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AMERICAN EQUITY INVT LIFE HL (AEL) Stock Fundamental Analysis

NYSE:AEL - New York Stock Exchange, Inc. - US0256762065 - Common Stock - Currency: USD

56.47  +0.31 (+0.55%)

After market: 56.47 0 (0%)

Fundamental Rating

4

Overall AEL gets a fundamental rating of 4 out of 10. We evaluated AEL against 143 industry peers in the Insurance industry. While AEL seems to be doing ok healthwise, there are quite some concerns on its profitability. AEL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year AEL was profitable.
AEL had a positive operating cash flow in the past year.
AEL had positive earnings in each of the past 5 years.
Each year in the past 5 years AEL had a positive operating cash flow.
AEL Yearly Net Income VS EBIT VS OCF VS FCFAEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

1.2 Ratios

Looking at the Return On Assets, with a value of 0.21%, AEL is doing worse than 69.29% of the companies in the same industry.
AEL has a Return On Equity of 5.52%. This is in the lower half of the industry: AEL underperforms 61.43% of its industry peers.
Industry RankSector 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
AEL Yearly ROA, ROE, ROICAEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

1.3 Margins

AEL has a Profit Margin of 5.85%. This is comparable to the rest of the industry: AEL outperforms 49.29% of its industry peers.
AEL's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 52.33%, AEL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
Industry RankSector 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
AEL Yearly Profit, Operating, Gross MarginsAEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

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4

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.
AEL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AEL has been reduced compared to a year ago.
AEL Yearly Shares OutstandingAEL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
AEL Yearly Total Debt VS Total AssetsAEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

AEL has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
AEL has a Debt to FCF ratio of 0.22. This is amongst the best in the industry. AEL outperforms 93.57% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AEL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.29, AEL is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.22
Altman-Z N/A
ROIC/WACCN/A
WACC8.32%
AEL Yearly LT Debt VS Equity VS FCFAEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AEL Yearly Current Assets VS Current LiabilitesAEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 10M 20M 30M

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5

3. Growth

3.1 Past

AEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.20%, which is quite impressive.
The Earnings Per Share has been growing by 10.07% on average over the past years. This is quite good.
Looking at the last year, AEL shows a very strong growth in Revenue. 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

AEL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.70% yearly.
AEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.89% yearly.
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

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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.
AEL Yearly Revenue VS EstimatesAEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
AEL Yearly EPS VS EstimatesAEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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6

4. Valuation

4.1 Price/Earnings Ratio

AEL is valuated cheaply with a Price/Earnings ratio of 7.50.
AEL's Price/Earnings ratio is a bit cheaper when compared to the industry. AEL is cheaper than 70.00% of the companies in the same industry.
AEL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 7.63, which indicates a rather cheap valuation of AEL.
Based on the Price/Forward Earnings ratio, AEL is valued a bit cheaper than the industry average as 69.29% of the companies are valued more expensively.
AEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.13.
Industry RankSector Rank
PE 7.5
Fwd PE 7.63
AEL Price Earnings VS Forward Price EarningsAEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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 RankSector Rank
P/FCF 1.15
EV/EBITDA -2.49
AEL Per share dataAEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.67%, AEL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.10, AEL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.39, AEL's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.67%

5.2 History

The dividend of AEL is nicely growing with an annual growth rate of 13.46%!
AEL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.46%
Div Incr Years0
Div Non Decr Years0
AEL Yearly Dividends per shareAEL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2024 0.1 0.2 0.3

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%
AEL Yearly Income VS Free CF VS DividendAEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
AEL Dividend Payout.AEL Dividend Payout, showing the Payout Ratio.AEL Dividend Payout.PayoutRetained Earnings

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AMERICAN EQUITY INVT LIFE HL

NYSE:AEL (5/2/2024, 8:04:00 PM)

After market: 56.47 0 (0%)

56.47

+0.31 (+0.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2024-05-01/amc
Earnings (Next)08-05 2024-08-05/amc
Inst Owners14.71%
Inst Owner Change-100%
Ins Owners18.55%
Ins Owner Change0%
Market Cap4.48B
Analysts50
Price Target56.1 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Profitability
Industry RankSector 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
ROICexcg growth 3YN/A
ROICexcg 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 RankSector 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%