AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59 (AFGB)
US0259328070
AFGB gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. AFGB is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. AFGB scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, AFGB could be worth investigating further for value investing!.
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.
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
AFGB has a better Return On Assets (2.86%) than 65.00% of its industry peers.
With an excellent Return On Equity value of 20.01%, AFGB belongs to the best of the industry, outperforming 83.57% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.06%, AFGB is in the better half of the industry, outperforming 69.29% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFGB is in line with the industry average of 4.07%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 20.01% | ||
| ROIC | 3.06% |
ROA(3y)4.29%
ROA(5y)3.03%
ROE(3y)27.33%
ROE(5y)21.41%
ROIC(3y)3.35%
ROIC(5y)2.37%
1.3 Margins
Looking at the Profit Margin, with a value of 10.87%, AFGB is in the better half of the industry, outperforming 69.29% of the companies in the same industry.
AFGB's Profit Margin has improved in the last couple of years.
AFGB has a better Operating Margin (14.49%) than 65.71% of its industry peers.
AFGB's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.49% | ||
| PM (TTM) | 10.87% | ||
| GM | N/A |
OM growth 3Y21.72%
OM growth 5Y5.39%
PM growth 3Y-5.04%
PM growth 5Y8.05%
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 less 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 0.62. 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 (0.62) is better than 76.43% of its industry peers.
AFGB has a debt to FCF ratio of 0.78. This is a very positive value and a sign of high solvency as it would only need 0.78 years to pay back of all of its debts.
AFGB has a better Debt to FCF ratio (0.78) than 78.57% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that AFGB is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.35, AFGB perfoms like the industry average, outperforming 54.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.44
WACC6.98%
2.3 Liquidity
A Current Ratio of 5.91 indicates that AFGB has no problem at all paying its short term obligations.
The Current ratio of AFGB (5.91) is better than 96.43% of its industry peers.
AFGB has a Quick Ratio of 5.91. This indicates that AFGB is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AFGB (5.91) is better than 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 5.91 |
3. Growth
3.1 Past
The earnings per share for AFGB have decreased by -9.28% in the last year.
The Earnings Per Share has been growing slightly by 4.68% on average over the past years.
AFGB shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.32%.
Measured over the past years, AFGB shows a small growth in Revenue. The Revenue has been growing by 1.77% on average per year.
EPS 1Y (TTM)-9.28%
EPS 3Y7.63%
EPS 5Y4.68%
EPS growth Q2Q-5.02%
Revenue 1Y (TTM)11.32%
Revenue growth 3Y10.77%
Revenue growth 5Y1.77%
Revenue growth Q2Q7.87%
3.2 Future
AFGB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.15% yearly.
AFGB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.75% yearly.
EPS Next Y6.21%
EPS Next 2Y6.87%
EPS Next 3Y8.15%
EPS Next 5YN/A
Revenue Next Year9.09%
Revenue Next 2Y7.53%
Revenue Next 3Y5.75%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AFGB is valuated cheaply with a Price/Earnings ratio of 2.20.
Based on the Price/Earnings ratio, AFGB is valued cheaply inside the industry as 87.86% of the companies are valued more expensively.
AFGB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
With a Price/Forward Earnings ratio of 2.07, the valuation of AFGB can be described as very cheap.
AFGB's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFGB is cheaper than 88.57% of the companies in the same industry.
AFGB is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.72, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.2 | ||
| Fwd PE | 2.07 |
4.2 Price Multiples
AFGB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFGB is cheaper than 93.57% 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 93.57% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.03 | ||
| EV/EBITDA | 1.8 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AFGB may justify a higher PE ratio.
PEG (NY)0.35
PEG (5Y)0.47
EPS Next 2Y6.87%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.21%, AFGB has a reasonable but not impressive dividend return.
AFGB's Dividend Yield is a higher than the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.41, AFGB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
The dividend of AFGB is nicely growing with an annual growth rate of 12.75%!
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)12.75%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
80.28% 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.
DP80.28%
EPS Next 2Y6.87%
EPS Next 3Y8.15%
AMERICAN FINANCIAL GROUP - AFG 5 7/8 03/30/59
NYSE:AFGB (5/2/2024, 7:04:00 PM)
23.27
+0.18 (+0.78%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.95B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 | 2.2 | ||
| Fwd PE | 2.07 | ||
| 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)0.35
PEG (5Y)0.47
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.86% | ||
| ROE | 20.01% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.49% | ||
| PM (TTM) | 10.87% | ||
| 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 Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 5.91 | ||
| Quick Ratio | 5.91 | ||
| 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)-9.28%
EPS 3Y7.63%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.32%
Revenue growth 3Y10.77%
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