AMERICAN FINANCIAL GROUP INC (AFG) Fundamental Analysis & Valuation

NYSE:AFG • US0259321042

Current stock price

124.18 USD
-0.29 (-0.23%)
At close:
124.18 USD
0 (0%)
After Hours:

This AFG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. AFG Profitability Analysis

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 each 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

  • Looking at the Return On Assets, with a value of 2.58%, AFG is in line with its industry, outperforming 56.76% of the companies in the same industry.
  • With a decent Return On Equity value of 17.47%, AFG is doing good in the industry, outperforming 72.30% of the companies in the same industry.
  • With a Return On Invested Capital value of 2.64%, AFG perfoms like the industry average, outperforming 47.30% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for AFG is significantly below the industry average of 9.34%.
Industry RankSector Rank
ROA 2.58%
ROE 17.47%
ROIC 2.64%
ROA(3y)2.77%
ROA(5y)3.67%
ROE(3y)19.11%
ROE(5y)23.86%
ROIC(3y)2.71%
ROIC(5y)3.07%
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

  • Looking at the Profit Margin, with a value of 10.34%, AFG is in the better half of the industry, outperforming 62.84% of the companies in the same industry.
  • AFG's Profit Margin has declined in the last couple of years.
  • The Operating Margin of AFG (13.38%) is comparable to the rest of the industry.
  • AFG's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.38%
PM (TTM) 10.34%
GM N/A
OM growth 3Y-8.15%
OM growth 5Y12.97%
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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7

2. AFG Health Analysis

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
  • Compared to 1 year ago, AFG has a worse debt to assets ratio.
AFG Yearly Shares OutstandingAFG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2025 20B 40B 60B

2.2 Solvency

  • AFG has an Altman-Z score of 0.76. This is a bad value and indicates that AFG is not financially healthy and even has some risk of bankruptcy.
  • AFG's Altman-Z score of 0.76 is fine compared to the rest of the industry. AFG outperforms 77.70% of its industry peers.
  • The Debt to FCF ratio of AFG is 1.30, which is an excellent value as it means it would take AFG, only 1.30 years of fcf income to pay off all of its debts.
  • AFG has a Debt to FCF ratio of 1.30. This is comparable to the rest of the industry: AFG outperforms 58.11% of its industry peers.
  • AFG has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
  • AFG has a worse Debt to Equity ratio (0.38) than 60.81% of its industry peers.
  • Although AFG's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.3
Altman-Z 0.76
ROIC/WACC0.32
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 2025 2B 4B 6B

2.3 Liquidity

  • AFG has a Current Ratio of 5.61. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
  • AFG's Current ratio of 5.61 is amongst the best of the industry. AFG outperforms 97.30% of its industry peers.
  • AFG has a Quick Ratio of 5.61. This indicates that AFG is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of AFG (5.61) is better than 97.30% of its industry peers.
Industry RankSector Rank
Current Ratio 5.61
Quick Ratio 5.61
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 2025 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. AFG Growth Analysis

3.1 Past

  • The earnings per share for AFG have decreased by -4.28% in the last year.
  • AFG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.97% yearly.
  • The Revenue has decreased by -1.70% in the past year.
  • AFG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.25% yearly.
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 8.39% on average per year.
  • AFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.73% yearly.
EPS Next Y8.8%
EPS Next 2Y8.66%
EPS Next 3Y8.39%
EPS Next 5YN/A
Revenue Next Year2.68%
Revenue Next 2Y3.64%
Revenue Next 3Y3.73%
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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4

4. AFG Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 12.07, AFG is valued correctly.
  • AFG's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of AFG to the average of the S&P500 Index (25.23), we can say AFG is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 11.09, the valuation of AFG can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AFG is on the same level as its industry peers.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. AFG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 12.07
Fwd PE 11.09
AFG Price Earnings VS Forward Price EarningsAFG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AFG's Enterprise Value to EBITDA ratio is in line with the industry average.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AFG.
Industry RankSector Rank
P/FCF 7.4
EV/EBITDA 8.88
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)1.37
PEG (5Y)3.04
EPS Next 2Y8.66%
EPS Next 3Y8.39%

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

6

5. AFG Dividend Analysis

5.1 Amount

  • AFG has a Yearly Dividend Yield of 6.96%, which is a nice return.
  • Compared to an average industry Dividend Yield of 2.84, AFG pays a better dividend. On top of this AFG pays more dividend than 91.22% of the companies listed in the same industry.
  • AFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.89.
Industry RankSector Rank
Dividend Yield 6.96%

5.2 History

  • On average, the dividend of AFG grows each year by 13.79%, 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)13.79%
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 71.97% 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.
DP71.97%
EPS Next 2Y8.66%
EPS Next 3Y8.39%
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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AFG Fundamentals: All Metrics, Ratios and Statistics

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (3/20/2026, 8:04:00 PM)

After market: 124.18 0 (0%)

