A Business at a Glance
0 of 1 daily views used (1 remaining). Sign up free for +5 more daily views (6 total), or try AAPL for a full preview.
AMERICAN FINANCIAL GROUP INC
AFG
$12.0B
Mkt Cap
$143.76
+1.84%
AMERICAN FINANCIAL GROUP INC (AFG) has a current P/E ratio of 14.3, compared to its historical median P/E of 9.2. The stock is currently considered Expensive based on its historical valuation range.
AMERICAN FINANCIAL GROUP INC (AFG) has a 5-year average return on invested capital (ROIC) of 16.7%. This indicates strong capital allocation and a potential competitive advantage.
AMERICAN FINANCIAL GROUP INC (AFG) has a market capitalization of $11.9B. It is classified as a large-cap stock.
Yes, AMERICAN FINANCIAL GROUP INC (AFG) pays a dividend with a trailing twelve-month yield of 4.78%. The company also returns capital through share buybacks, with a buyback yield of 0.85%.
Based on historical P/E analysis, AMERICAN FINANCIAL GROUP INC (AFG) appears expensive. The current P/E of 14.3 is 54% above its historical median of 9.2. The estimated fair value CAGR (P/E method) is 3.6%.
AMERICAN FINANCIAL GROUP INC (AFG) operates in the Fire, Marine & Casualty Insurance industry, within the Financials sector.
American Financial Group is an insurance holding company operating through Great American Insurance Group, a specialty property and casualty insurer with over 150 years of operating history. The company operates 36 autonomous insurance businesses organized into specialty casualty, specialty property, and specialty financial groups, each managed by experienced professionals in particular lines or customer segments while benefiting from centralized investment and administrative support. AFG's business model emphasizes decentralized underwriting, claims, and policy servicing decisions that promote agility, innovative product design, and tailored distribution strategies for niche markets, with management believing this structure enables double-digit annual book value per share growth. The company earns underwriting profit measured by combined ratios (losses, loss adjustment expenses, underwriting expenses, and policyholder dividends relative to premiums), with a combined ratio under 100% indicating underwriting profitability, and generates investment income from a $17.2 billion portfolio approximately 65% invested in fixed maturities and including alternative investments such as multifamily properties. AFG's customer base comprises commercial businesses across diverse specialty lines including workers' compensation, commercial auto liability, excess and surplus lines, mergers and acquisitions, social services, and crop insurance, with over 55% of 2025 specialty property and casualty gross written premiums produced by businesses ranking in the top 10 among competitors. The company maintains financial strength ratings in the "A" category from A.M. Best and S&P, operates primarily in the United States (approximately 98% of direct written premiums), and has demonstrated 39 consecutive quarters of overall renewal rate increases.
【Disciplined growth amid softening rates】 Management remains optimistic about premium growth in 2026 driven by startup businesses and completion of underwriting actions in specialty casualty, though acknowledging pockets of softening rates and continued competitive conditions that require maintaining disciplined bottom-line focus. The company expects to generate significant excess capital throughout 2026, providing ample opportunity for acquisitions, special dividends, or share repurchases, with capital deployment evaluated regularly based on available alternatives. Nearly all specialty property and casualty businesses continue to meet or exceed targeted returns, and management believes renewal rate increases in excess of prospective loss ratio trends will enable the company to meet or exceed targeted returns in 2026. Alternative investments are expected to deliver annual returns averaging 10% or better longer term, with multifamily portfolio conditions showing signs of recovery as new starts have fallen nearly 50% since 2022 and completions are rapidly declining. Management expects workers' compensation to remain profitable while not anticipating the favorable prior-period development to continue, and does not expect adverse development from casualty lines to reoccur given rate and reserving actions taken.
