Loading...

American Financial Group

NYSE:AFG
Snowflake Description

Established dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AFG
NYSE
$9B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

American Financial Group, Inc., an insurance holding company, provides property and casualty insurance products in the United States. The last earnings update was 17 days ago. More info.


Add to Portfolio Compare Print
AFG Share Price and Events
7 Day Returns
-1.3%
NYSE:AFG
0.7%
US Insurance
-0.7%
US Market
1 Year Returns
-11.1%
NYSE:AFG
7.1%
US Insurance
3%
US Market
AFG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Financial Group (AFG) -1.3% -1% 0.3% -11.1% 37.8% 70.1%
US Insurance 0.7% 1.6% 6% 7.1% 32.7% 45.5%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • AFG underperformed the Insurance industry which returned 7.1% over the past year.
  • AFG underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
AFG
Industry
5yr Volatility vs Market

Value

 Is American Financial Group 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 Financial Group 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 Financial Group.

NYSE:AFG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 5 analysts.
= Stable Book Value * Return on Equity
= $69.85 * 13.6%
$9.52
Book Value of Equity per Share Weighted future Book Value estimates from 4 analysts. $69.85
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:AFG
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 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.734 (1 + (1- 21%) (30.79%))
0.942
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% + (0.942 * 5.96%)
8.34%

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

The calculations below outline how an intrinsic value for American Financial Group 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:AFG Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.6% – 8.34%) * $69.85)
$3.69
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.69 / (8.34% - 2.73%)
$65.76
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $69.85 + $65.76
$135.61
NYSE:AFG Discount to Share Price
Calculation Result
Value per share (USD) From above. $135.61
Current discount Discount to share price of $99.00
= -1 x ($99.00 - $135.61) / $135.61
27%

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

Current Discount
Amount off the current price American Financial Group is available for.
Intrinsic value
27%
Share price is $99 vs Future cash flow value of $135.61
Current Discount Checks
For American Financial Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American Financial Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • American Financial Group's share price is below the future cash flow value, but not 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 Financial Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Financial Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:AFG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.00
NYSE:AFG Share Price ** NYSE (2019-05-17) in USD $99
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 16.69x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

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

** Primary Listing of American Financial Group.

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

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

= 99 ÷ 8.00

12.37x

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

  • American Financial Group is good value based on earnings compared to the US Insurance industry average.
  • American Financial Group is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does American Financial Group's expected growth come at a high price?
Raw Data
NYSE:AFG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.37x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
-3%per year
United States of America Insurance Industry PEG Ratio Median Figure of 67 Publicly-Listed Insurance Companies 1.6x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.37x ÷ -3%

-4.13x

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

  • American Financial Group earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on American Financial Group's assets?
Raw Data
NYSE:AFG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $63.20
NYSE:AFG Share Price * NYSE (2019-05-17) in USD $99
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NYSE:AFG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 99 ÷ 63.20

1.57x

* Primary Listing of American Financial Group.

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

  • American Financial Group is overvalued based on assets compared to the US Insurance industry average.
X
Value checks
We assess American Financial Group'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 Financial Group has a total score of 3/6, 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 Financial Group expected to perform in the next 1 to 3 years based on estimates from 6 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
-3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Financial Group expected to grow at an attractive rate?
  • American Financial Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • American Financial Group's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • American Financial Group's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AFG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AFG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts -3%
NYSE:AFG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts -5.8%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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:AFG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AFG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 5,616 810 1
2020-12-31 5,238 1,296 798 3
2019-12-31 5,022 1,263 890 3
NYSE:AFG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,337 2,146 714
2018-12-31 6,939 2,083 530
2018-09-30 7,070 2,088 725
2018-06-30 6,904 2,053 532
2018-03-31 6,720 2,271 467
2017-12-31 6,684 1,804 475
2017-09-30 6,615 1,397 694
2017-06-30 6,492 1,228 792
2017-03-31 6,440 666 701
2016-12-31 6,345 1,150 649
2016-09-30 6,240 1,192 393
2016-06-30 6,227 1,273 347

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Financial Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • American Financial Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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:AFG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from American Financial Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AFG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 8.93 8.93 8.93 1.00
2020-12-31 8.79 9.30 8.38 6.00
2019-12-31 9.83 10.35 8.70 6.00
NYSE:AFG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.00
2018-12-31 5.96
2018-09-30 8.17
2018-06-30 6.01
2018-03-31 5.30
2017-12-31 5.41
2017-09-30 7.92
2017-06-30 9.08
2017-03-31 8.06
2016-12-31 7.47
2016-09-30 4.52
2016-06-30 3.98

