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American Equity Investment Life Holding

NYSE:AEL
Snowflake Description

Very undervalued with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AEL
NYSE
$2B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The last earnings update was 72 days ago. More info.


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AEL Share Price and Events
7 Day Returns
-3.3%
NYSE:AEL
-0.2%
US Insurance
-0.3%
US Market
1 Year Returns
-24.5%
NYSE:AEL
14.9%
US Insurance
3.9%
US Market
AEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Equity Investment Life Holding (AEL) -3.3% -2.5% -7.1% -24.5% 63.3% 13.8%
US Insurance -0.2% 2.5% 9.4% 14.9% 39.3% 51.4%
US Market -0.3% 2.3% 2.3% 3.9% 36.7% 41.8%
1 Year Return vs Industry and Market
  • AEL underperformed the Insurance industry which returned 14.9% over the past year.
  • AEL underperformed the Market in United States of America which returned 3.9% over the past year.
Price Volatility
AEL
Industry
5yr Volatility vs Market

Value

 Is American Equity Investment Life Holding undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Equity Investment Life Holding to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Equity Investment Life Holding.

NYSE:AEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity
= $35.75 * 13.1%
$4.68
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $35.75
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:AEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.685 (1 + (1- 21%) (40.7%))
0.937
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.937 * 5.96%)
8.31%

Discounted Cash Flow Calculation for NYSE:AEL using Excess Returns Model Model

The calculations below outline how an intrinsic value for American Equity Investment Life Holding is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:AEL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.1% – 8.31%) * $35.75)
$1.71
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.71 / (8.31% - 2.73%)
$30.59
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $35.75 + $30.59
$66.34
NYSE:AEL Discount to Share Price
Calculation Result
Value per share (USD) From above. $66.34
Current discount Discount to share price of $26.53
= -1 x ($26.53 - $66.34) / $66.34
60%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price American Equity Investment Life Holding is available for.
Intrinsic value
>50%
Share price is $26.53 vs Future cash flow value of $66.34
Current Discount Checks
For American Equity Investment Life Holding to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Equity Investment Life Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Equity Investment Life Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.17
NYSE:AEL Share Price ** NYSE (2019-07-19) in USD $26.53
United States of America Insurance Industry PE Ratio Median Figure of 89 Publicly-Listed Insurance Companies 17.51x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Equity Investment Life Holding.

NYSE:AEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AEL Share Price ÷ EPS (both in USD)

= 26.53 ÷ 3.17

8.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does American Equity Investment Life Holding's expected growth come at a high price?
Raw Data
NYSE:AEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
9.4%per year
United States of America Insurance Industry PEG Ratio Median Figure of 62 Publicly-Listed Insurance Companies 1.74x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NYSE:AEL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.37x ÷ 9.4%

0.89x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Equity Investment Life Holding is good value based on expected growth next year.
Price based on value of assets
What value do investors place on American Equity Investment Life Holding's assets?
Raw Data
NYSE:AEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $32.38
NYSE:AEL Share Price * NYSE (2019-07-19) in USD $26.53
United States of America Insurance Industry PB Ratio Median Figure of 118 Publicly-Listed Insurance Companies 1.24x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.8x
NYSE:AEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AEL Share Price ÷ Book Value per Share (both in USD)

= 26.53 ÷ 32.38

0.82x

* Primary Listing of American Equity Investment Life Holding.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Equity Investment Life Holding is good value based on assets compared to the US Insurance industry average.
X
Value checks
We assess American Equity Investment Life Holding's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. American Equity Investment Life Holding has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is American Equity Investment Life Holding expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Equity Investment Life Holding expected to grow at an attractive rate?
  • American Equity Investment Life Holding's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • American Equity Investment Life Holding's earnings growth is positive but not above the United States of America market average.
  • American Equity Investment Life Holding's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AEL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 9.4%
NYSE:AEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 4.1%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 8.5%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:AEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AEL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 2,661 342 2
2020-12-31 2,708 343 6
2019-12-31 2,522 278 6
NYSE:AEL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,429 1,598 287
2018-12-31 1,546 43 458
2018-09-30 3,235 1,243 441
2018-06-30 2,966 947 329
2018-03-31 3,101 983 262
2017-12-31 3,910 1,924 175
2017-09-30 3,292 1,736 259
2017-06-30 2,997 1,823 194
2017-03-31 2,728 1,771 182
2016-12-31 2,221 1,416 83
2016-09-30 2,141 1,378 -4
2016-06-30 1,641 662 101

