Globe Life (GL)
Financials · $12.4B market cap · SEC CIK 0000320335
ahead of 55% of the S&P 500 · #39 of 76 in Financials
Next reports on Feb 2, 2027, after the close, with analysts expecting $3.73 in earnings per share.
52-week range $129.21 to $191.55. 15% below its 52-week high and 27% above its low.
The case for GL
- Cheap for its growth: 10.5× earnings, where 9% a year of growth plus a 0.7% dividend would justify about 22×.
- Return on equity of 19%.
- Moves less than the market (beta 0.44).
The case against
- Growth is weak (38/100): revenue +5.6%, EPS +8.3%, +4.8% a year over five years.
- Weakest against its peers: revenue growth of +5.6% is slower than 74% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 73 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 38 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 60 |
| Momentumhow the price has behaved lately | 51 |
| Stabilityhow violently it moves, what it owes and what it pays you | 66 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +5.6% |
|---|---|
| Over 5 years | +4.8% a year |
| FY2025 revenue | $6.0B (+4%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Holding steady
| Gross margin | n/a |
|---|---|
| Operating margin | 26% |
| Net margin, FY24 → FY25 → now | 18.5% → 19.4% → 18.9% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $145M |
|---|---|
| Long-term debt | $2.3B |
| Net debt | $2.2B |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 10.5× |
|---|---|
| Fair P/E for its growth | 22× |
| Price / book | 1.92× |
| Fair P/B for its ROE | 1.9× |
| Forward P/E | 9.8× |
| EV / EBITDA | 9.4× |
At 10.5× earnings it trades well below the 22× that 9% a year of growth plus a 0.7% dividend would justify. At 1.92× book it trades close to the 1.9× that its 19% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Globe Life's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $6.0B | $5.8B | $5.4B | $5.2B | $5.1B |
| Change on the year | +4% | +6% | +4% | +2% | — |
| Free cash flow | |||||
| Free cash flow | $1.3B | $1.3B | $1.4B | $1.4B | $1.4B |
| Of revenue | 21% | 23% | 26% | 27% | 27% |
| Profit margins | |||||
| Gross margin | — | — | 23.1% | 22.6% | 23.8% |
| Operating margin | — | — | 23.2% | 22.7% | 24.0% |
| Net margin | 19.4% | 18.5% | 17.8% | 17.1% | 20.2% |
| Debt vs. cash | |||||
| Cash | $145M | $165M | $103M | $92.6M | $92.2M |
| Long-term debt | $2.3B | $2.3B | $1.6B | $1.6B | $1.5B |
| Net cash (debt) | −$2.2B | −$2.2B | −$1.5B | −$1.5B | −$1.5B |
What Globe Life says it does
Globe Life and the Company refer to Globe Life Inc., an insurance holding company incorporated in Delaware in 1979, and its subsidiaries and affiliates. Its primary subsidiaries are Globe Life And Accident Insurance Company, American Income Life Insurance Company, Liberty National Life Insurance Company, Family Heritage Life Insurance Company of America, and United American Insurance Company. Globe Life's website is: www.globelifeinsurance.com. Globe Life makes available free of charge through its website, its annual report on Form 10-K, its quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports as soon as reasonably practicable after they have been electronically filed with or furnished to the Securities and Exchange Commission. Other information included in Globe Life's website is not incorporated into this filing. 1 GL 2025 FORM 10-K Table of Contents The following table presents Globe Life's…
Risk factors GL lists in its 10-K
- The development and maintenance of our various distribution channels are critical to growth in product sales and profits
- Our life insurance products are sold in niche markets. We are at risk should any of these markets diminish
- Actual or alleged misclassification of independent contractors at our insurance subsidiaries could result in adverse legal, tax or financial consequences
- Our investment portfolio contains certain alternative investments that may be illiquid and volatile, which could negatively affect our investment income and liquidity
- Changes in interest rates could negatively affect income
- Our ability to fund operations is substantially dependent on available funds from our insurance subsidiaries
- We are subject to liquidity risks associated with sourcing a concentration of our funding from the FHLB
- Adverse capital and credit market conditions may significantly affect our ability to meet liquidity needs or access capital, as well as affect our cost of capital
- We have become subject to, and may in the future be subject to, short selling strategies driving down the market price of our common stock
- Note 5—Commitments and Contingencies
- Variations in actual-to-expected rates of mortality, morbidity and policyholder behavior could materially negatively affect our results of operations and financial condition
- Obtaining timely and appropriate premium rate increases for certain supplemental health insurance policies is critical
- Our business is subject to the risk of the occurrence of catastrophic events that could adversely affect our financial condition or operations
- Our business is subject to the risk of direct or indirect effects of climate change
- Recent volatility in the trading price of our common stock has and can be expected to result in securities class action litigation
- Our businesses are heavily regulated and changes in regulation or regulatory scrutiny may have a material adverse impact on our business, financial condition or results of operation
- Changes in accounting standards issued by accounting standard-setting bodies may affect our financial statements, reduce our reported profitability and change the timing of profit recognition
- Note 1—Significant Accounting Policie s
- Accounting Pronouncements Yet to be Adopted
- The failure to maintain effective information systems or manage responsible use of emerging technologies, including artificial intelligence, could adversely affect our financial condition and results of operations at the Company
- Changes in U.S. federal income tax law could increase our tax costs or negatively impact our insurance subsidiaries' capital
- Damage to the brand and reputation of Globe Life or its subsidiaries could affect our ability to conduct business
- We may not meet expectations relating to corporate responsibility and sustainability standards and practices