Logo image of AFGE

AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60 (AFGE) Stock Fundamental Analysis

NYSE:AFGE - New York Stock Exchange, Inc. - US0259328641 - Currency: USD

17.06  +0.08 (+0.47%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AFGE. AFGE was compared to 143 industry peers in the Insurance industry. Both the profitability and the financial health of AFGE get a neutral evaluation. Nothing too spectacular is happening here. AFGE may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make AFGE a good candidate for value investing.


Dividend Valuation Growth Profitability Health

Quickly go to:

5

1. Profitability

1.1 Basic Checks

AFGE had positive earnings in the past year.
In the past year AFGE had a positive cash flow from operations.
Each year in the past 5 years AFGE has been profitable.
AFGE had a positive operating cash flow in each of the past 5 years.
AFGE Yearly Net Income VS EBIT VS OCF VS FCFAFGE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 2.64%, AFGE is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 18.19%, AFGE belongs to the top of the industry, outperforming 86.01% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.66%, AFGE is in line with its industry, outperforming 56.64% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AFGE is in line with the industry average of 4.06%.
Industry RankSector Rank
ROA 2.64%
ROE 18.19%
ROIC 2.66%
ROA(3y)2.95%
ROA(5y)3.35%
ROE(3y)20.68%
ROE(5y)22.52%
ROIC(3y)2.95%
ROIC(5y)2.64%
AFGE Yearly ROA, ROE, ROICAFGE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

AFGE has a Profit Margin of 9.71%. This is in the better half of the industry: AFGE outperforms 68.53% of its industry peers.
AFGE's Profit Margin has been stable in the last couple of years.
The Operating Margin of AFGE (12.29%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AFGE has declined.
Industry RankSector Rank
OM 12.29%
PM (TTM) 9.71%
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
AFGE Yearly Profit, Operating, Gross MarginsAFGE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

More info and screens

6

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
The number of shares outstanding for AFGE has been reduced compared to 5 years ago.
Compared to 1 year ago, AFGE has an improved debt to assets ratio.
AFGE Yearly Shares OutstandingAFGE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
AFGE Yearly Total Debt VS Total AssetsAFGE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

AFGE has an Altman-Z score of 0.58. This is a bad value and indicates that AFGE is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AFGE (0.58) is better than 72.73% of its industry peers.
AFGE has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
AFGE's Debt to FCF ratio of 1.16 is in line compared to the rest of the industry. AFGE outperforms 59.44% of its industry peers.
A Debt/Equity ratio of 0.34 indicates that AFGE is not too dependend on debt financing.
AFGE has a Debt to Equity ratio (0.34) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.16
Altman-Z 0.58
ROIC/WACC0.41
WACC6.54%
AFGE Yearly LT Debt VS Equity VS FCFAFGE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

A Current Ratio of 3.75 indicates that AFGE has no problem at all paying its short term obligations.
AFGE has a better Current ratio (3.75) than 98.60% of its industry peers.
AFGE has a Quick Ratio of 3.75. This indicates that AFGE is financially healthy and has no problem in meeting its short term obligations.
AFGE's Quick ratio of 3.75 is amongst the best of the industry. AFGE outperforms 98.60% of its industry peers.
Industry RankSector Rank
Current Ratio 3.75
Quick Ratio 3.75
AFGE Yearly Current Assets VS Current LiabilitesAFGE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

More info and screens

4

3. Growth

3.1 Past

AFGE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.04%.
The Earnings Per Share has been growing slightly by 4.54% on average over the past years.
AFGE shows a small growth in Revenue. In the last year, the Revenue has grown by 2.87%.
The Revenue has been growing slightly by 0.16% on average over the past years.
EPS 1Y (TTM)-6.04%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-34.42%
Revenue 1Y (TTM)2.87%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%2.2%

3.2 Future

The Earnings Per Share is expected to grow by 4.22% on average over the next years.
AFGE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.54% yearly.
EPS Next Y-5.58%
EPS Next 2Y5.27%
EPS Next 3Y4.22%
EPS Next 5YN/A
Revenue Next Year0.44%
Revenue Next 2Y3.38%
Revenue Next 3Y2.54%
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.
AFGE Yearly Revenue VS EstimatesAFGE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2B 4B 6B 8B
AFGE Yearly EPS VS EstimatesAFGE Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

More info and screens

7

4. Valuation

4.1 Price/Earnings Ratio

AFGE is valuated cheaply with a Price/Earnings ratio of 1.74.
Compared to the rest of the industry, the Price/Earnings ratio of AFGE indicates a rather cheap valuation: AFGE is cheaper than 93.01% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AFGE to the average of the S&P500 Index (27.91), we can say AFGE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.43, the valuation of AFGE can be described as very cheap.
Based on the Price/Forward Earnings ratio, AFGE is valued cheaply inside the industry as 93.71% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AFGE to the average of the S&P500 Index (37.11), we can say AFGE is valued rather cheaply.
Industry RankSector Rank
PE 1.74
Fwd PE 1.43
AFGE Price Earnings VS Forward Price EarningsAFGE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

