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Globe Life (GL)
NYSE:GL
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Globe Life
(NYSE:GL)
74Outperform
Positive Factors
Stock Repurchase
The company repurchased more stock than anticipated, which may indicate confidence in future prospects.
Unique 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.
Negative Factors
Operating Performance
GL's operating EPS was below expectations, which could pressure the stock.
Regulatory Investigations
Recent DOJ, SEC, and EEOC investigations remain an overhang on the shares.
Globe Life (GL) vs. S&P 500 (SPY)
Market Cap
$10.09B
Dividend Yield0.81%
Average Volume (3M)708.24K
Price to Earnings (P/E)9.9
Beta (1Y)0.62
Revenue Growth5.41%
EPS Growth16.60%
CountryUS
Employees3,732
SectorFinancial
Sector Strength84
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.07
Shares Outstanding82,542,880
10 Day Avg. Volume661,484
30 Day Avg. Volume708,241
Financial Highlights & Ratios
PEG Ratio3.34
Price to Book (P/B)1.88
Price to Sales (P/S)0.00
P/FCF Ratio7.15
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda5.84
Forecast
1Y Price Target
$137.20Price Target Upside12.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Globe Life Business Overview & Revenue Model
Company DescriptionGlobe 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 MoneyGlobe 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.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.75
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.80
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 5.84B | 5.78B | 5.45B | 5.21B | 5.11B | 4.74B | Gross Profit |
| 4.12B | 5.78B | 5.10B | 4.86B | 4.79B | 4.44B | EBIT |
| 2.28B | 1.51B | 1.32B | 996.71M | 911.17M | 895.36M | EBITDA |
| 1.04B | 1.45B | 0.00 | 0.00 | 1.02B | 0.00 | Net Income Common Stockholders |
| 1.07B | 1.07B | 970.75M | 894.39M | 744.96M | 731.77M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 17.87B | 250.36M | 103.16M | 16.71B | 21.47B | 21.42B | Total Assets |
| 29.71B | 29.08B | 28.05B | 25.54B | 29.77B | 29.05B | Total Debt |
| 2.80B | 2.74B | 2.12B | 2.08B | 2.03B | 1.92B | Net Debt |
| 2.57B | 2.57B | 2.01B | 1.98B | 1.93B | 1.83B | Total Liabilities |
| 24.28B | 23.77B | 23.56B | 20.64B | 21.13B | 20.28B | Stockholders Equity |
| 5.43B | 5.31B | 4.49B | 4.90B | 8.64B | 8.77B |
| Cash Flow | Free Cash Flow | ||||
| 1.41B | 1.33B | 1.43B | 1.39B | 1.40B | 1.43B | Operating Cash Flow |
| 1.48B | 1.40B | 1.48B | 1.42B | 1.44B | 1.48B | Investing Cash Flow |
| -149.53M | -641.52M | -926.15M | -943.01M | -913.37M | -1.18B | Financing Cash Flow |
| -1.20B | -715.84M | -541.49M | -492.45M | -523.60M | -274.06M |
Globe Life Technical Analysis
Positive
122.19
Price Trends
123.35
Negative
121.32
Positive
112.81
Positive
Market Momentum
-0.34
Negative
51.25
Neutral
68.83
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 122.19 is above the 20-day moving average (MA) of 121.66, below the 50-day MA of 123.35, and above the 200-day MA of 112.81, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 51.25 is Neutral, neither overbought nor oversold. The STOCH value of 68.83 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $14.33B | 9.69 | 14.68% | 2.04% | 1.69% | 25.54% | |
75 Outperform | $9.21B | 18.92 | 23.87% | 1.28% | 10.18% | -9.75% | |
74 Outperform | $10.09B | 9.94 | 20.47% | 0.81% | 5.41% | 16.60% | |
70 Outperform | $4.36B | 8.76 | 12.72% | 2.65% | -1.72% | 95.91% | |
69 Neutral | $6.09B | 83.13 | 1.24% | 3.40% | 3.55% | 8.91% | |
68 Neutral | $5.85B | 4.87 | 16.91% | 5.25% | 8.31% | -2.30% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% |
* Financial Sector Average
Performance Comparison
GL
Globe Life
122.19
37.39
44.09%
LNC
Lincoln National
33.94
3.86
12.83%
PRI
Primerica
272.08
44.56
19.59%
UNM
Unum Group
82.01
30.42
58.96%
JXN
Jackson Financial Incorporation
85.04
10.00
13.33%
FG
F&G Annuities & Life Inc
32.35
-8.55
-20.90%
Globe Life Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -0.93%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. There was notable growth in net income, life insurance premiums, and agent count. However, challenges included a decrease in health underwriting margins, a decline in direct-to-consumer sales, and lower excess investment income. Despite the growth in premiums and agent numbers, the negative trends in underwriting margins and sales suggest a balanced outlook.Q1-2025 Updates
Positive Updates
Increase in Net Income and Operating Income
Net income was $255 million or $3.01 per share, an increase from $254 million or $2.67 per share a year ago. Net operating income increased 10% from a year ago to $259 million or $3.07 per share.
Growth in Life Insurance and Health Premiums
Life insurance premium revenue for the first quarter increased 3% to $830 million, with a life underwriting margin up 9% from a year ago. Health insurance premium revenue grew 8% to $370 million.
Strong Agent Count Growth
The average producing agent count for the first quarter increased by 3% at American Income Life and 8% at Liberty National compared to a year ago.
Commercial Mortgage Loans and Limited Partnerships Investment
Invested approximately $51 million in commercial mortgage loans and limited partnerships with expected cash returns of approximately 8.5%.
Negative Updates
Decrease in Health Underwriting Margin
Health underwriting margin was down 10% to $85 million, primarily due to higher claim costs resulting from higher utilization.
Decline in Direct-to-Consumer Sales
Direct-to-consumer life premiums were down 1% over the year-ago quarter to $246 million, with net life sales down 12% due to reduced marketing spend on unprofitable campaigns.
United American Health Underwriting Margin Decrease
Health underwriting margin for United American was $2 million, down approximately $10 million from the year-ago quarter due to higher claim costs.
Excess Investment Income Decline
Excess investment income was $36 million, down approximately $8 million from the year-ago quarter due to lower short-term interest rates.
Company Guidance
In the Globe Life First Quarter 2025 Earnings Release Conference Call, the company provided detailed guidance on various financial metrics. Net income for the quarter was $255 million, or $3.01 per share, compared to $254 million, or $2.67 per share, a year ago. Net operating income increased by 10% to $259 million, or $3.07 per share. The return on equity (ROE) on a GAAP basis was 19%, while excluding accumulated other comprehensive income (AOCI), ROE was 14.1%. Book value per share was $64.5, or $87.92 excluding AOCI, reflecting an 11% increase from the previous year. Life insurance premium revenue rose by 3% to $830 million, with an underwriting margin of $337 million, up 9%. Health insurance premium revenue increased by 8% to $370 million, although the underwriting margin declined by 10% to $85 million. Administrative expenses for the quarter were $88 million, attributed to rising IT, employee, and legal costs, with expectations for these expenses to be about 7.4% of premium for the year. For 2025, Globe Life anticipates life premium revenue growth around 4%, with underwriting margins between 42% and 44%, while health premium revenue is expected to grow between 7.5% and 8.5%, with margins between 24% and 26%. The company indicated a focus on managing distribution costs and maximizing underwriting margins in its direct-to-consumer channel, expecting to generate over 750,000 leads in 2025 to support agency business.Globe Life Corporate Events
Executive/Board Changes
Globe Life Introduces Executive Severance Plan
Neutral
Nov 19, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.