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Equity Investment Life Holding's earnings are expected to grow by 9.4% yearly, however this is not considered high growth (20% yearly).
  • American Equity Investment Life Holding's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from American Equity Investment Life Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AEL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 3.70 3.82 3.59 2.00
2020-12-31 3.46 4.00 2.96 3.00
2019-12-31 2.77 3.90 2.16 3.00
NYSE:AEL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.17
2018-12-31 5.07
2018-09-30 4.90
2018-06-30 3.66
2018-03-31 2.93
2017-12-31 1.96
2017-09-30 2.92
2017-06-30 2.21
2017-03-31 2.11
2016-12-31 0.98
2016-09-30 -0.05
2016-06-30 1.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American Equity Investment Life Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess American Equity Investment Life Holding's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Equity Investment Life Holding has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has American Equity Investment Life Holding performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Equity Investment Life Holding's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 less than its 5-year average (9.7% vs 20.5%)
  • American Equity Investment Life Holding's earnings growth has exceeded the US Insurance industry average in the past year (9.7% vs 4%).
Earnings and Revenue History
American Equity Investment Life Holding's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Equity Investment Life Holding Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AEL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,429.49 287.04
2018-12-31 1,546.23 458.02
2018-09-30 3,235.03 441.00
2018-06-30 2,965.83 328.63
2018-03-31 3,100.82 261.67
2017-12-31 3,910.21 174.65
2017-09-30 3,291.93 258.64
2017-06-30 2,997.06 194.26
2017-03-31 2,727.74 182.02
2016-12-31 2,220.76 83.24
2016-09-30 2,141.39 -3.78
2016-06-30 1,641.29 100.95
2016-03-31 1,530.77 169.09
2015-12-31 1,521.28 219.83
2015-09-30 1,576.49 217.27
2015-06-30 1,907.32 187.78
2015-03-31 2,146.21 141.68
2014-12-31 2,186.34 126.02
2014-09-30 2,457.53 145.76
2014-06-30 2,579.09 134.13
2014-03-31 2,344.29 217.50
2013-12-31 2,638.23 253.28
2013-09-30 2,126.54 238.72
2013-06-30 2,049.95 174.71
2013-03-31 1,802.61 73.36
2012-12-31 1,656.62 57.80
2012-09-30 1,568.31 71.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • American Equity Investment Life Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • American Equity Investment Life Holding used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • American Equity Investment Life Holding has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Equity Investment Life Holding's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Equity Investment Life Holding has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is American Equity Investment Life Holding's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Equity Investment Life Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of American Equity Investment Life Holding's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Equity Investment Life Holding Company Filings, last reported 3 months ago.

