AMERICAN EQUITY INVT LIFE HL (AEL) Fundamental Analysis & Valuation

NYSE:AEL • US0256762065

56.47 USD
+0.31 (+0.55%)
At close: May 2, 2024
56.47 USD
0 (0%)
After Hours: 5/2/2024, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This AEL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

4

Overall AEL gets a fundamental rating of 4 out of 10. We evaluated AEL against 149 industry peers in the Insurance industry. The financial health of AEL is average, but there are quite some concerns on its profitability. AEL is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

3

1. AEL Profitability Analysis

1.1 Basic Checks

  • AEL had positive earnings in the past year.
  • In the past year AEL had a positive cash flow from operations.
  • In the past 5 years AEL has always been profitable.
  • Each year in the past 5 years AEL had a positive operating cash flow.
AEL Yearly Net Income VS EBIT VS OCF VS FCFAEL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 1B 2B 3B 4B

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 Return On Equity of 5.52%. This is in the lower half of the industry: AEL underperforms 61.43% of its industry peers.
Industry RankSector 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
AEL Yearly ROA, ROE, ROICAEL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

1.3 Margins

  • AEL has a Profit Margin (5.85%) which is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of AEL has declined.
  • Looking at the Operating Margin, with a value of 52.33%, AEL belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
Industry RankSector 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
AEL Yearly Profit, Operating, Gross MarginsAEL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 60 80

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4

2. AEL Health Analysis

2.1 Basic Checks

  • AEL does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • The number of shares outstanding for AEL has been reduced compared to 1 year ago.
  • Compared to 1 year ago, AEL has an improved debt to assets ratio.
AEL Yearly Shares OutstandingAEL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
AEL Yearly Total Debt VS Total AssetsAEL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

2.2 Solvency

  • AEL has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.22, AEL belongs to the best of the industry, outperforming 93.57% of the companies in the same industry.
  • AEL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • AEL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. AEL outperforms 65.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 0.22
Altman-Z N/A
ROIC/WACCN/A
WACC8.32%
AEL Yearly LT Debt VS Equity VS FCFAEL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AEL Yearly Current Assets VS Current LiabilitesAEL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 10M 20M 30M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AEL Growth Analysis

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

  • 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.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
AEL Yearly Revenue VS EstimatesAEL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
AEL Yearly EPS VS EstimatesAEL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6

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6

4. AEL Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 7.50 indicates a rather cheap valuation of AEL.
  • 70.00% of the companies in the same industry are more expensive than AEL, based on the Price/Earnings ratio.
  • AEL is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 7.63, the valuation of AEL can be described as very cheap.
  • 69.29% of the companies in the same industry are more expensive than AEL, based on the Price/Forward Earnings ratio.
  • AEL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 7.5
Fwd PE 7.63
AEL Price Earnings VS Forward Price EarningsAEL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AEL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AEL is cheaper than 91.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 1.15
EV/EBITDA -2.49
AEL Per share dataAEL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.74
EPS Next 2Y-2.78%
EPS Next 3Y-1.38%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. AEL Dividend Analysis

5.1 Amount

  • AEL has a yearly dividend return of 0.67%, which is pretty low.
  • AEL's Dividend Yield is slightly below the industry average, which is at 2.50.
  • Compared to an average S&P500 Dividend Yield of 1.82, AEL's dividend is way lower than the S&P500 average.
Industry RankSector 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
AEL Yearly Dividends per shareAEL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2024 0.1 0.2 0.3

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%
AEL Yearly Income VS Free CF VS DividendAEL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
AEL Dividend Payout.AEL Dividend Payout, showing the Payout Ratio.AEL Dividend Payout.PayoutRetained Earnings

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AEL Fundamentals: All Metrics, Ratios and Statistics

AMERICAN EQUITY INVT LIFE HL

NYSE:AEL (5/2/2024, 8:04:00 PM)

After market: 56.47 0 (0%)

56.47

+0.31 (+0.55%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01
Earnings (Next)08-05
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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.