AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis
USA - NYSE:AFG - US0259321042 - Common Stock
132.32 USD
-1.28 (-0.96%)
We assign a fundamental rating of 5 out of 10 to AFG. AFG was compared to 147 industry peers in the Insurance industry. While AFG has a great health rating, its profitability is only average at the moment. AFG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AFG had positive earnings in the past year.
In the past year AFG had a positive cash flow from operations.
In the past 5 years AFG has always been profitable.
In the past 5 years AFG always reported a positive cash flow from operatings.
1.2 Ratios
AFG has a Return On Assets (2.49%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 16.92%, AFG is in the better half of the industry, outperforming 78.23% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.56%, AFG is in line with its industry, outperforming 50.34% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFG is in line with the industry average of 4.46%.
| 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
AFG has a Profit Margin of 9.23%. This is in the better half of the industry: AFG outperforms 62.59% of its industry peers.
In the last couple of years the Profit Margin of AFG has remained more or less at the same level.
With a Operating Margin value of 11.89%, AFG perfoms like the industry average, outperforming 51.70% of the companies in the same 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFG is destroying value.
The number of shares outstanding for AFG has been increased compared to 1 year ago.
Compared to 5 years ago, AFG has less shares outstanding
Compared to 1 year ago, AFG has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.80, we must say that AFG is in the distress zone and has some risk of bankruptcy.
With a decent Altman-Z score value of 0.80, AFG is doing good in the industry, outperforming 76.87% of the companies in the same industry.
The Debt to FCF ratio of AFG is 0.95, which is an excellent value as it means it would take AFG, only 0.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFG (0.95) is better than 68.03% of its industry peers.
AFG has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.33, AFG perfoms like the industry average, outperforming 44.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 0.95 | ||
| Altman-Z | 0.8 |
ROIC/WACC0.32
WACC8.07%
2.3 Liquidity
AFG has a Current Ratio of 3.88. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.88, AFG belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
AFG has a Quick Ratio of 3.88. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
AFG's Quick ratio of 3.88 is amongst the best of the industry. AFG outperforms 95.92% of its industry peers.
| 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.
The Revenue has been growing slightly by 2.96% in the past year.
The Revenue has been growing slightly by 0.16% on average over the past years.
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
AFG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.60% yearly.
Based on estimates for the next years, AFG will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
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.
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
A Price/Earnings ratio of 14.11 indicates a correct valuation of AFG.
The rest of the industry has a similar Price/Earnings ratio as AFG.
The average S&P500 Price/Earnings ratio is at 26.83. AFG is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 11.30, which indicates a very decent valuation of AFG.
AFG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.82. AFG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 11.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFG.
Based on the Price/Free Cash Flow ratio, AFG is valued a bit cheaper than the industry average as 63.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.14 | ||
| EV/EBITDA | 10.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.11
EPS Next 2Y4.37%
EPS Next 3Y4.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.68%, AFG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.30, AFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, AFG 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 AFG grows each year by 13.64%, which is quite nice.
AFG has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of AFG decreased 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.
The dividend of AFG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP99.74%
EPS Next 2Y4.37%
EPS Next 3Y4.6%
NYSE:AFG (10/24/2025, 12:14:16 PM)
132.32
-1.28 (-0.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners67.24%
Inst Owner Change0%
Ins Owners17.97%
Ins Owner Change1.15%
Market Cap11.03B
Revenue(TTM)8.28B
Net Income(TTM)764.00M
Analysts72
Price Target135.25 (2.21%)
Short Float %2.51%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.68% |
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%
PT rev (3m)0.61%
EPS NQ rev (1m)9.9%
EPS NQ rev (3m)-15.55%
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 | 14.11 | ||
| Fwd PE | 11.3 | ||
| P/S | 1.33 | ||
| P/FCF | 7.14 | ||
| P/OCF | 6.62 | ||
| P/B | 2.44 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 10.61 |
EPS(TTM)9.38
EY7.09%
EPS(NY)11.71
Fwd EY8.85%
FCF(TTM)18.54
FCFY14.01%
OCF(TTM)19.98
OCFY15.1%
SpS99.26
BVpS54.16
TBVpS48.18
PEG (NY)N/A
PEG (5Y)3.11
Graham Number106.91
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%
ROICexgc growth 3Y-11.18%
ROICexgc 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 | 0.8 |
F-Score7
WACC8.07%
ROIC/WACC0.32
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%
AMERICAN FINANCIAL GROUP INC / AFG FAQ
What is the ChartMill fundamental rating of AMERICAN FINANCIAL GROUP INC (AFG) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFG.
Can you provide the valuation status for AMERICAN FINANCIAL GROUP INC?
ChartMill assigns a valuation rating of 4 / 10 to AMERICAN FINANCIAL GROUP INC (AFG). This can be considered as Fairly Valued.
How profitable is AMERICAN FINANCIAL GROUP INC (AFG) stock?
AMERICAN FINANCIAL GROUP INC (AFG) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for AFG stock?
The Price/Earnings (PE) ratio for AMERICAN FINANCIAL GROUP INC (AFG) is 14.11 and the Price/Book (PB) ratio is 2.44.
Can you provide the expected EPS growth for AFG stock?
The Earnings per Share (EPS) of AMERICAN FINANCIAL GROUP INC (AFG) is expected to decline by -11.23% in the next year.