*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 Financial Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess American Financial Group'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 Financial Group has a total score of 0/6, 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 Financial Group 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 Financial Group'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 Financial Group's year on year earnings growth rate has been positive over the past 5 years.
  • American Financial Group's 1-year earnings growth exceeds its 5-year average (52.9% vs 10.4%)
  • American Financial Group's earnings growth has exceeded the US Insurance industry average in the past year (52.9% vs 6.6%).
Earnings and Revenue History
American Financial Group'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 Financial Group Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AFG 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 7,337.00 714.00
2018-12-31 6,939.00 530.00
2018-09-30 7,070.00 725.00
2018-06-30 6,904.00 532.00
2018-03-31 6,720.00 467.00
2017-12-31 6,684.00 475.00
2017-09-30 6,615.00 694.00
2017-06-30 6,492.00 792.00
2017-03-31 6,440.00 701.00
2016-12-31 6,345.00 649.00
2016-09-30 6,240.00 393.00
2016-06-30 6,227.00 347.00
2016-03-31 6,199.00 434.00
2015-12-31 6,194.00 352.00
2015-09-30 6,131.00 350.00
2015-06-30 6,039.00 403.00
2015-03-31 5,895.00 368.00
2014-12-31 5,651.00 452.00
2014-09-30 5,469.00 483.00
2014-06-30 5,328.00 450.00
2014-03-31 5,072.00 454.00
2013-12-31 5,018.00 471.00
2013-09-30 4,842.00 363.00
2013-06-30 4,784.00 506.00
2013-03-31 4,774.00 495.00
2012-12-31 4,716.00 488.00
2012-09-30 4,801.00 547.00
2012-06-30 4,756.00 418.00

*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 Financial Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • American Financial Group used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.
  • American Financial Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Financial Group'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 Financial Group 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 Financial Group'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 Financial Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Financial Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • American Financial Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Financial Group'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 3.5x 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 Financial Group Company Filings, last reported 1 month ago.

NYSE:AFG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 5,665.00 2,734.00 2,132.00
2018-12-31 4,972.00 2,444.00 1,636.00
2018-09-30 5,164.00 2,254.00 2,112.00
2018-06-30 5,084.00 2,242.00 1,947.00
2018-03-31 5,183.00 2,233.00 1,819.00
2017-12-31 5,334.00 1,332.00 2,686.00
2017-09-30 5,379.00 2,240.00 2,760.00
2017-06-30 5,312.00 2,360.00 2,606.00
2017-03-31 5,195.00 2,242.00 2,307.00
2016-12-31 4,919.00 1,305.00 2,523.00
2016-09-30 5,358.00 2,235.00 2,087.00
2016-06-30 5,193.00 1,933.00 1,923.00
2016-03-31 4,937.00 1,933.00 1,605.00
2015-12-31 4,770.00 998.00 1,642.00
2015-09-30 4,906.00 1,620.00 1,344.00
2015-06-30 4,984.00 1,764.00 1,665.00
2015-03-31 5,100.00 1,501.00 1,665.00
2014-12-31 5,054.00 1,061.00 1,804.00
2014-09-30 5,078.00 1,062.00 1,652.00
2014-06-30 5,158.00 912.00 2,459.00
2014-03-31 4,973.00 913.00 2,174.00
2013-12-31 4,769.00 913.00 2,002.00
2013-09-30 4,710.00 913.00 1,623.00
2013-06-30 4,638.00 949.00 1,566.00
2013-03-31 4,908.00 950.00 1,837.00
2012-12-31 4,748.00 953.00 2,027.00
2012-09-30 4,964.00 966.00 1,936.00
2012-06-30 4,775.00 1,158.00 1,972.00
  • American Financial Group's level of debt (48.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (18.4% vs 48.3% today).
  • Debt is well covered by operating cash flow (78.5%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 15.4x coverage).
X
Financial health checks
We assess American Financial Group'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 Financial Group has a total score of 3/6, 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 Financial Group'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
3.13%
Current annual income from American Financial Group dividends. Estimated to be 3.77% next year.
If you bought $2,000 of American Financial Group shares you are expected to receive $63 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 Financial Group's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • American Financial Group's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
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:AFG 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 6 Analyst Estimates (S&P Global) See Below
United States of America Insurance Industry Average Dividend Yield Market Cap Weighted Average of 80 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
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:AFG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 5.00 1.00
2020-12-31 3.15 4.00
2019-12-31 4.07 3.00
NYSE:AFG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-01 3.100 3.105
2019-01-02 3.100 3.239
2018-10-01 3.100 3.110
2018-07-02 2.900 2.608
2018-04-02 2.900 2.621
2017-10-02 2.900 2.680
2017-07-03 2.750 2.705
2017-04-03 2.750 2.809
2017-01-03 2.250 2.457
2016-08-17 2.250 2.879
2016-07-01 2.120 2.908
2016-04-01 2.120 2.992
2016-01-04 2.120 3.093
2015-08-25 2.120 2.981
2015-07-01 2.000 2.894
2015-04-01 2.000 3.099
2015-01-02 2.000 3.230
2014-08-19 2.000 3.370
2014-07-01 0.880 1.518
2014-04-01 0.880 1.510
2014-01-02 0.880 1.561
2013-08-22 0.880 1.597
2013-07-01 0.780 1.508
2013-04-01 0.780 1.616
2013-01-02 0.780 1.785
2012-10-01 0.780 2.006
2012-07-02 0.700 1.855
2012-04-02 0.700 1.808
2012-01-03 0.700 1.858
2011-08-01 0.700 2.072
2011-07-01 0.650 1.873
2011-04-01 0.650 1.856
2011-01-03 0.650 1.923
2010-08-19 0.650 2.109
2010-07-01 0.550 1.900
2010-04-01 0.550 1.938
2010-01-04 0.550 2.107
2009-10-01 0.520 2.086
2009-07-02 0.520 2.129

