AMERICAN FINANCIAL GROUP INC (AFG) Fundamental Analysis & Valuation

NYSE:AFG • US0259321042

Current stock price

129.9 USD
+0.19 (+0.15%)
At close:
129.9 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.
  • AFG has a Return On Equity of 17.47%. This is in the better half of the industry: AFG outperforms 71.62% of its industry peers.
  • AFG has a Return On Invested Capital of 2.64%. This is comparable to the rest of the industry: AFG outperforms 48.65% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AFG is significantly below the industry average of 9.46%.
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

  • AFG has a Profit Margin of 10.34%. This is in the better half of the industry: AFG outperforms 62.84% of its industry peers.
  • In the last couple of years the Profit Margin of AFG has declined.
  • AFG's Operating Margin of 13.38% is in line compared to the rest of the industry. AFG outperforms 55.41% of its industry peers.
  • 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

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFG is destroying value.
  • AFG has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for AFG has been reduced compared to 5 years ago.
  • The debt/assets ratio for AFG is higher compared to a year ago.
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 0.77. This is a bad value and indicates that AFG is not financially healthy and even has some risk of bankruptcy.
  • The Altman-Z score of AFG (0.77) is better than 77.03% of its industry peers.
  • AFG has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
  • AFG's Debt to FCF ratio of 1.30 is in line compared to the rest of the industry. AFG outperforms 58.11% of its industry peers.
  • 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: 60.81% 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 1.3
Altman-Z 0.77
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.
  • A Quick Ratio of 5.61 indicates that AFG has no problem at all paying its short term obligations.
  • AFG has a better Quick ratio (5.61) 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.
  • 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.
  • Looking at the last year, AFG shows a decrease in Revenue. The Revenue has decreased by -1.70% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 8.39% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 3.73% on average over the next years.
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 12.62, AFG is valued correctly.
  • The rest of the industry has a similar Price/Earnings ratio as AFG.
  • When comparing the Price/Earnings ratio of AFG to the average of the S&P500 Index (26.21), we can say AFG is valued rather cheaply.
  • AFG is valuated reasonably with a Price/Forward Earnings ratio of 11.60.
  • The rest of the industry has a similar Price/Forward Earnings ratio as AFG.
  • When comparing the Price/Forward Earnings ratio of AFG to the average of the S&P500 Index (23.13), we can say AFG is valued slightly cheaper.
Industry RankSector Rank
PE 12.62
Fwd PE 11.6
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

  • 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 7.74
EV/EBITDA 9.27
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)1.44
PEG (5Y)3.18
EPS Next 2Y8.66%
EPS Next 3Y8.39%

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

5

5. AFG Dividend Analysis

5.1 Amount

  • AFG has a Yearly Dividend Yield of 2.80%.
  • Compared to an average industry Dividend Yield of 2.55, AFG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, AFG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.8%

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.
Dividend Growth(5Y)13.79%
Div Incr Years0
Div Non Decr Years0
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

  • 71.97% 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.
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

More info and screens

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AFG Fundamentals: All Metrics, Ratios and Statistics

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (4/6/2026, 8:20:07 PM)

After market: 129.9 0 (0%)

129.9

+0.19 (+0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners68.36%
Inst Owner Change-0.02%
Ins Owners17.98%
Ins Owner Change1.35%
Market Cap10.82B
Revenue(TTM)8.14B
Net Income(TTM)842.00M
Analysts70.91
Price Target143.31 (10.32%)
Short Float %2.34%
Short Ratio2.13
Dividend
Industry RankSector Rank
Dividend Yield 2.8%
Yearly Dividend7.24
Dividend Growth(5Y)13.79%
DP71.97%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-15
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)0%
PT rev (3m)-0.07%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.98%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.74%
Valuation
Industry RankSector Rank
PE 12.62
Fwd PE 11.6
P/S 1.33
P/FCF 7.74
P/OCF 7.06
P/B 2.24
P/tB 2.51
EV/EBITDA 9.27
EPS(TTM)10.29
EY7.92%
EPS(NY)11.2
Fwd EY8.62%
FCF(TTM)16.78
FCFY12.92%
OCF(TTM)18.4
OCFY14.17%
SpS97.72
BVpS57.86
TBVpS51.67
PEG (NY)1.44
PEG (5Y)3.18
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 0.77
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 for AFG stock?

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 12.62 and the Price/Book (PB) ratio is 2.24.


Is the dividend of AMERICAN FINANCIAL GROUP INC sustainable?

The dividend rating of AMERICAN FINANCIAL GROUP INC (AFG) is 5 / 10 and the dividend payout ratio is 71.97%.