AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59 (AFGB) Stock Fundamental Analysis
NYSE:AFGB - New York Stock Exchange, Inc. - US0259328070 - Currency: USD
AFGB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. AFGB has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on AFGB. These ratings could make AFGB a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year AFGB was profitable.
AFGB had a positive operating cash flow in the past year.
In the past 5 years AFGB has always been profitable.
AFGB had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AFGB (2.88%) is better than 66.43% of its industry peers.
Looking at the Return On Equity, with a value of 19.86%, AFGB belongs to the top of the industry, outperforming 85.31% of the companies in the same industry.
AFGB's Return On Invested Capital of 2.78% is in line compared to the rest of the industry. AFGB outperforms 58.74% of its industry peers.
AFGB had an Average Return On Invested Capital over the past 3 years of 2.95%. This is in line with the industry average of 4.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 19.86% | ||
| ROIC | 2.78% |
ROA(3y)2.95%
ROA(5y)3.35%
ROE(3y)20.68%
ROE(5y)22.52%
ROIC(3y)2.95%
ROIC(5y)2.64%
1.3 Margins
AFGB has a better Profit Margin (10.71%) than 64.34% of its industry peers.
In the last couple of years the Profit Margin of AFGB has remained more or less at the same level.
AFGB has a Operating Margin (12.98%) which is in line with its industry peers.
AFGB's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.98% | ||
| PM (TTM) | 10.71% | ||
| GM | N/A |
OM growth 3Y-15.95%
OM growth 5Y-2.25%
PM growth 3Y-29.55%
PM growth 5Y-0.39%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFGB is destroying value.
AFGB has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AFGB has been reduced compared to 5 years ago.
Compared to 1 year ago, AFGB has an improved debt to assets ratio.
2.2 Solvency
AFGB has an Altman-Z score of 0.60. This is a bad value and indicates that AFGB is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AFGB (0.60) is better than 74.13% of its industry peers.
AFGB has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
AFGB has a Debt to FCF ratio of 1.45. This is comparable to the rest of the industry: AFGB outperforms 52.45% of its industry peers.
AFGB has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AFGB's Debt to Equity ratio of 0.33 is in line compared to the rest of the industry. AFGB outperforms 48.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | 0.6 |
ROIC/WACC0.39
WACC7.07%
2.3 Liquidity
AFGB has a Current Ratio of 4.84. This indicates that AFGB is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of AFGB (4.84) is better than 96.50% of its industry peers.
AFGB has a Quick Ratio of 4.84. This indicates that AFGB is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 4.84, AFGB belongs to the top of the industry, outperforming 96.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.84 | ||
| Quick Ratio | 4.84 |
3. Growth
3.1 Past
AFGB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.04%.
Measured over the past 5 years, AFGB shows a small growth in Earnings Per Share. The EPS has been growing by 4.54% on average per year.
The Revenue has been growing slightly by 2.87% in the past year.
Measured over the past years, AFGB shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
EPS 1Y (TTM)-6.04%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-34.42%
Revenue 1Y (TTM)2.87%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%20.05%
3.2 Future
The Earnings Per Share is expected to grow by 6.20% on average over the next years.
Based on estimates for the next years, AFGB will show a quite strong growth in Revenue. The Revenue will grow by 8.40% on average per year.
EPS Next Y-1.62%
EPS Next 2Y4.88%
EPS Next 3Y6.2%
EPS Next 5YN/A
Revenue Next Year5.92%
Revenue Next 2Y6.02%
Revenue Next 3Y8.4%
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 accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AFGB is valuated cheaply with a Price/Earnings ratio of 2.17.
Compared to the rest of the industry, the Price/Earnings ratio of AFGB indicates a rather cheap valuation: AFGB is cheaper than 85.31% of the companies listed in the same industry.
AFGB is valuated cheaply when we compare the Price/Earnings ratio to 24.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 1.80, which indicates a rather cheap valuation of AFGB.
87.41% of the companies in the same industry are more expensive than AFGB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.44. AFGB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.17 | ||
| Fwd PE | 1.8 |
4.2 Price Multiples
93.71% of the companies in the same industry are more expensive than AFGB, based on the Enterprise Value to EBITDA ratio.
AFGB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGB is cheaper than 88.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.74 | ||
| EV/EBITDA | 1.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y4.88%
EPS Next 3Y6.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.61%, AFGB has a reasonable but not impressive dividend return.
AFGB's Dividend Yield is a higher than the industry average which is at 3.21.
Compared to an average S&P500 Dividend Yield of 2.42, AFGB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
5.2 History
The dividend of AFGB is nicely growing with an annual growth rate of 13.64%!
