DB:QFI

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American Financial Group

Executive Summary

American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States.


Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

How has American Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

4.8%

QFI

-2.5%

DE Insurance

-1.4%

DE Market


1 Year Return

-41.4%

QFI

-4.3%

DE Insurance

8.0%

DE Market

Return vs Industry: QFI underperformed the German Insurance industry which returned -4.3% over the past year.

Return vs Market: QFI underperformed the German Market which returned 8% over the past year.


Shareholder returns

QFIIndustryMarket
7 Day4.8%-2.5%-1.4%
30 Day-1.9%-4.2%-1.2%
90 Day-12.6%11.9%12.6%
1 Year-39.0%-41.4%1.0%-4.3%10.4%8.0%
3 Year-33.6%-41.7%22.1%6.3%4.7%-3.7%
5 Year-1.6%-19.6%58.6%25.8%15.9%0.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is American Financial Group 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: QFI (€52) is trading below our estimate of fair value (€120.22)

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


Price To Earnings Ratio

PE vs Industry: QFI is poor value based on its PE Ratio (24.1x) compared to the DE Insurance industry average (10.2x).

PE vs Market: QFI is poor value based on its PE Ratio (24.1x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: QFI is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: QFI is overvalued based on its PB Ratio (1.1x) compared to the DE Insurance industry average (1x).


Next Steps

Future Growth

How is American Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

92.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: QFI's forecast earnings growth (92.2% per year) is above the savings rate (0.2%).

Earnings vs Market: QFI's earnings (92.2% per year) are forecast to grow faster than the German market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: QFI's revenue is expected to decline over the next 3 years (-21.3% per year).

High Growth Revenue: QFI's revenue is forecast to decline over the next 3 years (-21.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if QFI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has American Financial Group performed over the past 5 years?

5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QFI has a large one-off loss of $110.0M impacting its June 30 2020 financial results.

Growing Profit Margin: QFI's current net profit margins (3.2%) are lower than last year (9.6%).


Past Earnings Growth Analysis

Earnings Trend: QFI's earnings have grown by 5.9% per year over the past 5 years.

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

Earnings vs Industry: QFI had negative earnings growth (-67.2%) over the past year, making it difficult to compare to the Insurance industry average (10%).


Return on Equity

High ROE: QFI's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is American Financial Group's financial position?


Financial Position Analysis

Short Term Liabilities: QFI's short term assets ($8.7B) exceed its short term liabilities ($7.0B).

Long Term Liabilities: QFI's short term assets ($8.7B) do not cover its long term liabilities ($55.6B).


Debt to Equity History and Analysis

Debt Level: QFI's debt to equity ratio (54%) is considered high.

Reducing Debt: QFI's debt to equity ratio has increased from 35.3% to 54% over the past 5 years.

Debt Coverage: QFI's debt is well covered by operating cash flow (93.1%).

Interest Coverage: QFI's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet


Next Steps

Dividend

What is American Financial Group current dividend yield, its reliability and sustainability?

5.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: QFI's dividend (5.25%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: QFI's dividend (5.25%) is in the top 25% of dividend payers in the German market (3.81%)


Stability and Growth of Payments

Stable Dividend: QFI's dividends per share have been stable in the past 10 years.

Growing Dividend: QFI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.9%), QFI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

8.4yrs

Average management tenure


CEO

Stephen Lindner (65 yo)

15.58yrs

Tenure

US$10,457,420

Compensation

Mr. Stephen Craig Lindner has been Co-Chief Executive Officer, Co-President and Director of American Financial Group, Inc. since January 2005, 1996 and 1985 respectively. Mr. Lindner also serves as the Co ...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD10.46M) is above average for companies of similar size in the German market ($USD3.68M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Lindner
Co-President15.58yrsUS$10.46m5.42%
$ 258.3m
Carl Lindner
Co-President29.58yrsUS$10.46m12.44%
$ 593.3m
Michelle Gillis
Senior VP & Chief Administrative Officer8.42yrsUS$1.08m0.041%
$ 2.0m
Vito Peraino
Senior VP & General Counsel8.42yrsUS$2.00m0.11%
$ 5.0m
James Evans
Executive Consultant & Director35.58yrsUS$614.16k0.14%
$ 6.6m
Brian Hertzman
VP, Interim Principal Financial Officer0.17yrno data0.013%
$ 635.8k
John Rogers
Chief Information Security Officer & Divisional VP4.67yrsno datano data
Diane Weidner
Vice President of Investor Relations11.08yrsno datano data
Karl Grafe
VP, Assistant General Counsel & Secretaryno datano datano data
David Witzgall
VP & Treasurer15.25yrsno datano data
F. Csorba
President of Ocean Marine Division of Property and Casualty Group4.33yrsno datano data
Mark Weiss
VP, Assistant General Counsel & Assistant Secretaryno datano datano data

8.4yrs

Average Tenure

65yo

Average Age

Experienced Management: QFI's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Lindner
Co-President15.58yrsUS$10.46m5.42%
$ 258.3m
Carl Lindner
Co-President29.58yrsUS$10.46m12.44%
$ 593.3m
James Evans
Executive Consultant & Director35.58yrsUS$614.16k0.14%
$ 6.6m
John Von Lehman
Independent Director12yrsUS$269.93k0.015%
$ 699.3k
Terry Jacobs
Independent Director17.17yrsUS$288.93k0.0056%
$ 265.7k
John Berding
Director8.25yrsUS$4.88m0.071%
$ 3.4m
William Verity
Independent Director18.58yrsUS$283.93k0.010%
$ 480.3k
Gregory Joseph
Lead Independent Director1.5yrsUS$314.77k0.12%
$ 5.7m
Kenneth Ambrecht
Independent Director15.25yrsUS$278.93k0.051%
$ 2.4m
Virginia Drosos
Independent Director7.5yrsUS$271.93k0.013%
$ 610.1k
Mary Martin
Independent Director1.5yrsUS$251.60k0.0043%
$ 204.1k

15.3yrs

Average Tenure

65yo

Average Age

Experienced Board: QFI's board of directors are seasoned and experienced ( 15.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: QFI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

American Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Financial Group, Inc.
  • Ticker: QFI
  • Exchange: DB
  • Founded: 1872
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: US$5.614b
  • Listing Market Cap: US$4.770b
  • Shares outstanding: 89.84m
  • Website: https://www.afginc.com

Number of Employees


Location

  • American Financial Group, Inc.
  • 301 East Fourth Street
  • Cincinnati
  • Ohio
  • 45202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFGNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1978
QFIDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1978
AFGDNYSE (New York Stock Exchange)5.625% SB DEB 60USUSDJun 2020

Biography

American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. The company operates through three segments: Property and Casualty Insu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/06 22:04
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
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.