DB:AEND

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Good value second-rate 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


Market Performance


7 Day Return

0.8%

AEND

2.9%

DE Insurance

1.4%

DE Market


1 Year Return

-27.3%

AEND

22.0%

DE Insurance

3.7%

DE Market

Return vs Industry: AEND underperformed the German Insurance industry which returned 22% over the past year.

Return vs Market: AEND underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

AENDIndustryMarket
7 Day0.8%2.9%1.4%
30 Day0.3%4.1%1.3%
90 Day-14.4%3.4%3.4%
1 Year-21.4%-27.3%27.3%22.0%7.0%3.7%
3 Year21.7%1.3%70.6%50.0%18.5%8.3%
5 Year-16.2%-37.1%119.6%75.9%42.2%22.9%

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

Undervalued: AEND (€3.9) is trading below our estimate of fair value (€9.14)

Significantly Undervalued: AEND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AEND is poor value based on its PE Ratio (19x) compared to the Insurance industry average (13.4x).

PE vs Market: AEND is good value based on its PE Ratio (19x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: AEND is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: AEND is good value based on its PB Ratio (0.3x) compared to the DE Insurance industry average (1.1x).


Next Steps

Future Growth

How is Aegon forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

10.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AEND's forecast earnings growth (10.7% per year) is above the savings rate (0.2%).

Earnings vs Market: AEND's earnings (10.7% per year) are forecast to grow slower than the German market (12.7% per year).

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

Revenue vs Market: AEND's revenue is expected to decline over the next 3 years (-8.9% per year).

High Growth Revenue: AEND's revenue is forecast to decline over the next 3 years (-8.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: AEND's Return on Equity is forecast to be low in 3 years time (6.8%).


Next Steps

Past Performance

How has Aegon performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AEND's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: AEND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AEND had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Insurance industry average (15.2%).


Return on Equity

High ROE: AEND's Return on Equity (2.2%) is considered low.


Return on Assets

ROA vs Industry: AEND's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: AEND has significantly improved its Return on Capital Employed over the past 3 years.


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: AEND has a low level of unsold assets or inventory.

Debt Coverage by Assets: AEND's debt is covered by short term assets (assets are 5.315570x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

7.70%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.5%markettop25%3.8%industryaverage3.9%forecastin3Years8.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: AEND's dividend (7.7%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: AEND's dividend (7.7%) is in the top 25% of dividend payers in the German market (3.83%)

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (146.2%), AEND's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AEND's dividends in 3 years are forecast to be well covered by earnings (45% payout ratio).


Next Steps

Management

What is the CEO of Aegon's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Alex Wynaendts (59yo)

11.5yrs

Tenure

€4,233,000

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 ($USD4.72M) is about average for companies of similar size in the German market ($USD3.60M).

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


Management Age and Tenure

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: AEND's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

61yo

Average Age

Experienced Board: AEND's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Mark Mullin (56yo)

    Member of the Management Board

    • Tenure: 9.8yrs
  • Alex Wynaendts (59yo)

    CEO & Chairman of the Executive Board

    • Tenure: 11.5yrs
    • Compensation: €4.23m
  • Adrian Grace (56yo)

    Member of the Management Board

    • Tenure: 7.7yrs
  • Marco B. Keim (57yo)

    Head of Aegon Continental Europe & Member of the Management Board

    • Tenure: 11.3yrs
  • Matt Rider (56yo)

    CFO & Member of the Executive Board

    • Tenure: 2.4yrs
    • Compensation: €2.09m
  • Carla Mahieu (60yo)

    Global Head of HR & Member of the Management Board

    • Tenure: 3.2yrs
  • Maarten Edixhoven (48yo)

    Chairman & CEO of Aegon the Nederland and Member of Management Board

    • Tenure: 0yrs
  • J. van Klinken (50yo)

    General Counsel

    • Tenure: 3.2yrs
  • Allegra Cristina Van Hövell-Patrizi (45yo)

    Chief Risk Officer & Member of the Management Board

    • Tenure: 3.8yrs
  • Mark Bloom (55yo)

    Global CTO & Member of the Management Board

    • Tenure: 3.2yrs

Board Members

  • Dona Young (65yo)

    Supervisory Board Member

    • Tenure: 6.4yrs
  • Ben Noteboom (61yo)

    Supervisory Board Member

    • Tenure: 4.4yrs
  • Mark Ellman (62yo)

    Supervisory Board Member

    • Tenure: 2.4yrs
  • Ben van der Veer (68yo)

    Supervisory Board Member

    • Tenure: 11yrs
  • Bill Connelly (61yo)

    Supervisory Board Chairman

    • Tenure: 1.4yrs
  • Maarten Edixhoven (48yo)

    Chairman & CEO of Aegon the Nederland and Member of Management Board

    • Tenure: 0yrs
  • Corien Wortmann-Kool (60yo)

    Supervisory Board Vice Chairman

    • Tenure: 2.8yrs

Company Information

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


Key Information

  • Name: Aegon N.V.
  • Ticker: AEND
  • Exchange: DB
  • Founded: 1983
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: €7.881b
  • Shares outstanding: 2.02b
  • 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
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
AGNSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1988
AGNENXTAM (Euronext Amsterdam)YesCommon SharesNLEURJul 1988
AEGO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1988
0Q0YLSE (London Stock Exchange)YesCommon SharesGBEURJul 1988
AENDXTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 1988
AGNWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1988
AENDDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1988
AGNABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1988
AGNBIT (Borsa Italiana)YesCommon SharesITEURJul 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 investm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:40
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.