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 Financial Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.5x coverage).
X
Income/ dividend checks
We assess American Financial Group'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 Financial Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Financial Group has a total score of 5/6, 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 Financial Group'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
Stephen Lindner
COMPENSATION $10,191,495
AGE 63
TENURE AS CEO 14.3 years
CEO Bio

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-President of AFC, Co-President of AMM and Director of AFC at Great American Financial Resources, Inc. Mr. Lindner also serves as Co-President of American Financial Corporation (“AFC“), a subsidiary of American Financial Group Inc. He serves as the Chief Executive Officer and President of Great American Financial Resources, Inc. He has been Co-President of American Financial Group Inc., which is engaged in property and casualty insurance, as well as the sale of retirement annuities and life and supplemental health insurance products, since 1996. He served as Senior Executive Vice President of American Money Management Corporation. Mr. Lindner has been Co-Chief Executive Officer of American Financial Group Inc. since January 2005. He is the Chairman of American Money Management Corporation. Mr. Lindner serves as a Director of AFC. He serves as a Director of American Premier and Chiquita Brands International, Inc. (“Chiquita“). He serves as the Chairman of Greater Cincinnati Classic Horse Show, which has contributed $4 million to local scholarships and Shiners Burns Hospital Cincinnati. He served as a Director of Citicasters Inc. since 1982. Mr. Lindner serves as board member of Cincinnati Country Day School and has been involved with The Cincinnati Children's Hospital and several other charitable organizations. Mr. Lindner has been a Director of American Financial Group Inc. since 1979 and serves as a Member of its Executive Committee. Mr. Lindner has been a Director of National City Corp. since July 2004. Mr. Lindner has been a Director of Great American Financial Resources, Inc. since March 1993. He serves as a Director of American Money Management Corporation, American Financial Corporation and Great American Financial Resources Inc. He is an active member of Horizon Community Church. Mr. Lindner earned his Bachelor's degree in Business Administration from The University of Cincinnati.

CEO Compensation
  • Stephen's compensation has been consistent with company performance over the past year.
  • Stephen's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the American Financial Group management team in years:

7.2
Average Tenure
62.5
Average Age
  • The average tenure for the American Financial Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Stephen Lindner

TITLE
Co-President
COMPENSATION
$10M
AGE
63
TENURE
14.3 yrs

Carl Lindner

TITLE
Co-President
COMPENSATION
$10M
AGE
65
TENURE
14.3 yrs

Jeff Consolino

TITLE
Executive VP
COMPENSATION
$5M
AGE
52
TENURE
6.3 yrs

Michelle Gillis

TITLE
Senior VP & Chief Administrative Officer
COMPENSATION
$1M
AGE
49
TENURE
7.2 yrs

