AMERICAN FINANCIAL GROUP INC (AFG) Stock Fundamental Analysis

NYSE:AFG • US0259321042

130.58 USD
+1.63 (+1.26%)
Last: Feb 17, 2026, 01:55 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Taking everything into account, AFG scores 5 out of 10 in our fundamental rating. AFG was compared to 149 industry peers in the Insurance industry. AFG has only an average score on both its financial health and profitability. AFG is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year AFG was profitable.
  • AFG had a positive operating cash flow in the past year.
  • In the past 5 years AFG has always been profitable.
  • Of the past 5 years AFG 4 years had a positive operating cash flow.
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.
  • Looking at the Return On Equity, with a value of 16.87%, AFG is in the better half of the industry, outperforming 74.50% of the companies in the same industry.
  • With a Return On Invested Capital value of 2.36%, AFG perfoms like the industry average, outperforming 50.34% of the companies in the same industry.
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 has a Profit Margin of 9.70%. This is comparable to the rest of the industry: AFG outperforms 57.05% 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 comparable to the rest of the industry.
  • 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

6

2. Health

2.1 Basic Checks

  • AFG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • There is no outstanding debt for AFG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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

  • 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's Altman-Z score of 0.77 is fine compared to the rest of the industry. AFG outperforms 79.19% of its industry peers.
  • The Debt to FCF ratio of AFG is 1.41, which is an excellent value as it means it would take AFG, only 1.41 years of fcf income to pay off 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
WACC8.11%
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 better Current ratio (9.26) than 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.
  • 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

  • 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

  • The Earnings Per Share is expected to grow by 9.29% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 4.17% on average over the next years.
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.
  • 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. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 12.69 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.
  • The average S&P500 Price/Earnings ratio is at 27.19. AFG is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 11.34, the valuation of AFG can be described as very reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AFG is on the same level as its industry peers.
  • AFG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.06.
Industry RankSector Rank
PE 12.69
Fwd PE 11.34
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

  • 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 8.44
EV/EBITDA 9.8
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)1.06
PEG (5Y)3.2
EPS Next 2Y9.46%
EPS Next 3Y9.29%

More info and screens

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

6

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 6.69%, AFG is a good candidate for dividend investing.
  • AFG's Dividend Yield is rather good when compared to the industry average which is at 2.68. AFG pays more dividend than 88.59% of the companies in the same industry.
  • AFG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 6.69%

5.2 History

  • The dividend of AFG is nicely growing with an annual growth rate of 13.64%!
  • 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)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.
  • AFG's earnings are growing slower than its dividend. 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

Find the best dividend stocksShow peers with best dividend

AMERICAN FINANCIAL GROUP INC

NYSE:AFG (2/17/2026, 1:55:36 PM)

130.58

+1.63 (+1.26%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-03
Earnings (Next)05-04
Inst Owners68.56%
Inst Owner Change1.7%
Ins Owners17.96%
Ins Owner Change-0.35%
Market Cap10.89B
Revenue(TTM)8.14B
Net Income(TTM)798.00M
Analysts70
Price Target145.04 (11.07%)
Short Float %2.29%
Short Ratio2.93
Dividend
Industry RankSector Rank
Dividend Yield 6.69%
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)1.17%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)0.81%
Revenue NY rev (1m)0.36%
Revenue NY rev (3m)-2.04%
Valuation
Industry RankSector Rank
PE 12.69
Fwd PE 11.34
P/S 1.32
P/FCF 8.44
P/OCF 7.65
P/B 2.3
P/tB 2.59
EV/EBITDA 9.8
EPS(TTM)10.29
EY7.88%
EPS(NY)11.52
Fwd EY8.82%
FCF(TTM)15.48
FCFY11.85%
OCF(TTM)17.06
OCFY13.06%
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
WACC8.11%
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 Year4.83%
Revenue Next 2Y4.61%
Revenue Next 3Y4.17%
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 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 12.69 and the Price/Book (PB) ratio is 2.3.


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.