AMERICAN FINANCIAL GROUP INC (AFG) Fundamental Analysis & Valuation

NYSE:AFG • US0259321042

130.74 USD
-0.83 (-0.63%)
At close: Mar 6, 2026
130.74 USD
0 (0%)
After Hours: 3/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to AFG. AFG was compared to 149 industry peers in the Insurance industry. While AFG has a great health rating, its profitability is only average at the moment. 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. AFG Profitability Analysis

1.1 Basic Checks

  • In the past year AFG was profitable.
  • In the past year AFG had a positive cash flow from operations.
  • In the past 5 years AFG has always been profitable.
  • In the past 5 years AFG always reported a positive cash flow from operatings.
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's Return On Assets of 2.36% is in line compared to the rest of the industry. AFG outperforms 55.70% of its industry peers.
  • AFG's Return On Equity of 16.87% is fine compared to the rest of the industry. AFG outperforms 71.81% of its industry peers.
  • AFG's Return On Invested Capital of 2.36% is in line compared to the rest of the industry. AFG outperforms 49.66% of its industry peers.
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

  • AFG's Profit Margin of 9.70% is in line compared to the rest of the industry. AFG outperforms 59.73% of its industry peers.
  • In the last couple of years the Profit Margin of AFG has declined.
  • AFG has a Operating Margin (12.28%) which is in line with its industry peers.
  • 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

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.
  • Compared to 1 year ago, AFG has less shares outstanding
  • The number of shares outstanding for AFG has been reduced compared to 5 years ago.
  • 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 0.77. 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.
  • 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 has a Debt to FCF ratio (1.41) which is in line with 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.
  • The Debt to Equity ratio of AFG (0.38) is worse than 61.07% 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 1.41
Altman-Z 0.77
ROIC/WACC0.29
WACC8.22%
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 9.26. This indicates that AFG is financially healthy and has no problem in meeting 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.
  • A Quick Ratio of 9.26 indicates that AFG has no problem at all paying its short term obligations.
  • AFG has a better Quick ratio (9.26) 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 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.
  • 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

  • Based on estimates for the next years, AFG will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.29% on average per year.
  • Based on estimates for the next years, AFG will show a small growth in Revenue. The Revenue will grow by 3.73% on average per year.
EPS Next Y11.94%
EPS Next 2Y9.46%
EPS Next 3Y9.29%
EPS Next 5YN/A
Revenue Next Year2.7%
Revenue Next 2Y3.64%
Revenue Next 3Y3.73%
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.
  • 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. AFG Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.71 indicates a correct valuation of AFG.
  • Compared to the rest of the industry, the Price/Earnings ratio of AFG is on the same level as its industry peers.
  • AFG is valuated cheaply when we compare the Price/Earnings ratio to 26.29, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 11.35, the valuation of AFG can be described as very reasonable.
  • AFG's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.57, AFG is valued rather cheaply.
Industry RankSector Rank
PE 12.71
Fwd PE 11.35
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.
  • The rest of the industry has a similar Price/Free Cash Flow ratio as AFG.
Industry RankSector Rank
P/FCF 8.45
EV/EBITDA 10
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)1.06
PEG (5Y)3.2
EPS Next 2Y9.46%
EPS Next 3Y9.29%

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

5

5. AFG Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 6.67%, AFG is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.50, AFG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AFG pays a better dividend.
Industry RankSector Rank
Dividend Yield 6.67%

5.2 History

  • The dividend of AFG is nicely growing with an annual growth rate of 13.79%!
  • 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)13.79%
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

  • 96.49% 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.
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

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AFG Fundamentals: All Metrics, Ratios and Statistics

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (3/6/2026, 8:04:00 PM)

After market: 130.74 0 (0%)

130.74

-0.83 (-0.63%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners68.36%
Inst Owner Change1.76%
Ins Owners17.98%
Ins Owner Change-0.91%
Market Cap10.89B
Revenue(TTM)8.14B
Net Income(TTM)798.00M
Analysts70.91
Price Target143.31 (9.61%)
Short Float %2.7%
Short Ratio2.74
Dividend
Industry RankSector Rank
Dividend Yield 6.67%
Yearly Dividend7.24
Dividend Growth(5Y)13.79%
DP96.49%
Div Incr Years1
Div Non Decr Years1
Ex-Date02-13
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)-0.07%
PT rev (3m)0.21%
EPS NQ rev (1m)0.36%
EPS NQ rev (3m)0.6%
EPS NY rev (1m)0.26%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)2.3%
Revenue NY rev (1m)-1.76%
Revenue NY rev (3m)-4.03%
Valuation
Industry RankSector Rank
PE 12.71
Fwd PE 11.35
P/S 1.33
P/FCF 8.45
P/OCF 7.66
P/B 2.31
P/tB 2.59
EV/EBITDA 10
EPS(TTM)10.29
EY7.87%
EPS(NY)11.52
Fwd EY8.81%
FCF(TTM)15.48
FCFY11.84%
OCF(TTM)17.06
OCFY13.05%
SpS98.61
BVpS56.7
TBVpS50.48
PEG (NY)1.06
PEG (5Y)3.2
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
WACC8.22%
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 Year2.7%
Revenue Next 2Y3.64%
Revenue Next 3Y3.73%
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 12.71 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.