Overview Dividends

(AFG) American Financial - Ratings and Ratios

Exchange: NYSE • Country: United States • Currency: USD • Type: Common Stock • ISIN: US0259321042

Property Insurance, Casualty Insurance, Financial Insurance

AFG EPS (Earnings per Share)

EPS Growth (3Y CAGR): -60.58%
EPS Trend (3Y Correlation): -59.5%

AFG Revenue

Revenue Growth (3Y CAGR): -1.11%
Revenue Trend (3Y Correlation): 23.9%

Description: AFG American Financial July 22, 2025

American Financial Group, Inc. (NYSE:AFG) is a leading insurance holding company specializing in property and casualty insurance products in the United States. The companys diverse portfolio includes property and transportation insurance, specialty casualty insurance, and specialty financial insurance products, catering to various niches and industries.

AFGs insurance products are distributed through independent agents and brokers, allowing the company to maintain a strong presence in the market. With a history dating back to 1872, AFG has established itself as a reputable player in the insurance industry, headquartered in Cincinnati, Ohio.

From a financial perspective, AFGs market capitalization stands at approximately $10.6 billion, with a forward P/E ratio of 11.53, indicating a relatively attractive valuation. The companys return on equity (RoE) is 17.81%, suggesting a strong ability to generate profits from shareholder equity. Additionally, AFGs dividend yield and payout ratio can be considered key performance indicators (KPIs), with a dividend yield of around 2-3% and a payout ratio of approximately 20-30%, indicating a stable dividend policy.

To further evaluate AFGs performance, other relevant KPIs can be considered, such as the combined ratio, which measures the companys underwriting profitability, and the loss ratio, which assesses the proportion of claims paid out relative to premiums earned. A combined ratio below 100% indicates profitable underwriting, while a lower loss ratio suggests effective risk management. AFGs asset quality, including the proportion of invested assets in high-risk categories, and its capital adequacy ratio, can also provide insights into the companys financial stability and resilience.

AFG Stock Overview

Market Cap in USD	11,742m
Sub-Industry	Multi-line Insurance
IPO / Inception	1983-04-06

AFG Stock Ratings

Growth Rating	33.2%
Fundamental	73.4%
Dividend Rating	79.1%
Return 12m vs S&P 500	-9.70%
Analyst Rating	3.33 of 5

AFG Dividends

Dividend Yield 12m	7.02%
Yield on Cost 5y	21.26%
Annual Growth 5y	25.10%
Payout Consistency	87.2%
Payout Ratio	47.6%

AFG Growth Ratios

Growth Correlation 3m	58.6%
Growth Correlation 12m	22.2%
Growth Correlation 5y	85.2%
CAGR 5y	3.68%
CAGR/Max DD 3y (Calmar Ratio)	0.15
CAGR/Mean DD 3y (Pain Ratio)	0.36
Sharpe Ratio 12m	0.89
Alpha	-6.80
Beta	0.736
Volatility	23.40%
Current Volume	261.5k
Average Volume 20d	423.5k
Stop Loss	128.2 (-3%)
Signal	-0.67

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income (764.0m TTM) > 0 and > 6% of Revenue (6% = 497.0m TTM)

FCFTA 0.06 (>2.0%) and ΔFCFTA 0.13pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 11.52% (prev -67.92%; Δ 79.43pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA 0.05 (>3.0%) and CFO 1.67b > Net Income 764.0m (YES >=105%, WARN >=100%)

Net Debt (208.0m) to EBITDA (1.11b) ratio: 0.19 <= 3.0 (WARN <= 3.5)

Current Ratio 1.80 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (83.5m) change vs 12m ago -0.48% (target <= -2.0% for YES)

Gross Margin 37.46% (prev 33.25%; Δ 4.21pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 29.97% (prev 32.51%; Δ -2.54pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 13.54 (EBITDA TTM 1.11b / Interest Expense TTM 76.0m) >= 6 (WARN >= 3)

Altman Z'' 0.91

(A) 0.03 = (Total Current Assets 2.15b - Total Current Liabilities 1.19b) / Total Assets 30.67b

(B) 0.10 = Retained Earnings (Balance) 3.15b / Total Assets 30.67b

(D) 0.12 = Book Value of Equity 3.10b / Total Liabilities 26.15b

Total Rating: 0.91 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 73.36

1. Piotroski 6.50pt = 1.50

2. FCF Yield 15.49% = 5.0

3. FCF Margin 20.97% = 5.24

4. Debt/Equity 0.33 = 2.45

5. Debt/Ebitda 0.19 = 2.47

6. ROIC - WACC (= 5.18)% = 6.47

7. RoE 16.90% = 1.41

8. Rev. Trend 23.89% = 1.79

9. EPS Trend -59.48% = -2.97

What is the price of AFG shares?

