Globe Life Inc. (GL)
Valuation Overview•Is Globe Life Inc. Overvalued or Undervalued?
Trading at a discount to intrinsic cash flow value, implying pessimistic long-term market expectations.
Moderate quality score of 73/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral with steady expected earnings growth. This outlook is strongly supported by highly attractive capital returns, driven predominantly by aggressive share repurchases.
GL demonstrates strong business quality with robust profitability and healthy margins. This is paired with a moderately leveraged but stable balance sheet.
The company exhibits steady, low-single-digit revenue growth paired with robust earnings compounding (15.9% EPS 3Y CAGR). The company maintains healthy operational efficiency with a 24.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $1.5B | +3.8% | +4.7% | +4.8% | +4.8% | |
| EBITDA | $379.3M | — | +10.1% | — | — | |
| Net Income | $266.0M | +8.4% | +9.1% | — | +8.2% | |
| EPS (Diluted) | $3.29 | +17.8% | +15.9% | +15.6% | +13.0% | |
| Free Cash Flow | $330.1M | -5.8% | -3.5% | -2.7% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 33.4% | 32.0% | 31.7% | 36.5% |
| Operating Margin | 24.4% | 23.1% | 23.0% | 21.7% |
| Net Margin | 19.4% | 18.6% | 18.6% | 19.0% |
| FCF Margin | 20.9% | 23.4% | 24.8% | 28.1% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $3.46 | $3.43 | -0.9% | ||
| Q1'26 | $3.44 | $3.39 | -1.5% | ||
| Q4'25 | $4.60 | $4.81 | +4.6% | ||
| Q3'25 | $3.25 | $3.27 | +0.6% | ||
| Q2'25 | $3.23 | $3.07 | -5.0% | ||
| Q1'25 | $3.12 | $3.14 | +0.6% | ||
| Q4'24 | $3.06 | $3.49 | +14.1% | ||
| Q3'24 | $2.91 | $2.97 | +2.1% |
Total return is +43.6% (1Y), outperforming the benchmark by +18.6%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +23.8% | +14.5% | — |
| 1Y | +43.6% | +18.6% | +1.0% |
| 3YCAGR | +17.6% | -1.8% | +2.9% |
| 5YCAGR | +13.7% | -0.1% | +5.1% |
| 10YCAGR | +11.4% | -2.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Globe Life Inc. (GL) valuation, health, and returns.
Globe Life Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Fair versus peers compared to industry peers. undervalued (implying +93.5% upside to DCF intrinsic value of $330.38)
Globe Life Inc. has multiple valuation anchors: DCF Intrinsic Value: $330.38 | Peer Relative Fair Value: $172.58 | Wall Street Analyst Target: $174.50 (implying +2.2% upside). A convergence of these signals offers higher conviction.
Globe Life Inc. displays good financial health with a composite quality score of 73/100, supported by a Piotroski F-Score of 8/9, Return on Invested Capital (ROIC) of 13.4%.
Globe Life Inc. pays a 0.6% dividend yield, covered by a 7% payout ratio with 14 years of growth, supplemented by a 6.6% buyback yield.
Globe Life Inc.'s current growth trajectory is Stable. The company achieved +3.8% 1Y revenue growth and +17.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +4.7%.
Wall Street consensus is Hold based on 28 analysts, beating EPS expectations in 67% of recent quarters with a -2-quarter streak. The consensus price target represents a +2.2% change from current levels.
Investment risks for Globe Life Inc. include: -11.2% 1-year max drawdown. Volatility risk is characterized by a beta of 0.35x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.