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): 2.79%
EPS Trend (3Y Correlation): -18.3%

AFG Revenue

Revenue Growth (3Y CAGR): -1.11%
Revenue Trend (3Y Correlation): 24.9%

Description: AFG American Financial

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	10,980m
Sub-Industry	Multi-line Insurance
IPO / Inception	1983-04-06

AFG Stock Ratings

Growth Rating	60.8%
Fundamental	70.3%
Dividend Rating	77.7%
Return 12m vs S&P 500	-5.98%
Analyst Rating	3.33 of 5

AFG Dividends

Dividend Yield 12m	4.53%
Yield on Cost 5y	14.94%
Annual Growth 5y	19.62%
Payout Consistency	93.8%
Payout Ratio	46.9%

AFG Growth Ratios

Growth Correlation 3m	80.9%
Growth Correlation 12m	-14%
Growth Correlation 5y	85.2%
CAGR 5y	28.08%
CAGR/Max DD 5y	1.17
Sharpe Ratio 12m	0.31
Alpha	0.72
Beta	0.534
Volatility	21.87%
Current Volume	429.4k
Average Volume 20d	422.3k
Stop Loss	132.4 (-3.1%)
Signal	0.93

Piotroski VR‑10 (Strict, 0-10) 6.5

Net Income (764.0m TTM) > 0 and > 6% of Revenue (6% = 497.8m TTM)

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

NWC/Revenue 16.13% (prev -67.92%; Δ 84.04pp) (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 (867.0m) ratio: 0.24 <= 3.0 (WARN <= 3.5)

Current Ratio 2.12 (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 49.69% (prev 33.25%; Δ 16.45pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 30.02% (prev 32.51%; Δ -2.49pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 9.78 (EBITDA TTM 867.0m / Interest Expense TTM 76.0m) >= 6 (WARN >= 3)

Altman Z'' 0.93

(A) 0.04 = (Total Current Assets 2.53b - 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 3.15b / Total Liabilities 26.15b

Total Rating: 0.93 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 70.33

1. Piotroski 6.50pt = 1.50

2. FCF Yield 15.53% = 5.0

3. FCF Margin 20.94% = 5.23

4. Debt/Equity 0.33 = 2.45

5. Debt/Ebitda 1.70 = 0.58

6. ROIC - WACC 2.62% = 3.28

7. RoE 16.90% = 1.41

8. Rev. Trend 24.89% = 1.24

9. Rev. CAGR -1.11% = -0.19

10. EPS Trend -18.25% = -0.46

11. EPS CAGR 2.79% = 0.28

What is the price of AFG shares?

As of August 29, 2025, the stock is trading at USD 136.58 with a total of 429,384 shares traded.
Over the past week, the price has changed by +2.65%, over one month by +9.28%, over three months by +13.00% and over the past year by +10.64%.

Is American Financial a good stock to buy?

Partly, yes. Based on ValueRay´s Fundamental Analyses, American Financial (NYSE:AFG) is currently (August 2025) ok to buy, but has to be watched. It has a ValueRay Fundamental Rating of 70.33 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 153.73 USD . This means that AFG is currently undervalued and has a potential upside of +12.56% (Margin of Safety).

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	130.6	-4.4%
Analysts Target Price	132.2	-3.2%
ValueRay Target Price	169.3	24%

Last update: 2025-08-19 02:48

AFG Fundamental Data Overview

Market Cap USD = 10.98b (10.98b USD * 1.0 USD.USD)
CCE Cash And Equivalents = 1.27b USD (Cash only, last quarter)
P/E Trailing = 14.4523
P/E Forward = 11.534
P/S = 1.366
P/B = 2.4313
P/EG = 2.78
Beta = 0.735
Revenue TTM = 8.30b USD
EBIT TTM = 743.0m USD
EBITDA TTM = 867.0m USD
Long Term Debt = 1.48b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (0.0)
Debt = 1.48b USD (Calculated: Short Term 0.0 + Long Term 1.48b)
Net Debt = 208.0m USD (from netDebt column, last quarter)
Enterprise Value = 11.19b USD (10.98b + Debt 1.48b - CCE 1.27b)
Interest Coverage Ratio = 9.78 (Ebit TTM 743.0m / Interest Expense TTM 76.0m)
FCF Yield = 15.53% (FCF TTM 1.74b / Enterprise Value 11.19b)
FCF Margin = 20.94% (FCF TTM 1.74b / Revenue TTM 8.30b)
Net Margin = 9.21% (Net Income TTM 764.0m / Revenue TTM 8.30b)
Gross Margin = 49.69% ((Revenue TTM 8.30b - Cost of Revenue TTM 4.17b) / Revenue TTM)
Tobins Q-Ratio = 3.55 (Enterprise Value 11.19b / Book Value Of Equity 3.15b)
Interest Expense / Debt = 1.29% (Interest Expense 19.0m / Debt 1.48b)
Taxrate = 21.09% (from yearly Income Tax Expense: 237.0m / 1.12b)
NOPAT = 586.3m (EBIT 743.0m * (1 - 21.09%))
Current Ratio = 2.12 (Total Current Assets 2.53b / Total Current Liabilities 1.19b)
Debt / Equity = 0.33 (Debt 1.48b / last Quarter total Stockholder Equity 4.52b)
Debt / EBITDA = 1.70 (Net Debt 208.0m / EBITDA 867.0m)
Debt / FCF = 0.85 (Debt 1.48b / FCF TTM 1.74b)
Total Stockholder Equity = 4.52b (last 4 quarters mean)
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 = 12.39% (Ebit 743.0m / (Equity 4.52b + L.T.Debt 1.48b))
RoIC = 9.78% (NOPAT 586.3m / Invested Capital 6.00b)
WACC = 7.15% (E(10.98b)/V(12.46b) * Re(7.98%)) + (D(1.48b)/V(12.46b) * Rd(1.29%) * (1-Tc(0.21)))
Shares Correlation 5-Years: -80.0 | Cagr: -0.50%
Discount Rate = 7.98% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 77.87% ; FCFE base≈1.59b ; Y1≈1.54b ; Y5≈1.55b
Fair Price DCF = 330.1 (DCF Value 27.53b / Shares Outstanding 83.4m; 5y FCF grow -3.87% → 3.0% )
Revenue Correlation: 24.89 | Revenue CAGR: -1.11%
Rev Growth-of-Growth: -4.98
EPS Correlation: -18.25 | EPS CAGR: 2.79%
EPS Growth-of-Growth: -21.17

Additional Sources for AFG Stock

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