AMERICAN EQUITY INVT LIFE HL (AEL) Stock Fundamental Analysis
USA - New York Stock Exchange - 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 148 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.
- Each year in the past 5 years AEL has been profitable.
- Each year in the past 5 years AEL had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 0.21%, AEL is not doing good in the industry: 69.29% of the companies in the same industry are doing better.
- The Return On Equity of AEL (5.52%) is worse than 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
- The Profit Margin of AEL (5.85%) is comparable to the rest of the industry.
- AEL's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 52.33%, AEL belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
| 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.
- The debt/assets ratio for AEL has been reduced compared to a year ago.
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.
- Looking at the Debt to FCF ratio, with a value of 0.22, AEL belongs to the top of the industry, outperforming 93.57% of the companies in the same industry.
- AEL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of AEL (0.29) is better than 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
- 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.
- AEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
- Looking at the last year, AEL shows a very strong growth in Revenue. The Revenue has grown by 97.17%.
- Measured over the past years, AEL shows a quite strong growth in Revenue. The Revenue has been growing by 13.00% on average per year.
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
- Based on estimates for the next years, AEL will show a decrease in Earnings Per Share. The EPS will decrease by -0.70% on average per year.
- 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.
- 70.00% of the companies in the same industry are more expensive than AEL, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 28.60, AEL is valued rather cheaply.
- With a 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.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. AEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, AEL is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
| 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 2.41.
- With a Dividend Yield of 0.67, AEL pays less dividend than the S&P500 average, which is at 1.82.
| 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 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
5.3 Sustainability
- 26.19% of the earnings are spent on dividend by AEL. This is a low number and sustainable payout ratio.
DP26.19%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
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 for 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 PE and PB ratios for AEL stock?
The Price/Earnings (PE) ratio for AMERICAN EQUITY INVT LIFE HL (AEL) is 7.5 and the Price/Book (PB) ratio is 1.48.
What is the financial health of AMERICAN EQUITY INVT LIFE HL (AEL) stock?
The financial health rating of AMERICAN EQUITY INVT LIFE HL (AEL) is 4 / 10.