AMERICAN FINANCIAL GROUP - AFG 5 1/8 12/15/59 (AFGC)
US0259328807
Taking everything into account, AFGC scores 6 out of 10 in our fundamental rating. AFGC was compared to 141 industry peers in the Insurance industry. While AFGC has a great health rating, its profitability is only average at the moment. AFGC is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make AFGC a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year AFGC was profitable.
In the past year AFGC had a positive cash flow from operations.
In the past 5 years AFGC has always been profitable.
Each year in the past 5 years AFGC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AFGC (2.86%) is better than 65.00% of its industry peers.
AFGC's Return On Equity of 20.01% is amongst the best of the industry. AFGC outperforms 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.06%, AFGC is in the better half of the industry, outperforming 70.71% of the companies in the same industry.
AFGC had an Average Return On Invested Capital over the past 3 years of 3.35%. This is in line with the industry average of 4.15%.
| 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
AFGC's Profit Margin of 10.87% is fine compared to the rest of the industry. AFGC outperforms 71.43% of its industry peers.
In the last couple of years the Profit Margin of AFGC has grown nicely.
AFGC has a better Operating Margin (14.49%) than 67.86% of its industry peers.
In the last couple of years the Operating Margin of AFGC has grown nicely.
| 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), AFGC is destroying value.
Compared to 1 year ago, AFGC has less shares outstanding
AFGC has less shares outstanding than it did 5 years ago.
AFGC has a better debt/assets ratio than last year.
2.2 Solvency
AFGC has an Altman-Z score of 0.62. This is a bad value and indicates that AFGC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.62, AFGC is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
The Debt to FCF ratio of AFGC is 0.78, which is an excellent value as it means it would take AFGC, only 0.78 years of fcf income to pay off all of its debts.
AFGC has a better Debt to FCF ratio (0.78) than 79.29% of its industry peers.
AFGC has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.35, AFGC is in line with its industry, outperforming 53.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.45
WACC6.78%
2.3 Liquidity
AFGC has a Current Ratio of 5.91. This indicates that AFGC is financially healthy and has no problem in meeting its short term obligations.
AFGC has a Current ratio of 5.91. This is amongst the best in the industry. AFGC outperforms 97.86% of its industry peers.
A Quick Ratio of 5.91 indicates that AFGC has no problem at all paying its short term obligations.
AFGC has a better Quick ratio (5.91) than 97.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 5.91 |
3. Growth
3.1 Past
AFGC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.28%.
Measured over the past 5 years, AFGC shows a small growth in Earnings Per Share. The EPS has been growing by 4.68% on average per year.
The Revenue has grown by 11.32% in the past year. This is quite good.
Measured over the past years, AFGC 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
The Earnings Per Share is expected to grow by 8.15% on average over the next years. This is quite good.
AFGC 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
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.
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
Based on the Price/Earnings ratio of 2.01, the valuation of AFGC can be described as very cheap.
AFGC's Price/Earnings ratio is rather cheap when compared to the industry. AFGC is cheaper than 90.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.02, AFGC is valued rather cheaply.
The Price/Forward Earnings ratio is 1.90, which indicates a rather cheap valuation of AFGC.
Based on the Price/Forward Earnings ratio, AFGC is valued cheaper than 90.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.58, AFGC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.01 | ||
| Fwd PE | 1.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFGC indicates a rather cheap valuation: AFGC is cheaper than 95.00% of the companies listed in the same industry.
AFGC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGC is cheaper than 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.94 | ||
| EV/EBITDA | 1.68 |
4.3 Compensation for Growth
AFGC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of AFGC may justify a higher PE ratio.
PEG (NY)0.32
PEG (5Y)0.43
EPS Next 2Y6.87%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
AFGC has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.25, AFGC pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, AFGC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
On average, the dividend of AFGC grows each year by 12.75%, which is quite nice.
AFGC has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)12.75%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
AFGC pays out 80.28% of its income as dividend. This is not a sustainable payout ratio.
AFGC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP80.28%
EPS Next 2Y6.87%
EPS Next 3Y8.15%
AMERICAN FINANCIAL GROUP - AFG 5 1/8 12/15/59
NYSE:AFGC (5/6/2024, 7:04:00 PM)
21.27
+0.13 (+0.61%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
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 | 2.01 | ||
| Fwd PE | 1.9 | ||
| 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)0.32
PEG (5Y)0.43
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