AMERICAN EQUITY INVT LIFE HL (AEL) Stock Fundamental Analysis
USA - NYSE:AEL - US0256762065 - Common Stock
56.47 USD
+0.31 (+0.55%)
56.47 USD
0 (0%)
Taking everything into account, AEL scores 4 out of 10 in our fundamental rating. AEL was compared to 147 industry peers in the Insurance industry. While AEL seems to be doing ok healthwise, there are quite some concerns on its profitability. AEL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AEL had positive earnings in the past year.
AEL had a positive operating cash flow in the past year.
In the past 5 years AEL has always been profitable.
Each year in the past 5 years AEL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AEL (0.21%) is worse than 69.29% of its industry peers.
AEL's Return On Equity of 5.52% is on the low side compared to the rest of the industry. AEL is outperformed by 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.52% | ||
| ROIC | N/A |
ROA(3y)0.79%
ROA(5y)0.72%
ROE(3y)20.81%
ROE(5y)15.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 5.85%, AEL perfoms like the industry average, outperforming 49.29% of the companies in the same industry.
In the last couple of years the Profit Margin of AEL has declined.
AEL's Operating Margin of 52.33% is amongst the best of the industry. AEL outperforms 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.33% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-39.39%
PM growth 5Y-27.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AEL does not have a ROIC to compare to the WACC, probably because it is not profitable.
AEL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AEL has less shares outstanding
Compared to 1 year ago, AEL has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AEL is 0.22, which is an excellent value as it means it would take AEL, only 0.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AEL (0.22) is better than 93.57% of its industry peers.
AEL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
AEL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. AEL outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 89.20% over the past year.
AEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
AEL shows a strong growth in Revenue. In the last year, the Revenue has grown by 97.17%.
The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)89.2%
EPS 3Y117.68%
EPS 5Y10.07%
EPS Q2Q%151.9%
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y13%
Sales Q2Q%24.24%
3.2 Future
The Earnings Per Share is expected to decrease by -0.70% on average over the next years.
Based on estimates for the next years, AEL will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y-1.74%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
EPS Next 5Y-0.7%
Revenue Next Year5.25%
Revenue Next 2Y1.07%
Revenue Next 3Y6.44%
Revenue Next 5Y6.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.50, the valuation of AEL can be described as very cheap.
70.00% of the companies in the same industry are more expensive than AEL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 25.07. AEL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.63 indicates a rather cheap valuation of AEL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AEL indicates a somewhat cheap valuation: AEL is cheaper than 69.29% of the companies listed in the same industry.
AEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
91.43% of the companies in the same industry are more expensive than AEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.15 | ||
| EV/EBITDA | -2.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
5. Dividend
5.1 Amount
With a yearly dividend of 0.67%, AEL is not a good candidate for dividend investing.
AEL's Dividend Yield is slightly below the industry average, which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.44, AEL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of AEL grows each year by 13.46%, which is quite nice.
AEL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
AEL pays out 26.19% of its income as dividend. This is a sustainable payout ratio.
DP26.19%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
56.47
+0.31 (+0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners14.71%
Inst Owner Change0%
Ins Owners18.55%
Ins Owner Change0%
Market Cap4.48B
Revenue(TTM)2.85B
Net Income(TTM)166.79M
Analysts50
Price Target56.1 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.53
Dividend Growth(5Y)13.46%
DP26.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.93%
Min EPS beat(2)12.78%
Max EPS beat(2)41.09%
EPS beat(4)3
Avg EPS beat(4)16.67%
Min EPS beat(4)-6.82%
Max EPS beat(4)41.09%
EPS beat(8)5
Avg EPS beat(8)17.33%
EPS beat(12)7
Avg EPS beat(12)15.86%
EPS beat(16)8
Avg EPS beat(16)-10.13%
Revenue beat(2)1
Avg Revenue beat(2)17.02%
Min Revenue beat(2)-6.41%
Max Revenue beat(2)40.46%
Revenue beat(4)2
Avg Revenue beat(4)22.05%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)69.59%
Revenue beat(8)3
Avg Revenue beat(8)-7.11%
Revenue beat(12)7
Avg Revenue beat(12)23.56%
Revenue beat(16)10
Avg Revenue beat(16)19.8%
PT rev (1m)0%
PT rev (3m)0.36%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 | ||
| P/S | 1.57 | ||
| P/FCF | 1.15 | ||
| P/OCF | 1.14 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | -2.49 |
EPS(TTM)7.53
EY13.33%
EPS(NY)7.4
Fwd EY13.1%
FCF(TTM)48.99
FCFY86.75%
OCF(TTM)49.62
OCFY87.87%
SpS35.9
BVpS38.08
TBVpS38.08
PEG (NY)N/A
PEG (5Y)0.74
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.52% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 52.33% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A | ||
| FCFM | 136.45% |
ROA(3y)0.79%
ROA(5y)0.72%
ROE(3y)20.81%
ROE(5y)15.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-39.39%
PM growth 5Y-27.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 17.37% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 29.82 | ||
| Cash Conversion | 221.32% | ||
| Profit Quality | 2332.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.32%
ROIC/WACCN/A
Cap/Depr(3y)10.16%
Cap/Depr(5y)7.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.16%
Profit Quality(3y)1160.31%
Profit Quality(5y)1008.72%
High Growth Momentum
Growth
EPS 1Y (TTM)89.2%
EPS 3Y117.68%
EPS 5Y10.07%
EPS Q2Q%151.9%
EPS Next Y-1.74%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
EPS Next 5Y-0.7%
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y13%
Sales Q2Q%24.24%
Revenue Next Year5.25%
Revenue Next 2Y1.07%
Revenue Next 3Y6.44%
Revenue Next 5Y6.89%
EBIT growth 1Y2774.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.18%
FCF growth 3Y44.4%
FCF growth 5Y151.19%
OCF growth 1Y92.73%
OCF growth 3Y44.53%
OCF growth 5Y146.6%
AMERICAN EQUITY INVT LIFE HL / AEL FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EQUITY INVT LIFE HL?
ChartMill assigns a fundamental rating of 4 / 10 to AEL.
What is the valuation status of AMERICAN EQUITY INVT LIFE HL (AEL) stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN EQUITY INVT LIFE HL (AEL). This can be considered as Fairly Valued.
How profitable is AMERICAN EQUITY INVT LIFE HL (AEL) stock?
AMERICAN EQUITY INVT LIFE HL (AEL) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for AEL stock?
The Earnings per Share (EPS) of AMERICAN EQUITY INVT LIFE HL (AEL) is expected to decline by -1.74% in the next year.
Can you provide the dividend sustainability for AEL stock?
The dividend rating of AMERICAN EQUITY INVT LIFE HL (AEL) is 3 / 10 and the dividend payout ratio is 26.19%.