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

COMMON STOCK | Insurance—Life | NYE

Last Closing Price

USD 18.80

Change

-1.00 (-5.05)%

Market Cap

USD 1.80B

Volume

1.03M

Average Target Price

USD 27.88 (+48.27%)
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: 2020-03-31 )

Largest Industry Peers for Insurance—Life

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

-0.07 (-0.71%)

USD96.08B 14.78 N/A
MET-PE MetLife, Inc

+0.14 (+0.56%)

USD44.12B 4.11 11.56
MET-PA MetLife, Inc

-0.15 (-0.67%)

USD43.36B 3.68 11.32
PUK Prudential plc

+0.04 (+0.16%)

USD32.39B 40.96 15.23
MET MetLife, Inc

-1.46 (-4.56%)

USD28.27B 5.09 12.22
MFC Manulife Financial Corporation

+0.54 (+4.50%)

USD21.25B 12.26 N/A
PRU Prudential Financial, Inc

-1.61 (-3.00%)

USD20.65B 5.16 5.91
GL Globe Life Inc

-2.25 (-3.03%)

USD7.28B 9.93 8.25
LNC Lincoln National Corporation

-0.96 (-3.52%)

USD5.45B 6.27 3.76
PRI Primerica, Inc

-2.23 (-2.46%)

USD3.64B 10.26 8.85

ETFs Containing AEL

Symbol Name Weight Mer Price(Change) Market Cap
SLYV SPDR S&P 600 Small Cap Va.. 0.72 % 0.15 %

+0.07 (+0.17%)

USD2.12B
IJS iShares S&P Small-Cap 600.. 0.72 % 0.25 %

+0.22 (+0.22%)

USD5.62B
FPE First Trust Preferred Sec.. 0.00 % 0.85 %

-0.40 (-2.38%)

USD5.41B

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 -37.19% 35% F 30% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -37.19% 29% F 30% F
Trailing 12 Months  
Capital Gain -31.21% 29% F 35% F
Dividend Return 1.10% 25% F 25% F
Total Return -30.11% 21% F 34% F
Trailing 5 Years  
Capital Gain -35.19% 46% F 35% F
Dividend Return 4.48% 9% F 16% F
Total Return -30.71% 38% F 29% F
Average Annual (5 Year Horizon)  
Capital Gain 9.85% 81% B- 74% C
Dividend Return 1.04% 21% F 24% F
Total Return 10.89% 81% B- 69% D+
Risk Return Profile  
Volatility (Standard Deviation) 38.98% 6% F 11% F
Risk Adjusted Return 27.95% 50% F 34% F
Market Capitalization 1.80B 29% F 68% 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 7.39 47% F 78% C+
Price/Book Ratio 0.39 65% D 87% B+
Price / Cash Flow Ratio 0.54 88% B+ 82% B-
EV/EBITDA 0.24 100% A+ 89% B+
Management Effectiveness  
Return on Equity 7.06% 29% F 42% F
Return on Invested Capital 6.95% 59% F 55% F
Return on Assets 0.34% 24% F 17% F
Debt to Equity Ratio 14.27% 87% B+ 86% B
Technical Ratios  
Short Ratio 2.62 50% F 36% F
Short Percent 2.83% 50% F 70% C-
Beta 1.85 12% F 10% 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:
High dividend returns

The stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis , for investors seeking high income yields.

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.

Positive free cash flow

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

Underpriced on free cash flow basis

The stock is trading low compared to its peers on a price to free 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.

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 risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

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 return on assets

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