Vito Peraino

TITLE
Senior VP & General Counsel
COMPENSATION
$2M
AGE
62
TENURE
7.2 yrs

James Evans

TITLE
Executive Consultant & Director
COMPENSATION
$604K
AGE
72
TENURE
5.3 yrs

JD Rogers

TITLE
Chief Information Security Officer & Divisional VP
TENURE
3.4 yrs

Diane Weidner

TITLE
Assistant Vice President of Investor Relations
TENURE
9.8 yrs

Dave Witzgall

TITLE
VP & Treasurer
TENURE
14 yrs

Karl Grafe

TITLE
VP, Assistant General Counsel & Secretary
Board of Directors Tenure

Average tenure and age of the American Financial Group board of directors in years:

15
Average Tenure
64
Average Age
  • The average tenure for the American Financial Group board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Carl Lindner

TITLE
Co-President
COMPENSATION
$10M
AGE
65
TENURE
28.3 yrs

Jeff Consolino

TITLE
Executive VP
COMPENSATION
$5M
AGE
52
TENURE
6.4 yrs

James Evans

TITLE
Executive Consultant & Director
COMPENSATION
$604K
AGE
72
TENURE
34.3 yrs

Will Verity

TITLE
Director
COMPENSATION
$273K
AGE
59
TENURE
17.3 yrs

Stephen Lindner

TITLE
Co-President
COMPENSATION
$10M
AGE
63
TENURE
34.3 yrs

Terry Jacobs

TITLE
Director
COMPENSATION
$278K
AGE
75
TENURE
15.9 yrs

Greg Joseph

TITLE
Lead Independent Director
COMPENSATION
$283K
AGE
55
TENURE
0.3 yrs

Kenneth Ambrecht

TITLE
Director
COMPENSATION
$268K
AGE
72
TENURE
14 yrs

John Von Lehman

TITLE
Director
COMPENSATION
$259K
AGE
65
TENURE
10.8 yrs

John Berding

TITLE
Director
COMPENSATION
$5M
AGE
55
TENURE
7 yrs
Who owns this company?
Recent Insider Trading
  • American Financial Group insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
07. May 19 Sell Carl Lindner Individual 03. May 19 07. May 19 -163,012 $103.52 $-16,783,744
07. May 19 Sell Stephen Lindner Individual 03. May 19 03. May 19 -30,000 $102.75 $-3,082,428
28. Mar 19 Sell Carl Lindner Individual 26. Mar 19 27. Mar 19 -74,940 $96.14 $-7,200,307
20. Mar 19 Sell CHL Investments, LLC Company 19. Mar 19 19. Mar 19 -4,594 $98.00 $-450,212
20. Mar 19 Sell CHL Investments, LLC Company 18. Mar 19 18. Mar 19 -65,406 $98.07 $-6,414,281
20. Mar 19 Sell Carl Lindner Individual 19. Mar 19 20. Mar 19 -13,436 $98.13 $-1,317,656
28. Feb 19 Sell James Evans Individual 27. Feb 19 28. Feb 19 -8,000 $99.33 $-793,325
13. Feb 19 Sell John Von Lehman Individual 11. Feb 19 11. Feb 19 -1,359 $96.54 $-131,204
20. Dec 18 Sell Carl Lindner Individual 18. Dec 18 19. Dec 18 -109,768 $91.10 $-9,998,831
12. Dec 18 Buy Gregory Joseph Individual 12. Dec 18 12. Dec 18 1,000 $92.91 $92,912
24. Sep 18 Sell Carl Lindner Individual 20. Sep 18 20. Sep 18 -181,000 $113.49 $-20,541,690
17. Aug 18 Sell Carl Lindner Individual 15. Aug 18 15. Aug 18 -119,448 $111.58 $-13,327,432
16. Aug 18 Sell John Berding Individual 14. Aug 18 16. Aug 18 -17,721 $112.83 $-1,992,788
10. Aug 18 Sell Carl Lindner Individual 08. Aug 18 10. Aug 18 -80,552 $111.93 $-8,996,111
07. Aug 18 Sell Stephen Lindner Individual 03. Aug 18 03. Aug 18 -26,000 $112.56 $-2,926,594
07. Aug 18 Sell James Evans Individual 03. Aug 18 03. Aug 18 -3,132 $112.43 $-352,138
06. Jun 18 Sell Carl Lindner Individual 04. Jun 18 06. Jun 18 -100,000 $110.50 $-11,014,201
04. Jun 18 Sell Terry Jacobs Individual 01. Jun 18 01. Jun 18 -864 $110.41 $-95,394
X
Management checks
We assess American Financial Group'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 Financial Group 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 Financial Group, Inc.'s (NYSE:AFG) Future Growth Already Accounted For In Today's Price?

