GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG
American Financial Group Inc (NYSE:AFG)
[1]
Modestly Overvalued[5]$ 126.94
Insurance - Insurance - Property & Casualty
Market Cap: $ 10,766 Mil
American Financial Group Inc is a property and casualty insurance company that operates through its subsidiaries. It sells fixed and fixed-indexed annuities in the retail, financial institutions and education markets.
Valuation Rank
Score: 5 /10CurrentIndustry MedianHistorical Median
PE Ratio4.711.4112.11
Forward P/EN/A10.60N/A
PB Ratio2.051.201.26
PS Ratio1.291.221.02
P/FCF5.728.394.96
Shiller P/E15.2515.0816.01
PEG Ratio0.781.222.83
Valuation Analysis
% of Price
Tangible Book59.7247
Median PS Value102.8581
Price126.94
Graham Number148.36117
Peter Lynch Value153.81121
DCF (Earnings Based)295.61233
DCF (FCF Based)746.66588
Dividend & Ownership
Dividend Yield(ttm) %1.67
Dividend Yield(forward) %1.76
Payout0.13
Dividend Growth(5y) %12.5
Yield on Cost(5y) %3.03
Continuous Div. since2002
Insider Ownership %1.38
Institution Ownership %50.01
Financial Strength
Score: 5 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt1.442.581.26
Equity-to-Asset0.180.250.11
Interest Coverage19.3516.5410.08
Piotroski F-Score765
Profitability Rank
Score: 6 /10CurrentIndustry MedianHistorical Median
Net Margin %27.516.638.56
ROE %38.048.3810.28
ROA %4.171.711.02
Growth (Per Share)
10 Yr5 Yr1 Yr
Revenue Growth (%)8.15.346.5
EBITDA Growth (%)5.210229.6
EPS w/o NRI Growth (%)7.914.2446
Free Cash Flow Growth (%)16.814.5-18.8
Book Value Growth (%)57.6-14.9
Quarterly
Sep20Dec20Mar21Jun21Sep21
Revenue15563755150914601754
Net Income1646924191002219
EPS1.867.934.8411.72.56
Revenue (YoY) %-26.7190.0343.030.6212.72
Net Income (YoY) %11.56227.96-239.2466.133.54
EPS (YoY) %14.81243.29-244.91493.9137.63
Warning Signs
SEVEREAsset Growth: faster than revenue growth
MEDIUMROIC vs. WACC: Return on invested capital is less than weighted average cost of capital.
Good Signs
GOODPiotroski F-Score: High
GOODRevenue per Share: Consistent growth
Insider Trades
InsiderPositionDateTradesCur. Shares
Berding John BPresident of Su11/10/21-1595764256
Evans James EDirector09/16/21-3660114314
Berding John BPresident of Su08/31/21-2000062498
Berding John BPresident of Su08/13/21-700067498
Gillis Michelle ASenior Vice Pre08/12/21-1434145910
Hertzman Brian S.Sr. VP, CFO08/09/21-310711380
Berding John BPresident of Su08/06/21-1939867498
Berding John BPresident of Su06/25/21-262574896
Jacobs Terry SDirector06/08/21-1316000
Berding John BPresident of Su06/04/21-400076543
As of 01-23-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
Gain % SP500 %
1W-6.37-5.75
1M-4.66-5.42
3M-3.01-3.10
6M8.071.47
YTD-7.15-7.79
1Y79.8415.50
3Y19.5519.94
5Y14.9716.09
10Y17.1214.91
145.68
54.55
36.58
1M
0.5M
2012201320142015201620172018201920202021CurrentPerformance
37.340.2558.1662.3675.1788.12109.06120.49111.58114.53146.63Highest Stock Price
30.0936.5839.9752.9358.0465.1485.8685.2889.146.9879.21Lowest Stock Price
361035165136532663057660958180849902756610766Market Cap
102.995.991.29189.488.589.890.69189.285.2Shares Outstanding-Diluted
11.117.7611.1912.2218.2912.0220.5615.4811.1310.694.7PE Ratio
0.820.771.121.091.371.561.81.631.581.112.05PB Ratio
0.820.761.030.961.051.21.421.171.2311.29PS Ratio
4.143.385.086.188.096.859.338.646.315.444.83EV-to-EBITDA
2011201220132014201520162017201820192020TTMPer Share Data
45.1251.6955.956368.7473.4276.4577.1488.8287.5798.18Revenue per Share
3.325.095.164.973.947.335.285.859.858.227.03Earnings per Share
5.658.528.3313.5315.1312.9920.0922.9926.9924.4722.18Free Cash Flow per Share
0.660.720.810.911.031.151.291.451.651.852Dividends per Share
43.1849.3749.6153.3450.2254.2758.1353.3467.1376.2359.72Tangible Book per Share
30.8639.5144.3451.3757.5762.0367.0776.4190.6691.1102.85Median PS Value
56.7975.1975.8977.2366.7294.683.183.79121.97118.59148.36Graham Number
2011201220132014201520162017201820192020TTMIncome Statement
46434957510357336145649868656989808378118478Revenue
40854420441451075580571161416350697569636735Total Expenses
55853768962656578772463911088481743Pretax Income
3424884714523526494755308977322332Net Income
7.49.89.27.95.7106.97.611.19.427.5Net Margin %
63261276070064086480970111769361838EBIT
812869902844774998916911143512352049EBITDA
7.710.910.39.57.413.79.310.31611.238ROE %
11.31.210.71.20.80.91.314.2ROA %
2011201220132014201520162017201820192020Sep21Balance Sheet
13241705163913431220210723381515231428102833Cash & Equivalents
440249254750503743934642554556735725122826112Total Receivables
3583839171420874753549837550726065863456701307356629942Total Assets
----------------------Short-Term Debt & CLO
9349539131061998128313011302147319631964Long-Term Debt & CLO
3128134423373184248145067501535532758484638616677724702Total Liabilities
44114578459948794592491653304970626967895240Total Stockholders Equity
45574748476950544770491953314972626967895240Total Equity
2011201220132014201520162017201820192020TTMCashflow Statement
66781776012311353115018042083245621831912Cash Flow from Operations
-2439-1425-2915-3628-4573-2981-3292-5350-3065-1564-895Cash Flow from Investing
-315-415-70-191-126-133---6---313-398Repurchase of Stock
-187-40143-47284-33--165484-151Net Issuance of Debt
19979892089210130972718171924441408-123-1931Cash Flow from Financing
225381-66-296-123887231-823799496-914Net Change in Cash
-86--------------------Capital Expenditure
58181776012311353115018042083245621831912Free Cash Flow
Competitor
TickerCompanyFinancial
Strength
Profitability
Rank
Market Cap
($M)
PE RatioPS RatioNet
Margin %
ROA %ROE %
NYSE:CNACNA Financial Corp4612,1359.221.0611.532.0510.64
NYSE:AFGAmerican Financial Group Inc5610,7664.701.2927.514.1738.04
NYSE:YAlleghany Corp468,93713.610.826.112.277.69
NYSE:RLIRLI Corp564,74317.864.1123.016.5622.77
NYSE:THGThe Hanover Insurance Group Inc464,73011.680.958.193.0813.40
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Financial Strength[2] (Quarterly data, as of Sep. 2021) : Fair (5/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 1.44

