American Financial Group
Market Cap
US$6.5b
Last Updated
2020/10/22 00:07 UTC
Data Sources
Company Financials +
Executive Summary
American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and fair value.
Similar Companies
Share Price & News
How has American Financial Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AFG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.8%
AFG
0.5%
US Insurance
-1.4%
US Market
1 Year Return
-28.0%
AFG
-11.5%
US Insurance
17.8%
US Market
Return vs Industry: AFG underperformed the US Insurance industry which returned -12.8% over the past year.
Return vs Market: AFG underperformed the US Market which returned 18.5% over the past year.
Shareholder returns
| AFG | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.8% | 0.5% | -1.4% |
| 30 Day | 12.1% | 4.5% | 4.7% |
| 90 Day | 19.1% | 0.2% | 8.2% |
| 1 Year | -25.0%-28.0% | -9.1%-11.5% | 20.5%17.8% |
| 3 Year | -20.1%-30.1% | 0.7%-6.5% | 42.2%32.7% |
| 5 Year | 23.5%0.7% | 36.4%19.2% | 83.4%62.7% |
Price Volatility Vs. Market
How volatile is American Financial Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Don't Race Out To Buy American Financial Group, Inc. (NYSE:AFG) Just Because It's Going Ex-Dividend2 weeks ago | Simply Wall St
What Can We Conclude About American Financial Group's (NYSE:AFG) CEO Pay?4 weeks ago | Simply Wall St
How Does American Financial Group, Inc. (NYSE:AFG) Fare As A Dividend Stock?Valuation
Is American Financial Group undervalued compared to its fair value and its price relative to the market?
44.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AFG ($73.73) is trading below our estimate of fair value ($132.85)
Significantly Below Fair Value: AFG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AFG is poor value based on its PE Ratio (28.4x) compared to the US Insurance industry average (14.1x).
PE vs Market: AFG is poor value based on its PE Ratio (28.4x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: AFG is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: AFG is overvalued based on its PB Ratio (1.1x) compared to the US Insurance industry average (0.9x).
Next Steps
Future Growth
How is American Financial Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
51.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFG's forecast earnings growth (51.1% per year) is above the savings rate (2.2%).
Earnings vs Market: AFG's earnings (51.1% per year) are forecast to grow faster than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: AFG's revenue is expected to decline over the next 3 years (-4.5% per year).
High Growth Revenue: AFG's revenue is forecast to decline over the next 3 years (-4.5% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AFG's Return on Equity is forecast to be low in 3 years time (11.5%).
Next Steps
Past Performance
How has American Financial Group performed over the past 5 years?
5.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFG has a large one-off loss of $110.0M impacting its June 30 2020 financial results.
Growing Profit Margin: AFG's current net profit margins (3.2%) are lower than last year (9.6%).
Past Earnings Growth Analysis
Earnings Trend: AFG's earnings have grown by 5.9% per year over the past 5 years.
Accelerating Growth: AFG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AFG had negative earnings growth (-67.2%) over the past year, making it difficult to compare to the Insurance industry average (-3.3%).
Return on Equity
High ROE: AFG's Return on Equity (3.2%) is considered low.
Next Steps
Financial Health
How is American Financial Group's financial position?
Financial Position Analysis
Short Term Liabilities: AFG's short term assets ($10.4B) exceed its short term liabilities ($7.6B).
Long Term Liabilities: AFG's short term assets ($10.4B) do not cover its long term liabilities ($57.1B).
Debt to Equity History and Analysis
Debt Level: AFG's debt to equity ratio (51%) is considered high.
Reducing Debt: AFG's debt to equity ratio has increased from 35.3% to 51% over the past 5 years.
Debt Coverage: AFG's debt is well covered by operating cash flow (85.3%).
Interest Coverage: AFG's interest payments on its debt are well covered by EBIT (6x coverage).
Balance Sheet
Next Steps
Dividend
What is American Financial Group current dividend yield, its reliability and sustainability?
