Unraveling the Future of National Western Life Group Inc (NWLI): A Deep Dive into Key Metrics
Long-established in the Insurance industry, National Western Life Group Inc (NASDAQ:NWLI) has enjoyed a stellar reputation. It has recently witnessed a daily gain of 14.8%, juxtaposed with a three-month change of 13.68%. However, fresh insights from the GF Score hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of National Western Life Group Inc.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
Financial strength rank: 8/10
Profitability rank: 5/10
Growth rank: 2/10
GF Value rank: 1/10
Momentum rank: 3/10
Based on the above method, GuruFocus assigned National Western Life Group Inc the GF Score of 57 out of 100, which signals poor future outperformance potential.
Understanding National Western Life Group Inc's Business
With a market cap of $1.74 billion and sales of $645.73 million, National Western Life Group Inc is a global insurance company that provides insurance products for the savings, protection, and retirement needs of policyholders. The company's product portfolio includes individual whole life, universal life and term insurance plans, and annuities. The company is organized into four operating business segments based on product types and geographic marketing areas: Domestic life insurance, International life insurance, Annuities, and Acquired businesses. The annuities segment contributes roughly half of the company's revenue, and most of the company's revenue is earned in the United States.
Profitability Breakdown
National Western Life Group Inc's low Profitability rank can also raise warning signals. The company's Net Margin has declined over the past five years (-14.43%), as shown by the following data: 2018: 21.17; 2019: 16.07; 2020: 13.29; 2021: 21.93; 2022: 18.11.
Growth Prospects
A lack of significant growth is another area where National Western Life Group Inc seems to falter, as evidenced by the company's low Growth rank. The company's revenue has declined by -12 per year over the past three years, which underperforms worse than 89.5% of 457 companies in the Insurance industry. Stagnating revenues may pose concerns in a fast-evolving market.
Lastly, National Western Life Group Inc predictability rank is just one star out of five, adding to investor uncertainty regarding revenue and earnings consistency.
Conclusion
Given the company's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential underperformance. While National Western Life Group Inc has a strong history in the insurance industry, its current metrics suggest that it may struggle to maintain this performance in the future. Investors should consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
