AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis

NYSE:AFG • US0259321042

128.95 USD
-0.05 (-0.04%)
At close: Feb 13, 2026
128.95 USD
0 (0%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to AFG. AFG was compared to 149 industry peers in the Insurance industry. AFG has only an average score on both its financial health and profitability. AFG is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

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.
  • Each year in the past 5 years AFG has been profitable.
  • Of the past 5 years AFG 4 years had a positive operating cash flow.
AFG Yearly Net Income VS EBIT VS OCF VS FCFAFG 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 2024 2025 500M 1B 1.5B 2B

1.2 Ratios

  • AFG's Return On Assets of 2.36% is in line compared to the rest of the industry. AFG outperforms 55.03% of its industry peers.
  • AFG has a better Return On Equity (16.87%) than 74.50% of its industry peers.
  • AFG's Return On Invested Capital of 2.36% is in line compared to the rest of the industry. AFG outperforms 51.01% of its industry peers.
Industry RankSector Rank
ROA 2.36%
ROE 16.87%
ROIC 2.36%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AFG Yearly ROA, ROE, ROICAFG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • AFG has a Profit Margin (9.70%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of AFG has declined.
  • AFG's Operating Margin of 12.28% is in line compared to the rest of the industry. AFG outperforms 48.32% of its industry peers.
  • In the last couple of years the Operating Margin of AFG has grown nicely.
Industry RankSector Rank
OM 12.28%
PM (TTM) 9.7%
GM N/A
OM growth 3Y-6.41%
OM growth 5Y14.25%
PM growth 3Y-6.86%
PM growth 5Y-4.11%
GM growth 3YN/A
GM growth 5YN/A
AFG Yearly Profit, Operating, Gross MarginsAFG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFG is destroying value.
  • There is no outstanding debt for AFG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
AFG Yearly Shares OutstandingAFG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
AFG Yearly Total Debt VS Total AssetsAFG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

  • Based on the Altman-Z score of 0.77, we must say that AFG is in the distress zone and has some risk of bankruptcy.
  • AFG's Altman-Z score of 0.77 is fine compared to the rest of the industry. AFG outperforms 79.19% of its industry peers.
  • AFG has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 1.41, AFG perfoms like the industry average, outperforming 57.72% of the companies in the same industry.
  • A Debt/Equity ratio of 0.38 indicates that AFG is not too dependend on debt financing.
  • AFG has a worse Debt to Equity ratio (0.38) than 60.40% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for AFG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.41
Altman-Z 0.77
ROIC/WACC0.29
WACC8.16%
AFG Yearly LT Debt VS Equity VS FCFAFG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 9.26 indicates that AFG has no problem at all paying its short term obligations.
  • AFG's Current ratio of 9.26 is amongst the best of the industry. AFG outperforms 96.64% of its industry peers.
  • A Quick Ratio of 9.26 indicates that AFG has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 9.26, AFG belongs to the top of the industry, outperforming 96.64% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 9.26
Quick Ratio 9.26
AFG Yearly Current Assets VS Current LiabilitesAFG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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

3

3. Growth

3.1 Past

  • AFG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.28%.
  • Measured over the past 5 years, AFG shows a small growth in Earnings Per Share. The EPS has been growing by 3.97% on average per year.
  • AFG shows a decrease in Revenue. In the last year, the revenue decreased by -1.70%.
  • Measured over the past years, AFG shows a small growth in Revenue. The Revenue has been growing by 7.25% on average per year.
EPS 1Y (TTM)-4.28%
EPS 3Y-4.03%
EPS 5Y3.97%
EPS Q2Q%16.99%
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y5.09%
Revenue growth 5Y7.25%
Sales Q2Q%-2.38%

3.2 Future

  • Based on estimates for the next years, AFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.29% on average per year.
  • The Revenue is expected to grow by 4.17% on average over the next years.
EPS Next Y11.94%
EPS Next 2Y9.46%
EPS Next 3Y9.29%
EPS Next 5YN/A
Revenue Next Year4.83%
Revenue Next 2Y4.61%
Revenue Next 3Y4.17%
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 accelerating.
  • 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.
AFG Yearly Revenue VS EstimatesAFG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B
AFG Yearly EPS VS EstimatesAFG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8 10

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.53, AFG is valued correctly.
  • AFG's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 27.97. AFG is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 11.20 indicates a reasonable valuation of AFG.
  • AFG's Price/Forward Earnings ratio is in line with the industry average.
  • AFG is valuated cheaply when we compare the Price/Forward Earnings ratio to 27.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 12.53
Fwd PE 11.2
AFG Price Earnings VS Forward Price EarningsAFG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • AFG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • AFG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 8.33
EV/EBITDA 9.81
AFG Per share dataAFG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • AFG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.05
PEG (5Y)3.16
EPS Next 2Y9.46%
EPS Next 3Y9.29%

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

5

5. Dividend

5.1 Amount

  • AFG has a Yearly Dividend Yield of 2.73%. Purely for dividend investing, there may be better candidates out there.
  • AFG's Dividend Yield is a higher than the industry average which is at 2.22.
  • AFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.79.
Industry RankSector Rank
Dividend Yield 2.73%

