The next are right now’s upgrades for Validea’s Low PE Investor mannequin primarily based on the revealed technique of John Neff. This technique seems to be for companies with persistent earnings progress that commerce at a reduction relative to their earnings progress and dividend yield.
REINSURANCE GROUP OF AMERICA INC (RGA) is a large-cap progress inventory within the Insurance coverage (Life) business. The ranking in keeping with our technique primarily based on John Neff modified from 60% to 79% primarily based on the agency’s underlying fundamentals and the inventory’s valuation. A rating of 80% or above sometimes signifies that the technique has some curiosity within the inventory and a rating above 90% sometimes signifies sturdy curiosity.
Firm Description: Reinsurance Group of America, Integrated is an insurance coverage holding firm. The Firm is a supplier of conventional life and well being reinsurance and monetary options. The Firm has 4 segments. The U.S. and Latin America Conventional section gives particular person and group life and well being reinsurance, together with long-term care, to home shoppers for quite a lot of merchandise. The Canada Conventional section is primarily engaged in particular person life reinsurance, and to a lesser extent creditor, group life and well being, vital sickness and incapacity reinsurance. The Europe, Center East and Africa Conventional section gives particular person and group life and well being merchandise by yearly renewable time period and coinsurance agreements, reinsurance of vital sickness protection. The Asia Pacific Conventional section gives particular person and group life and well being reinsurance, vital sickness protection, incapacity and superannuation by yearly renewable time period and coinsurance agreements.
The next desk summarizes whether or not the inventory meets every of this technique’s checks. Not all standards within the under desk obtain equal weighting or are impartial, however the desk gives a quick overview of the sturdy and weak factors of the safety within the context of the technique’s standards.
| P/E RATIO: | PASS |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | FAIL |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Evaluation of REINSURANCE GROUP OF AMERICA INC
About John Neff: Whereas often known as the supervisor with whom many prime managers entrusted their very own cash, Neff was removed from the smooth-talking, high-profile Wall Streeter you would possibly count on. He was mild-mannered and low-key, and the identical is perhaps stated of the Windsor Fund that he managed for greater than three a long time. In truth, Neff himself described the fund as “comparatively prosaic, uninteresting, [and] conservative.” There was nothing uninteresting about his outcomes, nevertheless. From 1964 to 1995, Neff guided Windsor to a 13.7 % common annual return, simply outpacing the S&P 500’s 10.6 % return throughout that point. That 3.1 proportion level distinction is big over time — a $10,000 funding in Windsor (with dividends reinvested) in the beginning of Neff’s tenure would have ended up as greater than $564,000 by the point he retired, greater than twice what the identical funding within the S&P would have yielded (about $233,000). Contemplating the size of his tenure, that observe report could also be the most effective ever for a supervisor of such a big fund.
About Validea: Validea is aninvestment researchservice that follows the revealed methods of funding legends. Validea presents each inventory evaluation and mannequin portfolios primarily based on gurus who’ve outperformed the market over the long-term, together with Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For extra details about Validea, click here
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
