AMERICAN FINANCIAL GROUP - AFG 5 5/8 06/01/60 (AFGD) Stock Fundamental Analysis
USA - NYSE:AFGD - US0259328724
21.97 USD
-0.18 (-0.81%)
Taking everything into account, AFGD scores 5 out of 10 in our fundamental rating. AFGD was compared to 147 industry peers in the Insurance industry. While AFGD has a great health rating, its profitability is only average at the moment. AFGD may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AFGD had positive earnings in the past year.
AFGD had a positive operating cash flow in the past year.
In the past 5 years AFGD has always been profitable.
In the past 5 years AFGD always reported a positive cash flow from operatings.
1.2 Ratios
AFGD has a Return On Assets (2.49%) which is comparable to the rest of the industry.
With a decent Return On Equity value of 16.92%, AFGD is doing good in the industry, outperforming 79.59% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.56%, AFGD is in line with its industry, outperforming 51.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AFGD 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
The Profit Margin of AFGD (9.23%) is better than 63.95% of its industry peers.
In the last couple of years the Profit Margin of AFGD has remained more or less at the same level.
With a Operating Margin value of 11.89%, AFGD perfoms like the industry average, outperforming 53.06% of the companies in the same industry.
AFGD'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFGD is destroying value.
Compared to 1 year ago, AFGD has more shares outstanding
AFGD has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AFGD has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that AFGD is in the distress zone and has some risk of bankruptcy.
AFGD has a better Altman-Z score (0.59) than 72.79% of its industry peers.
AFGD 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, AFGD is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
AFGD has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AFGD 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/WACC0.39
WACC6.57%
2.3 Liquidity
AFGD has a Current Ratio of 3.88. This indicates that AFGD is financially healthy and has no problem in meeting its short term obligations.
AFGD has a Current ratio of 3.88. This is amongst the best in the industry. AFGD outperforms 97.28% of its industry peers.
AFGD has a Quick Ratio of 3.88. This indicates that AFGD is financially healthy and has no problem in meeting its short term obligations.
AFGD has a better Quick ratio (3.88) than 97.28% 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 AFGD 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.
Looking at the last year, AFGD shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
Measured over the past years, AFGD shows a small growth in Revenue. The Revenue has been growing by 0.16% on average per year.
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 4.60% on average over the next years.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y-11.23%
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
Based on the Price/Earnings ratio of 2.34, the valuation of AFGD can be described as very cheap.
Based on the Price/Earnings ratio, AFGD is valued cheaply inside the industry as 87.07% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AFGD to the average of the S&P500 Index (27.77), we can say AFGD is valued rather cheaply.
A Price/Forward Earnings ratio of 1.88 indicates a rather cheap valuation of AFGD.
Based on the Price/Forward Earnings ratio, AFGD is valued cheaper than 91.16% of the companies in the same industry.
AFGD is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.34 | ||
| Fwd PE | 1.88 |
4.2 Price Multiples
93.88% of the companies in the same industry are more expensive than AFGD, based on the Enterprise Value to EBITDA ratio.
92.52% of the companies in the same industry are more expensive than AFGD, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.19 | ||
| EV/EBITDA | 1.92 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.52
EPS Next 2Y4.37%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, AFGD has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.31, AFGD pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AFGD has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
5.2 History
The dividend of AFGD is nicely growing with an annual growth rate of 13.64%!
AFGD has been paying a dividend for over 5 years, so it has already some track record.
The dividend of AFGD decreased in the last 3 years.
Dividend Growth(5Y)13.64%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
99.74% of the earnings are spent on dividend by AFGD. This is not a sustainable payout ratio.
The dividend of AFGD 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 5/8 06/01/60
NYSE:AFGD (10/22/2025, 12:24:38 PM)
21.97
-0.18 (-0.81%)
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 Cap1.83B
Revenue(TTM)8.28B
Net Income(TTM)764.00M
Analysts72
Price Target20.88 (-4.96%)
Short Float %0%
Short Ratio0.33
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 Years2
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)-2.45%
PT rev (3m)-6.17%
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 | 2.34 | ||
| Fwd PE | 1.88 | ||
| P/S | 0.22 | ||
| P/FCF | 1.19 | ||
| P/OCF | 1.1 | ||
| P/B | 0.41 | ||
| P/tB | 0.46 | ||
| EV/EBITDA | 1.92 |
EPS(TTM)9.38
EY42.69%
EPS(NY)11.71
Fwd EY53.3%
FCF(TTM)18.54
FCFY84.39%
OCF(TTM)19.98
OCFY90.93%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)0.52
Graham Number106.91
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%
ROICexgc growth 3Y-11.18%
ROICexgc 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
WACC6.57%
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%