American Equity Investment Stock Beta
| AEL Stock | USD 55.14 0.11 0.20% |
American Equity Investment fundamentals help investors to digest information that contributes to American Equity's financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American Equity's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American Equity stock.
American | Beta |
American Equity Investment Company Beta Analysis
American Equity's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current American Equity Beta | 0.79 |
Most of American Equity's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Equity Investment is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for American Equity is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Beta. Since American Equity's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American Equity's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American Equity's interrelated accounts and indicators.
Click cells to compare fundamentals
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, American Equity Investment has a Beta of 0.785. This is 4.27% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The beta for all United States stocks is notably lower than that of the firm.
American Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Equity's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Equity could also be used in its relative valuation, which is a method of valuing American Equity by comparing valuation metrics of similar companies.American Equity is currently under evaluation in beta category among related companies.
American Equity Institutional Holders
Institutional Holdings refers to the ownership stake in American Equity that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of American Equity's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing American Equity's value.| Shares | Balyasny Asset Management Llc | 2023-12-31 | 1.2 M | Charles Schwab Investment Management Inc | 2023-12-31 | 973.3 K | First Trust Capital Management L.p. | 2023-12-31 | 972.4 K | Norges Bank | 2023-12-31 | 906.1 K | Morgan Stanley - Brokerage Accounts | 2023-12-31 | 888.1 K | American Century Companies Inc | 2023-12-31 | 872.7 K | Jpmorgan Chase & Co | 2023-12-31 | 857.4 K | Alliancebernstein L.p. | 2023-12-31 | 840.8 K | Bank Of New York Mellon Corp | 2023-12-31 | 720 K | Brookfield Corp | 2023-12-31 | 15.9 M | Blackrock Inc | 2023-12-31 | 10.9 M |
As returns on the market increase, American Equity's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Equity is expected to be smaller as well.
American Fundamentals
| Return On Equity | 0.0782 | ||||
| Return On Asset | 0.0027 | ||||
| Profit Margin | 0.07 % | ||||
| Operating Margin | (0.31) % | ||||
| Current Valuation | (4.51 B) | ||||
| Shares Outstanding | 79.4 M | ||||
| Shares Owned By Insiders | 0.96 % | ||||
| Shares Owned By Institutions | 95.47 % | ||||
| Number Of Shares Shorted | 2.18 M | ||||
| Price To Earning | 2.63 X | ||||
| Price To Book | 1.45 X | ||||
| Price To Sales | 1.55 X | ||||
| Revenue | 1.69 B | ||||
| Gross Profit | (509.47 M) | ||||
| EBITDA | 190.86 M | ||||
| Net Income | 210.53 M | ||||
| Cash And Equivalents | 1.92 B | ||||
| Cash Per Share | 21.48 X | ||||
| Total Debt | 864.55 M | ||||
| Debt To Equity | 0.27 % | ||||
| Current Ratio | 0.49 X | ||||
| Book Value Per Share | 38.11 X | ||||
| Cash Flow From Operations | 3.94 B | ||||
| Short Ratio | 4.19 X | ||||
| Earnings Per Share | 2.06 X | ||||
| Price To Earnings To Growth | 1.14 X | ||||
| Target Price | 55.0 | ||||
| Number Of Employees | 995 | ||||
| Beta | 0.79 | ||||
| Market Capitalization | 4.38 B | ||||
| Total Asset | 67.29 B | ||||
| Retained Earnings | 4.85 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 1.00 % | ||||
| Net Asset | 67.29 B |
About American Equity Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Equity Investment's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Equity using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Equity Investment based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with American Equity
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Equity position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Equity will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.64 | MET-PA | MetLife Preferred Stock | PairCorr |
Moving against American Stock
| 0.82 | FLFG | Federal Life Group | PairCorr |
| 0.75 | CIA | Citizens | PairCorr |
The ability to find closely correlated positions to American Equity could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Equity when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Equity - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Equity Investment to buy it.
The correlation of American Equity is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Equity moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Equity Inve moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Equity can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American Equity Piotroski F Score and American Equity Altman Z Score analysis. Note that the American Equity Inve information on this page should be used as a complementary analysis to other American Equity'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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Complementary Tools for American Stock analysis
When running American Equity's price analysis, check to measure American Equity'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 Equity is operating at the current time. Most of American Equity's value examination focuses on studying past and present price action to predict the probability of American Equity'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 Equity's price. Additionally, you may evaluate how the addition of American Equity to your portfolios can decrease your overall portfolio volatility.
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Is American Equity'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 Equity. 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 Equity 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 0.188 | Earnings Share 2.06 | Revenue Per Share 35.569 | Quarterly Revenue Growth 0.614 | Return On Assets 0.0027 |
The market value of American Equity Inve 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 Equity's value that differs from its market value or its book value, called intrinsic value, which is American Equity'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 Equity's market value can be influenced by many factors that don't directly affect American Equity'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 Equity's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Equity is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Equity'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.