AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60 (AFGE) Stock Fundamental Analysis
NYSE:AFGE - New York Stock Exchange, Inc. - US0259328641 - Currency: USD
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!
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.
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 Rank | Sector 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%
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 Rank | Sector 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
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.4
WACC6.65%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.75 | ||
| Quick Ratio | 3.75 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.74 | ||
| Fwd PE | 1.43 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.13 | ||
| EV/EBITDA | 1.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y5.27%
EPS Next 3Y4.22%
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 Rank | Sector 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
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%
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)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP94.24%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%