WBAG:AGN

Stock Analysis Report

Executive Summary

Aegon N.V. provides insurance, pensions, and asset management services worldwide.

Rewards

Trading at 70.5% below its fair value

Earnings are forecast to grow 6.69% per year

Earnings grew by 92.8% over the past year

Risk Analysis

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (1.8%) are lower than last year (3.3%)



Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Aegon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AGN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.1%

AGN

17.0%

AT Insurance

3.9%

AT Market


1 Year Return

-49.1%

AGN

-24.6%

AT Insurance

-31.5%

AT Market

Return vs Industry: AGN underperformed the Austrian Insurance industry which returned -23.3% over the past year.

Return vs Market: AGN underperformed the Austrian Market which returned -30.5% over the past year.


Shareholder returns

AGNIndustryMarket
7 Day-3.1%17.0%3.9%
30 Day-22.9%-21.1%-24.3%
90 Day-44.3%-30.1%-33.5%
1 Year-45.0%-49.1%-19.8%-24.6%-29.1%-31.5%
3 Yearn/a-5.3%-18.8%-16.8%-24.3%
5 Yearn/a-0.3%-23.1%0.7%-13.4%

Price Volatility Vs. Market

How volatile is Aegon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Aegon undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AGN (€2.35) is trading below our estimate of fair value (€7.96)

Significantly Below Fair Value: AGN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AGN is good value based on its PE Ratio (4.2x) compared to the Insurance industry average (8.8x).

PE vs Market: AGN is good value based on its PE Ratio (4.2x) compared to the Austrian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: AGN is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: AGN is good value based on its PB Ratio (0.2x) compared to the XE Insurance industry average (0.9x).


Next Steps

Future Growth

How is Aegon forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGN's forecast earnings growth (6.7% per year) is above the savings rate (-0.1%).

Earnings vs Market: AGN's earnings (6.7% per year) are forecast to grow slower than the Austrian market (10.4% per year).

High Growth Earnings: AGN's earnings are forecast to grow, but not significantly.

Revenue vs Market: AGN's revenue is expected to decline over the next 3 years (-52.9% per year).

High Growth Revenue: AGN's revenue is forecast to decline over the next 3 years (-52.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AGN's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Aegon performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AGN has a large one-off gain of €260.0M impacting its December 31 2019 financial results.

Growing Profit Margin: AGN's current net profit margins (1.8%) are lower than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: AGN's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: AGN's earnings growth over the past year (92.8%) exceeds its 5-year average (29.8% per year).

Earnings vs Industry: AGN earnings growth over the past year (92.8%) exceeded the Insurance industry 11.4%.


Return on Equity

High ROE: AGN's Return on Equity (5.1%) is considered low.


Next Steps

Financial Health

How is Aegon's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AGN has a low level of unsold assets or inventory.

Debt Coverage by Assets: AGN's debt is covered by short term assets (assets are 4.5x debt).


Financial Institutions Analysis

Asset Level: AGN's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if AGN has a sufficient allowance for bad loans.

Low Risk Liabilities: AGN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AGN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AGN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AGN has an appropriate level of bad loans.


Next Steps

Dividend

What is Aegon's current dividend yield, its reliability and sustainability?

13.83%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: AGN's dividend (13.7%) is higher than the bottom 25% of dividend payers in the Austrian market (1.95%).

High Dividend: AGN's dividend (13.7%) is in the top 25% of dividend payers in the Austrian market (6.32%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AGN has been paying a dividend for less than 10 years.

Growing Dividend: AGN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.4%), AGN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGN's dividends in 3 years are forecast to be well covered by earnings (42.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.9yrs

Average management tenure


CEO

Alex Wynaendts (59yo)

11.92s

Tenure

€3,806,000

Compensation

Mr. Alexander Rijn Wynaendts, also known as Alex, has been an Independent Director of Air France-KLM SA since May 19, 2016. Mr. Wynaendts serves as an Independent Director of Citigroup Inc. since September ...


CEO Compensation Analysis

Compensation vs Market: Alex's total compensation ($USD4.20M) is above average for companies of similar size in the Austrian market ($USD2.72M).

Compensation vs Earnings: Alex's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Wynaendts
11.92yrs€3.81m0.030% 1.4m
Matthew Rider
CFO & Member of the Executive Board2.83yrs€1.74m0.00099% 47.0k
Marco B. Keim
Head of Aegon International & Aegon Continental Europe and Member of the Management Board11.75yrsno datano data
Mark Mullin
Member of the Management Board10.17yrsno datano data
C. M. Mahieu
Global Head of HR & Member of the Management Board3.58yrsno datano data
Adrian Grace
Member of the Management Board8.08yrsno datano data
Allegra Cristina Van Hövell-Patrizi
Chief Risk Officer & Member of the Management Board4.17yrsno datano data
J. van Klinken
General Counsel3.58yrsno datano data
Mark Bloom
Global CTO & Member of the Management Board3.58yrsno datano data
Maarten Edixhoven
Member of the Management Board0.42yrno datano data

3.9yrs

Average Tenure

56yo

Average Age

Experienced Management: AGN's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dona Young
Independent Supervisory Board Member6.83yrs€158.00k0.00065% 30.9k
Ben Noteboom
Independent Supervisory Board Member4.83yrs€103.00k0.0011% 54.1k
Mark Ellman
Independent Supervisory Board Member2.83yrs€115.00kno data
B. van der Veer
Independent Supervisory Board Member11.42yrs€118.00k0.000070% 3.3k
William L. Connelly
Independent Supervisory Board Chairman1.83yrs€169.00kno data
Corien Wortmann-Kool
Independent Supervisory Board Vice Chairman3.17yrs€123.00kno data

4.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AGN's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Aegon N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aegon N.V.
  • Ticker: AGN
  • Exchange: WBAG
  • Founded: 1983
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: €4.750b
  • Shares outstanding: 2.05b
  • Website: https://www.aegon.com

Number of Employees


Location

  • Aegon N.V.
  • Aegonplein 50
  • The Hague
  • Zuid-Holland
  • 2591 TV
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AEGNYSE (New York Stock Exchange)AMER REGD CERT(1 SH EUR0.12)USUSDJun 1985
AEG NBMV (Bolsa Mexicana de Valores)AMER REGD CERT(1 SH EUR0.12)MXMXNJun 1985
AENFDB (Deutsche Boerse AG)AMER REGD CERT(1 SH EUR0.12)DEEURJun 1985
AENFXTRA (XETRA Trading Platform)AMER REGD CERT(1 SH EUR0.12)DEEURJun 1985
0Q0YLSE (London Stock Exchange)YesCommon SharesGBEURJul 1988
AENDDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1988
AGNSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1988
AGNENXTAM (Euronext Amsterdam)YesCommon SharesNLEURJul 1988
AEGO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1988
AGNBIT (Borsa Italiana)YesCommon SharesITEURJul 1988
AENDXTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 1988
AGNABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1988
AGNWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1988

Biography

Aegon N.V. provides insurance, pensions, and asset management services worldwide. It offers life, accident, and health insurance; property and casualty insurance; home and car insurance; individual investment accounts; annuities; retirement plan services; stable value solutions; retail and institutional investment management solutions; savings products; group pensions; mortgage loans; and bank accounts. The company markets its products through brokers, independent agents, employee benefit consultants, bancassurance channels, self-service/online centers, and call/advice centers. Aegon N.V. was founded in 1983 and is headquartered in The Hague, the Netherlands. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 00:05
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.