| Snowflake Score | |
|---|---|
| Valuation | 5/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 5/6 |
| Dividends | 4/6 |
AEL Overview
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States.
American Equity Investment Life Holding Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$28.72 |
| 52 Week High | US$19.06 |
| 52 Week Low | US$34.25 |
| Beta | 1.2 |
| 1 Month Change | -11.44% |
| 3 Month Change | -14.27% |
| 1 Year Change | 45.93% |
| 3 Year Change | -18.64% |
| 5 Year Change | 64.49% |
| Change since IPO | 217.35% |
Recent News & Updates
Shareholder Returns
| AEL | US Insurance | US Market | |
|---|---|---|---|
| 7D | -0.4% | -0.6% | -0.5% |
| 1Y | 45.9% | 42.4% | 37.5% |
Return vs Industry: AEL exceeded the US Insurance industry which returned 40.9% over the past year.
Return vs Market: AEL exceeded the US Market which returned 36.2% over the past year.
Price Volatility
| AEL volatility | |
|---|---|
| AEL Beta | 1.2 |
| Industry Beta | 0.97 |
| Market Beta | 1 |
Stable Share Price: AEL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: AEL's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1995 | 656 | Anant Bhalla | https://www.american-equity.com |
American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products in the United States. The company issues fixed index and rate annuities; and single premium immediate annuities. It markets its products through independent agents, including independent marketing organizations, broker/dealers, banks, and registered investment advisors.
American Equity Investment Life Holding Fundamentals Summary
| AEL fundamental statistics | |
|---|---|
| Market Cap | US$2.56b |
| Earnings (TTM) | US$861.14m |
| Revenue (TTM) | US$3.87b |
3.1x
P/E Ratio0.7x
P/S RatioIs AEL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AEL income statement (TTM) | |
|---|---|
| Revenue | US$3.87b |
| Cost of Revenue | US$3.64b |
| Gross Profit | US$229.96m |
| Expenses | -US$631.18m |
| Earnings | US$861.14m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 9.18 |
| Gross Margin | 5.95% |
| Net Profit Margin | 22.27% |
| Debt/Equity Ratio | 9.1% |
How did AEL perform over the long term?
See historical performance and comparisonDividends
1.1%
Current Dividend Yield3%
Payout RatioValuation
Is American Equity Investment Life Holding 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: AEL ($28.72) is trading below our estimate of fair value ($97.13)
Significantly Below Fair Value: AEL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AEL is good value based on its PE Ratio (3.1x) compared to the US Insurance industry average (9.5x).
PE vs Market: AEL is good value based on its PE Ratio (3.1x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: AEL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AEL is good value based on its PB Ratio (0.4x) compared to the US Insurance industry average (1.1x).
Future Growth
How is American Equity Investment Life Holding forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-10.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AEL's earnings are forecast to decline over the next 3 years (-10.8% per year).
Earnings vs Market: AEL's earnings are forecast to decline over the next 3 years (-10.8% per year).
High Growth Earnings: AEL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AEL's revenue is expected to decline over the next 3 years (-0.05% per year).
High Growth Revenue: AEL's revenue is forecast to decline over the next 3 years (-0.05% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AEL's Return on Equity is forecast to be low in 3 years time (10%).
Past Performance
How has American Equity Investment Life Holding performed over the past 5 years?
36.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AEL has high quality earnings.
Growing Profit Margin: AEL's current net profit margins (22.3%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: AEL's earnings have grown significantly by 36.6% per year over the past 5 years.
Accelerating Growth: AEL's earnings growth over the past year (258.1%) exceeds its 5-year average (36.6% per year).
Earnings vs Industry: AEL earnings growth over the past year (258.1%) exceeded the Insurance industry 76%.
Return on Equity
High ROE: AEL's Return on Equity (14.4%) is considered low.
Financial Health
How is American Equity Investment Life Holding's financial position?
Financial Position Analysis
Short Term Liabilities: AEL's short term assets ($13.4B) exceed its short term liabilities ($10.0B).
Long Term Liabilities: AEL's short term assets ($13.4B) do not cover its long term liabilities ($57.6B).
Debt to Equity History and Analysis
Debt Level: AEL's debt to equity ratio (9.1%) is considered satisfactory.
Reducing Debt: AEL's debt to equity ratio has reduced from 24.6% to 9.1% over the past 5 years.
Debt Coverage: AEL's debt is well covered by operating cash flow (393.1%).
Interest Coverage: AEL's interest payments on its debt are well covered by EBIT (38.3x coverage).
Balance Sheet
Dividend
What is American Equity Investment Life Holding current dividend yield, its reliability and sustainability?
1.11%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AEL's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: AEL's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (3.63%).
Stability and Growth of Payments
Stable Dividend: AEL's dividends per share have been stable in the past 10 years.
Growing Dividend: AEL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (3.5%), AEL's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AEL's dividends in 3 years are forecast to be thoroughly covered by earnings (7.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Anant Bhalla (43 yo)
1.5yrs
Tenure
US$9,417,160
Compensation
Mr. Anant Bhalla serves as President of the American Equity Investment Life Holding Company since January 27, 2020, its Chief Executive Officer since March 1, 2020 and Director since January 27, 2020 and s...
CEO Compensation Analysis
Compensation vs Market: Anant's total compensation ($USD9.42M) is above average for companies of similar size in the US market ($USD5.28M).
Compensation vs Earnings: Insufficient data to compare Anant's compensation with company performance.
Leadership Team
Experienced Management: AEL's management team is considered experienced (4.3 years average tenure).
Board Members
Experienced Board: AEL's board of directors are considered experienced (5.5 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
American Equity Investment Life Holding Company's 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$2.562b
- Shares outstanding: 92.51m
- 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
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 23:01 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.