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Jackson Financial Incorporation (JXN)
NYSE:JXN
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Jackson Financial Incorporation
(NYSE:JXN)
76Outperform
Positive Factors
Capital Generation
Capital generation appears promising, and the capital return outlook exceeded expectations.
Earnings
Strong Retail Annuities performance with solid adjusted earnings of $468 million exceeded expectations due to higher fee and spread income.
Sales Performance
Retail Annuity sales remain robust at $5.3 billion for the quarter, with their RILA product continuing to gain momentum.
Negative Factors
Net Inflows
RILA Flows had net inflows of $1.4 billion, which were below consensus expectations.
Operating Performance
All other segments faced pressure and flows were below expectations, indicating challenges in managing flows while improving the operating environment.
Segment Performance
The Closed Life and Annuity segment experienced an adjusted loss of $2 million, which was below expectations.
Jackson Financial Incorporation (JXN) vs. S&P 500 (SPY)
Market Cap
$6.37B
Dividend Yield3.19%
Average Volume (3M)1.22M
Price to Earnings (P/E)7.5
Beta (1Y)1.62
Revenue Growth3.55%
EPS Growth8.91%
CountryUS
Employees3,970
SectorFinancial
Sector Strength81
IndustryInsurance
Share Statistics
EPS (TTM)11.44
Shares Outstanding72,646,286
10 Day Avg. Volume1,818,025
30 Day Avg. Volume1,221,035
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)N/A
Price to Sales (P/S)1.97
Price to Cash Flow (P/CF)1.00
P/FCF Ratio1.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$101.60Price Target Upside15.92% Upside
Rating ConsensusHold
Number of Analyst Covering5
Jackson Financial Incorporation Business Overview & Revenue Model
Company DescriptionJackson Financial Inc., through its subsidiaries, primarily provides a suite of annuities to retail investors in the United States. The company operates through three segments: Retail Annuities, Institutional Products, and Closed Life and Annuity Blocks. The Retail Annuities segment offers various retirement income and savings products, including variable, fixed index, fixed, and immediate payout annuities, as well as registered index-linked annuities and lifetime income solutions. The Institutional Products segment provides traditional guaranteed investment contracts; funding agreements comprising agreements issued in conjunction with its participation in the U.S. federal home loan bank program; and medium-term funding agreement-backed notes. The Closed Life and Annuity Blocks segment offers various protection products, such as whole life, universal life, variable universal life, and term life insurance products, as well as fixed, fixed index, and payout annuities. This segment also provides a block of group payout annuities. The company also offers investment management services. It sells its products through a distribution network that includes independent broker-dealers, banks and other financial institutions, wirehouses and regional broker-dealers, and independent registered investment advisors, third-party platforms, and insurance agents. Jackson Financial Inc. was formerly known as Brooke (Holdco1) Inc. and changed its name to Jackson Financial Inc. in July 2020. The company was incorporated in 2006 and is headquartered in Lansing, Michigan.
How the Company Makes MoneyJackson Financial Incorporation generates revenue primarily through the sale of annuity products. These products include fixed annuities, which provide clients with a guaranteed interest rate, and variable annuities, which offer investment options tied to market performance. The company earns money through the fees associated with these products, including management fees, mortality and expense risk charges, and administrative fees. Additionally, Jackson Financial benefits from investment income generated from managing the assets underlying its annuity products. The company's earnings are influenced by factors such as interest rate conditions, market performance, and its ability to effectively manage risks associated with its product offerings. Strategic partnerships with financial advisors and institutions also play a key role in distributing its products and expanding its market reach.
