99% | 27.18% | -100.02% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
GL
Globe Life
144.56
39.57
37.69%
LNC
Lincoln National
40.67
10.86
36.43%
PRI
Primerica
277.46
16.14
6.18%
UNM
Unum Group
78.26
20.19
34.77%
JXN
Jackson Financial Incorporation
103.80
15.69
17.81%
FG
F&G Annuities & Life Inc
31.90
-11.78
-26.97%
Globe Life Corporate Events
Legal ProceedingsRegulatory Filings and Compliance
Globe Life Cleared by DOJ and SEC Investigations
Positive
Jul 29, 2025
On July 24, 2025, Globe Life Inc. announced the conclusion of an SEC investigation, which ended without any enforcement action against the company. Subsequently, on July 28, 2025, the Department of Justice also closed its investigation into Globe Life and its subsidiary, American Income Life Insurance Company, marking a significant relief for the company and its stakeholders.
Private Placements and Financing
Globe Life Completes $500M P-Caps Issuance for Liquidity
Neutral
Jul 1, 2025
On July 1, 2025, Globe Life Inc. completed a significant financial transaction involving the issuance and sale of $500 million in Pre-Capitalized Trust Securities (P-Caps) through a private placement. This move provides the company with a source of contingent liquidity for general corporate purposes. The transaction involves a complex arrangement with the Henneman Trust and Regions Bank, allowing Globe Life to issue Senior Notes and manage its financial obligations effectively. The structure includes provisions for automatic and required exercises of issuance rights under specific financial conditions, which could impact the company’s financial stability and operations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.