AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:AFG • US0259321042

129.045 USD
-0.39 (-0.3%)
Last: Feb 11, 2026, 10:57 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Overall AFG gets a fundamental rating of 4 out of 10. We evaluated AFG against 149 industry peers in the Insurance industry. AFG has an average financial health and profitability rating. AFG has a valuation in line with the averages, but on the other hand it scores bad on growth.


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.
  • In the past 5 years AFG has always been profitable.
  • AFG had a positive operating cash flow in 4 of the past 5 years.
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 has a Return On Assets (2.36%) which is in line with its industry peers.
  • The Return On Equity of AFG (16.87%) is better than 74.50% of its industry peers.
  • With a Return On Invested Capital value of 2.36%, AFG perfoms like the industry average, outperforming 51.01% of the companies in the same industry.
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

  • The Profit Margin of AFG (9.70%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of AFG has declined.
  • The Operating Margin of AFG (12.28%) is comparable to the rest of the industry.
  • AFG's Operating Margin has improved in the last couple of years.
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

  • AFG has an Altman-Z score of 0.77. This is a bad value and indicates that AFG is not financially healthy and even has some risk of bankruptcy.
  • AFG has a Altman-Z score of 0.77. This is in the better half of the industry: AFG outperforms 78.52% of its industry peers.
  • The Debt to FCF ratio of AFG is 1.41, which is an excellent value as it means it would take AFG, only 1.41 years of fcf income to pay off 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.
  • With a Debt to Equity ratio value of 0.38, AFG is not doing good in the industry: 60.40% of the companies in the same industry are doing better.
  • 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
WACC8.27%
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.
  • Looking at the Current 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.
  • AFG has a Quick Ratio of 9.26. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of AFG (9.26) is better than 96.64% of its industry peers.
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%.
  • AFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.97% yearly.
  • AFG shows a decrease in Revenue. In the last year, the revenue decreased by -1.70%.
  • The Revenue has been growing slightly by 7.25% on average over the past years.
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

  • The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
  • 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

  • A Price/Earnings ratio of 12.54 indicates a correct valuation of AFG.
  • The rest of the industry has a similar Price/Earnings ratio as AFG.
  • AFG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.03.
  • AFG is valuated reasonably with a Price/Forward Earnings ratio of 11.20.
  • AFG's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.97. AFG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.54
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

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFG is on the same level as its industry peers.
  • AFG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 8.34
EV/EBITDA 9.84
AFG Per share dataAFG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80

4.3 Compensation for Growth

  • The 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 2.72%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 2.24, AFG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.80, AFG pays a better dividend.
Industry RankSector Rank
Dividend Yield 2.72%

5.2 History

  • On average, the dividend of AFG grows each year by 13.64%, which is quite nice.
  • 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
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

  • AFG pays out 96.49% 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.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (2/11/2026, 10:57:26 AM)

129.045

-0.39 (-0.3%)

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 (12.39%)
Short Float %2.06%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 2.72%
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 12.54
Fwd PE 11.2
P/S 1.31
P/FCF 8.34
P/OCF 7.56
P/B 2.28
P/tB 2.56
EV/EBITDA 9.84
EPS(TTM)10.29
EY7.97%
EPS(NY)11.52
Fwd EY8.93%
FCF(TTM)15.48
FCFY11.99%
OCF(TTM)17.06
OCFY13.22%
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
WACC8.27%
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 12.54 and the Price/Book (PB) ratio is 2.28.


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.