Jackson Financial Incorporation Financial Statement Overview
Summary
Jackson Financial presents a robust financial position with strong equity utilization and steady revenue growth. The balance sheet is solid with prudent leverage management, but there is a lack of recent cash flow data and a slight decline in net profit margin, which are areas to monitor.Income Statement
The income statement shows a positive trajectory in revenue growth from 2023 to 2024, with a growth rate of approximately 3.55%. The gross profit margin is strong at 100% for the latest period due to the company's business model. However, the net profit margin decreased slightly from 29.57% to 27.57%, indicating some pressure on profitability. EBIT and EBITDA margins were not available for 2024, which limits further margin analysis.75
Positive
Balance Sheet
The balance sheet shows a solid equity base with an equity ratio of approximately 2.88% as of 2024. The company maintains a low debt-to-equity ratio of 0.21, indicating prudent leverage management. Return on equity (ROE) is strong at 9.24%, showing efficient use of equity to generate profits. The company's asset base continues to grow, supporting future expansion opportunities.82
Very Positive
Cash Flow
Cash flow analysis reveals a stable free cash flow generation in previous years, but no free cash flow is reported for 2024, raising concerns about cash management. Operating cash flow to net income and free cash flow to net income ratios could not be calculated for 2024, but past data showed a robust conversion of operating profits into cash. The lack of recent data limits comprehensive cash flow assessment.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.27B | 3.16B | 9.72B | 8.86B | 9.59B | Gross Profit |
| 3.27B | 610.00M | 7.29B | 6.40B | 5.79B | EBIT |
| 0.00 | 1.08B | 7.67B | 3.69B | 5.25B | EBITDA |
| 0.00 | 0.00 | 0.00 | 8.61B | -2.39B | Net Income Common Stockholders |
| 902.00M | 934.00M | 6.19B | 3.42B | -1.64B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 44.06B | 2.69B | 46.79B | 54.17B | 61.09B | Total Assets |
| 338.45B | 330.25B | 311.06B | 375.48B | 353.46B | Total Debt |
| 2.03B | 4.03B | 4.37B | 2.65B | 322.00M | Net Debt |
| -1.73B | 1.34B | 69.00M | 26.00M | -1.70B | Total Liabilities |
| 328.47B | 319.92B | 301.90B | 2.65B | 343.53B | Stockholders Equity |
| 9.76B | 10.17B | 8.42B | 10.39B | 9.43B |
| Cash Flow | Free Cash Flow | |||
| 5.79B | 5.31B | 5.21B | 5.74B | 3.78B | Operating Cash Flow |
| 5.79B | 5.31B | 5.21B | 5.74B | 3.78B | Investing Cash Flow |
| 1.53B | -592.00M | -1.37B | -1.30B | -4.33B | Financing Cash Flow |
| 2.37B | -6.33B | -2.16B | -3.83B | 639.70M |
Jackson Financial Incorporation Technical Analysis
Neutral
87.65
Price Trends
88.48
Negative
91.57
Negative
87.42
Negative
Market Momentum
-0.27
Negative
49.67
Neutral
73.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JXN, the sentiment is Neutral. The current price of 87.65 is above the 20-day moving average (MA) of 84.48, below the 50-day MA of 88.48, and above the 200-day MA of 87.42, indicating a neutral trend. The MACD of -0.27 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 73.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JXN.
Jackson Financial Incorporation Risk Analysis
Jackson Financial Incorporation disclosed 45 risk factors in its most recent earnings report. Jackson Financial Incorporation 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
Jackson Financial Incorporation 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 | $6.37B | 7.55 | 9.49% | 3.19% | 3.55% | 8.91% | |
71 Outperform | $49.95B | 16.57 | 7.10% | 1.85% | -28.56% | 1.14% | |
68 Neutral | $57.18B | 14.09 | 15.41% | 2.60% | 6.10% | 225.22% | |
67 Neutral | $6.42B | 2.05 | 43.24% | 4.81% | 47.95% | ― | |
64 Neutral | $6.69B | 11.31 | 16.27% | 2.50% | 9.55% | 10.22% | |
64 Neutral | $14.53B | 10.25 | 8.67% | 4.22% | 16.51% | -12.20% | |
61 Neutral | $40.92B | 15.25 | 9.79% | 4.59% | 34.25% | 11.22% |
* Financial Sector Average
Performance Comparison
JXN
Jackson Financial Incorporation
85.74
21.86
34.22%
AIG
American International Group
84.42
7.89
10.31%
LNC
Lincoln National
36.78
6.65
22.07%
MET
Metlife
83.05
11.07
15.38%
PRU
Prudential Financial
114.41
2.11
1.88%
VOYA
Voya Financial
69.40
-2.78
-3.85%
Jackson Financial Incorporation Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -5.41% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong year for Jackson Financial with significant achievements in capital return, retail annuity sales, and strategic initiatives such as successful hedging and increased dividends. However, there remain challenges, including elevated net outflows in the variable annuity segment and investor concerns about transparency in Brook Re's performance.Highlights
Record Distributions to Holding Company
Jackson National Life's distributions to the holding company reached $875 million, the highest annual level in the company's history.
