American Equity Investment Life Holding
Market Cap
US$2.0b
Last Updated
2019/08/21 00:00 UTC
Data Sources
Company Financials +
Executive Summary
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States.
Snowflake
Fundamentals
Very undervalued with adequate balance sheet and pays a dividend.
Risks
- American Equity Investment Life Holding has significant price volatility in the past 3 months.
Similar Companies
Share Price & News
How has American Equity Investment Life Holding's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
3.8%
NYSE:AEL
0.5%
US Insurance
0.9%
US Market
1 Year Return
-40.3%
NYSE:AEL
8.8%
US Insurance
0.3%
US Market
AEL underperformed the Insurance industry which returned 8.8% over the past year.
AEL underperformed the Market in United States of America which returned 0.3% over the past year.
Share holder returns
| AEL | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.8% | 0.5% | 0.9% |
| 30 Day | -14.2% | -1.8% | -1.9% |
| 90 Day | -22.1% | 2.0% | 1.6% |
| 1 Year | -39.8%-40.3% | 11.5%8.8% | 2.6%0.3% |
| 3 Year | 37.3%33.4% | 45.8%34.8% | 41.0%31.8% |
| 5 Year | -4.6%-8.7% | 66.3%46.6% | 55.2%38.0% |
Price Volatility Vs. Market
How volatile is American Equity Investment Life Holding's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
American Equity Investment Life Holding Company (NYSE:AEL) Has Attractive Fundamentals3 weeks ago | Simply Wall St
American Equity Investment Life Holding Company (NYSE:AEL): What Does Its Beta Value Mean For Your Portfolio?1 month ago | Simply Wall St
Is American Equity Investment Life Holding Company's (NYSE:AEL) P/E Ratio Really That Good?Valuation
Is American Equity Investment Life Holding undervalued based on future cash flows and its price relative to the stock market?
>50%
Discount to future cash flow value
Intrinsic Value Based on Future Cash Flows
American Equity Investment Life Holding's share price is below the future cash flow value, and at a moderate discount (> 20%).
American Equity Investment Life Holding's share price is below the future cash flow value, and at a substantial discount (> 40%).
Price Based on Earnings
American Equity Investment Life Holding is good value based on earnings compared to the US Insurance industry average.
American Equity Investment Life Holding is good value based on earnings compared to the United States of America market.
Price Based on Expected Growth
American Equity Investment Life Holding is good value based on expected growth next year.
Price Based on Value of Assets
American Equity Investment Life Holding is good value based on assets compared to the US Insurance industry average.
Next Steps
Future Growth
How is American Equity Investment Life Holding expected to perform in the next 1 to 3 years based on estimates from 8 analysts?
34.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Estimates
Future Annual Growth Analysis
American Equity Investment Life Holding's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
American Equity Investment Life Holding's earnings are expected to grow significantly at over 20% yearly.
American Equity Investment Life Holding's revenue growth is positive but not above the United States of America market average.
American Equity Investment Life Holding's earnings growth is expected to exceed the United States of America market average.
American Equity Investment Life Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Earnings per Share Growth Estimates
Future Return on Equity
American Equity Investment Life Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
Next Steps
Past Performance
How has American Equity Investment Life Holding performed over the past 5 years?
21.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
American Equity Investment Life Holding has delivered over 20% year on year earnings growth in the past 5 years.
American Equity Investment Life Holding's 1-year earnings growth is negative, it can't be compared to the 5-year average.
American Equity Investment Life Holding's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.
Return on Equity
American Equity Investment Life Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
Return on Assets
American Equity Investment Life Holding used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
Return on Capital Employed
American Equity Investment Life Holding has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Next Steps
Financial Health
How is American Equity Investment Life Holding's financial position?
Financial Position Analysis
American Equity Investment Life Holding's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
American Equity Investment Life Holding's long term commitments exceed its cash and other short term assets.
Debt to Equity History and Analysis
American Equity Investment Life Holding's level of debt (21.1%) compared to net worth is satisfactory (less than 40%).
The level of debt compared to net worth has been reduced over the past 5 years (37.8% vs 21.1% today).
Debt is well covered by operating cash flow (278.5%, greater than 20% of total debt).
Interest payments on debt are well covered by earnings (EBIT is 7x coverage).
Balance Sheet
Low level of unsold assets.
Debt is covered by short term assets, assets are 3.6x debt.
Next Steps
Dividend
What is American Equity Investment Life Holding's current dividend yield, its reliability and sustainability?