AFGE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFGE is cheaper than 97.20% of the companies in the same industry.
AFGE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFGE is cheaper than 93.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.12
EV/EBITDA 1.48
AFGE Per share dataAFGE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y5.27%
EPS Next 3Y4.22%

More info and screens

4

5. Dividend

5.1 Amount

AFGE has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 3.30, AFGE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, AFGE has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.54%

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
AFGE Yearly Dividends per shareAFGE Yearly Dividends per shareYearly Dividends per share 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

94.24% 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.
DP94.24%
EPS Next 2Y5.27%
EPS Next 3Y4.22%
AFGE Yearly Income VS Free CF VS DividendAFGE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
AFGE Dividend Payout.AFGE Dividend Payout, showing the Payout Ratio.AFGE Dividend Payout.PayoutRetained Earnings

More info and screens

AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60

NYSE:AFGE (7/29/2025, 7:14:32 PM)

17.06

+0.08 (+0.47%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-06 2025-05-06/amc
Earnings (Next)08-05 2025-08-05/amc
Inst Owners66.31%
Inst Owner ChangeN/A
Ins Owners17.94%
Ins Owner ChangeN/A
Market Cap1.42B
Analysts70.91
Price Target18.21 (6.74%)
Short Float %0.01%
Short Ratio0.56
Dividend
Industry RankSector Rank
Dividend Yield 2.54%
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP94.24%
Div Incr Years0
Div Non Decr Years4
Ex-Date08-29 2025-08-29 (0.28125)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.01%
Min EPS beat(2)-11.61%
Max EPS beat(2)-0.4%
EPS beat(4)1
Avg EPS beat(4)-3.94%
Min EPS beat(4)-11.61%
Max EPS beat(4)3.61%
EPS beat(8)2
Avg EPS beat(8)-4.36%
EPS beat(12)5
Avg EPS beat(12)-0.06%
EPS beat(16)9
Avg EPS beat(16)9.47%
Revenue beat(2)1
Avg Revenue beat(2)-1.8%
Min Revenue beat(2)-10.18%
Max Revenue beat(2)6.57%
Revenue beat(4)2
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-10.18%
Max Revenue beat(4)11.93%
Revenue beat(8)4
Avg Revenue beat(8)-0.4%
Revenue beat(12)7
Avg Revenue beat(12)3.8%
Revenue beat(16)11
Avg Revenue beat(16)7.9%
PT rev (1m)-0.11%
PT rev (3m)3.62%
EPS NQ rev (1m)-4.32%
EPS NQ rev (3m)-14.97%
EPS NY rev (1m)-1.84%
EPS NY rev (3m)-4.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.63%
Valuation
Industry RankSector Rank
PE 1.74
Fwd PE 1.43
P/S 0.17
P/FCF 1.12
P/OCF 1.03
P/B 0.32
P/tB 0.37
EV/EBITDA 1.48
EPS(TTM)9.8
EY57.44%
EPS(NY)11.91
Fwd EY69.83%
FCF(TTM)15.17
FCFY88.92%
OCF(TTM)16.61
OCFY97.34%
SpS98.55
BVpS52.59
TBVpS46.56
PEG (NY)N/A
PEG (5Y)0.38
Profitability
Industry RankSector Rank
ROA 2.64%
ROE 18.19%
ROCE 3.37%
ROIC 2.66%
ROICexc 2.78%
ROICexgc 3.05%
OM 12.29%
PM (TTM) 9.71%
GM N/A
FCFM 15.39%
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-Score6
Asset Turnover0.27
Health
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.16
Debt/EBITDA 1.35
Cap/Depr 144.58%
Cap/Sales 1.46%
Interest Coverage 250
Cash Conversion 126.67%
Profit Quality 158.57%
Current Ratio 3.75
Quick Ratio 3.75
Altman-Z 0.58
F-Score6
WACC6.54%
ROIC/WACC0.41
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)-6.04%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-34.42%
EPS Next Y-5.58%
EPS Next 2Y5.27%
EPS Next 3Y4.22%
EPS Next 5YN/A
Revenue 1Y (TTM)2.87%
Revenue growth 3Y8.33%
Revenue growth 5Y0.16%
Sales Q2Q%2.2%
Revenue Next Year0.44%
Revenue Next 2Y3.38%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
EBIT growth 1Y-8.99%
EBIT growth 3Y-8.95%
EBIT growth 5Y-2.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.68%
FCF growth 3Y-14.88%
FCF growth 5Y-15.83%
OCF growth 1Y31.72%
OCF growth 3Y-12.4%
OCF growth 5Y-14.05%