Strong Retail Annuity Sales Growth
Retail annuity sales increased 39% year over year, reaching $18 billion, driven by diversified product sales and growing distribution.
Robust Capital Return and Liquidity
Capital return to common shareholders increased 36%, excluding the $700 million distribution used to establish Brook Re. Additionally, the company maintained more than $700 million of highly liquid assets at the holding company.
Positive Adjusted Operating Earnings
Adjusted operating earnings for Q4 2024 were $349 million, up 71% from the previous year, mainly due to higher fee income from variable annuity assets and higher earnings on spread products.
Increased Dividend and Share Buyback Program
The board approved a fourth dividend increase to $0.80 per common share, a 14% increase over the prior year's quarterly dividend level.
Successful Hedging Program
The more economic hedging approach led to a net hedge gain of $285 million for the full year, providing more stability in non-operating results and capital generation.
Healthy Capital Generation
Free capital generation exceeded $1.3 billion in 2024, with statutory capital generation of more than $1.7 billion.
Lowlights
Elevated Variable Annuity Net Outflows
Variable annuity net outflows were high due to older policy vintages exiting their surrender charge periods and increased utilization of retirement income and death benefits.
Impact of Assumption Updates
The annual actuarial assumptions review led to an unfavorable non-operating earnings impact of $419 million, mainly related to updates in withdrawal behavior projections.
Challenges with Brook Re Transparency
There is investor concern regarding the lack of regular detailed disclosures on Brook Re's capitalization and performance.
Company Guidance
During the Jackson Financial Inc. 2024 Q4 earnings call, CEO Laura Prieskorn highlighted several key financial metrics and set new targets for 2025. The company achieved its highest annual distribution of $875 million to the holding company. Net income exceeded $900 million, and adjusted operating earnings reached $1.4 billion, driven by a 39% year-over-year increase in retail annuity sales, which totaled $18 billion. The RBC ratio remained stable at 572%, significantly above the target, allowing for a capital return to shareholders of $631 million. The company ended the year with over $700 million in highly liquid assets at the holding company. For 2025, Jackson Financial increased its capital return target to $700-$800 million, representing a more than 10% increase from 2024's $631 million. The company aims to maintain an RBC ratio above 425% and hold a $250 million buffer at the holding company. Adjusted operating earnings per share were $4.65 for Q4, up 71% year-over-year, with a significant boost from higher fee income and spread products.Jackson Financial Incorporation Corporate Events
Financial Disclosures
Jackson Financial Releases Q4 2024 Earnings Presentation
Positive
Feb 19, 2025
Jackson Financial Inc. has released a slide presentation to accompany its earnings call for the fourth quarter and full year ending December 31, 2024. The presentation, which is not considered filed under certain sections of the Securities Exchange Act, includes forward-looking statements that are subject to risks and uncertainties. The company reported $902 million in GAAP earnings and $1.4 billion in non-GAAP earnings for 2024, with significant capital returns to shareholders and a robust statutory capital position. The estimated risk-based capital ratio at year-end was 572%, reflecting strong financial performance, although investors are advised not to place undue reliance on non-GAAP financial measures.
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.