American Financial Financials

AFG Stock  USD 136.80  2.80  2.09%   
Based on the analysis of American Financial's profitability, liquidity, and operating efficiency, American Financial Group may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter. At this time, American Financial's Total Current Liabilities is most likely to decrease significantly in the upcoming years. The American Financial's current Property Plant And Equipment Net is estimated to increase to about 251.2 M, while Total Stockholder Equity is projected to decrease to roughly 3.2 B. Key indicators impacting American Financial's financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.05650.1102
Way Down
Slightly volatile
Return On Assets0.0220.0346
Way Down
Slightly volatile
Return On Equity0.210.2001
Sufficiently Up
Slightly volatile
Debt Equity Ratio0.250.3464
Way Down
Slightly volatile
Operating Income809.4 M852 M
Notably Down
Slightly volatile
Current Ratio0.430.4479
Sufficiently Down
Slightly volatile
The financial analysis of American Financial is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for American Financial includes many different criteria found on its balance sheet. For example, investors should never minimize American Financial's ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor American Financial's cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in American Financial.

Cash And Equivalents

1.48 Billion

With this module, you can analyze American financials for your investing period. You should be able to track the changes in American Financial individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past American Financial Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of American Financial's financial statements are interrelated, with each one affecting the others. For example, an increase in American Financial's assets may result in an increase in income on the income statement.
Evaluating American Financial's financials involves analyzing a range of financial metrics and ratios to gain insights into the company's financial health and performance. However, considering all of American Financial's profitability, liquidity ratios, and efficiency indicators at the same time could be an enormous task, and our Financial Distress score can provide you with a snapshot of the American Financial's relative financial performance

Chance Of Distress

Less than 6

 
100  
 
Zero
Low
American Financial Group has less than 6 (%) percent chance of experiencing financial distress in the next two years of operations. The calculation of odds of distress for American Financial stock is tightly coupled with the Probability of Bankruptcy. It complements the equity performance score by supplying investors with insight into company financials without requiring them to know too much about all of the complex accounting and financial indicators surrounding the entity.
Please note, American Financial's odds of distress score SHOULD NOT be confused with the real chance of American Financial Group filing for bankruptcy protection for chapters 7, 11, 12, or 13. We define Financial Distress as an operational condition where an entity such as American is having difficulty meeting its current financial obligations towards its creditors or delivering on the expectations of its investors. Macroaxis derives these conditions daily from public financial statements and analysis of stock prices reacting to market conditions or economic downturns, including short-term and long-term historical volatility. Other factors considered include American Financial's liquidity analysis, revenue patterns, R&D expenses, and commitments, as well as public headlines and social sentiment.
More Info
The data published in American Financial's official financial statements usually reflect American Financial's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of American Financial. For example, before you start analyzing numbers published by American accountants, it's critical to develop an understanding of what American Financial's liquidity, profitability, and earnings quality are in the context of the Insurance space in which it operates.
Please note, the presentation of American Financial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, American Financial's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in American Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of American Financial Group. Please utilize our Beneish M Score to check the likelihood of American Financial's management manipulating its earnings.

American Financial Company Summary

American Financial competes with Chubb, NI Holdings, Allstate, CNA Financial, and HCI. American Financial Group, Inc., an insurance holding company, provides specialty property and casualty insurance products in the United States. American Financial Group, Inc. was founded in 1872 and is headquartered in Cincinnati, Ohio. American Financial operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 6600 people.
Foreign Associate
  Germany
Specialization
Financial Services, Insurance - Property & Casualty
InstrumentUSA Stock View All
ExchangeNew York Stock Exchange
CIK Number0001042046
ISINUS0259321042
CUSIP025932104
RegionNorth America
LocationOhio; U.S.A
Business Address301 East Fourth
SectorInsurance
IndustryFinancials
BenchmarkNYSE Composite
Websitewww.afginc.com
Phone513 579 2121
CurrencyUSD - US Dollar
You should never invest in American Financial without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of American Stock, because this is throwing your money away. Analyzing the key information contained in American Financial's financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

American Financial Key Financial Ratios

Generally speaking, American Financial's financial ratios allow both analysts and investors to convert raw data from American Financial's financial statements into concise, actionable information that can be used to evaluate the performance of American Financial over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that American Financial reports annually and quarterly.

American Financial Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets70.1B73.6B28.9B28.8B24.6B26.6B
Other Current Liab(814M)(807M)(920M)(1.0B)8.6B17.0B
Net Debt(841M)(847M)(167M)624M448M470.4M
Retained Earnings4.0B4.1B3.5B3.1B3.1B1.8B
Cash2.3B2.8B2.1B872M1.2B1.0B
Other Assets(34.9B)(31.8B)(2.4B)1.1B11.8B12.4B
Total Liab63.9B66.8B23.9B24.8B20.4B23.2B
Total Current Assets54.5B58.3B18.1B14.6B4.4B4.6B
Short Term Debt285M445M46M5.2B38M0.0
Net Receivables5.7B12.3B5.6B6.2B7.1B7.5B
Other Current Assets6.4B3.6B5.5B(2.5B)4.4B4.6B
Intangible Assets250M210M352M354M318.6M223.4M
Accounts Payable814M807M920M1.0B1.2B1.2B
Other Liab50.3B61.2B17.9B18.9B21.7B22.6B
Long Term Debt1.5B2.0B2.0B1.5B1.5B1.3B
Net Tangible Assets6.1B6.6B5.0B3.8B4.4B5.3B
Long Term Debt Total1.5B2.0B2.0B1.5B1.7B1.4B
Capital Surpluse1.3B1.3B1.3B1.4B1.6B1.3B

