U.S. Markets closed

FBL Financial Group Inc (NYSE:FFG) Has Attractive Fundamentals, Here’s Why

Cole Patterson

I’ve been keeping an eye on FBL Financial Group Inc (NYSE:FFG) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe FFG has a lot to offer. Basically, it is a financially-robust , dividend-paying company with a a great history of performance. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on FBL Financial Group here.

Adequate balance sheet with proven track record and pays a dividend

Over the past year, FFG has grown its earnings by 65.9%, with its most recent figure exceeding its annual average over the past five years. Not only did FFG outperformed its past performance, its growth also exceeded the Insurance industry expansion, which generated a 10.1% earnings growth. This is an optimistic signal for the future. FFG’s debt-to-equity ratio stands at 10.1%, which means its debt level is acceptable. This means that FFG’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. FFG’s has produced operating cash levels of 2x total debt over the past year, which implies that FFG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

NYSE:FFG Income Statement Export September 1st 18

FFG’s reputation for being one of the best dividend payers in the market is supported by the fact that it has been steadily growing its dividend payments over the past ten years and currently is one of the top yielding companies on the markets, at 4.1%.

NYSE:FFG Historical Dividend Yield September 1st 18

Next Steps:

For FBL Financial Group, there are three fundamental factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for FFG’s future growth? Take a look at our free research report of analyst consensus for FFG’s outlook.
  2. Valuation: What is FFG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether FFG is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FFG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.