American Financial Group Inc (AFGE) stock analysis

P/E above its 5-year median

American Financial's P/E of 13.4 is above its own 5-year median of 12.2.

P/E above the industry

American Financial's P/E of 13.4 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

American Financial's price-to-sales of 1.54 is above the Fire, Marine, and Casualty Insurance median of 1.24.

P/B above the industry

American Financial's price-to-book of 2.65 is above the Fire, Marine, and Casualty Insurance median of 1.61.

Trading above fair value

The share price of $153.87 is above our fair value estimate of $123.84.

Margin of safety under 20%

The price is 24.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -1.4% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 24.7% over the last twelve months, against a 5-year average of 2.8% a year.

Growing slower than the industry

Revenue grew -0.2% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 7.0%.

Guidance raised

American Financial raised its 2026 return on our $2.8 billion portfolio of alternative investments outlook on Feb 4, 2026.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity over 15%

Return on equity was 20.4% over the last twelve months and averaged 22.5% over five years.

Return on assets over 1%

Return on assets was 3.0%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

American Financial's return on equity of 20.4% is above the Fire, Marine, and Casualty Insurance median of 18.2%.

Earnings grew over 5 years

Net income grew 2.8% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 11.5% over the last twelve months, against a 5-year average of 15.0%.

Net margin below the industry

American Financial's net margin of 11.5% is below the Fire, Marine, and Casualty Insurance median of 12.9%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest well covered

Operating income covers interest expense 13.5 times.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

American Financial paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; American Financial yields 2.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 60.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.