AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60 (AFGE) Stock Fundamental Analysis
USA - NYSE:AFGE - US0259328641
19.12 USD
-0.01 (-0.05%)
We assign a fundamental rating of 6 out of 10 to AFGE. AFGE was compared to 146 industry peers in the Insurance industry. While AFGE has a great health rating, its profitability is only average at the moment. AFGE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make AFGE suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year AFGE was profitable.
AFGE had a positive operating cash flow in the past year.
In the past 5 years AFGE has always been profitable.
In the past 5 years AFGE always reported a positive cash flow from operatings.
1.2 Ratios
AFGE has a Return On Assets of 2.49%. This is comparable to the rest of the industry: AFGE outperforms 59.59% of its industry peers.
AFGE's Return On Equity of 16.92% is amongst the best of the industry. AFGE outperforms 81.51% of its industry peers.
The Return On Invested Capital of AFGE (2.56%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AFGE is in line with the industry average of 4.47%.
| 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
AFGE has a better Profit Margin (9.23%) than 65.07% of its industry peers.
AFGE's Profit Margin has been stable in the last couple of years.
The Operating Margin of AFGE (11.89%) is comparable to the rest of the industry.
AFGE'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
AFGE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AFGE has more shares outstanding
AFGE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AFGE has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.58, we must say that AFGE is in the distress zone and has some risk of bankruptcy.
AFGE has a Altman-Z score of 0.58. This is in the better half of the industry: AFGE outperforms 71.23% of its industry peers.
The Debt to FCF ratio of AFGE is 0.95, which is an excellent value as it means it would take AFGE, only 0.95 years of fcf income to pay off all of its debts.
AFGE has a Debt to FCF ratio of 0.95. This is in the better half of the industry: AFGE outperforms 69.86% of its industry peers.
AFGE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AFGE has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: AFGE outperforms 46.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.39
WACC6.58%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFGE has no problem at all paying its short term obligations.
AFGE has a better Current ratio (3.88) than 98.63% of its industry peers.
A Quick Ratio of 3.88 indicates that AFGE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.88, AFGE belongs to the top of the industry, outperforming 98.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
AFGE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
AFGE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.54% yearly.
Looking at the last year, AFGE shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
Measured over the past years, AFGE 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
AFGE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.83% yearly.
AFGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
EPS Next Y-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
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
With a Price/Earnings ratio of 2.04, the valuation of AFGE can be described as very cheap.
Based on the Price/Earnings ratio, AFGE is valued cheaper than 91.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, AFGE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.64, the valuation of AFGE can be described as very cheap.
AFGE's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFGE is cheaper than 93.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. AFGE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.04 | ||
| Fwd PE | 1.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFGE indicates a rather cheap valuation: AFGE is cheaper than 95.89% of the companies listed in the same industry.
AFGE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGE is cheaper than 95.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.03 | ||
| EV/EBITDA | 1.68 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.45
EPS Next 2Y4.15%
EPS Next 3Y4.83%
5. Dividend
5.1 Amount
AFGE has a Yearly Dividend Yield of 2.27%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, AFGE has a dividend in line with its industry peers.
AFGE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
5.2 History
The dividend of AFGE is nicely growing with an annual growth rate of 13.64%!
AFGE has been paying a dividend for over 5 years, so it has already some track record.
AFGE 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
99.74% of the earnings are spent on dividend by AFGE. This is not a sustainable payout ratio.
AFGE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP99.74%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60
NYSE:AFGE (9/23/2025, 8:04:00 PM)
19.12
-0.01 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.52%
Inst Owner ChangeN/A
Ins Owners17.94%
Ins Owner ChangeN/A
Market Cap1.59B
Analysts70.91
Price Target18.11 (-5.28%)
Short Float %0.01%
Short Ratio0.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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)3.33%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-27.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-9.22%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.04 | ||
| Fwd PE | 1.64 | ||
| P/S | 0.19 | ||
| P/FCF | 1.03 | ||
| P/OCF | 0.96 | ||
| P/B | 0.35 | ||
| P/tB | 0.4 | ||
| EV/EBITDA | 1.68 |
EPS(TTM)9.38
EY49.06%
EPS(NY)11.66
Fwd EY60.98%
FCF(TTM)18.54
FCFY96.96%
OCF(TTM)19.98
OCFY104.49%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)0.45
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
WACC6.58%
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-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
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%