American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States.
Undervalued with solid track record and pays a dividend.
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
Stable Share Price: AEL's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: AEL exceeded the US Insurance industry which returned -12.3% over the past year.
Return vs Market: AEL underperformed the US Market which returned 15.9% over the past year.
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
3 days ago | Simply Wall StDoes American Equity Investment Life Holding Company (NYSE:AEL) Have A Place In Your Dividend Portfolio?
4 weeks ago | Simply Wall StHow Much Are American Equity Investment Life Holding Company (NYSE:AEL) Insiders Taking Off The Table?
1 month ago | Simply Wall StDo You Like American Equity Investment Life Holding Company (NYSE:AEL) At This P/E Ratio?
Is American Equity Investment Life Holding undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AEL ($25.34) is trading below our estimate of fair value ($80.77)
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 (4.5x) compared to the US Insurance industry average (14.3x).
PE vs Market: AEL is good value based on its PE Ratio (4.5x) compared to the US market (18x).
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 (0.7x) compared to the US Insurance industry average (0.9x).
How is American Equity Investment Life Holding forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
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 (-11.3% per year).
Earnings vs Market: AEL's earnings are forecast to decline over the next 3 years (-11.3% per year).
High Growth Earnings: AEL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AEL's revenue (6.2% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: AEL's revenue (6.2% per year) is forecast to grow slower than 20% 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 (12.6%).
How has American Equity Investment Life Holding performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AEL has high quality earnings.
Growing Profit Margin: AEL's current net profit margins (23.9%) are higher than last year (11.8%).
Past Earnings Growth Analysis
Earnings Trend: AEL's earnings have grown by 18.8% per year over the past 5 years.
Accelerating Growth: AEL's earnings growth over the past year (79%) exceeds its 5-year average (18.8% per year).
Earnings vs Industry: AEL earnings growth over the past year (79%) exceeded the Insurance industry -5.5%.
Return on Equity
High ROE: AEL's Return on Equity (14.7%) is considered low.
How is American Equity Investment Life Holding's financial position?
Financial Position Analysis
Short Term Liabilities: AEL's short term assets ($2.6B) do not cover its short term liabilities ($9.1B).
Long Term Liabilities: AEL's short term assets ($2.6B) do not cover its long term liabilities ($52.9B).
Debt to Equity History and Analysis
Debt Level: AEL's debt to equity ratio (21.4%) is considered satisfactory.
Reducing Debt: AEL's debt to equity ratio has reduced from 29.6% to 21.4% over the past 5 years.
Debt Coverage: AEL's debt is well covered by operating cash flow (142.7%).
Interest Coverage: AEL's interest payments on its debt are well covered by EBIT (16.9x coverage).
What is American Equity Investment Life Holding current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AEL's dividend (1.18%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: AEL's dividend (1.18%) is low compared to the top 25% of dividend payers in the US market (4.54%).
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 (5.3%), 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 (7.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Anant Bhalla (42 yo)
Mr. Anant Bhalla is President and Director at American Equity Investment Life Holding Company since January 27, 2020 and serves as its Chief Executive Officer since March 1, 2020. Mr. Bhalla has been a par ...
|CFO & Treasurer||8.17yrs||US$1.99m||0.12% |
|Executive VP & Chief Investment Officer||11.58yrs||US$1.76m||0.070% |
|Executive VP||4.33yrs||US$1.64m||0.045% |
|Executive VP & President of American Equity Investment Life Insurance Company||no data||US$2.02m||0.15% |
|President||0.42yr||no data||0.055% |
|VP & Chief Accounting Officer||3.17yrs||no data||0.035% |
|Vice President of Investor Relations||4.58yrs||no data||no data|
|Executive VP & Chief HR Officer||3.83yrs||no data||0.012% |
|Senior Vice President of Resolutions||no data||no data||no data|
|Director of Investor Relations||no data||no data||no data|
|Private Placement Originator||no data||no data||no data|
Experienced Management: AEL's management team is considered experienced (4.3 years average tenure).
|President||0.42yr||no data||0.055% |
|Independent Director||4.17yrs||US$191.34k||0.061% |
|Independent Director||12yrs||US$197.84k||0.032% |
|Independent Director||3.42yrs||US$199.34k||0.014% |
|Independent Director||9.58yrs||US$1.02m||0.12% |
|Independent Director||24.58yrs||US$188.34k||0.25% |
|Non-Executive Chairman||3.33yrs||US$4.46m||0.29% |
|Independent Director||24.58yrs||US$197.84k||0.30% |
|Lead Independent Director||11yrs||US$217.84k||0.061% |
|Independent Director||0.17yr||no data||0.0046% |
|Independent Director||4.67yrs||US$190.34k||0.029% |
|Independent Director||10yrs||US$186.34k||0.087% |
Experienced Board: AEL's board of directors are considered experienced (7.1 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
American Equity Investment Life Holding Company's company bio, employee growth, exchange listings and data sources
- Name: American Equity Investment Life Holding Company
- Ticker: AEL
- Exchange: NYSE
- Founded: 1995
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$2.384b
- Shares outstanding: 91.53m
- Website: https://www.american-equity.com
Number of Employees
- American Equity Investment Life Holding Company
- 6000 Westown Parkway
- West Des Moines
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|AEL||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Dec 2003|
|AEL.PRA||NYSE (New York Stock Exchange)||5.95 DP 1/1000 A||US||USD||Nov 2019|
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||2020/08/05 00:25|
|End of Day Share Price||2020/08/04 00:00|
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.