AEL:NYE-American Equity Investment Life Holding Company (USD)

COMMON STOCK | Insurance—Life | NYE

Last Closing Price

USD 21.99

Change

+0.10 (+0.46)%

Market Cap

USD 1.95B

Volume

0.66M

Average Target Price

USD 25.43 (+15.64%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

American Equity Investment Life Holding Company, through its subsidiaries, provides life insurance products and services in the United States. The company issues fixed index and rate annuities; and single premium immediate annuities, as well as life insurance products. It markets its products through independent agents, including national marketing organizations, broker/dealers, banks, and registered investment advisors. The company was founded in 1995 and is headquartered in West Des Moines, Iowa.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-30 )

Largest Industry Peers for Insurance—Life

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
LFC China Life Insurance Company L..

+0.05 (+0.44%)

USD155.47B 8.42 N/A
MET-PE MetLife, Inc

N/A

USD49.20B 4.12 N/A
MET-PA MetLife, Inc

-0.30 (-1.18%)

USD48.66B 3.65 N/A
PUK Prudential plc

-0.57 (-1.95%)

USD37.94B 28.02 N/A
MET MetLife, Inc

+0.40 (+1.09%)

USD33.52B 4.62 N/A
MFC Manulife Financial Corporation

+0.01 (+0.07%)

USD26.99B 9.30 N/A
AFL Aflac Incorporated

+0.33 (+0.92%)

USD25.72B 8.93 N/A
PRU Prudential Financial, Inc

+0.43 (+0.68%)

USD24.92B 8.85 N/A
GL Globe Life Inc

+0.89 (+1.13%)

USD8.51B 11.71 N/A
LNC Lincoln National Corporation

+0.39 (+1.26%)

USD5.98B 27.40 N/A

ETFs Containing AEL

Symbol Name Weight Mer Price(Change) Market Cap
PSCF Invesco S&P SmallCap Fina.. 0.00 % 0.29 %

+0.22 (+0.59%)

USD0.03B
SLYV SPDR S&P 600 Small Cap Va.. 0.00 % 0.15 %

+0.15 (+0.30%)

USD1.91B
VIOV Vanguard S&P Small-Cap 60.. 0.00 % 0.15 %

+0.31 (+0.29%)

USD0.54B
XXM:CA CI First Asset Morningsta.. 0.00 % 0.60 %

+0.05 (+0.67%)

USD0.02B
SQLV Legg Mason Small-Cap Qual.. 0.00 % 0.62 %

N/A

USD0.01B
XXM-B:CA CI First Asset Morningsta.. 0.00 % 0.60 %

+0.02 (+0.19%)

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Insurance—Life)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -26.53% 44% F 26% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -26.53% 39% F 24% F
Trailing 12 Months  
Capital Gain -2.18% 78% C+ 54% F
Dividend Return 1.33% 27% F 29% F
Total Return -0.85% 72% C- 51% F
Trailing 5 Years  
Capital Gain -5.50% 80% B- 39% F
Dividend Return 5.59% 8% F 15% F
Total Return 0.09% 53% F 30% F
Average Annual (5 Year Horizon)  
Capital Gain 13.18% N/A N/A 84% B
Dividend Return 1.08% N/A N/A 34% F
Total Return 14.26% N/A N/A 83% B
Risk Return Profile  
Volatility (Standard Deviation) 35.92% N/A N/A 15% F
Risk Adjusted Return 39.71% N/A N/A 56% F
Market Capitalization 1.95B 33% F 65% D
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Insurance—Life)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 7.47 72% C- 82% B-
Price/Book Ratio 0.36 82% B- 94% A
Price / Cash Flow Ratio 0.58 83% B 80% B-
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 5.91% 44% F 52% F
Return on Invested Capital 6.33% 44% F 55% F
Return on Assets 0.30% 33% F 24% F
Debt to Equity Ratio 14.27% 75% C 84% B
Technical Ratios  
Short Ratio 7.77 17% F 11% F
Short Percent 4.70% 29% F 50% F
Beta 1.61 22% F 21% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Underpriced on cashflow basis

The stock is trading low compared to its peers on a price to cash flow basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What to not like:
Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.