AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59 (AFGB) Stock Fundamental Analysis
NYSE:AFGB - US0259328070
22.44 USD
+0.1 (+0.45%)
We assign a fundamental rating of 5 out of 10 to AFGB. AFGB was compared to 146 industry peers in the Insurance industry. AFGB has an excellent financial health rating, but there are some minor concerns on its profitability. AFGB may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AFGB had positive earnings in the past year.
In the past year AFGB had a positive cash flow from operations.
Each year in the past 5 years AFGB has been profitable.
In the past 5 years AFGB always reported a positive cash flow from operatings.
1.2 Ratios
AFGB has a Return On Assets (2.49%) which is in line with its industry peers.
The Return On Equity of AFGB (16.92%) is better than 79.45% of its industry peers.
AFGB has a Return On Invested Capital (2.56%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFGB is in line with the industry average of 4.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 16.92% | ||
| ROIC | 2.56% |
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 (9.23%) than 63.01% 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's Operating Margin of 11.89% is in line compared to the rest of the industry. AFGB outperforms 53.42% of its industry peers.
AFGB's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.89% | ||
| PM (TTM) | 9.23% | ||
| 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
AFGB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AFGB has more shares outstanding
Compared to 5 years ago, AFGB has less shares outstanding
The debt/assets ratio for AFGB has been reduced compared to a year ago.
2.2 Solvency
AFGB has an Altman-Z score of 0.59. This is a bad value and indicates that AFGB is not financially healthy and even has some risk of bankruptcy.
AFGB has a Altman-Z score of 0.59. This is in the better half of the industry: AFGB outperforms 74.66% of its industry peers.
The Debt to FCF ratio of AFGB is 0.95, which is an excellent value as it means it would take AFGB, only 0.95 years of fcf income to pay off all of its debts.
AFGB's Debt to FCF ratio of 0.95 is fine compared to the rest of the industry. AFGB outperforms 67.81% 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 has a Debt to Equity ratio (0.33) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.37
WACC6.94%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFGB has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.88, AFGB belongs to the top of the industry, outperforming 96.58% of the companies in the same industry.
A Quick Ratio of 3.88 indicates that AFGB has no problem at all paying its short term obligations.
The Quick ratio of AFGB (3.88) is better than 96.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
AFGB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
AFGB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.54% yearly.
The Revenue has been growing slightly by 2.96% in the past year.
AFGB shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
EPS 1Y (TTM)-11.59%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-16.41%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%3.91%
3.2 Future
The Earnings Per Share is expected to grow by 4.83% on average over the next years.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
EPS Next 5YN/A
Revenue Next Year0.32%
Revenue Next 2Y4.21%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.39, the valuation of AFGB can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AFGB indicates a rather cheap valuation: AFGB is cheaper than 87.67% of the companies listed in the same industry.
AFGB is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 1.92, the valuation of AFGB can be described as very cheap.
Based on the Price/Forward Earnings ratio, AFGB is valued cheaper than 89.73% of the companies in the same industry.
AFGB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.63.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.39 | ||
| Fwd PE | 1.92 |
4.2 Price Multiples
AFGB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFGB is cheaper than 93.84% of the companies in the same industry.
AFGB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGB is cheaper than 91.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.21 | ||
| EV/EBITDA | 1.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y4.15%
EPS Next 3Y4.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.34%, AFGB has a reasonable but not impressive dividend return.
AFGB's Dividend Yield is a higher than the industry average which is at 3.24.
Compared to an average S&P500 Dividend Yield of 2.32, AFGB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
99.74% 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.
DP99.74%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59
NYSE:AFGB (9/4/2025, 8:04:00 PM)
22.44
+0.1 (+0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.52%
Inst Owner ChangeN/A
Ins Owners17.94%
Ins Owner ChangeN/A
Market Cap1.87B
Analysts70.91
Price Target21.98 (-2.05%)
Short Float %0%
Short Ratio0.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP99.74%
Div Incr Years2
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.97%
Min EPS beat(2)-11.61%
Max EPS beat(2)1.66%
EPS beat(4)1
Avg EPS beat(4)-4.43%
Min EPS beat(4)-11.61%
Max EPS beat(4)1.66%
EPS beat(8)3
Avg EPS beat(8)-2.24%
EPS beat(12)5
Avg EPS beat(12)-2.2%
EPS beat(16)9
Avg EPS beat(16)6.98%
Revenue beat(2)0
Avg Revenue beat(2)-8.98%
Min Revenue beat(2)-10.18%
Max Revenue beat(2)-7.78%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-10.18%
Max Revenue beat(4)11.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.49%
Revenue beat(12)6
Avg Revenue beat(12)2.78%
Revenue beat(16)10
Avg Revenue beat(16)6.28%
PT rev (1m)-3.46%
PT rev (3m)-1.12%
EPS NQ rev (1m)-21.64%
EPS NQ rev (3m)-12.72%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)-9.22%
Revenue NQ rev (1m)3.93%
Revenue NQ rev (3m)-0.7%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-0.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.39 | ||
| Fwd PE | 1.92 | ||
| P/S | 0.23 | ||
| P/FCF | 1.21 | ||
| P/OCF | 1.12 | ||
| P/B | 0.41 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 1.94 |
EPS(TTM)9.38
EY41.8%
EPS(NY)11.66
Fwd EY51.96%
FCF(TTM)18.54
FCFY82.62%
OCF(TTM)19.98
OCFY89.03%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)0.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.49% | ||
| ROE | 16.92% | ||
| ROCE | 3.23% | ||
| ROIC | 2.56% | ||
| ROICexc | 2.67% | ||
| ROICexgc | 2.94% | ||
| OM | 11.89% | ||
| PM (TTM) | 9.23% | ||
| GM | N/A | ||
| FCFM | 18.68% |
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-Score7
Asset Turnover0.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 139.54% | ||
| Cap/Sales | 1.45% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.7% | ||
| Profit Quality | 202.36% | ||
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 | ||
| Altman-Z | 0.59 |
F-Score7
WACC6.94%
ROIC/WACC0.37
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)-11.59%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-16.41%
EPS Next Y-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
EPS Next 5YN/A
Revenue 1Y (TTM)2.96%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%3.91%
Revenue Next Year0.32%
Revenue Next 2Y4.21%
Revenue Next 3Y3.14%
Revenue Next 5YN/A
EBIT growth 1Y-11.03%
EBIT growth 3Y-8.95%
EBIT growth 5Y-2.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y41.06%
FCF growth 3Y-14.88%
FCF growth 5Y-15.83%
OCF growth 1Y43.99%
OCF growth 3Y-12.4%
OCF growth 5Y-14.05%