AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis
USA - NYSE:AFG - US0259321042 - Common Stock
139.9 USD
+1.22 (+0.88%)
We assign a fundamental rating of 5 out of 10 to AFG. AFG was compared to 146 industry peers in the Insurance industry. While AFG has a great health rating, its profitability is only average at the moment. AFG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFG was profitable.
In the past year AFG had a positive cash flow from operations.
AFG had positive earnings in each of the past 5 years.
Each year in the past 5 years AFG had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 2.49%, AFG perfoms like the industry average, outperforming 56.85% of the companies in the same industry.
The Return On Equity of AFG (16.92%) is better than 78.77% of its industry peers.
With a Return On Invested Capital value of 2.56%, AFG perfoms like the industry average, outperforming 51.37% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AFG is in line with the industry average of 4.47%.
| 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
Looking at the Profit Margin, with a value of 9.23%, AFG is in the better half of the industry, outperforming 62.33% of the companies in the same industry.
In the last couple of years the Profit Margin of AFG has remained more or less at the same level.
The Operating Margin of AFG (11.89%) is comparable to the rest of the industry.
AFG's Operating Margin has declined in the last couple of years.
| 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), AFG is destroying value.
Compared to 1 year ago, AFG has more shares outstanding
The number of shares outstanding for AFG has been reduced compared to 5 years ago.
AFG has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.81, we must say that AFG is in the distress zone and has some risk of bankruptcy.
AFG has a better Altman-Z score (0.81) than 76.71% of its industry peers.
AFG 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.
AFG's Debt to FCF ratio of 0.95 is fine compared to the rest of the industry. AFG outperforms 67.12% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that AFG is not too dependend on debt financing.
The Debt to Equity ratio of AFG (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.81 |
ROIC/WACC0.31
WACC8.16%
2.3 Liquidity
A Current Ratio of 3.88 indicates that AFG has no problem at all paying its short term obligations.
AFG has a Current ratio of 3.88. This is amongst the best in the industry. AFG outperforms 95.89% of its industry peers.
A Quick Ratio of 3.88 indicates that AFG has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.88, AFG belongs to the top of the industry, outperforming 95.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.88 | ||
| Quick Ratio | 3.88 |
3. Growth
3.1 Past
AFG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.59%.
AFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.54% yearly.
Looking at the last year, AFG shows a small growth in Revenue. The Revenue has grown by 2.96% in the last year.
AFG 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 4.83% on average over the next years.
AFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.14% yearly.
EPS Next Y-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
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.
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
The Price/Earnings ratio is 14.91, which indicates a correct valuation of AFG.
The rest of the industry has a similar Price/Earnings ratio as AFG.
When comparing the Price/Earnings ratio of AFG to the average of the S&P500 Index (27.20), we can say AFG is valued slightly cheaper.
A Price/Forward Earnings ratio of 12.00 indicates a reasonable valuation of AFG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFG is on the same level as its industry peers.
AFG's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 12 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFG is on the same level as its industry peers.
65.07% of the companies in the same industry are more expensive than AFG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.29
EPS Next 2Y4.15%
EPS Next 3Y4.83%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.34%, AFG is a good candidate for dividend investing.
AFG's Dividend Yield is rather good when compared to the industry average which is at 3.43. AFG pays more dividend than 92.47% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, AFG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
5.2 History
The dividend of AFG is nicely growing with an annual growth rate of 13.64%!
AFG has been paying a dividend for at least 10 years, so it has a reliable track record.
AFG has decreased its dividend recently.
Dividend Growth(5Y)13.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AFG pays out 99.74% of its income as dividend. This is not a sustainable payout ratio.
AFG's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP99.74%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
NYSE:AFG (9/17/2025, 10:58:44 AM)
139.9
+1.22 (+0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners66.52%
Inst Owner Change1.48%
Ins Owners17.94%
Ins Owner Change0.82%
Market Cap11.67B
Analysts70.91
Price Target135.25 (-3.32%)
Short Float %2.53%
Short Ratio3.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.34% |
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP99.74%
Div Incr Years1
Div Non Decr Years1
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)0.61%
PT rev (3m)0.3%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)-27.28%
EPS NY rev (1m)-6.4%
EPS NY rev (3m)-9.22%
Revenue NQ rev (1m)3.44%
Revenue NQ rev (3m)5.5%
Revenue NY rev (1m)0.31%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.91 | ||
| Fwd PE | 12 | ||
| P/S | 1.41 | ||
| P/FCF | 7.55 | ||
| P/OCF | 7 | ||
| P/B | 2.58 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 11 |
EPS(TTM)9.38
EY6.7%
EPS(NY)11.66
Fwd EY8.33%
FCF(TTM)18.54
FCFY13.25%
OCF(TTM)19.98
OCFY14.28%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)3.29
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 | 0.81 |
F-Score7
WACC8.16%
ROIC/WACC0.31
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-11.62%
EPS Next 2Y4.15%
EPS Next 3Y4.83%
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%