AMERICAN FINANCIAL GROUP - AFG 5 5/8 06/01/60 (AFGD)
US0259328724
Taking everything into account, AFGD scores 6 out of 10 in our fundamental rating. AFGD was compared to 140 industry peers in the Insurance industry. AFGD is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. A decent growth rate in combination with a cheap valuation! Better keep an eye on AFGD. With these ratings, AFGD could be worth investigating further for value investing!.
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.
Each year in the past 5 years AFGD had a positive operating cash flow.
1.2 Ratios
AFGD's Return On Assets of 2.86% is fine compared to the rest of the industry. AFGD outperforms 64.03% of its industry peers.
AFGD has a better Return On Equity (20.01%) than 83.45% of its industry peers.
With a decent Return On Invested Capital value of 3.06%, AFGD is doing good in the industry, outperforming 70.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFGD is in line with the industry average of 4.09%.
| 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
AFGD has a better Profit Margin (10.87%) than 69.78% of its industry peers.
In the last couple of years the Profit Margin of AFGD has grown nicely.
Looking at the Operating Margin, with a value of 14.49%, AFGD is in the better half of the industry, outperforming 66.19% of the companies in the same industry.
AFGD'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
AFGD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AFGD has been reduced compared to 1 year ago.
Compared to 5 years ago, AFGD has less shares outstanding
The debt/assets ratio for AFGD has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.62, we must say that AFGD is in the distress zone and has some risk of bankruptcy.
AFGD has a Altman-Z score of 0.62. This is in the better half of the industry: AFGD outperforms 76.26% of its industry peers.
The Debt to FCF ratio of AFGD is 0.78, which is an excellent value as it means it would take AFGD, only 0.78 years of fcf income to pay off all of its debts.
AFGD has a Debt to FCF ratio of 0.78. This is in the better half of the industry: AFGD outperforms 79.14% of its industry peers.
AFGD has a Debt/Equity ratio of 0.35. This is a healthy value indicating a solid balance between debt and equity.
AFGD has a Debt to Equity ratio (0.35) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 0.62 |
ROIC/WACC0.44
WACC6.99%
2.3 Liquidity
A Current Ratio of 5.91 indicates that AFGD has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.91, AFGD belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
A Quick Ratio of 5.91 indicates that AFGD has no problem at all paying its short term obligations.
The Quick ratio of AFGD (5.91) is better than 97.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 5.91 |
3. Growth
3.1 Past
AFGD shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.28%.
AFGD shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.68% yearly.
AFGD shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.32%.
Measured over the past years, AFGD 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
Based on estimates for the next years, AFGD will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.15% on average per year.
AFGD 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
AFGD is valuated cheaply with a Price/Earnings ratio of 2.19.
89.21% of the companies in the same industry are more expensive than AFGD, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AFGD to the average of the S&P500 Index (24.83), we can say AFGD is valued rather cheaply.
The Price/Forward Earnings ratio is 2.06, which indicates a rather cheap valuation of AFGD.
Based on the Price/Forward Earnings ratio, AFGD is valued cheaply inside the industry as 89.21% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AFGD to the average of the S&P500 Index (21.32), we can say AFGD is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.19 | ||
| Fwd PE | 2.06 |
4.2 Price Multiples
93.53% of the companies in the same industry are more expensive than AFGD, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFGD indicates a rather cheap valuation: AFGD is cheaper than 93.53% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.02 | ||
| EV/EBITDA | 1.78 |
4.3 Compensation for Growth
AFGD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AFGD has a very decent profitability rating, which 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
AFGD has a Yearly Dividend Yield of 2.20%.
Compared to an average industry Dividend Yield of 4.31, AFGD has a dividend in line with its industry peers.
AFGD's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
5.2 History
On average, the dividend of AFGD grows each year by 12.75%, which is quite nice.
AFGD has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)12.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
80.28% 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.
DP80.28%
EPS Next 2Y6.87%
EPS Next 3Y8.15%
AMERICAN FINANCIAL GROUP - AFG 5 5/8 06/01/60
NYSE:AFGD (4/17/2024, 7:04:00 PM)
23.0897
+0.19 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 | 2.19 | ||
| Fwd PE | 2.06 | ||
| 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