Company Snapshot

12:21 PM 28-Jun-2011

Torchmark Corp. (NYSE:TMK)

Life/Health Insurance (4865)

$ 63.02

FY End: December
EPS Due: 25-Jul-11

www.torchmarkcorp.com

+0.17 (+0.27%)
Compustat North America | I/B/E/S Consensus

Torchmark Corporation, through its subsidiaries, provides individual life and supplemental health insurance products, and annuities to
middle income households. It offers various life insurance products, including traditional and interest sensitive whole-life insurance,
term life insurance, and other life insurance.

Key Statistics
52-Week Range
Avg Daily Vol (3 Mo)

$47.30 - 68.06
761,573
$ 4.8

Market Value (B)

Corporate Information

1,664

50.0%

--

3,113

--

Enterprise Value (B)

Shares Out (M)
Dividend Yield
Float (%)
Institutional (%)
Top 10 Inst Hldrs (%)
Analyst Coverage
Target Price

Health

988

29.7%

--

636

--

LT Growth Rate

Investment

685

20.6%

--

11,748

--

Avg Rating

-7

-0.2%

--

609

--

Business Segments (Dec-10)

Headquarters: Mckinney, TX 75070-5934

Tot Rev

CEO: Mr. Mark S. McAndrew

CFO: Mr. Gary L. Coleman
COO:

Life

# Employees: 3,291

Other (Total)

% of Tot

Op Inc

Assets

Cap Ex

$ 5.2
76
1.0%
98.6%
80.5%
35.5%
15 Analysts
$ 69.40
8.6%
Hold
*Units in Billions

12/10A
1.52

12/11E
1.62

12/12E
1.85

90
80
70
60
50

Prices

12/09A
1.49

Q2 (Jun)

1.53

1.58

1.71

1.91

40

Q3 (Sep)

1.48

1.63

1.77

1.93

30

3-Month Change
-4.6%

20

52-Week Change
20.5%

Earnings Per Share (EPS)

FY Ending
Q1 (Mar)

TMK-US

Q4 (Dec)

1.47

1.68

1.81

1.96

Fiscal Year

5.97

6.41

6.90

7.67

7.4x

9.3x

9.1x

8.2x

P/E

YTD Change
5.5%

52-Week Beta
0.98
10
20

EPS Estimate Revisions

1 Week

1 Month

3 Months

6 Months

Qtr End 6/11

0.3%

-0.3%

-0.9%

-0.3%

Qtr End 9/11

-0.1%

-0.1%

-0.1%

1.0%

FY End 12/11

0.0%

0.5%

-0.3%

0.2%

FY End 12/12

0.1%

0.8%

0.1%

1.0%

All monetary values in Millions of U.S. Dollar, except per share data

Sales
FY Ending
Q1 (Mar)

S&P 500

Fundamental and estimate reporting standards may differ

2005

2006

2007

2008

2009

2010

2011 Performance

5Yr Avg

-2.7%

14.7%

-5.1%

-26.2%

-1.7%

35.9%

5.5% Price Change

3.5%

-5.7%

1.1%

-8.6%

12.3%

-25.1%

23.1%

2.7% +/- S&P 500

0.6%

-20.1%

-0.6%

-7.5%

17.0%

-10.4%

13.7%

14.8% +/- Industry

2.4%

0.8%

0.8%

0.9%

1.3%

1.3%

1.1%

12/09A
854.7

12/10A
874.8

12/11E
829.3

12/12E
839.3

Q2 (Jun)

842.9

870.1

838.4

841.3

12/05

12/06

12/07

12/08

12/09

12/10

Q3 (Sep)

834.7

838.9

826.2

826.6

3,142.4

3,423.7

3,500.8

3,344.5

3,236.5

3,387.4

Q4 (Dec)

834.9

847.2

830.1

830.6

848.2 EBITDA

3,368

3,340

3,400

848.2 EBIT

Fiscal Year

3,367

495.4

518.6

527.5

452.3

405.0

522.3

4.68

5.13

5.50

5.11

4.88

6.30

6.90 EPS (Diluted)

0.44

0.48

0.52

0.69

0.42

0.61

0.66 Dividends

105.8

101.1

95.8

88.5

83.0

82.1

33.14

35.26

36.07

26.24

41.03

50.68

19.3

16.7

20.1

46.4

231.9

365.7

14,768.9

14,980.4

15,241.4

13,529.0

16,023.8

16,159.8

- Total Assets

211.2

-568.1

-508.7

-57.1

-179.9

-226.9

- Working Cap

353.3

721.4

721.7

622.8

923.9

913.4

857.5

865.6

850.0

730.6

976.1

1,028.6

-3.0

-7.7

-24.2

-9.8

-6.5

-9.2

Valuation Summary
5 Year

Rel to

Curren
t

High

P/E (LTM)

