DB:QFI

Stock Analysis Report

American Financial Group

Executive Summary

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

Snowflake

Fundamentals

Established dividend payer with proven track record.


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


Market Performance


7 Day Return

0%

DB:QFI

0.1%

DE Insurance

-0.6%

DE Market


1 Year Return

0%

DB:QFI

18.8%

DE Insurance

-8.3%

DE Market

QFI underperformed the Insurance industry which returned 20.9% over the past year.

QFI outperformed the Market in Germany which returned -6.7% over the past year.


Share holder returns

QFIIndustryMarket
7 Day0%0.1%-0.6%
30 Day1.1%3.2%1.8%
90 Day7.5%2.2%-3.2%
1 Year4.7%0%24.0%18.8%-5.4%-8.3%
3 Year63.9%43.4%83.8%61.6%19.3%8.9%
5 Year162.7%116.0%101.2%61.1%28.4%10.6%

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 based on future cash flows and its price relative to the stock market?

20%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

American Financial Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

American Financial Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

American Financial Group is good value based on earnings compared to the DE Insurance industry average.

American Financial Group is good value based on earnings compared to the Germany market.


Price Based on Expected Growth

American Financial Group is poor value based on expected growth next year.


Price Based on Value of Assets

American Financial Group is overvalued based on assets compared to the DE Insurance industry average.


Next Steps

Future Growth

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

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if American Financial Group is high growth as no revenue estimate data is available.

American Financial Group's earnings are expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).

Unable to compare American Financial Group's revenue growth to the Germany market average as no estimate data is available.

American Financial Group's earnings growth is positive but not above the Germany market average.

American Financial Group's earnings growth is expected to exceed the low risk savings rate of 0.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if American Financial Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

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

10.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

American Financial Group's year on year earnings growth rate has been positive over the past 5 years.

American Financial Group's 1-year earnings growth exceeds its 5-year average (52.9% vs 10.4%)

American Financial Group's earnings growth has exceeded the DE Insurance industry average in the past year (52.9% vs 9.4%).


Return on Equity

American Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

American Financial Group used its assets more efficiently than the DE Insurance industry average last year based on Return on Assets.


Return on Capital Employed

American Financial Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is American Financial Group's financial position?


Financial Position Analysis

American Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

American Financial Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

American Financial Group's level of debt (44.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (18.4% vs 44.9% today).

Debt is well covered by operating cash flow (84.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 15.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.8x debt.


Next Steps

Dividend

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

3.88%

Expected Dividend Yield


Dividend Yield and Payments Analysis

American Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).

American Financial Group's dividend is below the markets top 25% of dividend payers in Germany (3.85%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Stephen Lindner (64yo)

14.5yrs

Tenure

US$10,191,495

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

Stephen's remuneration is higher than average for companies of similar size in Germany.

Stephen's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

7.3yrs

Average Tenure

63.5yo

Average Age

The average tenure for the American Financial Group management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

15.1yrs

Average Tenure

65yo

Average Age

The average tenure for the American Financial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