2.71%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: AFG's dividend (2.71%) is higher than the bottom 25% of dividend payers in the US market (1.64%).
High Dividend: AFG's dividend (2.71%) is low compared to the top 25% of dividend payers in the US market (4.68%).
Stability and Growth of Payments
Stable Dividend: AFG's dividend payments have been volatile in the past 10 years.
Growing Dividend: AFG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (67.4%), AFG's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AFG's dividends in 3 years are forecast to be well covered by earnings (42% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.6yrs
Average management tenure
CEO
Stephen Lindner (65 yo)
15.75yrs
Tenure
US$10,457,420
Compensation
Mr. Stephen Craig Lindner has been Co-Chief Executive Officer, Co-President and Director of American Financial Group, Inc. since January 2005, 1996 and 1985 respectively. Mr. Lindner also serves as the Co ...
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD10.46M) is above average for companies of similar size in the US market ($USD7.32M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-President | 15.75yrs | US$10.46m | 5.52% $ 360.4m | |
| Co-President | 29.75yrs | US$10.46m | 12.62% $ 823.9m | |
| Senior VP & Chief Administrative Officer | 8.58yrs | US$1.08m | 0.042% $ 2.7m | |
| Senior VP & General Counsel | 8.58yrs | US$2.00m | 0.11% $ 7.0m | |
| Executive Consultant & Director | 35.75yrs | US$614.16k | 0.14% $ 9.2m | |
| Senior VP & CFO | 0.33yr | no data | 0.014% $ 883.2k | |
| Chief Information Security Officer & Divisional VP | 4.83yrs | no data | no data | |
| Vice President of Investor & Media Relations | 11.25yrs | no data | no data | |
| VP, Assistant General Counsel & Secretary | no data | no data | no data | |
| VP & Treasurer | 15.42yrs | no data | no data | |
| President of Ocean Marine Division of Property and Casualty Group | 4.5yrs | no data | no data | |
| VP, Assistant General Counsel & Assistant Secretary | no data | no data | no data |
8.6yrs
Average Tenure
65yo
Average Age
Experienced Management: AFG's management team is seasoned and experienced (8.6 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Co-President | 15.75yrs | US$10.46m | 5.52% $ 360.4m | |
| Co-President | 29.75yrs | US$10.46m | 12.62% $ 823.9m | |
| Executive Consultant & Director | 35.75yrs | US$614.16k | 0.14% $ 9.2m | |
| Independent Director | 12.17yrs | US$269.93k | 0.015% $ 971.4k | |
| Independent Director | 17.33yrs | US$288.93k | 0.0056% $ 368.8k | |
| Director | 8.42yrs | US$4.88m | 0.084% $ 5.5m | |
| Independent Director | 18.75yrs | US$283.93k | 0.010% $ 667.2k | |
| Lead Independent Director | 1.67yrs | US$314.77k | 0.12% $ 8.0m | |
| Independent Director | 7.67yrs | US$271.93k | 0.013% $ 846.7k | |
| Independent Director | 1.67yrs | US$251.60k | 0.0043% $ 283.3k |
14.8yrs
Average Tenure
63yo
Average Age
Experienced Board: AFG's board of directors are seasoned and experienced ( 14.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AFG 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 Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: American Financial Group, Inc.
- Ticker: AFG
- Exchange: NYSE
- Founded: 1872
- Industry: Multi-line Insurance
- Sector: Insurance
- Market Cap: US$6.528b
- Shares outstanding: 88.54m
- Website: https://www.afginc.com
Number of Employees
Location
- American Financial Group, Inc.
- 301 East Fourth Street
- Cincinnati
- Ohio
- 45202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AFG | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Nov 1978 |
| QFI | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 1978 |
Biography
American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. The company operates through three segments: Property and Casualty Insu ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/22 00:07 |
| End of Day Share Price | 2020/10/21 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.