| Metric | Target | Period |
|---|---|---|
| Core Net Operating Earnings per share | approximately $11 | FY2026 |
| Core operating return on equity (excluding AOCI) | approximately 18% | FY2026 |
| Pre-tax core operating gain on sale transaction | approximately $125 million | Q2 or Q3 2026 |
Core Net Operating Earnings per share (FY2026): “We expect that performance in line with these assumptions would result in Core Net Operating Earnings per share of approximately $11 in 2026”
Core operating return on equity (excluding AOCI) (FY2026): “and generate a core operating return on equity, excluding AOCI, of approximately 18%”
Pre-tax core operating gain on sale transaction (Q2 or Q3 2026): “AFG currently expects to recognize a pre-tax core operating gain of approximately $125 million on the sale.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.2B | 8.2B | 8.3B | 7.8B | 7.0B | 6.6B |
| Net Income | 879M | 842M | 887M | 852M | 898M | 2.0B |
| EPS | $10.55 | $10.08 | $10.57 | $10.05 | $10.53 | $23.30 |
| Free Cash Flow | 0 | 1.5B | 1.2B | 2.0B | 1.2B | 1.7B |
| ROIC | 2.7% | 13.4% | 15.2% | 15.1% | 14.3% | 25.4% |
| Gross Margin | - | 13.1% | 13.5% | 13.7% | 16.0% | 20.4% |
| Debt/Equity | 0.39 | 0.38 | 0.33 | 0.35 | 0.37 | 0.39 |
| Dividends/Share | $6.87 | $7.28 | $9.43 | $8.10 | $14.31 | $28.06 |
| Operating Income | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B | 1.3B |
| Operating Margin | 13.6% | 13.1% | 13.5% | 13.7% | 16.0% | 20.4% |
| ROE | 18.8% | 18.1% | 20.3% | 20.5% | 19.8% | 33.8% |
| Shares Outstanding | 83M | 84M | 84M | 85M | 85M | 86M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 5.7B | 6.1B | 6.5B | 6.9B | 7.2B | 6.2B | 5.8B | 6.6B | 7.0B | 7.8B | 8.3B | 8.2B | 8.2B |
| Gross Margin | 10.9% | 9.2% | 12.1% | 10.5% | 8.9% | 10.2% | 5.9% | 20.4% | 16.0% | 13.7% | 13.5% | 13.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | N/A | N/A | N/A | N/A | N/A | N/A | 1.6B | 1.5B | 1.7B | 1.9B | 2.0B | 2.1B | 2.1B |
| EBIT | 626M | 565M | 787M | 724M | 639M | 634M | 339M | 1.3B | 1.1B | 1.1B | 1.1B | 1.1B | 1.1B |
| Op. Margin | 10.9% | 9.2% | 12.1% | 10.5% | 8.9% | 10.2% | 5.9% | 20.4% | 16.0% | 13.7% | 13.5% | 13.1% | 13.6% |
| Net Income | 452M | 352M | 649M | 475M | 530M | 897M | 732M | 2.0B | 898M | 852M | 887M | 842M | 879M |
| Net Margin | 7.9% | 5.7% | 10.0% | 6.9% | 7.4% | 14.4% | 12.7% | 30.4% | 12.8% | 10.9% | 10.7% | 10.3% | 10.8% |
| Non-Recurring | 36M | 125M | 115M | 74M | 19M | 19M | 0 | 0 | 0 | 26M | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 7.9% | 6.1% | 11.0% | 7.4% | 8.2% | 12.8% | 8.9% | 25.4% | 14.3% | 15.1% | 15.2% | 13.4% | 2.7% |
| ROE | 9.5% | 7.4% | 13.7% | 9.3% | 10.3% | 16.0% | 11.2% | 33.8% | 19.8% | 20.5% | 20.3% | 18.1% | 18.8% |
| ROA | 1.0% | 0.7% | 1.2% | 0.8% | 0.9% | 1.3% | 1.0% | 3.9% | 3.1% | 2.9% | 2.9% | 2.7% | 2.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.2B | 1.4B | 1.1B | 1.8B | 2.1B | 2.5B | 2.2B | 1.7B | 1.2B | 2.0B | 1.2B | 1.5B | 1.7B |
| Free Cash Flow | 1.2B | 1.4B | 1.1B | 1.8B | 2.1B | 2.5B | 2.2B | 1.7B | 1.2B | 2.0B | 1.2B | 1.5B | 0 |
| Owner Earnings | 1.2B | 1.3B | 1.1B | 1.8B | 2.1B | 2.4B | 2.2B | 1.7B | 1.1B | 1.9B | 1.1B | 1.5B | 1.6B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 19M | 8.0M | 8.0M | 8.0M | 9.0M | 11M | 12M | 6.0M | 11M | 15M | 20M | 20M | 89M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 19M | 8.0M | 8.0M | 8.0M | 9.0M | 11M | 12M | 6.0M | 11M | 15M | 20M | 20M | 89M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 167M | 176M | 185M | 417M | 394M | 444M | 334M | 2.4B | 1.2B | 684M | 788M | 606M | 571M |
