Globe Life Inc (GL, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $68.27, Globe Life Inc has witnessed a daily gain of 2.29%, marked against a three-month change of -43.42%. A thorough analysis, underlined by the GF Score, suggests that Globe Life Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 5/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 7/10
Each one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF score is calculated using the five key aspects of analysis. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. Thus, they are weighted differently when calculating the total score. With a high profitability rank and an exceptional growth rank, Globe Life Inc demonstrates strong potential. However, its financial strength rank is moderate, indicating room for improvement. GuruFocus assigned Globe Life Inc the GF Score of 92 out of 100, which signals the highest outperformance potential.
Understanding Globe Life Inc's Business
Globe Life Inc is an insurance holding company with a market capitalization of $6.42 billion and sales of $5.45 billion. The company provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. Globe Life Inc's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. The investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
Profitability Rank Breakdown
The Profitability Rank shows Globe Life Inc's impressive standing among its peers in generating profit. The company's Net Margin has increased to 17.82% in 2023 from 16.80% in 2019, reflecting a consistent upward trend. The Piotroski F-Score confirms Globe Life Inc's solid financial situation based on Joseph Piotroski's nine-point scale, which measures a company's profitability, funding and operating efficiency. Additionally, Globe Life Inc's strong Predictability Rank of 5.0 stars out of five underscores its consistent operational performance, providing investors with increased confidence.
Growth Rank Breakdown
Ranked highly in Growth, Globe Life Inc demonstrates a strong commitment to expanding its business. The company's 3-Year Revenue Growth Rate is 8.6%, which outperforms better than 55.63% of 471 companies in the Insurance industry. Moreover, Globe Life Inc has seen a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) over the past few years. Specifically, the three-year growth rate stands at 13.6, and the rate over the past five years is 10.9. This trend accentuates the company's continued capability to drive growth.
Next Steps
Considering Globe Life Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen. Globe Life Inc's strategic focus on profitable segments and its ability to sustain growth momentum make it a compelling choice for value investors seeking market outperformance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
