AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60 (AFGE)
US0259328641
Taking everything into account, AFGE scores 7 out of 10 in our fundamental rating. AFGE was compared to 141 industry peers in the Insurance industry. AFGE 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 AFGE. With these ratings, AFGE could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
AFGE had positive earnings in the past year.
AFGE had a positive operating cash flow in the past year.
AFGE had positive earnings in each of the past 5 years.
AFGE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFGE has a Return On Assets of 2.86%. This is in the better half of the industry: AFGE outperforms 66.91% of its industry peers.
AFGE has a better Return On Equity (20.01%) than 85.61% of its industry peers.
With a decent Return On Invested Capital value of 3.06%, AFGE is doing good in the industry, outperforming 71.22% 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 4.12%.
| 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
The Profit Margin of AFGE (10.87%) is better than 71.22% of its industry peers.
AFGE's Profit Margin has improved in the last couple of years.
AFGE has a Operating Margin of 14.49%. This is in the better half of the industry: AFGE outperforms 67.63% of its industry peers.
In the last couple of years the Operating Margin of AFGE 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFGE is destroying value.
The number of shares outstanding for AFGE has been reduced compared to 1 year ago.
Compared to 5 years ago, AFGE has less shares outstanding
Compared to 1 year ago, AFGE has an improved debt to assets ratio.
2.2 Solvency
AFGE has an Altman-Z score of 0.61. This is a bad value and indicates that AFGE is not financially healthy and even has some risk of bankruptcy.
AFGE has a Altman-Z score of 0.61. This is in the better half of the industry: AFGE outperforms 74.82% of its industry peers.
The Debt to FCF ratio of AFGE is 0.78, which is an excellent value as it means it would take AFGE, only 0.78 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFGE (0.78) is better than 80.58% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that AFGE is not too dependend on debt financing.
AFGE has a Debt to Equity ratio (0.35) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 0.78 | ||
| Altman-Z | 0.61 |
ROIC/WACC0.44
WACC6.92%
2.3 Liquidity
A Current Ratio of 5.91 indicates that AFGE has no problem at all paying its short term obligations.
With an excellent Current ratio value of 5.91, AFGE belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
AFGE has a Quick Ratio of 5.91. This indicates that AFGE is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 5.91, AFGE belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.91 | ||
| Quick Ratio | 5.91 |
3. Growth
3.1 Past
AFGE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.28%.
AFGE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.68% yearly.
The Revenue has grown by 11.32% in the past year. This is quite good.
AFGE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.77% yearly.
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, AFGE will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.15% on average per year.
Based on estimates for the next years, AFGE will show a small growth in Revenue. The Revenue will grow by 5.75% on average per year.
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
AFGE is valuated cheaply with a Price/Earnings ratio of 1.78.
Based on the Price/Earnings ratio, AFGE is valued cheaper than 91.37% of the companies in the same industry.
AFGE is valuated cheaply when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
AFGE is valuated cheaply with a Price/Forward Earnings ratio of 1.68.
AFGE's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFGE is cheaper than 92.09% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.49, AFGE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.78 | ||
| Fwd PE | 1.68 |
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 95.68% 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 95.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.83 | ||
| EV/EBITDA | 1.5 |
4.3 Compensation for Growth
AFGE'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 AFGE may justify a higher PE ratio.
PEG (NY)0.29
PEG (5Y)0.38
EPS Next 2Y6.87%
EPS Next 3Y8.15%
5. Dividend
5.1 Amount
AFGE has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
AFGE's Dividend Yield is a higher than the industry average which is at 4.35.
AFGE's Dividend Yield is comparable with the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
On average, the dividend of AFGE grows each year by 12.75%, which is quite nice.
AFGE 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
80.28% of the earnings are spent on dividend by AFGE. This is not a sustainable payout ratio.
The dividend of AFGE 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 4 1/2 09/15/60
NYSE:AFGE (4/26/2024, 7:04:00 PM)
18.83
+0.07 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 | 1.78 | ||
| Fwd PE | 1.68 | ||
| 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)0.29
PEG (5Y)0.38
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