As of October 25, 2025, the stock is trading at USD 132.22 with a total of 261,496 shares traded.
Over the past week, the price has changed by +0.85%, over one month by -7.89%, over three months by +5.79% and over the past year by +6.86%.

Is American Financial a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, American Financial (NYSE:AFG) is currently (October 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 73.36 and therefor a somewhat positive outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of AFG is around 133.09 USD . This means that AFG is currently overvalued and has a potential downside of 0.66%.

Is AFG a buy, sell or hold?

American Financial has received a consensus analysts rating of 3.33. Therefor, it is recommend to hold AFG.

Strong Buy: 1
Buy: 0
Hold: 5
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the AFG price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	136.4	3.2%
Analysts Target Price	136.4	3.2%
ValueRay Target Price	147.5	11.6%

AFG Fundamental Data Overview October 17, 2025

Market Cap USD = 11.74b (11.74b USD * 1.0 USD.USD)
P/E Trailing = 15.4564
P/E Forward = 11.534
P/S = 1.4608
P/B = 2.7164
P/EG = 2.78
Beta = 0.736
Revenue TTM = 8.28b USD
EBIT TTM = 1.03b USD
EBITDA TTM = 1.11b USD
Long Term Debt = 1.48b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 1.48b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 208.0m USD (from netDebt column, last quarter)
Enterprise Value = 11.21b USD (11.74b + Debt 1.48b - CCE 2.00b)
Interest Coverage Ratio = 13.54 (Ebit TTM 1.03b / Interest Expense TTM 76.0m)
FCF Yield = 15.49% (FCF TTM 1.74b / Enterprise Value 11.21b)
FCF Margin = 20.97% (FCF TTM 1.74b / Revenue TTM 8.28b)
Net Margin = 9.22% (Net Income TTM 764.0m / Revenue TTM 8.28b)
Gross Margin = 37.46% ((Revenue TTM 8.28b - Cost of Revenue TTM 5.18b) / Revenue TTM)
Gross Margin QoQ = 47.66% (prev 15.19%)
Tobins Q-Ratio = 0.37 (Enterprise Value 11.21b / Total Assets 30.67b)
Interest Expense / Debt = 1.29% (Interest Expense 19.0m / Debt 1.48b)
Taxrate = 24.02% (55.0m / 229.0m)
NOPAT = 781.9m (EBIT 1.03b * (1 - 24.02%))
Current Ratio = 1.80 (Total Current Assets 2.15b / Total Current Liabilities 1.19b)
Debt / Equity = 0.33 (Debt 1.48b / totalStockholderEquity, last quarter 4.52b)
Debt / EBITDA = 0.19 (Net Debt 208.0m / EBITDA 1.11b)
Debt / FCF = 0.12 (Net Debt 208.0m / FCF TTM 1.74b)
Total Stockholder Equity = 4.52b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.49% (Net Income 764.0m / Total Assets 30.67b)
RoE = 16.90% (Net Income TTM 764.0m / Total Stockholder Equity 4.52b)
RoCE = 17.16% (EBIT 1.03b / Capital Employed (Equity 4.52b + L.T.Debt 1.48b))
RoIC = 13.04% (NOPAT 781.9m / Invested Capital 6.00b)
WACC = 7.86% (E(11.74b)/V(13.22b) * Re(8.73%) + D(1.48b)/V(13.22b) * Rd(1.29%) * (1-Tc(0.24)))
Discount Rate = 8.73% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -33.33 | Cagr: -0.18%
[DCF Debug] Terminal Value 75.37% ; FCFE base≈1.59b ; Y1≈1.54b ; Y5≈1.55b
Fair Price DCF = 291.3 (DCF Value 24.29b / Shares Outstanding 83.4m; 5y FCF grow -3.87% → 3.0% )
EPS Correlation: -59.48 | EPS CAGR: -60.58% | SUE: -4.0 | # QB: 0
Revenue Correlation: 23.89 | Revenue CAGR: -1.11% | SUE: 0.32 | # QB: 0

Additional Sources for AFG Stock

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