AMERICAN EQUITY INVT LIFE HL (AEL) Stock Fundamental Analysis
USA - NYSE:AEL - US0256762065 - Common Stock
56.47 USD
+0.31 (+0.55%)
56.47 USD
0 (0%)
AEL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 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 decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AEL was profitable.
In the past year AEL had a positive cash flow from operations.
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 has a worse Return On Equity (5.52%) than 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 has a Profit Margin (5.85%) which is comparable to the rest of the industry.
AEL's Profit Margin has declined in the last couple of years.
AEL has a better Operating Margin (52.33%) than 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.
AEL has less shares outstanding than it did 1 year ago.
Compared to 5 years 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 Debt to FCF ratio of 0.22. This is amongst the best in the industry. AEL outperforms 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 Debt to Equity ratio of 0.29. This is in the better half of the industry: AEL outperforms 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
AEL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 89.20%, which is quite impressive.
AEL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.07% yearly.
The Revenue has grown by 97.17% in the past year. This is a very strong growth!
AEL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.00% yearly.
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
AEL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.70% yearly.
The Revenue is expected to grow by 6.89% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 7.50, the valuation of AEL can be described as very cheap.
Based on the Price/Earnings ratio, AEL is valued a bit cheaper than 70.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, AEL is valued rather cheaply.
The Price/Forward Earnings ratio is 7.63, which indicates a rather cheap valuation of AEL.
Based on the Price/Forward Earnings ratio, AEL is valued a bit cheaper than 69.29% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AEL to the average of the S&P500 Index (22.63), we can say AEL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.5 | ||
| Fwd PE | 7.63 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, AEL is valued cheaper than 91.43% of the companies in the same industry.
| 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
With a yearly dividend of 0.67%, AEL is not a good candidate for dividend investing.
AEL's Dividend Yield is slightly below the industry average, which is at 3.26.
With a Dividend Yield of 0.67, AEL pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
5.2 History
On average, the dividend of AEL grows each year by 13.46%, which is quite nice.
AEL has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.46%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
26.19% of the earnings are spent on dividend by AEL. This is a low number and 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)
Earnings (Next)
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 of AMERICAN EQUITY INVT LIFE HL (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 expected EPS growth for AEL stock?
The Earnings per Share (EPS) of AMERICAN EQUITY INVT LIFE HL (AEL) is expected to decline by -1.74% in the next year.
Can you provide the dividend sustainability for AEL stock?
The dividend rating of AMERICAN EQUITY INVT LIFE HL (AEL) is 3 / 10 and the dividend payout ratio is 26.19%.