NYSE:AEL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,939.54 981.24 1,116.16
2018-12-31 2,399.10 846.87 345.35
2018-09-30 2,489.30 853.74 1,131.61
2018-06-30 2,426.83 737.11 1,261.64
2018-03-31 2,546.99 874.11 725.10
2017-12-31 2,850.16 737.45 1,434.46
2017-09-30 2,762.67 761.35 1,286.03
2017-06-30 2,651.41 1,194.38 1,575.38
2017-03-31 2,436.23 737.75 1,173.55
2016-12-31 2,291.60 737.72 792.35
2016-09-30 2,812.86 740.14 813.12
2016-06-30 2,613.39 641.36 1,547.47
2016-03-31 2,234.32 640.41 707.92
2015-12-31 1,944.54 637.82 399.16
2015-09-30 2,149.91 650.93 525.11
2015-06-30 1,907.76 671.15 736.14
2015-03-31 2,326.72 687.23 295.86
2014-12-31 2,139.88 670.57 704.29
2014-09-30 1,975.08 803.93 792.44
2014-06-30 1,913.81 722.49 1,468.32
2014-03-31 1,654.95 768.55 684.10
2013-12-31 1,384.69 796.01 904.34
2013-09-30 1,394.67 1,085.86 940.29
2013-06-30 1,442.08 709.52 752.73
2013-03-31 1,730.23 562.48 885.82
2012-12-31 1,720.24 560.00 1,271.79
2012-09-30 1,714.95 556.84 2,400.69
  • American Equity Investment Life Holding's level of debt (33.4%) 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 (46.3% vs 33.4% today).
  • Debt is well covered by operating cash flow (162.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
X
Financial health checks
We assess American Equity Investment Life Holding's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Equity Investment Life Holding has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is American Equity Investment Life Holding's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.06%
Current annual income from American Equity Investment Life Holding dividends. Estimated to be 1.2% next year.
If you bought $2,000 of American Equity Investment Life Holding shares you are expected to receive $21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Equity Investment Life Holding's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • American Equity Investment Life Holding's dividend is below the markets top 25% of dividend payers in United States of America (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:AEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AEL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.34 4.00
2020-12-31 0.32 5.00
2019-12-31 0.30 5.00
NYSE:AEL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-11-15 0.280 0.955
2017-11-16 0.260 0.788
2016-11-17 0.240 0.943
2015-11-19 0.220 1.311
2014-11-20 0.200 0.745
2013-11-21 0.180 0.765
2013-07-15 0.150 0.741
2013-07-11 0.150 0.882
2013-06-18 0.150 0.936
2013-03-07 0.150 0.982
2013-02-20 0.150 1.081
2012-08-06 0.120 1.001
2012-08-03 0.120 1.072
2011-11-18 0.120 1.061
2010-11-19 0.100 0.858
2009-11-25 0.080 0.846
2008-11-24 0.070 1.180

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of American Equity Investment Life Holding's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (11.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (12.4x coverage).
X
Income/ dividend checks
We assess American Equity Investment Life Holding's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Equity Investment Life Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Equity Investment Life Holding has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

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?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Matovina
COMPENSATION $3,552,535
AGE 65
TENURE AS CEO 7.1 years
CEO Bio

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 Treasurer of American Equity Investment Life Holding Co. from January 1, 2009 to June 27, 2012 and served as its Interim Chief Executive Officer and Interim President from June 8, 2012 to June 27, 2012. He has been the Chief Financial Officer and Treasurer of Eagle Life Insurance Company since 2008. He served as the Chief Financial Officer and Treasurer of American Equity Investment Life Insurance Company and American Equity Investment Life Holding Company since January 1, 2009 until 2012. Mr. Matovina was a private investor and a financial consultant at American Equity Investment Life Holding Company from 1997 to 2003. Mr. Matovina has over 25 years of experience in the insurance industry. From November 1983 to November 1996, he served as the Senior Financial Officer of The Statesman Group, Inc. and many of its subsidiaries. Prior to September 1994, he served as the Chief Financial Officer, Treasurer and Secretary of Statesman. He has been Chairman of American Equity Investment Life Holding Co. since April 2017. He has been Vice Chairman of American Equity Investment Life Insurance Company since June 2003. He served as Vice Chairman of American Equity Investment Life Holding Co. since June 2003 until April 2017. He has been a Director of American Equity Investment Life Holding Company and its subsidiary, American Equity Investment Life Insurance Company since 2000. He has been a Director of Eagle Life Insurance Company since 2008. He is a Certified Public Accountant.

