AMERICAN FINANCIAL GROUP INC (AFG)
US0259321042 - Common Stock
Taking everything into account, AFG scores 5 out of 10 in our fundamental rating. AFG was compared to 141 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.
AFG had a positive operating cash flow in the past year.
Each year in the past 5 years AFG has been profitable.
AFG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 2.75%, AFG perfoms like the industry average, outperforming 58.57% of the companies in the same industry.
The Return On Equity of AFG (19.01%) is better than 77.86% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.68%, AFG is in line with its industry, outperforming 57.86% 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 4.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 19.01% | ||
| ROIC | 2.68% |
ROA(3y)4.29%
ROA(5y)3.03%
ROE(3y)27.33%
ROE(5y)21.41%
ROIC(3y)3.35%
ROIC(5y)2.37%
1.3 Margins
Looking at the Profit Margin, with a value of 10.89%, AFG is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
AFG's Profit Margin has improved in the last couple of years.
AFG has a Operating Margin of 13.23%. This is comparable to the rest of the industry: AFG outperforms 57.14% of its industry peers.
In the last couple of years the Operating Margin of AFG has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.23% | ||
| PM (TTM) | 10.89% | ||
| GM | N/A |
OM growth 3Y21.72%
OM growth 5Y5.39%
PM growth 3Y-5.04%
PM growth 5Y8.05%
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.
AFG has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFG has less shares outstanding
The debt/assets ratio for AFG has been reduced compared to a year ago.
2.2 Solvency
AFG has an Altman-Z score of 0.82. This is a bad value and indicates that AFG is not financially healthy and even has some risk of bankruptcy.
AFG has a better Altman-Z score (0.82) than 80.71% of its industry peers.
The Debt to FCF ratio of AFG is 1.34, which is an excellent value as it means it would take AFG, only 1.34 years of fcf income to pay off all of its debts.
AFG has a Debt to FCF ratio (1.34) which is in line with its industry peers.
AFG has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AFG (0.31) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 0.82 |
ROIC/WACC0.31
WACC8.61%
2.3 Liquidity
AFG has a Current Ratio of 8.46. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
AFG has a better Current ratio (8.46) than 97.14% of its industry peers.
AFG has a Quick Ratio of 8.46. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
AFG has a Quick ratio of 8.46. This is amongst the best in the industry. AFG outperforms 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 8.46 | ||
| Quick Ratio | 8.46 |
3. Growth
3.1 Past
The earnings per share for AFG have decreased by -2.24% in the last year.
Measured over the past 5 years, AFG shows a small growth in Earnings Per Share. The EPS has been growing by 4.68% on average per year.
The Revenue has been growing slightly by 6.85% in the past year.
Measured over the past years, AFG shows a small growth in Revenue. The Revenue has been growing by 1.77% on average per year.
EPS 1Y (TTM)-2.24%
EPS 3Y7.63%
EPS 5Y4.68%
EPS Q2Q%-5.71%
Revenue 1Y (TTM)6.85%
Revenue growth 3Y10.77%
Revenue growth 5Y1.77%
Sales Q2Q%10.78%
3.2 Future
AFG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.77% yearly.
The Revenue is expected to grow by 7.07% on average over the next years.
EPS Next Y2.64%
EPS Next 2Y6.47%
EPS Next 3Y6.77%
EPS Next 5YN/A
Revenue Next Year8.07%
Revenue Next 2Y7.64%
Revenue Next 3Y7.07%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AFG is valuated correctly with a Price/Earnings ratio of 13.08.
AFG's Price/Earnings is on the same level as the industry average.
AFG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.73.
AFG is valuated reasonably with a Price/Forward Earnings ratio of 11.44.
AFG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.83. AFG is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.44 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 9.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.96
PEG (5Y)2.79
EPS Next 2Y6.47%
EPS Next 3Y6.77%
5. Dividend
5.1 Amount
AFG has a Yearly Dividend Yield of 2.30%.
Compared to an average industry Dividend Yield of 4.24, AFG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.24, AFG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of AFG is nicely growing with an annual growth rate of 12.75%!
AFG has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of AFG decreased recently.
Dividend Growth(5Y)12.75%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
63.80% 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.
