ENXTAM:AGN

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 63.7% below its fair value

Earnings are forecast to grow 15.26% per year

Risk Analysis

Dividend of 7.47% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (1%) are lower than last year (4.5%)



Snowflake Analysis

Good value second-rate dividend payer.


Similar Companies

Wells Fargo

NYSE:WFC

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.8%

AGN

-1.5%

NL Insurance

0.2%

NL Market


1 Year Return

-10.4%

AGN

14.4%

NL Insurance

16.7%

NL Market

Return vs Industry: AGN underperformed the Dutch Insurance industry which returned 16.8% over the past year.

Return vs Market: AGN underperformed the Dutch Market which returned 16.2% over the past year.


Shareholder returns

AGNIndustryMarket
7 Day-1.8%-1.5%0.2%
30 Day-6.0%-1.7%1.8%
90 Day1.7%2.0%4.5%
1 Year-3.1%-10.4%21.8%14.4%21.9%16.7%
3 Year-5.1%-21.0%39.8%19.3%38.6%22.9%
5 Year-16.3%-37.1%56.9%20.4%59.4%27.6%

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

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 (€4.02) is trading below our estimate of fair value (€11.07)

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


Price To Earnings Ratio

PE vs Industry: AGN is poor value based on its PE Ratio (19.6x) compared to the Insurance industry average (12.8x).

PE vs Market: AGN is good value based on its PE Ratio (19.6x) compared to the Dutch market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: AGN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: AGN is good value based on its PB Ratio (0.3x) compared to the XE Insurance industry average (1.2x).


Next Steps

Future Growth

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

9.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AGN's forecast earnings growth (15.3% per year) is above the savings rate (-0.2%).

Earnings vs Market: AGN's earnings (9.2% per year) are forecast to grow slower than the Dutch market (11.1% 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 (-13.5% per year).

High Growth Revenue: AGN's revenue is forecast to decline over the next 3 years (-13.5% 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 (6.7%).


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

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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: AGN had negative earnings growth (-78.1%) over the past year, making it difficult to compare to the Insurance industry average (8.5%).


Return on Equity

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


Return on Assets


Return on Capital Employed


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 5.3x 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?

7.57%

Current Dividend Yield


Dividend Yield vs Market

company7.6%marketbottom25%2.1%markettop25%5.5%industryaverage4.7%forecastin3Years8.4%

Current dividend yield vs market & industry

Notable Dividend: AGN's dividend (7.47%) is higher than the bottom 25% of dividend payers in the Dutch market (2.12%).

High Dividend: AGN's dividend (7.47%) is in the top 25% of dividend payers in the Dutch market (5.63%)


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 high payout ratio (146.2%), AGN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AGN's dividends in 3 years are forecast to be well covered by earnings (45.3% 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?

3.7yrs

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 ($USD4.71M) is above average for companies of similar size in the Dutch market ($USD2.51M).

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


Management Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Management: AGN's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

61yo

Average Age

Experienced Board: AGN's board of directors are considered experienced (3.8 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

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


Management Team

  • Mark Mullin (56yo)

    Member of the Management Board

    • Tenure: 10yrs
  • Alex Wynaendts (59yo)

    CEO & Chairman of the Executive Board

    • Tenure: 11.8yrs
    • Compensation: €4.23m
  • Adrian Grace (56yo)

    Member of the Management Board

    • Tenure: 7.9yrs
  • Marco B. Keim (57yo)

    Head of Aegon Continental Europe & Member of the Management Board

    • Tenure: 11.6yrs
  • Matt Rider (56yo)

    CFO & Member of the Executive Board

    • Tenure: 2.7yrs
    • Compensation: €2.09m
  • Carla Mahieu (60yo)

    Global Head of HR & Member of the Management Board

    • Tenure: 3.4yrs
  • Maarten Edixhoven (48yo)

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

    • J. van Klinken (50yo)

      General Counsel

      • Tenure: 3.4yrs
    • Allegra Cristina Van Hövell-Patrizi (45yo)

      Chief Risk Officer & Member of the Management Board

      • Tenure: 4yrs
    • Mark Bloom (55yo)

      Global CTO & Member of the Management Board

      • Tenure: 3.4yrs

    Board Members

    • Dona Young (65yo)

      Supervisory Board Member

      • Tenure: 6.7yrs
    • Ben Noteboom (61yo)

      Supervisory Board Member

      • Tenure: 4.7yrs
    • Mark Ellman (62yo)

      Supervisory Board Member

      • Tenure: 2.7yrs
    • Ben van der Veer (68yo)

      Supervisory Board Member

      • Tenure: 11.3yrs
    • Bill Connelly (61yo)

      Supervisory Board Chairman

      • Tenure: 1.7yrs
    • Maarten Edixhoven (48yo)

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

      • Corien Wortmann-Kool (60yo)

        Supervisory Board Vice Chairman

        • Tenure: 3yrs

      Company Information

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


      Key Information

      • Name: Aegon N.V.
      • Ticker: AGN
      • Exchange: ENXTAM
      • Founded: 1983
      • Industry: Life and Health Insurance
      • Sector: Insurance
      • Market Cap: €7.846b
      • 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
      AGNWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1988
      AGNENXTAM (Euronext Amsterdam)YesCommon SharesNLEURJul 1988
      0Q0YLSE (London Stock Exchange)YesCommon SharesGBEURJul 1988
      AGNBIT (Borsa Italiana)YesCommon SharesITEURJul 1988
      AENDXTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 1988
      AENDDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1988
      AGNSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1988
      AGNABATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1988
      AEGO.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 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 Analysis2020/01/16 20:44
      End of Day Share Price2020/01/16 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.