AMERICAN EQUITY INVT LIFE HL (AEL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AEL - US0256762065 - Common Stock
56.47 USD
+0.31 (+0.55%)
56.47 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AEL. AEL was compared to 146 industry peers in the Insurance industry. AEL scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. AEL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AEL was profitable.
- AEL had a positive operating cash flow in the past year.
- AEL had positive earnings in each of the past 5 years.
- AEL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.21%, AEL is doing worse than 69.29% of the companies in the same industry.
- AEL's Return On Equity of 5.52% is on the low side compared to the rest of the industry. AEL is outperformed by 61.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.52% | ||
| ROIC | N/A |
ROA(3y)0.79%
ROA(5y)0.72%
ROE(3y)20.81%
ROE(5y)15.57%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- AEL's Profit Margin of 5.85% is in line compared to the rest of the industry. AEL outperforms 49.29% of its industry peers.
- AEL's Profit Margin has declined in the last couple of years.
- AEL has a Operating Margin of 52.33%. This is amongst the best in the industry. AEL outperforms 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 52.33% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-39.39%
PM growth 5Y-27.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- AEL does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, AEL has less shares outstanding
- AEL has a better debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of AEL is 0.22, which is an excellent value as it means it would take AEL, only 0.22 years of fcf income to pay off all of its debts.
- AEL has a better Debt to FCF ratio (0.22) than 93.57% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that AEL is not too dependend on debt financing.
- AEL has a better Debt to Equity ratio (0.29) than 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 89.20% over the past year.
- AEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
- AEL shows a strong growth in Revenue. In the last year, the Revenue has grown by 97.17%.
- The Revenue has been growing by 13.00% on average over the past years. This is quite good.
EPS 1Y (TTM)89.2%
EPS 3Y117.68%
EPS 5Y10.07%
EPS Q2Q%151.9%
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y13%
Sales Q2Q%24.24%
3.2 Future
- The Earnings Per Share is expected to decrease by -0.70% on average over the next years.
- Based on estimates for the next years, AEL will show a small growth in Revenue. The Revenue will grow by 6.89% on average per year.
EPS Next Y-1.74%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
EPS Next 5Y-0.7%
Revenue Next Year5.25%
Revenue Next 2Y1.07%
Revenue Next 3Y6.44%
Revenue Next 5Y6.89%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- AEL is valuated cheaply with a Price/Earnings ratio of 7.50.
- Based on the Price/Earnings ratio, AEL is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, AEL is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.63, the valuation of AEL can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AEL is valued a bit cheaper than 69.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. AEL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
- 91.43% of the companies in the same industry are more expensive than AEL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.15 | ||
| EV/EBITDA | -2.49 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
5. Dividend
5.1 Amount
- AEL has a yearly dividend return of 0.67%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.42, AEL is paying slightly less dividend.
- With a Dividend Yield of 0.67, AEL pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
- The dividend of AEL is nicely growing with an annual growth rate of 13.46%!
- AEL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)13.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- AEL pays out 26.19% of its income as dividend. This is a sustainable payout ratio.
DP26.19%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
56.47
+0.31 (+0.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2024-05-01/amc
Earnings (Next)08-05 2024-08-05/amc
Inst Owners14.71%
Inst Owner Change0%
Ins Owners18.55%
Ins Owner Change0%
Market Cap4.48B
Revenue(TTM)2.85B
Net Income(TTM)166.79M
Analysts50
Price Target56.1 (-0.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
Yearly Dividend0.53
Dividend Growth(5Y)13.46%
DP26.19%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.93%
Min EPS beat(2)12.78%
Max EPS beat(2)41.09%
EPS beat(4)3
Avg EPS beat(4)16.67%
Min EPS beat(4)-6.82%
Max EPS beat(4)41.09%
EPS beat(8)5
Avg EPS beat(8)17.33%
EPS beat(12)7
Avg EPS beat(12)15.86%
EPS beat(16)8
Avg EPS beat(16)-10.13%
Revenue beat(2)1
Avg Revenue beat(2)17.02%
Min Revenue beat(2)-6.41%
Max Revenue beat(2)40.46%
Revenue beat(4)2
Avg Revenue beat(4)22.05%
Min Revenue beat(4)-15.45%
Max Revenue beat(4)69.59%
Revenue beat(8)3
Avg Revenue beat(8)-7.11%
Revenue beat(12)7
Avg Revenue beat(12)23.56%
Revenue beat(16)10
Avg Revenue beat(16)19.8%
PT rev (1m)0%
PT rev (3m)0.36%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)0.14%
EPS NY rev (1m)0%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 | ||
| P/S | 1.57 | ||
| P/FCF | 1.15 | ||
| P/OCF | 1.14 | ||
| P/B | 1.48 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | -2.49 |
EPS(TTM)7.53
EY13.33%
EPS(NY)7.4
Fwd EY13.1%
FCF(TTM)48.99
FCFY86.75%
OCF(TTM)49.62
OCFY87.87%
SpS35.9
BVpS38.08
TBVpS38.08
PEG (NY)N/A
PEG (5Y)0.74
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.21% | ||
| ROE | 5.52% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 52.33% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A | ||
| FCFM | 136.45% |
ROA(3y)0.79%
ROA(5y)0.72%
ROE(3y)20.81%
ROE(5y)15.57%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-39.39%
PM growth 5Y-27.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 0.22 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 17.37% | ||
| Cap/Sales | 1.76% | ||
| Interest Coverage | 29.82 | ||
| Cash Conversion | 221.32% | ||
| Profit Quality | 2332.17% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.32%
ROIC/WACCN/A
Cap/Depr(3y)10.16%
Cap/Depr(5y)7.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.16%
Profit Quality(3y)1160.31%
Profit Quality(5y)1008.72%
High Growth Momentum
Growth
EPS 1Y (TTM)89.2%
EPS 3Y117.68%
EPS 5Y10.07%
EPS Q2Q%151.9%
EPS Next Y-1.74%
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%
EPS Next 5Y-0.7%
Revenue 1Y (TTM)97.17%
Revenue growth 3Y5.51%
Revenue growth 5Y13%
Sales Q2Q%24.24%
Revenue Next Year5.25%
Revenue Next 2Y1.07%
Revenue Next 3Y6.44%
Revenue Next 5Y6.89%
EBIT growth 1Y2774.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y94.18%
FCF growth 3Y44.4%
FCF growth 5Y151.19%
OCF growth 1Y92.73%
OCF growth 3Y44.53%
OCF growth 5Y146.6%
AMERICAN EQUITY INVT LIFE HL / AEL FAQ
Can you provide the ChartMill fundamental rating for AMERICAN EQUITY INVT LIFE HL?
ChartMill assigns a fundamental rating of 4 / 10 to AEL.
What is the valuation status for AEL stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN EQUITY INVT LIFE HL (AEL). This can be considered as Fairly Valued.
How profitable is AMERICAN EQUITY INVT LIFE HL (AEL) stock?
AMERICAN EQUITY INVT LIFE HL (AEL) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for AEL stock?
The Price/Earnings (PE) ratio for AMERICAN EQUITY INVT LIFE HL (AEL) is 7.5 and the Price/Book (PB) ratio is 1.48.
What is the financial health of AMERICAN EQUITY INVT LIFE HL (AEL) stock?
The financial health rating of AMERICAN EQUITY INVT LIFE HL (AEL) is 4 / 10.