Now trading at a price of $112.75, American Financial has moved -8.1% so far today.
Over the last year, American Financial logged a -5.0% change, with its stock price reaching a high of $150.98 and a low of $109.98. Over the same period, the stock underperformed the S&P 500 index by -15.0%. As of April 2023, the company's 50-day average price was $117.35. American Financial Group, Inc., an insurance holding company, provides specialty property and casualty insurance products in the United States. Based in Cincinnati, OH, the large-cap Finance company has 6,900 full time employees. American Financial has offered a 1.0% dividend yield over the last 12 months.
Growing Revenues With Increasing Reinvestment in the Business:
| 2020-02-25 | 2021-02-25 | 2022-02-25 | 2023-02-24 | |
|---|---|---|---|---|
| Revenue (MM) | $6,213 | $5,769 | $6,552 | $7,040 |
| Interest Income (MM) | -$68 | -$88 | -$94 | -$85 |
| Operating Margins | 15.7% | 7.4% | 21.8% | 17.2% |
| Net Margins | 14.44% | 12.69% | 30.45% | 12.76% |
| Net Income (MM) | $897 | $732 | $1,995 | $898 |
| Depreciation & Amort. (MM) | -$259 | -$299 | -$187 | -$100 |
| Earnings Per Share | $9.86 | $8.21 | $23.42 | $9.62 |
| EPS Growth | n/a | -16.73% | 185.26% | -58.92% |
| Diluted Shares (MM) | 91 | 89 | 85 | 85 |
| Free Cash Flow (MM) | n/a | $2,243 | $1,776 | $1,239 |
| Capital Expenditures (MM) | n/a | -$60 | -$62 | -$86 |
| Long Term Debt (MM) | $1,473 | $1,963 | $1,964 | $1,496 |
| LT Debt to Equity | 0.23 | 0.29 | 0.39 | 0.37 |
American Financial has growing revenues and increasing reinvestment in the business and low debt levels. Additionally, the company's financial statements display decent operating margins with a stable trend and consistent free cash flow. Furthermore, American Financial has flat EPS growth.
American Financial Is Fairly Priced at Current Levels:
American Financial has a trailing twelve month P/E ratio of 12.2, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $12.35, the company has a forward P/E ratio of 9.5. The 4.6% compound average growth rate of American Financial's historical and projected earnings per share yields a PEG ratio of 2.65. This suggests that these shares are overvalued. Furthermore, American Financial is likely overvalued compared to the book value of its equity, since its P/B ratio of 2.37 is higher than the sector average of 1.57. The company's shares are currently trading -3.6% below their Graham number.
Analysts Give American Financial an Average Rating of Buy:
The 3 analysts following American Financial have set target prices ranging from $150.0 to $155.0 per share, for an average of $152.0 with a buy rating. As of April 2023, the company is trading -22.8% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
American Financial has a very low short interest because 1.2% of the company's shares are sold short. Institutions own 62.7% of the company's shares, and the insider ownership rate stands at 22.55%, suggesting a large amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 10% stake in the company is worth $992,002,011.