American Financial Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what American Financial's earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Interest Expense62M68M88M94M76M70.8M
Total Revenue8.2B7.9B6.6B7.0B7.7B4.6B
Gross Profit8.2B7.9B6.6B7.0B7.8B8.2B
Operating Income935M655M2.1B1.2B852M809.4M
Ebit935M655M2.1B1.2B774M556.9M
Ebitda1.2B954M2.3B1.3B852M704.0M
Income Before Tax1.1B848M1.3B1.1B1.1B693.5M
Net Income897M732M1.1B898M852M894.6M
Income Tax Expense239M127M254M225M221M136.5M
Cost Of Revenue5.4B5.9B6.3B(95M)(85.5M)(81.2M)
Minority Interest2M(13M)(28M)(11M)(2M)0.0
Tax Provision239M127M254M225M219M213.5M
Interest Income62M68M88M94M41M59.9M
Net Interest Income(85M)(62M)(68M)(88M)(94M)(80.9M)

American Financial Key Cash Accounts

Cash flow analysis captures how much money flows into and out of American Financial. It measures of how well American is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money American Financial brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money American had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what American Financial has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash799M496M(679M)(1.3B)353M370.7M
Free Cash Flow2.5B1.8B1.6B1.1B1.9B2.0B
Depreciation259M299M187M100M78M143.8M
Other Non Cash Items542M779M(1.3B)(31M)33M31.4M
Dividends Paid444M334M2.4B1.2B(684M)(649.8M)
Capital Expenditures43M40M343M150M72M90.0M
Net Income869M721M2.0B898M852M894.6M
End Period Cash Flow2.3B2.8B2.1B872M1.2B929.2M
Investments(3.0B)(799M)1.4B(737M)470M493.5M
Change To Netincome(403M)(259M)(1.6B)(31M)(27.9M)(29.3M)

American Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining American Financial's current stock value. Our valuation model uses many indicators to compare American Financial value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Financial competition to find correlations between indicators driving American Financial's intrinsic value. More Info.
American Financial Group is rated fourth in shares outstanding category among related companies. It is number one stock in operating margin category among related companies . The ratio of Shares Outstanding to Operating Margin for American Financial Group is about  417,681,957 . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Financial by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Financial's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Financial's earnings, one of the primary drivers of an investment's value.

American Financial Systematic Risk

American Financial's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. American Financial volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was three with a total number of output elements of fifty-eight. The Beta measures systematic risk based on how returns on American Financial correlated with the market. If Beta is less than 0 American Financial generally moves in the opposite direction as compared to the market. If American Financial Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one American Financial is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of American Financial is generally in the same direction as the market. If Beta > 1 American Financial moves generally in the same direction as, but more than the movement of the benchmark.

About American Financial Financials

What exactly are American Financial Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include American Financial's income statement, its balance sheet, and the statement of cash flows. Potential American Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although American Financial investors may use each financial statement separately, they are all related. The changes in American Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze American Financial Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as American Financial is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of American has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if American Financial's financials are consistent with your investment objective using the following steps:
  • Review American Financial's balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand American Financial's liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare American Financial's financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if American Financial's stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

American Financial Thematic Clasifications

American Financial Group is part of several thematic ideas from ESG Investing to Insurance. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. Get More Thematic Ideas
Today, most investors in American Financial Stock are looking for potential investment opportunities by analyzing not only static indicators but also various American Financial's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of American Financial growth as a starting point in their analysis.

Price Earnings To Growth Ratio

(2.42)

At this time, American Financial's Price Earnings To Growth Ratio is most likely to slightly decrease in the upcoming years.

American Financial March 28, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of American Financial help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of American Financial Group. We use our internally-developed statistical techniques to arrive at the intrinsic value of American Financial Group based on widely used predictive technical indicators. In general, we focus on analyzing American Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build American Financial's daily price indicators and compare them against related drivers.
When determining whether American Financial is a strong investment it is important to analyze American Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Financial's future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Financial Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in census.
Note that the American Financial information on this page should be used as a complementary analysis to other American Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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When running American Financial's price analysis, check to measure American Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Financial is operating at the current time. Most of American Financial's value examination focuses on studying past and present price action to predict the probability of American Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Financial's price. Additionally, you may evaluate how the addition of American Financial to your portfolios can decrease your overall portfolio volatility.
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Is American Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Financial. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.03)
Dividend Share
2.68
Earnings Share
10.05
Revenue Per Share
87.981
Quarterly Revenue Growth
0.087
The market value of American Financial is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Financial's value that differs from its market value or its book value, called intrinsic value, which is American Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Financial's market value can be influenced by many factors that don't directly affect American Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.