AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis

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

131.04 USD
+1.36 (+1.05%)
At close: Feb 6, 2026
131.04 USD
0 (0%)
After Hours: 2/6/2026, 8:17:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

4

Taking everything into account, AFG scores 4 out of 10 in our fundamental rating. AFG was compared to 149 industry peers in the Insurance industry. While AFG seems to be doing ok healthwise, there are quite some concerns on its profitability. AFG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year AFG was profitable.
  • In the past year AFG had a positive cash flow from operations.
  • Of the past 5 years AFG 4 years were 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 500M 1B 1.5B 2B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.36%, AFG is in line with its industry, outperforming 55.03% of the companies in the same industry.
  • AFG's Return On Equity of 16.87% is fine compared to the rest of the industry. AFG outperforms 74.50% of its industry peers.
  • AFG has a Return On Invested Capital (2.38%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for AFG is significantly below the industry average of 14.88%.
Industry RankSector Rank
ROA 2.36%
ROE 16.87%
ROIC 2.38%
ROA(3y)2.95%
ROA(5y)3.35%
ROE(3y)20.68%
ROE(5y)22.52%
ROIC(3y)2.95%
ROIC(5y)2.64%
AFG Yearly ROA, ROE, ROICAFG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • AFG has a Profit Margin of 9.70%. This is comparable to the rest of the industry: AFG outperforms 57.72% of its industry peers.
  • In the last couple of years the Profit Margin of AFG has remained more or less at the same level.
  • Looking at the Operating Margin, with a value of 12.28%, AFG is in line with its industry, outperforming 48.32% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AFG has declined.
Industry RankSector Rank
OM 12.28%
PM (TTM) 9.7%
GM N/A
OM growth 3Y-15.95%
OM growth 5Y-2.25%
PM growth 3Y-29.55%
PM growth 5Y-0.39%
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 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.
  • AFG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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 has a better Altman-Z score (0.77) than 78.52% 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.
  • AFG's Debt to FCF ratio of 1.41 is in line compared to the rest of the industry. AFG outperforms 57.72% of its industry peers.
  • A Debt/Equity ratio of 0.38 indicates that AFG is not too dependend on debt financing.
  • The Debt to Equity ratio of AFG (0.38) is worse than 60.40% of its industry peers.
  • Although AFG does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. 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 1.41
Altman-Z 0.77
ROIC/WACC0.29
WACC8.28%
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 has a Current ratio of 9.26. This is amongst the best in the industry. AFG outperforms 96.64% of its industry peers.
  • 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.
  • 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%.
  • The Earnings Per Share has been growing slightly by 3.97% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.19%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
  • AFG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.17% yearly.
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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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

  • AFG is valuated correctly with a Price/Earnings ratio of 12.73.
  • Compared to the rest of the industry, the Price/Earnings ratio of AFG is on the same level as its industry peers.
  • When comparing the Price/Earnings ratio of AFG to the average of the S&P500 Index (27.93), we can say AFG is valued rather cheaply.
  • With a Price/Forward Earnings ratio of 11.38, the valuation of AFG can be described as very reasonable.
  • 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 (27.77), we can say AFG is valued rather cheaply.
Industry RankSector Rank
PE 12.73
Fwd PE 11.38
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.
  • 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 RankSector Rank
P/FCF 8.47
EV/EBITDA 9.96
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)1.07
PEG (5Y)3.21
EPS Next 2Y9.46%
EPS Next 3Y9.29%

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

4

5. Dividend

5.1 Amount

  • AFG has a Yearly Dividend Yield of 2.69%. 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 2.28.
  • Compared to an average S&P500 Dividend Yield of 1.81, AFG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.69%

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.
  • 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 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 (2/6/2026, 8:17:03 PM)

After market: 131.04 0 (0%)

131.04

+1.36 (+1.05%)

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 Cap10.93B
Revenue(TTM)N/A
Net Income(TTM)798.00M
Analysts72
Price Target145.04 (10.68%)
Short Float %2.06%
Short Ratio3.03
Dividend
Industry RankSector Rank
Dividend Yield 2.69%
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 12.73
Fwd PE 11.38
P/S 1.33
P/FCF 8.47
P/OCF 7.68
P/B 2.31
P/tB 2.6
EV/EBITDA 9.96
EPS(TTM)10.29
EY7.85%
EPS(NY)11.52
Fwd EY8.79%
FCF(TTM)15.48
FCFY11.81%
OCF(TTM)17.06
OCFY13.02%
SpS98.63
BVpS56.71
TBVpS50.49
PEG (NY)1.07
PEG (5Y)3.21
Graham Number114.59
Profitability
Industry RankSector Rank
ROA 2.36%
ROE 16.87%
ROCE 3.01%
ROIC 2.38%
ROICexc 2.52%
ROICexgc 2.77%
OM 12.28%
PM (TTM) 9.7%
GM N/A
FCFM 15.69%
ROA(3y)2.95%
ROA(5y)3.35%
ROE(3y)20.68%
ROE(5y)22.52%
ROIC(3y)2.95%
ROIC(5y)2.64%
ROICexc(3y)3.07%
ROICexc(5y)2.78%
ROICexgc(3y)3.35%
ROICexgc(5y)3.01%
ROCE(3y)3.73%
ROCE(5y)3.34%
ROICexgc growth 3Y-11.18%
ROICexgc growth 5Y16.37%
ROICexc growth 3Y-11.66%
ROICexc growth 5Y15.82%
OM growth 3Y-15.95%
OM growth 5Y-2.25%
PM growth 3Y-29.55%
PM growth 5Y-0.39%
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
WACC8.28%
ROIC/WACC0.29
Cap/Depr(3y)114.17%
Cap/Depr(5y)79.15%
Cap/Sales(3y)1.25%
Cap/Sales(5y)1.15%
Profit Quality(3y)152.16%
Profit Quality(5y)165.86%
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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%9.19%
Revenue Next Year4.83%
Revenue Next 2Y4.61%
Revenue Next 3Y4.17%
Revenue Next 5YN/A
EBIT growth 1Y-7.08%
EBIT growth 3Y-8.95%
EBIT growth 5Y-2.09%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.65%
FCF growth 3Y-14.88%
FCF growth 5Y-15.83%
OCF growth 1Y7.48%
OCF growth 3Y-12.4%
OCF growth 5Y-14.05%

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 3 / 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 12.73 and the Price/Book (PB) ratio is 2.31.


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.