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AEL

American Equity Investment Life HoldingNYSE:AEL Stock Report

Market Cap

US$2.6b

7D

-0.4%

1Y

45.9%

Updated

23 Sep, 2021

Data

Company Financials +
AEL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends4/6

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

MetLife

NYSE:MET

US$50.9b

Primerica

NYSE:PRI

US$5.8b

Brighthouse Financial

NasdaqGS:BHF

US$3.4b

CNO Financial Group

NYSE:CNO

US$2.9b

Price History & Performance

Summary of all time highs, changes and price drops for American Equity Investment Life Holding
Historical stock prices
Current Share PriceUS$28.72
52 Week HighUS$19.06
52 Week LowUS$34.25
Beta1.2
1 Month Change-11.44%
3 Month Change-14.27%
1 Year Change45.93%
3 Year Change-18.64%
5 Year Change64.49%
Change since IPO217.35%

Recent News & Updates

Shareholder Returns

AELUS InsuranceUS Market
7D-0.4%-0.6%-0.5%
1Y45.9%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

Is AEL's price volatile compared to industry and market?
AEL volatility
AEL Beta1.2
Industry Beta0.97
Market Beta1

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

FoundedEmployeesCEOWebsite
1995656Anant Bhallahttps://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

How do American Equity Investment Life Holding's earnings and revenue compare to its market cap?
AEL fundamental statistics
Market CapUS$2.56b
Earnings (TTM)US$861.14m
Revenue (TTM)US$3.87b

3.1x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AEL income statement (TTM)
RevenueUS$3.87b
Cost of RevenueUS$3.64b
Gross ProfitUS$229.96m
Expenses-US$631.18m
EarningsUS$861.14m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)9.18
Gross Margin5.95%
Net Profit Margin22.27%
Debt/Equity Ratio9.1%

How did AEL perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

3%

Payout Ratio

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:01
End of Day Share Price2021/09/23 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.