1.44%
Expected Dividend Yield
Dividend Yield and Payments Analysis
American Equity Investment Life Holding's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.48%).
American Equity Investment Life Holding's dividend is below the markets top 25% of dividend payers in United States of America (3.83%).
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 thoroughly covered by earnings (8.3x coverage).
Future Payout to Shareholders
Dividends after 3 years are expected to be thoroughly covered by earnings (12.3x coverage).
Next Steps
Management
What is the CEO of American Equity Investment Life Holding's salary, the management and board of directors tenure and is there insider trading?
3.6yrs
Average management tenure
CEO
John Matovina (65yo)
7.2yrs
Tenure
US$3,552,535
Compensation
Mr. John Michael Matovina has been the Chief Executive Officer and President of American Equity Investment Life Holding Company since June 27, 2012. Mr. Matovina served as the Chief Financial Officer and TÂ ...
CEO Compensation Analysis
John's remuneration is about average for companies of similar size in United States of America.
John's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Management Age and Tenure
3.6yrs
Average Tenure
49yo
Average Age
The tenure for the American Equity Investment Life Holding management team is about average.
Board Age and Tenure
9.5yrs
Average Tenure
66.5yo
Average Age
The tenure for the American Equity Investment Life Holding board of directors is about average.
Insider Trading
American Equity Investment Life Holding individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Investment Officer Executive VP & Chief Investment Officer |
| Shares | 12,413 |
| Max Price | US$27.25 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 10,000 |
| Max Price | US$26.90 |
| Entity | Individual |
| Role | Chief Financial Officer CFO & Treasurer |
| Shares | 10,000 |
| Max Price | US$26.11 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 80,000 |
| Max Price | US$27.40 |
Ownership Breakdown
Management Team
Julie LaFollette
Director of Investor Relations
- Tenure: 0.0yrs
Ted Johnson (49yo)
CFO & Treasurer
- Tenure: 7.2yrs
- Compensation: US$1.95m
John Matovina (65yo)
Chairman
- Tenure: 7.2yrs
- Compensation: US$3.55m
Jeff Lorenzen (53yo)
Executive VP & Chief Investment Officer
- Tenure: 10.6yrs
- Compensation: US$1.68m
Ron Grensteiner (56yo)
President of American Equity Investment Life Insurance Company
- Tenure: 0.0yrs
- Compensation: US$1.86m
Scott Samuelson (46yo)
VP & Chief Accounting Officer
- Tenure: 2.2yrs
Renee Montz (47yo)
Executive VP
- Tenure: 3.3yrs
- Compensation: US$1.63m
Steven Schwartz
Vice President of Investor Relations
- Tenure: 3.6yrs
Harley Whitfield
Senior Vice President of Resolutions
- Tenure: 0.0yrs
Jennifer Bryant (47yo)
Executive VP & Chief HR Officer
- Tenure: 2.8yrs
Board Members
Bill Kunkel (62yo)
Director
- Tenure: 3.2yrs
- Compensation: US$176.30k
Joyce Chapman (74yo)
Director
- Tenure: 11.0yrs
- Compensation: US$183.04k
David Mulcahy (66yo)
Director
- Tenure: 8.6yrs
- Compensation: US$212.54k
James Gerlach (76yo)
Director
- Tenure: 23.6yrs
- Compensation: US$173.80k
John Matovina (65yo)
Chairman
- Tenure: 7.2yrs
- Compensation: US$3.55m
Debbie Richardson (62yo)
Director
- Tenure: 11.0yrs
- Compensation: US$169.30k
Lonnie Strickland (77yo)
Director
- Tenure: 23.6yrs
- Compensation: US$182.30k
Bob Howe (76yo)
Lead Independent Director
- Tenure: 10.0yrs
- Compensation: US$202.80k
Alan Matula (59yo)
Director
- Tenure: 3.7yrs
- Compensation: US$170.80k
Gerard Neugent (67yo)
Director
- Tenure: 9.0yrs
- Compensation: US$172.51k
Company Information
American Equity Investment Life Holding Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: American Equity Investment Life Holding Company
- Ticker: AEL
- Exchange: NYSE
- Founded: 1995
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$2.031b
- Shares outstanding: 90.98m
- Website: https://www.american-equity.com
Number of Employees
Location
- American Equity Investment Life Holding Company
- 6000 Westown Parkway
- West Des Moines
- Iowa
- 50266
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AEL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Dec 2003 |
Biography
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The company issues fixed index and rate annuities; and single  ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/08/21 00:00 |
| End of Day Share Price | 2019/08/20 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.