CEO Compensation
  • John's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • John's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the American Equity Investment Life Holding management team in years:

3.5
Average Tenure
49
Average Age
  • The tenure for the American Equity Investment Life Holding management team is about average.
Management Team

John Matovina

TITLE
Chairman
COMPENSATION
$4M
AGE
65
TENURE
7.1 yrs

Ted Johnson

TITLE
CFO & Treasurer
COMPENSATION
$2M
AGE
49
TENURE
7.1 yrs

Jeff Lorenzen

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$2M
AGE
53
TENURE
10.5 yrs

Renee Montz

TITLE
Executive VP
COMPENSATION
$2M
AGE
47
TENURE
3.3 yrs

Ron Grensteiner

TITLE
President of American Equity Investment Life Insurance Company
COMPENSATION
$2M
AGE
56

Scott Samuelson

TITLE
VP & Chief Accounting Officer
AGE
46
TENURE
2.1 yrs

Steven Schwartz

TITLE
Vice President of Investor Relations
TENURE
3.5 yrs

Jennifer Bryant

TITLE
Executive VP & Chief HR Officer
AGE
47
TENURE
2.8 yrs

Harley Whitfield

TITLE
Senior Vice President of Resolutions

Julie LaFollette

TITLE
Director of Investor Relations
Board of Directors Tenure

Average tenure and age of the American Equity Investment Life Holding board of directors in years:

9.4
Average Tenure
66.5
Average Age
  • The tenure for the American Equity Investment Life Holding board of directors is about average.
Board of Directors

John Matovina

TITLE
Chairman
COMPENSATION
$4M
AGE
65
TENURE
2.3 yrs

David Mulcahy

TITLE
Director
COMPENSATION
$213K
AGE
66
TENURE
8.5 yrs

Lonnie Strickland

TITLE
Director
COMPENSATION
$182K
AGE
77
TENURE
23.5 yrs

Joyce Chapman

TITLE
Director
COMPENSATION
$183K
AGE
74
TENURE
10.9 yrs

Bill Kunkel

TITLE
Director
COMPENSATION
$176K
AGE
62
TENURE
3.1 yrs

Bob Howe

TITLE
Lead Independent Director
COMPENSATION
$203K
AGE
76
TENURE
9.9 yrs

James Gerlach

TITLE
Director
COMPENSATION
$174K
AGE
76
TENURE
23.5 yrs

Debbie Richardson

TITLE
Director
COMPENSATION
$169K
AGE
62
TENURE
10.9 yrs

Gerard Neugent

TITLE
Director
COMPENSATION
$173K
AGE
67
TENURE
8.9 yrs

Alan Matula

TITLE
Director
COMPENSATION
$171K
AGE
59
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • American Equity Investment Life Holding individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
01. Jul 19 Sell Jeffrey Lorenzen Individual 28. Jun 19 28. Jun 19 -12,413 $27.25 $-338,254
01. Jul 19 Sell Joyce Chapman Individual 28. Jun 19 28. Jun 19 -10,000 $26.90 $-269,000
27. Jun 19 Sell Ted Johnson Individual 26. Jun 19 26. Jun 19 -10,000 $26.11 $-261,100
20. Jun 19 Sell Debra Richardson Individual 18. Jun 19 18. Jun 19 -80,000 $27.40 $-2,192,144
X
Management checks
We assess American Equity Investment Life Holding's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Equity Investment Life Holding has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is American Equity Investment Life Holding Company's (NYSE:AEL) P/E Ratio Really That Good?

We'll look at American Equity Investment Life Holding Company's (NYSE:AEL) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for American Equity Investment Life Holding How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for American Equity Investment Life Holding: P/E of 8.52 = $26.99 ÷ $3.17 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Does American Equity Investment Life Holding Company's (NYSE:AEL) Stock Price Account For Its Growth?

See our latest analysis for American Equity Investment Life Holding Where's the growth? … American Equity Investment Life Holding is poised for significantly high earnings growth in the near future. … A PE ratio of 8.51x and expected year-on-year earnings growth of 16% give American Equity Investment Life Holding a very low PEG ratio of 0.54x.

