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 146 industry peers in the Insurance industry. AEL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AEL has a correct valuation and a medium growth rate.
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.
AEL had positive earnings in each of the past 5 years.
AEL had a positive operating cash flow in each of the past 5 years.
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.
With a Return On Equity value of 5.52%, AEL is not doing good in the industry: 61.43% of the companies in the same industry are doing better.
| 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
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.
AEL has a Operating Margin of 52.33%. This is amongst the best in 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.
The number of shares outstanding for AEL has been reduced compared to 1 year ago.
The number of shares outstanding for AEL has been reduced compared to 5 years ago.
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.
With an excellent Debt to FCF ratio value of 0.22, AEL belongs to the best of the industry, outperforming 93.57% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that AEL is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, AEL is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| 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
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.
Measured over the past years, AEL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.07% on average per year.
The Revenue has grown by 97.17% in the past year. This is a very strong growth!
AEL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.00% yearly.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 7.50, which indicates a rather cheap valuation of AEL.
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.
When comparing the Price/Earnings ratio of AEL to the average of the S&P500 Index (27.43), we can say AEL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.63, the valuation of AEL can be described as very cheap.
AEL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AEL is cheaper than 69.29% of the companies 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 22.87.
| 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
AEL has a yearly dividend return of 0.67%, which is pretty low.
Compared to an average industry Dividend Yield of 3.63, AEL is paying slightly less dividend.
With a Dividend Yield of 0.67, AEL pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector 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 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
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
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
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 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%