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

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

17.09  +0.04 (+0.23%)

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. AFGE has only an average score on both its financial health and profitability. AFGE is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make AFGE suitable for value investing!


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year AFGE was profitable.
AFGE had a positive operating cash flow in the past year.
Each year in the past 5 years AFGE has been profitable.
Each year in the past 5 years AFGE had a positive operating cash flow.
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

AFGE has a better Return On Assets (2.64%) than 61.54% of its industry peers.
The Return On Equity of AFGE (18.19%) is better than 85.31% of its industry peers.
AFGE has a Return On Invested Capital of 2.66%. This is comparable to the rest of the industry: AFGE outperforms 56.64% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFGE is in line with the industry average of 4.08%.
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's Profit Margin of 9.71% is fine compared to the rest of the industry. AFGE outperforms 68.53% of its industry peers.
AFGE's Profit Margin has been stable in the last couple of years.
AFGE has a Operating Margin (12.29%) which is in line with its industry peers.
AFGE's Operating Margin has declined in the last couple of years.
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

6

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 increased compared to 1 year ago.
Compared to 5 years ago, AFGE has less shares outstanding
The debt/assets ratio for AFGE has been reduced compared to a year ago.
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

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.
Looking at the Altman-Z score, with a value of 0.58, AFGE is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
The Debt to FCF ratio of AFGE is 1.16, which is an excellent value as it means it would take AFGE, only 1.16 years of fcf income to pay off all of its debts.
AFGE has a Debt to FCF ratio (1.16) which is in line with its industry peers.
A Debt/Equity ratio of 0.34 indicates that AFGE is not too dependend on debt financing.
The Debt to Equity ratio of AFGE (0.34) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.34
Debt/FCF 1.16
Altman-Z 0.58
ROIC/WACC0.4
WACC6.65%
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 Current ratio of 3.75. This is amongst the best in the industry. AFGE outperforms 98.60% of its industry peers.
A Quick Ratio of 3.75 indicates that AFGE has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.75, AFGE belongs to the top of the industry, outperforming 98.60% of the companies in the same industry.
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

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%.
AFGE shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.54% yearly.
The Revenue has been growing slightly by 2.87% in the past year.
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

AFGE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.22% yearly.
The Revenue is expected to grow by 2.54% on average over the next years.
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

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 1.74, the valuation of AFGE can be described as very cheap.
AFGE's Price/Earnings ratio is rather cheap when compared to the industry. AFGE is cheaper than 93.01% of the companies in the same industry.
AFGE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.04.
Based on the Price/Forward Earnings ratio of 1.43, 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 93.71% of the companies in the same industry.
AFGE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.64.
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 1.13
EV/EBITDA 1.49
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%

4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.54%, AFGE has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.28, AFGE pays a bit more dividend than its industry peers.
AFGE's Dividend Yield is comparable with the S&P500 average which is at 2.31.
Industry RankSector Rank
Dividend Yield 2.54%

5.2 History

On average, the dividend of AFGE grows each year by 13.64%, which is quite nice.
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.
The dividend of AFGE is growing, but the earnings are growing slower. 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

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

NYSE:AFGE (7/25/2025, 8:04:00 PM)

17.09

+0.04 (+0.23%)

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 Cap1.43B
Analysts70.91
Price Target18.21 (6.55%)
Short Float %0.01%
Short Ratio0.37
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 1.13
P/OCF 1.03
P/B 0.32
P/tB 0.37
EV/EBITDA 1.49
EPS(TTM)9.8
EY57.34%
EPS(NY)11.91
Fwd EY69.71%
FCF(TTM)15.17
FCFY88.77%
OCF(TTM)16.61
OCFY97.17%
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
WACC6.65%
ROIC/WACC0.4
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%