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.18

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.38

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : 7

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.

0
1
2
3
4
5
6
7
8
9


WACC : 6.91% vs ROIC : 3.01%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 1.59%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Profitability[3] (Annual data, as of Dec. 2020) : Fair (6/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $1,754 Mil vs Net Income : $219 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $2,833 Mil vs Long-Term Debt* : $1,964 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Net Margin % : 12.49%

Net margin % measures the percentage of revenue remaining after all operating expenses, interest, taxes, etc have been deducted from a company's total revenue. Net Margin % is calculated as Net Income divided by its Revenue.


EPS without NRI : $2.56

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.50

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $5.34

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Valuation (Quarterly data, as of Sep. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $126.94)


PE Ratio without NRI : 7.68

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 2.04

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 1.28

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 5.67

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-Revenue : 1.16

Enterprise value of a company divided by its trailing 12 months revenue.

GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Asset Growth : faster than revenue growth

If a company builds asset at 11.5% a year, faster than its revenue growth rate of 5.3% over the past 5 years, it means that the company may be getting less efficent.

Good Signs

Piotroski F-Score : High

Piotroski F-Score is 7, indicating very healthy situation.

Revenue per Share : Consistent growth

American Financial Group Inc has shown predictable revenue and earnings growth.

PE Ratio : Close to 10-year low

American Financial Group Inc stock PE Ratio (=4.70) is close to 10-year low of 4.70

Medium Warning Signs

ROIC vs. WACC : Return on invested capital is less than weighted average cost of capital.