American Financial Group, Inc. … (NYSE:AFG) is considered a high-growth stock, but its last closing price of $102.49 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … Check out our latest analysis for American Financial Group?

Simply Wall St -

Can American Financial Group, Inc.'s (NYSE:AFG) ROE Continue To Surpass The Industry Average?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of American Financial Group, Inc. … Our data shows American Financial Group has a return on equity of 10% for the last year. … View our latest analysis for American Financial Group?

Simply Wall St -

Does American Financial Group (NYSE:AFG) Deserve A Spot On Your Watchlist?

American Financial Group's Earnings Per Share Are Growing. … Not all of American Financial Group's revenue last year was revenue from operations, so keep in mind the revenue and margin numbers I've used might not be the best representation of the underlying business. … While American Financial Group did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

Does American Financial Group, Inc.'s (NYSE:AFG) CEO Salary Compare Well With Others?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Stephen Lindner's Compensation Compare With Similar Sized Companies. … We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.4m.

Simply Wall St -

What Should Investors Know About American Financial Group, Inc.'s (NYSE:AFG) Future?

Based on American Financial Group, Inc.'s (NYSE:AFG) earnings update on 31 December 2018, … with earnings expected to grow by 46% in the upcoming year … the past 5-year average growth rate of 8.8%.

Simply Wall St -

What Do Analysts Think About American Financial Group, Inc.'s (NYSE:AFG) Future?

American Financial Group, Inc.'s (NYSE:AFG) most recent earnings announcement in December 2018a

Simply Wall St -

If You Had Bought American Financial Group Stock Five Years Ago, You Could Pocket A 72% Gain Today

To wit, the American Financial Group share price has climbed 72% in five years, easily topping the market return of 40% (ignoring dividends). … Over half a decade, American Financial Group managed to grow its earnings per share at 2.5% a year. … We know that American Financial Group has improved its bottom line lately, but is it going to grow revenue

Simply Wall St -

How Much Of American Financial Group, Inc. (NYSE:AFG) Do Insiders Own?

A look at the shareholders of American Financial Group, Inc. … American Financial Group has a market capitalization of US$8.9b, so it's too big to fly under the radar. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Why American Financial Group, Inc. (NYSE:AFG) Is A Star In A Falling Market

Longstanding stocks such as American Financial Group, Inc. … Below I take a look at three key characteristics of what makes a strong defensive stock investment: its size, financial health and track record. … See our latest analysis for American Financial Group.

Simply Wall St -

Do You Like American Financial Group, Inc. (NYSE:AFG) At This P/E Ratio?

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … American Financial Group has a price to earnings ratio of 11.59, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

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 Insurance, Annuity, and Other. It offers property and transportation insurance products, such as physical damage and liability coverage for buses, trucks and recreational vehicles, inland and ocean marine, agricultural-related products, and other property; specialty casualty insurance, including primarily excess and surplus, general liability, executive liability, professional liability, umbrella and excess liability, and specialty coverage in targeted markets, as well as customized programs for small to mid-sized businesses and workers’ compensation insurance; and specialty financial insurance products comprising risk management insurance programs for leasing and financing institutions, surety and fidelity products, and trade credit insurance. The company sells its property and casualty insurance products through independent insurance agents and brokers, as well as through employee agents. It also provides traditional fixed, fixed-indexed, and variable-indexed annuities to the retail, financial institutions, registered investment advisor, and education markets; and engages in the commercial real estate operations in Cincinnati, Whitefield, New Hampshire, Chesapeake Bay, Charleston, and Palm Beach. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio.

Details
Name: American Financial Group, Inc.
AFG
Exchange: NYSE
Founded: 1872
$8,879,058,045
89,687,455
Website: http://www.afginc.com
Address: American Financial Group, Inc.
301 East Fourth Street,
Cincinnati,
Ohio, 45202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE AFG Common Stock New York Stock Exchange US USD 14. Nov 1978
DB QFI Common Stock Deutsche Boerse AG DE EUR 14. Nov 1978
Number of employees
Current staff
Staff numbers
7,600
American Financial Group employees.
Industry
Multi-line Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:27
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/05/10
Last earnings filing: 2019/05/03
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.