AMERICAN FINANCIAL GROUP - AFG 5 1/8 12/15/59 (AFGC) Stock Fundamental Analysis
USA - NYSE:AFGC - US0259328807
19.85 USD
+0.15 (+0.76%)
Overall AFGC gets a fundamental rating of 6 out of 10. We evaluated AFGC against 147 industry peers in the Insurance industry. AFGC has an excellent financial health rating, but there are some minor concerns on its profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on AFGC. With these ratings, AFGC could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
AFGC had positive earnings in the past year.
AFGC had a positive operating cash flow in the past year.
Each year in the past 5 years AFGC has been profitable.
AFGC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.49%, AFGC perfoms like the industry average, outperforming 57.82% of the companies in the same industry.
With an excellent Return On Equity value of 16.92%, AFGC belongs to the best of the industry, outperforming 80.27% of the companies in the same industry.
AFGC has a Return On Invested Capital (2.56%) which is in line with its industry peers.
AFGC had an Average Return On Invested Capital over the past 3 years of 2.95%. This is in line with the industry average of 4.46%.
| 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
AFGC has a better Profit Margin (9.23%) than 64.63% of its industry peers.
In the last couple of years the Profit Margin of AFGC has remained more or less at the same level.
Looking at the Operating Margin, with a value of 11.89%, AFGC is in line with its industry, outperforming 53.74% of the companies in the same industry.
In the last couple of years the Operating Margin of AFGC 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFGC is destroying value.
AFGC has more shares outstanding than it did 1 year ago.
AFGC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AFGC has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that AFGC is in the distress zone and has some risk of bankruptcy.
AFGC has a better Altman-Z score (0.58) than 72.11% of its industry peers.
The Debt to FCF ratio of AFGC is 0.95, which is an excellent value as it means it would take AFGC, only 0.95 years of fcf income to pay off all of its debts.
AFGC has a Debt to FCF ratio of 0.95. This is in the better half of the industry: AFGC outperforms 70.07% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that AFGC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, AFGC is in line with its industry, outperforming 46.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.4
WACC6.45%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFGC has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.88, AFGC belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
AFGC has a Quick Ratio of 3.88. This indicates that AFGC is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.88, AFGC belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
AFGC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
Measured over the past 5 years, AFGC 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 2.96% in the past year.
AFGC 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
AFGC 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 2.12 indicates a rather cheap valuation of AFGC.
Based on the Price/Earnings ratio, AFGC is valued cheaper than 89.12% of the companies in the same industry.
AFGC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.42.
The Price/Forward Earnings ratio is 1.70, which indicates a rather cheap valuation of AFGC.
Based on the Price/Forward Earnings ratio, AFGC is valued cheaper than 91.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.94. AFGC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.12 | ||
| Fwd PE | 1.7 |
4.2 Price Multiples
94.56% of the companies in the same industry are more expensive than AFGC, based on the Enterprise Value to EBITDA ratio.
AFGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGC is cheaper than 94.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.07 | ||
| EV/EBITDA | 1.73 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.47
EPS Next 2Y4.37%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
AFGC has a Yearly Dividend Yield of 2.68%.
Compared to an average industry Dividend Yield of 3.31, AFGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AFGC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of AFGC is nicely growing with an annual growth rate of 13.64%!
AFGC has been paying a dividend for over 5 years, so it has already some track record.
AFGC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)13.64%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
AFGC pays out 99.74% of its income as dividend. This is not a sustainable payout ratio.
The dividend of AFGC 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 1/8 12/15/59
NYSE:AFGC (10/20/2025, 4:15:00 PM)
19.85
+0.15 (+0.76%)
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 Change0%
Market Cap1.66B
Analysts72
Price Target19.11 (-3.73%)
Short Float %0%
Short Ratio0.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP99.74%
Div Incr Years0
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)-2.71%
PT rev (3m)-6.03%
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 | 2.12 | ||
| Fwd PE | 1.7 | ||
| P/S | 0.2 | ||
| P/FCF | 1.07 | ||
| P/OCF | 0.99 | ||
| P/B | 0.37 | ||
| P/tB | 0.41 | ||
| EV/EBITDA | 1.73 |
EPS(TTM)9.38
EY47.25%
EPS(NY)11.71
Fwd EY59%
FCF(TTM)18.54
FCFY93.4%
OCF(TTM)19.98
OCFY100.65%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)0.47
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 | 0.58 |
F-Score7
WACC6.45%
ROIC/WACC0.4
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%