American Financial Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€13,725,80724 Jun 19
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares150,000
Max Price€91.68
Sell€111,47919 Jun 19
William Verity
EntityIndividual
Role
Member of the Board of Directors
Shares1,200
Max Price€92.90
Sell€626,86207 Jun 19
John Berding
EntityIndividual
Role
Member of the Board of Directors
Shares6,934.34
Max Price€90.40
Sell€90,08206 Jun 19
James Evans
EntityIndividual
Role
Executive Consultant & Director
Member of the Board of Directors
Shares1,000
Max Price€90.08
Sell€60,71305 Jun 19
Terry Jacobs
EntityIndividual
Role
Member of the Board of Directors
Shares679
Max Price€89.41
Sell€177,50531 May 19
James Evans
EntityIndividual
Role
Executive Consultant & Director
Member of the Board of Directors
Shares2,000
Max Price€88.75
Sell€4,499,88824 May 19
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares50,000
Max Price€90.00
Sell€2,753,84107 May 19
Stephen Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares30,000
Max Price€91.79
Sell€15,006,34607 May 19
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares163,012
Max Price€92.55
Sell€6,398,91228 Mar 19
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares74,940
Max Price€85.44
Sell€5,658,67920 Mar 19
CHL Investments, LLC
EntityCompany
Shares65,406
Max Price€86.52
Sell€396,63720 Mar 19
CHL Investments, LLC
EntityCompany
Shares4,594
Max Price€86.34
Sell€1,160,46020 Mar 19
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares13,436
Max Price€86.42
Sell€696,61928 Feb 19
James Evans
EntityIndividual
Role
Executive Consultant & Director
Member of the Board of Directors
Shares8,000
Max Price€87.22
Sell€116,31213 Feb 19
John Von Lehman
EntityIndividual
Role
Member of the Board of Directors
Shares1,359
Max Price€85.59
Sell€8,750,97720 Dec 18
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares109,768
Max Price€79.73
Buy€81,79012 Dec 18
Gregory Joseph
EntityIndividual
Role
Lead Director
Shares1,000
Max Price€81.79
Sell€17,483,03224 Sep 18
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares181,000
Max Price€96.59
Sell€11,772,12117 Aug 18
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares119,448
Max Price€98.56
Sell€1,749,07016 Aug 18
John Berding
EntityIndividual
Role
Member of the Board of Directors
Shares17,721
Max Price€99.03
Sell€7,879,69310 Aug 18
Carl Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares80,552
Max Price€98.04
Sell€2,523,01707 Aug 18
Stephen Lindner
EntityIndividual
Role
Co-President
Member of the Board of Directors
Shares26,000
Max Price€97.04
Sell€303,57807 Aug 18
James Evans
EntityIndividual
Role
Executive Consultant & Director
Member of the Board of Directors
Shares3,132
Max Price€96.93

Ownership Breakdown


Management Team

  • Stephen Lindner (64yo)

    Co-President

    • Tenure: 14.5yrs
    • Compensation: $10.19m
  • JD Rogers

    Chief Information Security Officer & Divisional VP

    • Tenure: 3.6yrs
  • Michelle Gillis (50yo)

    Senior VP & Chief Administrative Officer

    • Tenure: 7.3yrs
    • Compensation: $1.05m
  • Carl Lindner (66yo)

    Co-President

    • Tenure: 14.5yrs
    • Compensation: $10.21m
  • James Evans (73yo)

    Executive Consultant & Director

    • Tenure: 5.5yrs
    • Compensation: $603.62k
  • Diane Weidner

    Assistant Vice President of Investor Relations

    • Tenure: 10.0yrs
  • Vito Peraino (63yo)

    Senior VP & General Counsel

    • Tenure: 7.3yrs
    • Compensation: $1.98m
  • Dave Witzgall

    VP & Treasurer

    • Tenure: 14.2yrs
  • Jeff Consolino (53yo)

    Executive VP

    • Tenure: 6.4yrs
    • Compensation: $4.68m
  • Karl Grafe

    VP, Assistant General Counsel & Secretary


Board Members

  • Stephen Lindner (64yo)

    Co-President

    • Tenure: 34.5yrs
    • Compensation: $10.19m
  • Carl Lindner (66yo)

    Co-President

    • Tenure: 28.5yrs
    • Compensation: $10.21m
  • James Evans (73yo)

    Executive Consultant & Director

    • Tenure: 34.5yrs
    • Compensation: $603.62k
  • John Von Lehman (66yo)

    Director

    • Tenure: 10.9yrs
    • Compensation: $259.41k
  • Terry Jacobs (76yo)

    Director

    • Tenure: 16.1yrs
    • Compensation: $278.41k
  • Kenneth Ambrecht (73yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: $268.41k
  • John Berding (56yo)

    Director

    • Tenure: 7.2yrs
    • Compensation: $4.79m
  • Greg Joseph (56yo)

    Lead Independent Director

    • Tenure: 0.4yrs
    • Compensation: $283.41k
  • Will Verity (60yo)

    Director

    • Tenure: 17.5yrs
    • Compensation: $273.41k
  • Jeff Consolino (53yo)

    Executive VP

    • Tenure: 3.6yrs
    • Compensation: $4.68m

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$9.431b
  • Listing Market Cap: US$8.402b
  • Shares outstanding: 89.69m
  • Website: Click here

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

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 Analysis2019/07/17 21:26
End of Day Share Price2019/07/17 00:00
Earnings2019/03/31
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.