Fact based stock research
SBI Life Insurance (BSE:540719)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

SBI Life Insurance stock research in summary

sbilife.co.in

ANALYSIS: With an Obermatt Combined Rank of 97 (better than 97% compared with investment alternatives), SBI Life Insurance (Life & Health Insurance, India) shares have much better financial characteristics than comparable stocks. Shares of SBI Life Insurance are low in value (priced high) with a consolidated Value Rank of 26 (worse than 74% of alternatives). But they show above-average growth (Growth Rank of 64) and are safely financed (Safety Rank of 87, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 97, is a strong buy recommendation based on SBI Life Insurance's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company SBI Life Insurance exhibits low value (Obermatt Value Rank of 26), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 64). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 87) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	26
Growth Rank	64
Safety Rank	87
Combined Rank	97

Country	India
Industry	Life & Health Insurance
Index	Good Governace Growth Markets, Independent Boards Growth Markets, CNX Nifty 50
Size class	XX-Large

This stock has achievements: Top 10 Stock.

26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: SBI Life Insurance

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	27	21	26
GROWTH
GROWTH	76	53	71	64
SAFETY
SAFETY	75	87	87	87
SENTIMENT
SENTIMENT	n/a	96	60	^new
360° VIEW
360° VIEW	n/a	78	82	^new

Most recent update of the stock research: 26-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better SBI Life Insurance is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	9	27	21	26
GROWTH
GROWTH	76	53	71	64
SAFETY
SAFETY	75	87	87	87
COMBINED
COMBINED	53	97	97	97

Last update of combined financial performance: 10-Nov-2022. Stock analysis on combined financial performance: The higher the rank of SBI Life Insurance the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 26 (worse than 74% compared with alternatives), SBI Life Insurance shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, where the majority of metrics are below, and only one is above average for SBI Life Insurance. Price-to-Sales (P/S) is 89, which means that the stock price compared with what market professionals expect for future sales is lower than 89% of comparable companies, indicating a good value concerning to SBI Life Insurance's revenue size. But all other performance indicators point in a different direction. Dividend yields have a Dividend Yield rank of 12, meaning that dividends are expected to be lower than for 88% of comparable investments. Furthermore, Price-to-Book Capital (also referred to as market-to-book ratio) is less favorable than 91% of alternatives (only 9% of peers have an even higher ratio). The same is valid for Price-to-Profit (or Price / Earnings, P/E), which is higher than for 93% of comparable companies, making the stock more expensive compared with the company's expected profit levels. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 26, is a hold recommendation based on SBI Life Insurance's stock price compared with the company's operational size and dividend yields. Since Price-to-Sales is a stable value indicator even in challenging times, investing in SBI Life Insurance could be seen as a value investment. However, there must be a good reason for the low market-to-book rank. If the company has a typical capital investment practice, the stock may be overvalued because the profit and dividend-related performance indicators are also low. The stock is only good value if investors can expect profits and dividends to pick up in the future. Else, SBI Life Insurance looks like an expensive investment today. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	43	75	74	89
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	17	7	5	7
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	9	7	9
DIVIDEND YIELD
DIVIDEND YIELD	34	13	14	12
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	9	27	21	26

Last update of Value Rank: 26-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of SBI Life Insurance; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 64 (better than 64% compared with alternatives), SBI Life Insurance shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for SBI Life Insurance. Sales Growth has a value of 65 which means that currently professionals expect the company to grow more than 65% of its competitors. Profit Growth with a value of 64 and Capital Growth with a rank of 72 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 46, which means that stock returns have recently been below 54% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 64, is a buy recommendation for growth and momentum investors. SBI Life Insurance has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for SBI Life Insurance, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	94	76	69	65
PROFIT GROWTH
PROFIT GROWTH	n/a	18	54	64
CAPITAL GROWTH
CAPITAL GROWTH	n/a	67	61	72
STOCK RETURNS
STOCK RETURNS	76	67	53	46
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	76	53	71	64

Last update of Growth Rank: 26-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of SBI Life Insurance.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 87 (better than 87% compared with alternatives) for 2022, the company SBI Life Insurance has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of SBI Life Insurance is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for SBI Life Insurance. Leverage is at a rank of 100, meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors. Liquidity is also good at a rank of 96, meaning the company generates more profit to service its debt than 96% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 34, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 66% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 87 (better than 87% compared with alternatives), SBI Life Insurance has a financing structure that is significantly safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for SBI Life Insurance. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with SBI Life Insurance and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	75	100	100	100
REFINANCING
REFINANCING	32	34	34	34
LIQUIDITY
LIQUIDITY	100	91	91	96
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	75	87	87	87

Last update of Safety Rank: 10-Nov-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of SBI Life Insurance and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	93	93	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	22	52	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	12	^new
MARKET PULSE
MARKET PULSE	n/a	81	67	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	96	60	^new

Last update of Sentiment Rank: 26-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for SBI Life Insurance.
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