AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60 (AFGE) Stock Fundamental Analysis
USA - NYSE:AFGE - US0259328641
18.04 USD
+0.03 (+0.17%)
AFGE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. AFGE has an excellent financial health rating, but there are some minor concerns on its profitability. AFGE scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes AFGE very considerable for value investing!
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.
AFGE had positive earnings in each of the past 5 years.
In the past 5 years AFGE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.49%, AFGE perfoms like the industry average, outperforming 58.62% of the companies in the same industry.
AFGE has a better Return On Equity (16.92%) than 81.38% of its industry peers.
AFGE has a Return On Invested Capital (2.56%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFGE is in line with the industry average of 4.40%.
| 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
With a decent Profit Margin value of 9.23%, AFGE is doing good in the industry, outperforming 65.52% of the companies in the same industry.
AFGE's Profit Margin has been stable in the last couple of years.
AFGE has a Operating Margin (11.89%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of AFGE has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFGE is destroying value.
AFGE has more shares outstanding than it did 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 0.58. 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 71.03% of its industry peers.
AFGE has a debt to FCF ratio of 0.95. This is a very positive value and a sign of high solvency as it would only need 0.95 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.95, AFGE is in the better half of the industry, outperforming 70.34% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that AFGE is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, AFGE is in line with its industry, outperforming 46.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.58 |
ROIC/WACC0.4
WACC6.34%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFGE has no problem at all paying its short term obligations.
The Current ratio of AFGE (3.88) is better than 98.62% of its industry peers.
AFGE has a Quick Ratio of 3.88. This indicates that AFGE is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 3.88, AFGE belongs to the top of the industry, outperforming 98.62% 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%.
Measured over the past 5 years, AFGE shows a small growth in Earnings Per Share. The EPS has been growing by 4.54% on average per year.
Looking at the last year, AFGE shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
AFGE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.16% yearly.
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
The Earnings Per Share is expected to grow by 4.60% on average over the next years.
The Revenue is expected to grow by 3.14% on average over the next years.
EPS Next Y-11.23%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
EPS Next 5YN/A
Revenue Next Year0.75%
Revenue Next 2Y3.94%
Revenue Next 3Y3.14%
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.
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
A Price/Earnings ratio of 1.92 indicates a rather cheap valuation of AFGE.
Based on the Price/Earnings ratio, AFGE is valued cheaper than 90.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.40, AFGE is valued rather cheaply.
A Price/Forward Earnings ratio of 1.54 indicates a rather cheap valuation of AFGE.
AFGE's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFGE is cheaper than 93.79% 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 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.92 | ||
| Fwd PE | 1.54 |
4.2 Price Multiples
95.17% of the companies in the same industry are more expensive than AFGE, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFGE indicates a rather cheap valuation: AFGE is cheaper than 95.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.97 | ||
| EV/EBITDA | 1.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y4.37%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
AFGE has a Yearly Dividend Yield of 2.68%.
Compared to an average industry Dividend Yield of 3.54, AFGE pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AFGE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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
AFGE pays out 99.74% of its income as dividend. 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 2Y4.37%
EPS Next 3Y4.6%
AMERICAN FINANCIAL GROUP - AFG 4 1/2 09/15/60
NYSE:AFGE (10/17/2025, 8:04:00 PM)
18.04
+0.03 (+0.17%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.24%
Inst Owner ChangeN/A
Ins Owners17.97%
Ins Owner ChangeN/A
Market Cap1.50B
Analysts72
Price Target17.67 (-2.05%)
Short Float %0.01%
Short Ratio0.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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)0.41%
PT rev (3m)-3.07%
EPS NQ rev (1m)2.24%
EPS NQ rev (3m)-21.44%
EPS NY rev (1m)0.44%
EPS NY rev (3m)-5.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.92 | ||
| Fwd PE | 1.54 | ||
| P/S | 0.18 | ||
| P/FCF | 0.97 | ||
| P/OCF | 0.9 | ||
| P/B | 0.33 | ||
| P/tB | 0.37 | ||
| EV/EBITDA | 1.6 |
EPS(TTM)9.38
EY52%
EPS(NY)11.71
Fwd EY64.92%
FCF(TTM)18.54
FCFY102.77%
OCF(TTM)19.98
OCFY110.75%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)0.42
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
WACC6.34%
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)-11.59%
EPS 3Y-2.5%
EPS 5Y4.54%
EPS Q2Q%-16.41%
EPS Next Y-11.23%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
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%