DP63.8%
EPS Next 2Y6.47%
EPS Next 3Y6.77%
AMERICAN FINANCIAL GROUP INC
NYSE:AFG (12/20/2024, 8:04:00 PM)
After market: 136.98 0 (0%)136.98
+0.52 (+0.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners65.79%
Inst Owner Change0.69%
Ins Owners0.93%
Ins Owner Change0%
Market Cap11.50B
Analysts72.73
Price Target149.12 (8.86%)
Short Float %1.47%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Dividend Growth(5Y)12.75%
DP63.8%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.87%
Min EPS beat(2)-7.36%
Max EPS beat(2)3.61%
EPS beat(4)2
Avg EPS beat(4)-1.45%
Min EPS beat(4)-7.36%
Max EPS beat(4)3.61%
EPS beat(8)3
Avg EPS beat(8)-2.71%
EPS beat(12)7
Avg EPS beat(12)6.48%
EPS beat(16)11
Avg EPS beat(16)15.71%
Revenue beat(2)1
Avg Revenue beat(2)1.85%
Min Revenue beat(2)-8.22%
Max Revenue beat(2)11.93%
Revenue beat(4)2
Avg Revenue beat(4)-1.04%
Min Revenue beat(4)-10.89%
Max Revenue beat(4)11.93%
Revenue beat(8)4
Avg Revenue beat(8)1.78%
Revenue beat(12)8
Avg Revenue beat(12)6.99%
Revenue beat(16)12
Avg Revenue beat(16)11.45%
PT rev (1m)3.25%
PT rev (3m)5.18%
EPS NQ rev (1m)-1.35%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)-1.82%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)-2.97%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)2.44%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 11.44 | ||
| P/S | 1.4 | ||
| P/FCF | 10.43 | ||
| P/OCF | 9.32 | ||
| P/B | 2.44 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 9.96 |
EPS(TTM)10.47
EY7.64%
EPS(NY)11.97
Fwd EY8.74%
FCF(TTM)13.13
FCFY9.59%
OCF(TTM)14.7
OCFY10.73%
SpS97.88
BVpS56.09
TBVpS50.09
PEG (NY)4.96
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.75% | ||
| ROE | 19.01% | ||
| ROCE | 3.36% | ||
| ROIC | 2.68% | ||
| ROICexc | 2.79% | ||
| ROICexgc | 3.06% | ||
| OM | 13.23% | ||
| PM (TTM) | 10.89% | ||
| GM | N/A | ||
| FCFM | 13.41% |
ROA(3y)4.29%
ROA(5y)3.03%
ROE(3y)27.33%
ROE(5y)21.41%
ROIC(3y)3.35%
ROIC(5y)2.37%
ROICexc(3y)3.53%
ROICexc(5y)2.49%
ROICexgc(3y)3.83%
ROICexgc(5y)2.69%
ROCE(3y)4.21%
ROCE(5y)2.98%
ROICexcg growth 3Y87.85%
ROICexcg growth 5YN/A
ROICexc growth 3Y83.82%
ROICexc growth 5YN/A
OM growth 3Y21.72%
OM growth 5Y5.39%
PM growth 3Y-5.04%
PM growth 5Y8.05%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 169.23% | ||
| Cap/Sales | 1.61% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.92% | ||
| Profit Quality | 123.13% | ||
| Current Ratio | 8.46 | ||
| Quick Ratio | 8.46 | ||
| Altman-Z | 0.82 |
F-Score7
WACC8.61%
ROIC/WACC0.31
Cap/Depr(3y)70.49%
Cap/Depr(5y)49.7%
Cap/Sales(3y)1.03%
Cap/Sales(5y)0.93%
Profit Quality(3y)141.47%
Profit Quality(5y)196.66%
High Growth Momentum
Growth
EPS 1Y (TTM)-2.24%
EPS 3Y7.63%
EPS 5Y4.68%
EPS Q2Q%-5.71%
EPS Next Y2.64%
EPS Next 2Y6.47%
EPS Next 3Y6.77%
EPS Next 5YN/A
Revenue 1Y (TTM)6.85%
Revenue growth 3Y10.77%
Revenue growth 5Y1.77%
Sales Q2Q%10.78%
Revenue Next Year8.07%
Revenue Next 2Y7.64%
Revenue Next 3Y7.07%
Revenue Next 5YN/A
EBIT growth 1Y-7.57%
EBIT growth 3Y34.83%
EBIT growth 5Y7.26%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-11.91%
FCF growth 3Y-3.67%
FCF growth 5Y-1.07%
OCF growth 1Y-7.36%
OCF growth 3Y-3.36%
OCF growth 5Y-1.11%