124.18

-0.29 (-0.23%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners68.36%
Inst Owner Change1.83%
Ins Owners17.98%
Ins Owner Change1.35%
Market Cap10.34B
Revenue(TTM)8.14B
Net Income(TTM)842.00M
Analysts70.91
Price Target143.31 (15.41%)
Short Float %3%
Short Ratio2.97
Dividend
Industry RankSector Rank
Dividend Yield 6.96%
Yearly Dividend7.24
Dividend Growth(5Y)13.79%
DP71.97%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-13
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)6.15%
Max EPS beat(2)9.06%
EPS beat(4)3
Avg EPS beat(4)1.32%
Min EPS beat(4)-11.61%
Max EPS beat(4)9.06%
EPS beat(8)5
Avg EPS beat(8)0.28%
EPS beat(12)5
Avg EPS beat(12)-1.71%
EPS beat(16)9
Avg EPS beat(16)2.86%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-3.32%
Max Revenue beat(2)0%
Revenue beat(4)0
Avg Revenue beat(4)-5.32%
Min Revenue beat(4)-10.18%
Max Revenue beat(4)0%
Revenue beat(8)2
Avg Revenue beat(8)-2.74%
Revenue beat(12)4
Avg Revenue beat(12)-1.94%
Revenue beat(16)8
Avg Revenue beat(16)2.85%
PT rev (1m)-1.2%
PT rev (3m)0.64%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-2.74%
EPS NY rev (1m)-2.81%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.67%
Valuation
Industry RankSector Rank
PE 12.07
Fwd PE 11.09
P/S 1.27
P/FCF 7.4
P/OCF 6.75
P/B 2.15
P/tB 2.4
EV/EBITDA 8.88
EPS(TTM)10.29
EY8.29%
EPS(NY)11.2
Fwd EY9.02%
FCF(TTM)16.78
FCFY13.51%
OCF(TTM)18.4
OCFY14.82%
SpS97.72
BVpS57.86
TBVpS51.67
PEG (NY)1.37
PEG (5Y)3.04
Graham Number115.74
Profitability
Industry RankSector Rank
ROA 2.58%
ROE 17.47%
ROCE 3.36%
ROIC 2.64%
ROICexc 2.79%
ROICexgc 3.04%
OM 13.38%
PM (TTM) 10.34%
GM N/A
FCFM 17.17%
ROA(3y)2.77%
ROA(5y)3.67%
ROE(3y)19.11%
ROE(5y)23.86%
ROIC(3y)2.71%
ROIC(5y)3.07%
ROICexc(3y)2.84%
ROICexc(5y)3.23%
ROICexgc(3y)3.1%
ROICexgc(5y)3.51%
ROCE(3y)3.44%
ROCE(5y)3.9%
ROICexgc growth 3Y-6.59%
ROICexgc growth 5Y45.38%
ROICexc growth 3Y-6.57%
ROICexc growth 5Y43.64%
OM growth 3Y-8.15%
OM growth 5Y12.97%
PM growth 3Y-6.86%
PM growth 5Y-4.11%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.25
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 1.3
Debt/EBITDA 1.55
Cap/Depr 156.98%
Cap/Sales 1.66%
Interest Coverage 14.72
Cash Conversion 130.47%
Profit Quality 166.03%
Current Ratio 5.61
Quick Ratio 5.61
Altman-Z 0.76
F-Score5
WACC8.27%
ROIC/WACC0.32
Cap/Depr(3y)137.83%
Cap/Depr(5y)106.53%
Cap/Sales(3y)1.39%
Cap/Sales(5y)1.27%
Profit Quality(3y)167.9%
Profit Quality(5y)141.06%
High Growth Momentum
Growth
EPS 1Y (TTM)-4.28%
EPS 3Y-4.03%
EPS 5Y3.97%
EPS Q2Q%16.99%
EPS Next Y8.8%
EPS Next 2Y8.66%
EPS Next 3Y8.39%
EPS Next 5YN/A
Revenue 1Y (TTM)-1.7%
Revenue growth 3Y5.09%
Revenue growth 5Y7.25%
Sales Q2Q%-2.38%
Revenue Next Year2.68%
Revenue Next 2Y3.64%
Revenue Next 3Y3.73%
Revenue Next 5YN/A
EBIT growth 1Y1.3%
EBIT growth 3Y-3.48%
EBIT growth 5Y21.17%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.19%
FCF growth 3Y9.42%
FCF growth 5Y-8.02%
OCF growth 1Y33.07%
OCF growth 3Y9.96%
OCF growth 5Y-6.83%

AMERICAN FINANCIAL GROUP INC / AFG Fundamental Analysis FAQ

What is the ChartMill fundamental rating of AMERICAN FINANCIAL GROUP INC (AFG) stock?

ChartMill assigns a fundamental rating of 5 / 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 12.07 and the Price/Book (PB) ratio is 2.15.


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 8.8% in the next year.