AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59 (AFGB) Stock Fundamental Analysis
USA - NYSE:AFGB - US0259328070
22.47 USD
-0.05 (-0.22%)
Overall AFGB gets a fundamental rating of 5 out of 10. We evaluated AFGB against 145 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.
AFGB had a positive operating cash flow in the past year.
AFGB had positive earnings in each of the past 5 years.
AFGB 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 2.49%, AFGB is in line with its industry, outperforming 56.46% of the companies in the same industry.
AFGB's Return On Equity of 16.92% is fine compared to the rest of the industry. AFGB outperforms 78.91% of its industry peers.
With a Return On Invested Capital value of 2.56%, AFGB perfoms like the industry average, outperforming 51.02% of the companies in the same industry.
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 4.40%.
| 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
Looking at the Profit Margin, with a value of 9.23%, AFGB is in the better half of the industry, outperforming 63.27% of the companies in the same industry.
AFGB's Profit Margin has been stable in the last couple of years.
AFGB's Operating Margin of 11.89% is in line compared to the rest of the industry. AFGB outperforms 52.38% of its industry peers.
In the last couple of years the Operating Margin of AFGB has declined.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFGB is destroying value.
Compared to 1 year ago, AFGB has more shares outstanding
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
Based on the Altman-Z score of 0.59, we must say that AFGB is in the distress zone and has some risk of bankruptcy.
AFGB has a better Altman-Z score (0.59) than 73.47% of its industry peers.
AFGB has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.95, AFGB is in the better half of the industry, outperforming 68.71% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that AFGB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.33, AFGB perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.39
WACC6.6%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFGB has no problem at all paying its short term obligations.
AFGB has a better Current ratio (3.88) than 96.60% of its industry peers.
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 96.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
The earnings per share for AFGB have decreased strongly by -11.59% in the last year.
The Earnings Per Share has been growing slightly by 4.54% on average over the past years.
The Revenue has been growing slightly by 2.96% in the past year.
The Revenue has been growing slightly by 0.16% on average over the past years.
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
AFGB is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.60% yearly.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y-11.23%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y3.94%
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
A Price/Earnings ratio of 2.40 indicates a rather cheap valuation of AFGB.
Based on the Price/Earnings ratio, AFGB is valued cheaply inside the industry as 86.39% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AFGB to the average of the S&P500 Index (27.40), we can say AFGB is valued rather cheaply.
A Price/Forward Earnings ratio of 1.92 indicates a rather cheap valuation of AFGB.
AFGB's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFGB is cheaper than 89.80% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. AFGB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.4 | ||
| Fwd PE | 1.92 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFGB is valued cheaper than 93.20% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFGB indicates a rather cheap valuation: AFGB is cheaper than 91.84% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.21 | ||
| EV/EBITDA | 1.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.53
EPS Next 2Y4.37%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, AFGB has a reasonable but not impressive dividend return.
AFGB's Dividend Yield is a higher than the industry average which is at 3.20.
Compared to an average S&P500 Dividend Yield of 2.36, AFGB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
On average, the dividend of AFGB grows each year by 13.64%, which is quite nice.
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.
The dividend of AFGB is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.74%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59
NYSE:AFGB (10/17/2025, 8:04:00 PM)
22.47
-0.05 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.24%
Inst Owner ChangeN/A
Ins Owners17.97%
Ins Owner ChangeN/A
Market Cap1.87B
Analysts72
Price Target21.65 (-3.65%)
Short Float %0%
Short Ratio0.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)-3.59%
PT rev (3m)-4.9%
EPS NQ rev (1m)9.9%
EPS NQ rev (3m)-15.55%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-5.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.4 | ||
| 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 | 1.95 |
EPS(TTM)9.38
EY41.74%
EPS(NY)11.71
Fwd EY52.12%
FCF(TTM)18.54
FCFY82.51%
OCF(TTM)19.98
OCFY88.91%
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
WACC6.6%
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)-11.59%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-16.41%
EPS Next Y-11.23%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue 1Y (TTM)2.96%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%3.91%
Revenue Next Year0.75%
Revenue Next 2Y3.94%
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%