AMERICAN EQUITY INVT LIFE HL (AEL)
US0256762065 - Common Stock
We assign a fundamental rating of 4 out of 10 to AEL. AEL was compared to 141 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.
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.
1.2 Ratios
AEL has a worse Return On Assets (0.21%) than 66.19% of its industry peers.
With a Return On Equity value of 5.52%, AEL perfoms like the industry average, outperforming 40.29% of the companies in the same industry.
| 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 (5.85%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of AEL has declined.
Looking at the Operating Margin, with a value of 52.33%, AEL belongs to the top of the industry, outperforming 97.12% 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.
AEL has less shares outstanding than it did 5 years ago.
AEL has a better debt/assets ratio than last year.
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 93.53% 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.
AEL has a Debt to Equity ratio of 0.29. This is in the better half of the industry: AEL outperforms 65.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.48%
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.
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.
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 growth Q2Q151.9%
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y13%
Revenue growth Q2Q24.24%
3.2 Future
The Earnings Per Share is expected to decrease by -1.38% on average over the next years.
AEL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.44% yearly.
EPS Next Y-1.74%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
EPS Next 5YN/A
Revenue Next Year5.25%
Revenue Next 2Y1.07%
Revenue Next 3Y6.44%
Revenue Next 5YN/A
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.
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
Based on the Price/Earnings ratio of 7.46, the valuation of AEL can be described as very cheap.
AEL's Price/Earnings ratio is a bit cheaper when compared to the industry. AEL is cheaper than 68.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of AEL to the average of the S&P500 Index (25.20), we can say AEL is valued rather cheaply.
AEL is valuated cheaply with a Price/Forward Earnings ratio of 7.60.
Based on the Price/Forward Earnings ratio, AEL is valued a bit cheaper than the industry average as 71.22% of the companies are valued more expensively.
AEL is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 7.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEL indicates a rather cheap valuation: AEL is cheaper than 91.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.15 | ||
| EV/EBITDA | -2.51 |
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 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 4.35, AEL is paying slightly less dividend.
With a Dividend Yield of 0.69, AEL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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
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
NYSE:AEL (4/25/2024, 7:04:00 PM)
After market: 56.21 0 (0%)56.21
+0.22 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.46 | ||
| Fwd PE | 7.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.74
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 52.33% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)89.2%
EPS 3Y117.68%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y