Simply Wall St -

How Does American Equity Investment Life Holding Company (NYSE:AEL) Fare As A Dividend Stock?

Is American Equity Investment Life Holding Company (NYSE:AEL) a good dividend stock? … Conclusion To summarise, shareholders should always check that American Equity Investment Life Holding's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … American Equity Investment Life Holding might not be a bad business, but it doesn't show all of the characteristics we look for in a dividend stock.

Simply Wall St -

American Equity Investment Life Holding (NYSE:AEL) Shareholders Booked A 84% Gain In The Last Three Years

For example, American Equity Investment Life Holding Company (NYSE:AEL) shareholders have seen the share price rise 84% over three years, well in excess of the market return (33%, not including dividends). … View our latest analysis for American Equity Investment Life Holding To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … During three years of share price growth, American Equity Investment Life Holding achieved compound earnings per share growth of 15% per year.

Simply Wall St -

Does American Equity Investment Life Holding Company's (NYSE:AEL) Past Performance Indicate A Stronger Future?

In this commentary, I will examine American Equity Investment Life Holding Company's (NYSE:AEL) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the insurance industry performed. … Furthermore, its return on assets (ROA) of 0.5% is below the US Insurance industry of 2.6%, indicating American Equity Investment Life Holding's are utilized less efficiently. … However, its return on capital (ROC), which also accounts for American Equity Investment Life Holding’s debt level, has increased over the past 3 years from 0.7% to 0.7%.

Simply Wall St -

Here's Why I Think American Equity Investment Life Holding (NYSE:AEL) Might Deserve Your Attention Today

View our latest analysis for American Equity Investment Life Holding? … I note that, last year, American Equity Investment Life Holding's revenue from operations was lower than its revenue, so that could distort my analysis of its margins. … American Equity Investment Life Holding's EBIT margins are flat but, of some concern, its revenue is actually down.

Simply Wall St -

Is American Equity Investment Life Holding Company (NYSE:AEL) A High Quality Stock To Own?

To keep the lesson grounded in practicality, we'll use ROE to better understand American Equity Investment Life Holding Company (NYSE:AEL). … Our data shows American Equity Investment Life Holding has a return on equity of 19% for the last year. … View our latest analysis for American Equity Investment Life Holding?

Simply Wall St -

These Factors Make American Equity Investment Life Holding Company (NYSE:AEL) An Interesting Investment

Attractive stocks have exceptional fundamentals. … In the case of American Equity Investment Life Holding Company (NYSE:AEL), there's … dividend-paying company

Simply Wall St -

Does American Equity Investment Life Holding Company's (NYSE:AEL) CEO Pay Reflect Performance?

In 2012 John Matovina was appointed CEO of American Equity Investment Life Holding Company (NYSE:AEL). … See our latest analysis for American Equity Investment Life Holding … How Does John Matovina's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Does American Equity Investment Life Holding Company's (NYSE:AEL) P/E Ratio Signal A Buying Opportunity?

To keep it practical, we'll show how American Equity Investment Life Holding Company's (NYSE:AEL) P/E ratio could help you assess the value on offer. … American Equity Investment Life Holding has a P/E ratio of 6.41, based on the last twelve months. … View our latest analysis for American Equity Investment Life Holding?

Simply Wall St -

Company Info

Description

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 premium immediate annuities, as well as life insurance products. It markets its products through independent agents, including national marketing organizations, broker/dealers, banks, and registered investment advisors. The company was founded in 1995 and is headquartered in West Des Moines, Iowa.

Details
Name: American Equity Investment Life Holding Company
AEL
Exchange: NYSE
Founded: 1995
$2,411,056,003
90,880,362
Website: http://www.american-equity.com
Address: American Equity Investment Life Holding Company
6000 Westown Parkway,
West Des Moines,
Iowa, 50266,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AEL Common Stock New York Stock Exchange US USD 04. Dec 2003
Number of employees
Current staff
Staff numbers
554
American Equity Investment Life Holding employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 23:52
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.