| Dividend Yield | 7.0% | 6.3% | 5.9% | 9.4% | 7.6% | 8.7% | 8.5% | 34.4% | 13.5% | 8.0% | 8.1% | 5.8% | 4.8% |
| Share Buybacks | 191M | 126M | 133M | 0 | 6.0M | 0 | 313M | 319M | 11M | 213M | 0 | 99M | 101M |
| Buyback Yield | 7.5% | 4.1% | 3.5% | N/A | 0.1% | N/A | 6.8% | 3.7% | 0.1% | 2.4% | N/A | 0.9% | 0.8% |
| Stock-Based Comp | 25M | 27M | 22M | 24M | 23M | 23M | 20M | 16M | 19M | 18M | 18M | 18M | 18M |
| Debt Repayment | 2.0M | 192M | 18M | 745M | 0 | 150M | 150M | 0 | 477M | 21M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -31.0B | -32.5B | -35.3B | -39.4B | -42.2B | -47.3B | -8.8B | -10.5B | -9.5B | -10.1B | -10.3B | -11.0B | -10.9B |
| Cash & Equiv. | 1.3B | 1.2B | 2.1B | 2.3B | 1.5B | 2.3B | 1.7B | 2.1B | 872M | 1.2B | 1.4B | 1.7B | 12.8B |
| Long-Term Debt | 1.1B | 998M | 1.3B | 1.3B | 1.3B | 1.5B | 2.0B | 2.0B | 1.5B | 1.5B | 1.5B | 1.8B | 1.8B |
| Debt/Equity | 0.22 | 0.22 | 0.27 | 0.25 | 0.27 | 0.24 | 0.29 | 0.39 | 0.37 | 0.35 | 0.33 | 0.38 | 0.39 |
| Interest Coverage | 8.5 | 7.5 | 10.2 | 8.5 | 10.3 | 9.3 | 3.9 | 14.2 | 13.2 | 14.1 | 14.8 | 13.4 | 13.3 |
| Equity | 4.9B | 4.6B | 4.9B | 5.3B | 5.0B | 6.3B | 6.8B | 5.0B | 4.1B | 4.3B | 4.5B | 4.8B | 4.7B |
| Total Assets | 47.5B | 49.8B | 55.1B | 60.7B | 63.5B | 70.1B | 73.7B | 28.9B | 28.8B | 29.8B | 30.8B | 32.6B | 32.4B |
| Total Liabilities | 42.5B | 45.1B | 50.2B | 55.3B | 58.5B | 63.9B | 66.9B | 23.9B | 24.8B | 25.5B | 26.4B | 27.8B | 27.7B |
| Intangibles | 49M | 41M | 34M | 26M | 54M | 43M | 34M | 106M | 108M | 213M | 203M | 189M | 184M |
| Retained Earnings | -2.0M | 0 | 3.3B | 3.2B | 3.6B | 4.0B | 4.1B | 3.5B | 3.1B | 3.1B | 3.2B | 3.4B | 3.3B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 4.97 | 3.94 | 7.33 | 5.28 | 5.85 | 9.85 | 8.20 | 23.30 | 10.53 | 10.05 | 10.57 | 10.08 | 10.55 |
| Owner EPS | 13.05 | 14.75 | 12.65 | 19.70 | 22.64 | 26.60 | 24.10 | 19.76 | 13.17 | 22.85 | 13.28 | 17.90 | 18.75 |
| Book Value | 53.65 | 51.40 | 55.52 | 59.25 | 54.86 | 68.84 | 76.05 | 58.54 | 47.51 | 50.23 | 53.22 | 57.70 | 56.30 |
| Cash Flow/Share | 13.54 | 15.14 | 12.99 | 20.05 | 22.99 | 26.97 | 24.45 | 20.02 | 13.52 | 23.24 | 13.73 | 18.35 | 11.65 |
| Dividends/Share | 1.91 | 2.03 | 2.15 | 4.79 | 4.45 | 4.95 | 3.85 | 28.06 | 14.31 | 8.10 | 9.43 | 7.28 | 6.87 |
| Shares Out. | 90.9M | 89.3M | 88.5M | 90.0M | 90.6M | 91.1M | 89.3M | 85.6M | 85.3M | 84.8M | 83.9M | 83.5M | 83.1M |
| Valuation | |||||||||||||
| P/E Ratio | 5.6 | 8.8 | 5.9 | 10.6 | 8.2 | 6.2 | 6.2 | 4.3 | 10.5 | 10.3 | 12.0 | 13.5 | 13.6 |
| P/FCF | 2.1 | 2.3 | 3.3 | 2.8 | 2.1 | 2.3 | 2.1 | 5.0 | 8.2 | 4.4 | 9.3 | 7.4 | N/A |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.3 | 0.3 | 0.9 |
| Price/Book | 0.5 | 0.7 | 0.8 | 0.9 | 0.9 | 0.9 | 0.7 | 1.7 | 2.3 | 2.1 | 2.4 | 2.4 | 2.6 |
| Price/Sales | 0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 0.6 | 0.7 | 1.1 | 1.3 | 1.1 | 1.2 | 1.3 | 1.5 |
| FCF Yield | 48.3% | 43.7% | 30.2% | 35.7% | 47.9% | 43.9% | 47.7% | 19.8% | 12.2% | 22.5% | 10.8% | 13.5% | N/A |
| Market Cap | 2.6B | 3.1B | 3.8B | 5.1B | 4.3B | 5.6B | 4.6B | 8.6B | 9.4B | 8.8B | 10.7B | 11.3B | 11.9B |
