Fact based stock research
Reinsurance Group of America (NYSE:RGA)
US7593516047
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Reinsurance Group of America stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Reinsurance Group of America (Reinsurance, USA) shares have much better financial characteristics than comparable stocks. Shares of Reinsurance Group of America are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), show above-average growth (Growth Rank of 77) but are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Reinsurance Group of America's financial characteristics. As the company Reinsurance Group of America's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 58) and above-average growth (Obermatt Growth Rank of 77), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 27) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Reinsurance |
| Index | D.J. US Insurance, S&P MIDCAP |
| Size class | XX-Large |
This stock has achievements: Top 10 Stock.
25-Apr-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Reinsurance Group of America
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 86 |
|
81 |
|
72 |
|
58 |
|
| GROWTH | ||||||||
| GROWTH | 52 |
|
17 |
|
33 |
|
77 |
|
| SAFETY | ||||||||
| SAFETY | 47 |
|
27 |
|
27 |
|
27 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
55 |
|
100 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
45 |
|
84 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 81 (better than 81% compared with investment alternatives), Reinsurance Group of America (Reinsurance, USA) shares have much better financial characteristics than comparable stocks. Shares of Reinsurance Group of America are a good value (attractively priced) with a consolidated Value Rank of 58 (better than 58% of alternatives), show above-average growth (Growth Rank of 77) but are riskily financed (Safety Rank of 27), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 81, is a strong buy recommendation based on Reinsurance Group of America's financial characteristics. As the company Reinsurance Group of America's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 58) and above-average growth (Obermatt Growth Rank of 77), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 27) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 86 |
|
81 |
|
72 |
|
58 |
|
| GROWTH | ||||||||
| GROWTH | 52 |
|
17 |
|
33 |
|
77 |
|
| SAFETY | ||||||||
| SAFETY | 47 |
|
27 |
|
27 |
|
27 |
|
| COMBINED | ||||||||
| COMBINED | 59 |
|
81 |
|
81 |
|
81 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 58 (better than 58% compared with alternatives), Reinsurance Group of America shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Reinsurance Group of America. Price-to-Sales is 75 which means that the stock price compared with what market professionals expect for future sales is lower than for 75% of comparable companies, indicating a good value for Reinsurance Group of America's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 62% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 53. Compared with other companies in the same industry, dividend yields of Reinsurance Group of America are expected to be higher than for 52% of all competitors (a Dividend Yield rank of 52). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 58, is a buy recommendation based on Reinsurance Group of America's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Reinsurance Group of America based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 89 |
|
85 |
|
78 |
|
75 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 42 |
|
59 |
|
68 |
|
62 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 94 |
|
83 |
|
60 |
|
53 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 64 |
|
57 |
|
52 |
|
52 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 86 |
|
81 |
|
72 |
|
58 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 77 (better than 77% compared with alternatives) for 2022, Reinsurance Group of America shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Reinsurance Group of America. Sales Growth has a rank of 57 which means that currently, professionals expect the company to grow more than 57% of its competitors. Capital Growth is also above 19% of competitors with a rank of 87, and Stock Returns with the rank of 72 is also an outperformance. Only Profit Growth is low with a rank of 19 which means that currently, professionals expect the company to grow its profits less than 81% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 77, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Reinsurance Group of America is a good growth stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 59 |
|
34 |
|
8 |
|
57 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 63 |
|
10 |
|
72 |
|
19 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
75 |
|
25 |
|
87 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 41 |
|
35 |
|
57 |
|
72 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 52 |
|
17 |
|
33 |
|
77 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 27 (better than 27% compared with alternatives), the company Reinsurance Group of America has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Reinsurance Group of America is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Reinsurance Group of America. Liquidity is at 57, meaning the company generates more profit to service its debt than 57% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 6, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 94% of its competitors. Leverage is also high at a rank of 42, which means that the company has an above-average debt-to-equity ratio. It has more debt than 58% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 27 (worse than 73% compared with alternatives), Reinsurance Group of America has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 60 |
|
46 |
|
35 |
|
42 |
|
| REFINANCING | ||||||||
| REFINANCING | 10 |
|
6 |
|
6 |
|
6 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 68 |
|
65 |
|
66 |
|
57 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 47 |
|
27 |
|
27 |
|
27 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
36 |
|
97 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
18 |
|
89 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
83 |
|
70 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
54 |
|
73 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
55 |
|
100 |
|
new |
|
Stock analysis by the purely fact based Obermatt Method for Reinsurance Group of America from April 25, 2024.
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