American Financial Group Stock Return On Equity
| AFG Stock | USD 127.86 2.45 1.95% |
American Financial Group fundamentals help investors to digest information that contributes to American Financial'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 Financial'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 Financial stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.20 | 0.21 |
American | Return On Equity |
American Financial Group Company Return On Equity Analysis
American Financial's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current American Financial Return On Equity | 0.21 |
Most of American Financial's fundamental indicators, such as Return On Equity, 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 Financial Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for American Financial is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Return On Equity. Since American Financial'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 Financial'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 Financial's interrelated accounts and indicators.
Click cells to compare fundamentals
American Return On Equity Historical Pattern
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 drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of American Financial return on equity as a starting point in their analysis.
American Financial Return On Equity |
| Timeline |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
| Competition |
American Total Stockholder Equity
Total Stockholder Equity |
|
Based on the latest financial disclosure, American Financial Group has a Return On Equity of 0.205. This is 85.86% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The return on equity for all United States stocks is 166.13% lower than that of the firm.
American Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Financial's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Financial could also be used in its relative valuation, which is a method of valuing American Financial by comparing valuation metrics of similar companies.American Financial is currently under evaluation in return on equity category among related companies.
American Financial ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Financial's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
American Fundamentals
| Return On Equity | 0.21 | ||||
| Return On Asset | 0.0256 | ||||
| Profit Margin | 0.11 % | ||||
| Operating Margin | 0.20 % | ||||
| Current Valuation | 11.03 B | ||||
| Shares Outstanding | 83.86 M | ||||
| Shares Owned By Insiders | 18.00 % | ||||
| Shares Owned By Institutions | 62.17 % | ||||
| Number Of Shares Shorted | 767.92 K | ||||
| Price To Earning | 12.21 X | ||||
| Price To Book | 2.51 X | ||||
| Price To Sales | 1.43 X | ||||
| Revenue | 7.73 B | ||||
| Gross Profit | 1.46 B | ||||
| EBITDA | 852 M | ||||
| Net Income | 852 M | ||||
| Cash And Equivalents | 872 M | ||||
| Cash Per Share | 9.68 X | ||||
| Total Debt | 1.67 B | ||||
| Debt To Equity | 0.43 % | ||||
| Current Ratio | 1.79 X | ||||
| Book Value Per Share | 50.91 X | ||||
| Cash Flow From Operations | 1.97 B | ||||
| Short Ratio | 2.22 X | ||||
| Earnings Per Share | 10.05 X | ||||
| Price To Earnings To Growth | 2.78 X | ||||
| Target Price | 139.17 | ||||
| Number Of Employees | 8.5 K | ||||
| Beta | 0.77 | ||||
| Market Capitalization | 10.64 B | ||||
| Total Asset | 24.62 B | ||||
| Retained Earnings | 3.12 B | ||||
| Annual Yield | 0.02 % | ||||
| Five Year Return | 1.68 % | ||||
| Net Asset | 24.62 B | ||||
| Last Dividend Paid | 2.68 |
About American Financial Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Financial Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Financial Group 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 Financial
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 Financial 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 Financial will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.93 | L | Loews Corp | PairCorr |
| 0.81 | CB | Chubb Earnings Call This Week | PairCorr |
| 0.74 | FRFHF | Fairfax Financial | PairCorr |
Moving against American Stock
| 0.76 | FACO | First Acceptance Corp | PairCorr |
| 0.51 | PRA | ProAssurance Financial Report 14th of May 2024 | PairCorr |
The ability to find closely correlated positions to American Financial 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 Financial 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 Financial - 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 Financial Group to buy it.
The correlation of American Financial 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 Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Financial 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 Financial 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 Financial Piotroski F Score and American Financial Altman Z Score analysis. 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Complementary Tools for American Stock analysis
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.
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |
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.