| Avg. Price | 26.32 | 31.27 | 35.33 | 49.56 | 56.89 | 55.75 | 43.87 | 80.57 | 105.58 | 100.75 | 116.56 | 125.40 | 143.76 |
| Year-End Price | 28.05 | 34.62 | 43.03 | 56.14 | 47.97 | 61.49 | 51.25 | 100.90 | 110.53 | 103.22 | 127.32 | 135.64 | 143.76 |
AMERICAN FINANCIAL GROUP INC passes 3 of 9 quality checks, indicating weak fundamentals.
AMERICAN FINANCIAL GROUP INC trades at 14.3x trailing earnings, compared to its 15-year median P/E of 9.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 7.8x vs a median of 3.9x. The company's 5-year average ROIC is 16.7% with a gross margin of 15.3%. Total shareholder yield (dividends + buybacks) is 5.6%. At current prices, the estimated annualized return to fair value is -6.2%.
AMERICAN FINANCIAL GROUP INC (AFG) reported annual revenue of $8.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
AMERICAN FINANCIAL GROUP INC (AFG) has a net profit margin of 10.3%. This is a healthy margin.
AMERICAN FINANCIAL GROUP INC (AFG) generated $1.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AMERICAN FINANCIAL GROUP INC (AFG) has a debt-to-equity ratio of 0.38. This indicates a conservatively financed balance sheet.
AMERICAN FINANCIAL GROUP INC (AFG) reported earnings per share (EPS) of $10.08 in its most recent fiscal year.
AMERICAN FINANCIAL GROUP INC (AFG) has a return on equity (ROE) of 18.1%. This indicates the company generates strong returns for shareholders.
AMERICAN FINANCIAL GROUP INC (AFG) has a 5-year average gross margin of 15.3%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 16 years of financial data for AMERICAN FINANCIAL GROUP INC (AFG), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AMERICAN FINANCIAL GROUP INC (AFG) has a book value per share of $57.70, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management remains optimistic about premium growth in 2026 driven by startup businesses and completion of underwriting actions in specialty casualty, though acknowledging pockets of softening rates and continued competitive conditions that require maintaining disciplined bottom-line focus. The company expects to generate significant excess capital throughout 2026, providing ample opportunity for acquisitions, special dividends, or share repurchases, with capital deployment evaluated regularly based on available alternatives. Nearly all specialty property and casualty businesses continue to meet or exceed targeted returns, and management believes renewal rate increases in excess of prospective loss ratio trends will enable the company to meet or exceed targeted returns in 2026. Alternative investments are expected to deliver annual returns averaging 10% or better longer term, with multifamily portfolio conditions showing signs of recovery as new starts have fallen nearly 50% since 2022 and completions are rapidly declining. Management expects workers' compensation to remain profitable while not anticipating the favorable prior-period development to continue, and does not expect adverse development from casualty lines to reoccur given rate and reserving actions taken.
Based on recent SEC filings and earnings calls, AMERICAN FINANCIAL GROUP INC (AFG) has provided the following forward guidance: Core Net Operating Earnings per share: approximately $11 (FY2026); Core operating return on equity (excluding AOCI): approximately 18% (FY2026); Pre-tax core operating gain on sale transaction: approximately $125 million (Q2 or Q3 2026).