5.2 History

  • The dividend of AFG is nicely growing with an annual growth rate of 13.64%!
  • 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
AFG Yearly Dividends per shareAFG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5 10 15 20 25

5.3 Sustainability

  • 96.49% of the earnings are spent on dividend by AFG. 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.
DP96.49%
EPS Next 2Y9.46%
EPS Next 3Y9.29%
AFG Yearly Income VS Free CF VS DividendAFG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B
AFG Dividend Payout.AFG Dividend Payout, showing the Payout Ratio.AFG Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (2/13/2026, 8:04:00 PM)

After market: 128.95 0 (0%)

128.95

-0.05 (-0.04%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners68.56%
Inst Owner Change-0.94%
Ins Owners17.96%
Ins Owner Change-0.35%
Market Cap10.76B
Revenue(TTM)8.14B
Net Income(TTM)798.00M
Analysts70
Price Target145.04 (12.48%)
Short Float %2.06%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 2.73%
Yearly Dividend9.4
Dividend Growth(5Y)13.64%
DP96.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date01-15
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.9%
Min EPS beat(2)1.66%
Max EPS beat(2)6.15%
EPS beat(4)2
Avg EPS beat(4)-1.05%
Min EPS beat(4)-11.61%
Max EPS beat(4)6.15%
EPS beat(8)4
Avg EPS beat(8)-1.25%
EPS beat(12)5
Avg EPS beat(12)-2.16%
EPS beat(16)9
Avg EPS beat(16)4.6%
Revenue beat(2)0
Avg Revenue beat(2)-3.89%
Min Revenue beat(2)-7.78%
Max Revenue beat(2)0%
Revenue beat(4)1
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-10.18%
Max Revenue beat(4)6.57%
Revenue beat(8)3
Avg Revenue beat(8)-1.94%
Revenue beat(12)5
Avg Revenue beat(12)0.24%
Revenue beat(16)9
Avg Revenue beat(16)4.53%
PT rev (1m)1.14%
PT rev (3m)3.49%
EPS NQ rev (1m)0.6%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.47%
EPS NY rev (3m)3.08%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.2%
Valuation
Industry RankSector Rank
PE 12.53
Fwd PE 11.2
P/S 1.31
P/FCF 8.33
P/OCF 7.56
P/B 2.27
P/tB 2.55
EV/EBITDA 9.81
EPS(TTM)10.29
EY7.98%
EPS(NY)11.52
Fwd EY8.93%
FCF(TTM)15.48
FCFY12%
OCF(TTM)17.06
OCFY13.23%
SpS98.61
BVpS56.7
TBVpS50.48
PEG (NY)1.05
PEG (5Y)3.16
Graham Number114.58
Profitability
Industry RankSector Rank
ROA 2.36%
ROE 16.87%
ROCE 3.01%
ROIC 2.36%
ROICexc 2.5%
ROICexgc 2.75%
OM 12.28%
PM (TTM) 9.7%
GM N/A
FCFM 15.69%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3Y-6.41%
OM growth 5Y14.25%
PM growth 3Y-6.86%
PM growth 5Y-4.11%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.24
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.41
Debt/EBITDA 1.66
Cap/Depr 155.29%
Cap/Sales 1.6%
Interest Coverage 250
Cash Conversion 129.95%
Profit Quality 161.78%
Current Ratio 9.26
Quick Ratio 9.26
Altman-Z 0.77
F-Score5
WACC8.16%
ROIC/WACC0.29
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.28%
EPS 3Y-4.03%
EPS 5Y3.97%
EPS Q2Q%16.99%
EPS Next Y11.94%
EPS Next 2Y9.46%
EPS Next 3Y9.29%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y5.09%
Revenue growth 5Y7.25%
Sales Q2Q%-2.38%
Revenue Next Year4.83%
Revenue Next 2Y4.61%
Revenue Next 3Y4.17%
Revenue Next 5YN/A
EBIT growth 1Y-7.08%
EBIT growth 3Y-1.65%
EBIT growth 5Y22.54%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y17.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y15.32%
OCF growth 3YN/A
OCF growth 5YN/A

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 4 / 10 to AFG.


What is the valuation status of AMERICAN FINANCIAL GROUP INC (AFG) stock?

ChartMill assigns a valuation rating of 4 / 10 to AMERICAN FINANCIAL GROUP INC (AFG). This can be considered as Fairly Valued.


What is the profitability of AFG stock?

AMERICAN FINANCIAL GROUP INC (AFG) has a profitability rating of 4 / 10.


What is the valuation of AMERICAN FINANCIAL GROUP INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for AMERICAN FINANCIAL GROUP INC (AFG) is 12.53 and the Price/Book (PB) ratio is 2.27.


What is the expected EPS growth for AMERICAN FINANCIAL GROUP INC (AFG) stock?

The Earnings per Share (EPS) of AMERICAN FINANCIAL GROUP INC (AFG) is expected to grow by 11.94% in the next year.