10.0x

13.7x

4.2x 10.5x

0.9x

P/E (NTM)

8.7x

12.6x

3.3x

9.0x

1.1x

PEG (NTM)

1.0x

1.3x

0.4x

1.0x

--

P/Bk

1.2x

2.0x

0.7x

1.5x

1.4x

P/CF

4.9x

8.1x

2.3x

5.8x

1.2x

P/Sales

1.5x

2.0x

0.6x

1.5x

2.0x

--

--

--

--

--

EV/Sales

1.6x

2.2x

0.8x

1.6x

--

Div Yld

1.0%

2.7%

0.7%

1.1%

0.7%

EV/EBITDA

Low

Avg Industry

Growth Summary (CAGR) as of Fiscal 12/10

1Yr
3Yr
Sales
4.7%
-1.1%
EBIT
EBITDA
Net Income
29.0%
-0.3%

5Yr
1.5%
1.1%

10Yr
3.0%
3.7%

EPS (Diluted)
Dividends
BVPS
Free CFlow

6.1%
6.8%
8.9%
3.7%

8.4%
5.4%
11.3%
7.3%

29.1%
45.2%
23.5%
5.0%

4.6%
5.5%
12.0%
7.7%

Mutual Fund Holders

Holder
Invesco Van Kampen Comstock Fund
Vanguard Mid Cap Index Fund
Vanguard Total Stock Market Index ...
Total Mutual Funds

MV (MM)
103.7
60.3
54.9

% O/S
2.2%
1.3%
1.1%
31.6%

1.1%

12/11E Financials

5Yr CAGR

3,340.2 Sales

1.5%
-

519.8 Net Income

1.1%
6.1%
6.8%

- Dil Shs Out

-4.9%

57.62 BVPS

8.9%

- Cash & ST Inv

80.1%
1.8%
-

- LT Debt

20.9%

- Oper CFlow

3.7%

- Cap Ex

-24.9%

808.1

809.8

776.3

672.0

923.0

969.4

12/05

12/06

12/07

12/08

12/09

12/10

26.2%

24.8%

25.2%

22.3%

21.3%

25.8%

25.4% EBITDA Margin

25.4% EBIT Margin

15.8%

15.1%

15.1%

13.5%

12.5%

15.4%

- Free CFlow

3.7%

12/11E Ratios

5Yr Avg

- Gross Margin

23.9%
-

15.6% Net Margin

14.3%

3.4

3.5

3.5

3.1

2.7

3.2

3.2 ROA

3.2

14.5

15.1

15.6

16.3

14.4

14.1

13.4 ROE

15.1

0.2

0.2

0.2

0.2

0.2

0.2

- Asset Turnover

4.3

4.3

4.6

6.1

4.7

4.0

- Assets/Equity

4.7

1.45

1.37

1.49

1.52

0.92

1.03

- Rev/Employee

1.27

- DSO

- DPO

1.6

0.5

0.6

0.9

0.9

0.8

- Current Ratio

0.7

1.6

0.5

0.6

0.9

0.9

0.8

- Quick Ratio

0.7

0.2

0.2

0.2

0.3

0.3

0.2

- Debt/Tot Cap

0.2

0.2

0.3

0.3

0.5

0.3

0.3

- Debt/Equity

0.3

Key Comps
Name
Torchmark Corp.
Prudential Financial Inc.
Unum Group
Lincoln National Corp.
AFLAC Inc.
Allstate Corp.

Compustat North America/I/B/E/S Consensus

1.0% Div Yld

Price
63.02
61.73
24.77
27.38
45.00
29.62

MV (MM)
4,793.0
30,125.5
7,624.2
8,582.8
21,046.7
15,468.8

PE (NTM)
8.7x
8.5x
8.0x
6.7x
7.1x
11.9x

PEG (NTM)
1.0x
0.6x
0.9x
0.6x
0.6x
1.3x

0.2

ROE
14.1
11.1
10.2
7.8
24.1
5.2

EPS YoY%
31.6%
-24.1%
5.8%
55.8%
8.9%

FactSet Research Systems