AFGB has been paying a dividend for over 5 years, so it has already some track record.
AFGB has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.64%
Div Incr Years2
Div Non Decr Years4
5.3 Sustainability
88.84% of the earnings are spent on dividend by AFGB. This is not a sustainable payout ratio.
AFGB's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP88.84%
EPS Next 2Y4.88%
EPS Next 3Y6.2%
AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59
NYSE:AFGB (5/9/2025, 8:04:00 PM)
21.25
-0.06 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.31%
Inst Owner ChangeN/A
Ins Owners14.5%
Ins Owner ChangeN/A
Market Cap1.78B
Analysts70.91
Price Target22.23 (4.61%)
Short Float %0%
Short Ratio0.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.61% |
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP88.84%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.88%
Min EPS beat(2)-7.36%
Max EPS beat(2)-0.4%
EPS beat(4)2
Avg EPS beat(4)-0.76%
Min EPS beat(4)-7.36%
Max EPS beat(4)3.61%
EPS beat(8)2
Avg EPS beat(8)-3.23%
EPS beat(12)6
Avg EPS beat(12)3.37%
EPS beat(16)10
Avg EPS beat(16)12.94%
Revenue beat(2)2
Avg Revenue beat(2)9.25%
Min Revenue beat(2)6.57%
Max Revenue beat(2)11.93%
Revenue beat(4)2
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-10.89%
Max Revenue beat(4)11.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.26%
Revenue beat(12)8
Avg Revenue beat(12)5.58%
Revenue beat(16)12
Avg Revenue beat(16)9.74%
PT rev (1m)-4.26%
PT rev (3m)-12.65%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-29.67%
EPS NY rev (1m)0.17%
EPS NY rev (3m)-11.18%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.39%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.17 | ||
| Fwd PE | 1.8 | ||
| P/S | 0.21 | ||
| P/FCF | 1.74 | ||
| P/OCF | 1.54 | ||
| P/B | 0.4 | ||
| P/tB | 0.45 | ||
| EV/EBITDA | 1.6 |
EPS(TTM)9.8
EY46.12%
EPS(NY)11.82
Fwd EY55.64%
FCF(TTM)12.18
FCFY57.31%
OCF(TTM)13.77
OCFY64.79%
SpS98.97
BVpS53.38
TBVpS47.3
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.88% | ||
| ROE | 19.86% | ||
| ROCE | 3.51% | ||
| ROIC | 2.78% | ||
| ROICexc | 2.91% | ||
| ROICexgc | 3.19% | ||
| OM | 12.98% | ||
| PM (TTM) | 10.71% | ||
| GM | N/A | ||
| FCFM | 12.31% |
ROA(3y)2.95%
ROA(5y)3.35%
ROE(3y)20.68%
ROE(5y)22.52%
ROIC(3y)2.95%
ROIC(5y)2.64%
ROICexc(3y)3.07%
ROICexc(5y)2.78%
ROICexgc(3y)3.35%
ROICexgc(5y)3.01%
ROCE(3y)3.73%
ROCE(5y)3.34%
ROICexcg growth 3Y-11.18%
ROICexcg growth 5Y16.37%
ROICexc growth 3Y-11.66%
ROICexc growth 5Y15.82%
OM growth 3Y-15.95%
OM growth 5Y-2.25%
PM growth 3Y-29.55%
PM growth 5Y-0.39%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 1.28 | ||
| Cap/Depr | 164.2% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 14.53 | ||
| Cash Conversion | 99.65% | ||
| Profit Quality | 114.88% | ||
| Current Ratio | 4.84 | ||
| Quick Ratio | 4.84 | ||
| Altman-Z | 0.6 |
F-Score6
WACC7.07%
ROIC/WACC0.39
Cap/Depr(3y)114.17%
Cap/Depr(5y)79.15%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.15%
Profit Quality(3y)152.16%
Profit Quality(5y)165.86%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.04%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-34.42%
EPS Next Y-1.62%
EPS Next 2Y4.88%
EPS Next 3Y6.2%
EPS Next 5YN/A
Revenue 1Y (TTM)2.87%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%20.05%
Revenue Next Year5.92%
Revenue Next 2Y6.02%
Revenue Next 3Y8.4%
Revenue Next 5YN/A
EBIT growth 1Y-5.37%
EBIT growth 3Y-8.95%
EBIT growth 5Y-2.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-46.31%
FCF growth 3Y-14.88%
FCF growth 5Y-15.83%
OCF growth 1Y-41.52%
OCF growth 3Y-12.4%
OCF growth 5Y-14.05%