Reinsurance Group of America, Incorporated Fundamental Analysis (NYSE: RZC)
Reinsurance Group of America, Incorporated Fundamental Analysis (NYSE: RZC)
Reinsurance Group of America, Incorporated (NYSE: RZC) shows weak financial fundamentals with a PE ratio of 22.12, profit margin of 2.79%, and ROE of 5.37%. The company generates $26.0B in annual revenue with moderate year-over-year growth of 3.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.7/100 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 RZC's fundamental strength across five key dimensions:
Efficiency Score
WeakRZC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRZC trades at attractive valuation levels.
Growth Score
ModerateRZC shows steady but slowing expansion.
Financial Health Score
ExcellentRZC maintains a strong and stable balance sheet.
Profitability Score
WeakRZC struggles to sustain strong margins.
Key Financial Metrics
Is RZC Expensive or Cheap?
P/E Ratio
RZC trades at 22.12 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, RZC's PEG of -3.64 indicates potential undervaluation.
Price to Book
The market values Reinsurance Group of America, Incorporated at 1.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.74 times EBITDA. This signals the market has high growth expectations.
How Well Does RZC Make Money?
Net Profit Margin
For every $100 in sales, Reinsurance Group of America, Incorporated keeps $2.79 as profit after all expenses.
Operating Margin
Core operations generate 3.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.37 in profit for every $100 of shareholder equity.
ROA
Reinsurance Group of America, Incorporated generates $0.43 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 $5.27B, showing steady but balanced cash generation.
Free Cash Flow
Reinsurance Group of America, Incorporated generates strong free cash flow of $5.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $78.67 in free cash annually.
FCF Yield
RZC converts 32.62% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
35.72
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How RZC Stacks Against Its Sector Peers
| Metric | RZC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.12 | 21.18 | Neutral |
| ROE | 5.37% | 664.00% | Weak |
| Net Margin | 2.79% | 1007.00% | Weak |
| Debt/Equity | 0.42 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 35.72 | 906.73 | Strong Liquidity |
| ROA | 0.43% | 4475633.00% | Weak |
RZC 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
54.59%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
181.76%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
21.82%
Industry Style: Value, Dividend, Cyclical
High Growth