American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. More Details
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Average dividend payer with mediocre balance sheet.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: AFG's weekly volatility (6%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: AFG exceeded the US Insurance industry which returned 36.1% over the past year.
Return vs Market: AFG underperformed the US Market which returned 56.3% over the past year.
Long-Term 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
3 days ago | Simply Wall StHere's What We Like About American Financial Group's (NYSE:AFG) Upcoming Dividend
1 week ago | Simply Wall StIntroducing American Financial Group (NYSE:AFG), A Stock That Climbed 78% In The Last Year
1 month ago | Simply Wall StAmerican Financial Group, Inc.'s (NYSE:AFG) Stock On An Uptrend: Could Fundamentals Be Driving The Momentum?
Is American Financial Group undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: AFG ($118.24) is trading above our estimate of fair value ($117.88)
Significantly Below Fair Value: AFG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: AFG's PE Ratio (14.3x) is in line with the US Insurance industry average.
PE vs Market: AFG is good value based on its PE Ratio (14.3x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: AFG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AFG is overvalued based on its PB Ratio (1.5x) compared to the US Insurance industry average (1.1x).
How is American Financial Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFG's earnings are forecast to decline over the next 3 years (-5.2% per year).
Earnings vs Market: AFG's earnings are forecast to decline over the next 3 years (-5.2% per year).
High Growth Earnings: AFG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AFG's revenue is expected to decline over the next 3 years (-19% per year).
High Growth Revenue: AFG's revenue is forecast to decline over the next 3 years (-19% 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 (10.7%).
How has American Financial Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFG has a large one-off loss of $413.0M impacting its December 31 2020 financial results.
Growing Profit Margin: AFG's current net profit margins (9.4%) are lower than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: AFG's earnings have grown by 1.7% 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 (-17.8%) over the past year, making it difficult to compare to the Insurance industry average (-9.8%).
Return on Equity
High ROE: AFG's Return on Equity (10.6%) is considered low.
How is American Financial Group's financial position?
Financial Position Analysis
Short Term Liabilities: AFG's short term assets ($17.4B) exceed its short term liabilities ($11.7B).
Long Term Liabilities: AFG's short term assets ($17.4B) do not cover its long term liabilities ($55.1B).
Debt to Equity History and Analysis
Debt Level: AFG's debt to equity ratio (45.6%) is considered high.
Reducing Debt: AFG's debt to equity ratio has increased from 21.3% to 45.6% over the past 5 years.
Debt Coverage: AFG's debt is well covered by operating cash flow (70.6%).
Interest Coverage: AFG's interest payments on its debt are well covered by EBIT (15.3x coverage).
What is American Financial Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AFG's dividend (1.69%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: AFG's dividend (1.69%) is low compared to the top 25% of dividend payers in the US market (3.5%).
Stability and Growth of Payments
Stable Dividend: AFG's dividend payments have been volatile in the past 10 years.
Growing Dividend: AFG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (22.4%), AFG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AFG's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Stephen Lindner (65 yo)
Mr. Stephen Craig Lindner has been Co-Chief Executive Officer, Co-President and Director of American Financial Group, Inc. since January 2005, 1996 and 1985 respectively. Mr. Lindner also serves as the Co...
CEO Compensation Analysis
Compensation vs Market: Stephen's total compensation ($USD10.46M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.
Experienced Management: AFG's management team is seasoned and experienced (9.1 years average tenure).
Experienced Board: AFG's board of directors are seasoned and experienced ( 12.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AFG insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
American Financial Group, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: American Financial Group, Inc.
- Ticker: AFG
- Exchange: NYSE
- Founded: 1872
- Industry: Multi-line Insurance
- Sector: Insurance
- Market Cap: US$10.075b
- Shares outstanding: 85.21m
- Website: https://www.afginc.com
Number of Employees
- American Financial Group, Inc.
- 301 East Fourth Street
- United States
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||2021/04/11 22:01|
|End of Day Share Price||2021/04/09 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.