Reinsurance Group of America, Incorporated
Reinsurance Group of America, Incorporated Fundamental Analysis
Reinsurance Group of America, Incorporated (RZB) shows moderate financial fundamentals with a PE ratio of 1.41, profit margin of 5.05%, and ROE of 9.48%. The company generates $178.8B in annual revenue with strong year-over-year growth of 19.07%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RZB's fundamental strength across five key dimensions:
Efficiency Score
WeakRZB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRZB trades at attractive valuation levels.
Growth Score
ModerateRZB shows steady but slowing expansion.
Financial Health Score
ModerateRZB shows balanced financial health with some risks.
Profitability Score
WeakRZB struggles to sustain strong margins.
Key Financial Metrics
Is RZB Expensive or Cheap?
P/E Ratio
RZB trades at 1.41 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RZB's PEG of 0.04 indicates potential undervaluation.
Price to Book
The market values Reinsurance Group of America, Incorporated at 0.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7243.56 times EBITDA. This signals the market has high growth expectations.
How Well Does RZB Make Money?
Net Profit Margin
For every $100 in sales, Reinsurance Group of America, Incorporated keeps $5.05 as profit after all expenses.
Operating Margin
Core operations generate 74.69 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.48 in profit for every $100 of shareholder equity.
ROA
Reinsurance Group of America, Incorporated generates $0.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reinsurance Group of America, Incorporated produces operating cash flow of $31.27B, showing steady but balanced cash generation.
Free Cash Flow
Reinsurance Group of America, Incorporated generates strong free cash flow of $31.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $61.98 in free cash annually.
FCF Yield
RZB converts 32.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
1.41
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How RZB Stacks Against Its Sector Peers
| Metric | RZB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 1.41 | 18.73 | Better (Cheaper) |
| ROE | 9.48% | 847.00% | Weak |
| Net Margin | 5.05% | 3919.00% | Weak |
| Debt/Equity | 0.42 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 674.76 | Weak Liquidity |
| ROA | 0.75% | -21563.00% (disorted) | Weak |
RZB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reinsurance Group of America, Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.27%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-21.49%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
286.92%
Industry Style: Value, Dividend, Cyclical
High Growth