LSE:0Q0Y

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: 0Q0Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.4%

0Q0Y

-0.9%

GB Insurance

-0.5%

GB Market


1 Year Return

-26.4%

0Q0Y

-1.6%

GB Insurance

6.0%

GB Market

Return vs Industry: 0Q0Y underperformed the UK Insurance industry which returned -1.6% over the past year.

Return vs Market: 0Q0Y underperformed the UK Market which returned 6% over the past year.


Shareholder returns

0Q0YIndustryMarket
7 Day-7.4%-0.9%-0.5%
30 Day-10.3%2.2%-1.8%
90 Day-15.4%8.0%2.4%
1 Year-20.4%-26.4%9.4%-1.6%11.5%6.0%
3 Year-17.3%-31.1%18.7%-2.5%18.2%3.5%
5 Year-32.3%-49.2%30.5%-2.9%34.3%3.5%

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: 0Q0Y (€3.51) is trading below our estimate of fair value (€10.7)

Significantly Below Fair Value: 0Q0Y is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0Q0Y is poor value based on its PE Ratio (17.2x) compared to the Insurance industry average (14.6x).

PE vs Market: 0Q0Y is good value based on its PE Ratio (17.2x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0Q0Y is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: 0Q0Y is good value based on its PB Ratio (0.3x) compared to the GB Insurance industry average (1.8x).


Next Steps

Future Growth

How is Aegon forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0Q0Y's forecast earnings growth (5.4% per year) is above the savings rate (0.5%).

Earnings vs Market: 0Q0Y's earnings (5.4% per year) are forecast to grow slower than the UK market (13.1% per year).

High Growth Earnings: 0Q0Y's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0Q0Y's revenue is expected to decline over the next 3 years (-6.4% per year).

High Growth Revenue: 0Q0Y's revenue is forecast to decline over the next 3 years (-6.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0Q0Y's Return on Equity is forecast to be low in 3 years time (7.4%).


Next Steps

Past Performance

How has Aegon performed over the past 5 years?

24.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0Q0Y has a large one-off loss of €136.0M impacting its June 30 2019 financial results.

Growing Profit Margin: 0Q0Y's current net profit margins (1%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: 0Q0Y's earnings have grown significantly by 24.2% per year over the past 5 years.

Accelerating Growth: 0Q0Y's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0Q0Y had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Insurance industry average (23.4%).


Return on Equity

High ROE: 0Q0Y's Return on Equity (2.2%) 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: 0Q0Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0Q0Y's debt is covered by short term assets (assets are 5.3x debt).


Financial Institutions Analysis

Asset Level: 0Q0Y's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 0Q0Y has a sufficient allowance for bad loans.

Low Risk Liabilities: 0Q0Y reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0Q0Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0Q0Y has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0Q0Y has an appropriate level of bad loans.


Next Steps

Dividend

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

9.31%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 25 2020Ex Dividend DateMay 19 2020Dividend Pay DateJun 19 202031 days from Ex DividendBuy in the next 83 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: 0Q0Y's dividend (9.09%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: 0Q0Y's dividend (9.09%) is in the top 25% of dividend payers in the UK market (5.03%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0Q0Y has been paying a dividend for less than 10 years.

Growing Dividend: 0Q0Y'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%), 0Q0Y's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0Q0Y's dividends in 3 years are forecast to be well covered by earnings (44.8% payout ratio).


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Alex Wynaendts (59yo)

11.8yrs

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 ($USD4.59M) is above average for companies of similar size in the UK market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Wynaendts
CEO & Chairman of the Executive Board11.8yrs€4.23m0.031% 2.1m
Matthew Rider
CFO & Member of the Executive Board2.8yrs€2.09m0.0010% 70.1k
Marco B. Keim
Head of Aegon International & Aegon Continental Europe and Member of the Management Board11.7yrsno datano data
Mark Mullin
Member of the Management Board10.1yrsno datano data
C. M. Mahieu
Global Head of HR & Member of the Management Board3.5yrsno datano data
Adrian Grace
Member of the Management Board8yrsno datano data
Allegra Cristina Van Hövell-Patrizi
Chief Risk Officer & Member of the Management Board4.1yrsno datano data
J. van Klinken
General Counsel3.5yrsno datano data
Mark Bloom
Global CTO & Member of the Management Board3.5yrsno datano data
Maarten Edixhoven
Chairman & CEO of Aegon the Nederland and Member of Management Board0yrsno datano data

3.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 0Q0Y's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Maarten Edixhoven
Chairman & CEO of Aegon the Nederland and Member of Management Board0yrsno datano data
Dona Young
Supervisory Board Member6.8yrsno data0.00067% 45.6k
Ben Noteboom
Supervisory Board Member4.8yrsno data0.0012% 81.0k
Mark Ellman
Supervisory Board Member2.8yrsno datano data
B. van der Veer
Supervisory Board Member11.3yrsno data0.000070% 4.8k
William L. Connelly
Supervisory Board Chairman1.8yrsno datano data
Corien Wortmann-Kool
Supervisory Board Vice Chairman3.1yrsno datano data

3.9yrs

Average Tenure

61yo

Average Age

Experienced Board: 0Q0Y's board of directors are considered experienced (3.9 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: 0Q0Y
  • Exchange: LSE
  • Founded: 1983
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: €6.808b
  • Shares outstanding: 1.98b
  • 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 Analysis2020/02/25 20:52
End of Day Share Price2020/02/25 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.