Companys's return on invested capital is less than weighted average cost of capital. It might not be capital efficient

Insider Sell : Insider Selling

There were 1 insider selling transactions and no insider buying over the past 3 months. 15,957 shares were sold.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:AFGAmerican Financial Group Inc5/101.440.180.3819.3570.000.006.913.01
NYSE:RLIRLI Corp5/100.600.280.1244.3670.00-2.283.076.99
NYSE:YAlleghany Corp4/100.390.280.2910.5570.00-3.125.402.88
NYSE:AXSAxis Capital Holdings Ltd4/100.660.190.277.7470.00-2.437.771.76
NYSE:CNACNA Financial Corp4/100.230.190.2215.4470.000.006.782.20
NAS:SIGISelective Insurance Group Inc4/100.000.280.1719.3280.00-2.287.274.62
NYSE:THGThe Hanover Insurance Group Inc4/100.220.220.2516.4080.000.007.883.51
NYSE:WTMWhite Mountains Insurance Group Ltd4/100.440.500.201.4640.001.915.055.60
NYSE:KMPRKemper Corp3/100.110.280.270.0060.00-2.415.110.03

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NAS:SIGISelective Insurance Group Inc7/10N/A13.2215.524.356.69N/A5.204.6012.90
NYSE:YAlleghany Corp6/10N/A6.117.692.275.13N/A14.3019.806.40
NYSE:AFGAmerican Financial Group Inc6/10N/A27.5138.044.175.72N/A4.6010.7015.80
NYSE:AXSAxis Capital Holdings Ltd6/10N/A8.117.301.544.73N/A2.300.0028.70
NYSE:CNACNA Financial Corp6/10N/A11.5310.642.057.18N/A3.80-13.70-8.50
NYSE:KMPRKemper Corp6/10N/A1.471.900.578.51N/A14.2029.4038.50
NYSE:RLIRLI Corp6/10N/A23.0122.776.5612.77N/A6.5026.6013.60
NYSE:THGThe Hanover Insurance Group Inc6/10N/A8.1913.403.086.52N/A8.5015.3023.60
NYSE:WTMWhite Mountains Insurance Group Ltd5/10N/A15.644.992.970.00N/A63.20212.10171.30

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:AFGAmerican Financial Group Inc4.702.051.290.490.431.230.830.8618.5927.17
NYSE:CNACNA Financial Corp9.220.961.060.530.000.980.000.6312.218.09
NAS:SIGISelective Insurance Group Inc10.961.701.430.610.261.351.000.9110.6821.52
NYSE:THGThe Hanover Insurance Group Inc11.681.530.950.520.281.250.460.9110.4432.77
NYSE:AXSAxis Capital Holdings Ltd12.310.990.920.540.000.780.000.768.3516.72
NYSE:YAlleghany Corp13.611.010.820.520.000.572.320.859.8214.90
NYSE:WTMWhite Mountains Insurance Group Ltd17.700.882.711.470.000.850.001.051.70-10.31
NYSE:RLIRLI Corp17.863.794.111.481.211.251.021.777.0322.69
NYSE:KMPRKemper Corp50.520.900.680.490.000.762.021.720.0229.99
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Per Share Data



Per Share Data

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
33.82
35.27
35.54
36.78
36.99
40.7
45.12
51.69
55.95
63
68.74
73.42
76.45
77.14
88.82
87.57
98.18
Revenue per Share
5.26
7.75
7.34
5.2
9.22
8.81
7.89
9.06
9.89
9.28
8.66
11.28
10.2
10.06
15.77
13.85
23.71
EBITDA per Share
3.45
6.36
5.77
3.31
7.53
6.99
6.14
6.38
8.33
7.69
7.16
9.76
9.01
7.74
12.92
10.49
21.26
EBIT per Share
1.75
3.75
3.1
1.67
4.45
4.36
3.32
5.09
5.16
4.97
3.94
7.33
5.28
5.85
9.85
8.2
27.03
Earnings per Share (Diluted)
1.66
3.54
3.09
1.67
4.45
4.36
3.32
5.09
5.16
4.97
3.94
7.33
5.28
5.85
9.85
8.2
16.38
EPS without NRI
3.44
2.94
2.23
0.05
5.79
6.58
4.57
9.29
6.57
9.91
6.67
5.42
11.46
--
--
--
5.4
Owner Earnings per Share (TTM)
8
7.43
6.07
7.94
7.3
7.15
5.65
8.52
8.33
13.53
15.13
12.99
20.09
22.99
26.99
24.47
22.18
Free Cash Flow per Share
8.68
8.03
6.4
8.34
7.83
7.82
6.48
8.52
8.33
13.53
15.13
12.99
20.09
22.99
26.99
24.47
22.18
Operating Cash Flow per Share
--
11.14
7.19
10.93
9.88
10.45
13.53
19.16
18.42
15.31
13.95
24.24
26.49
16.97
25.63
32.54
33.41
Cash per Share
0.33
0.37
0.4
0.5
0.52
0.58
0.66
0.72
0.81
0.91
1.03
1.15
1.29
1.45
1.65
1.85
2
Dividends per Share
20.99
24.55
26.84
21.54
33.35
42.5
45.08
51.45
51.69
55.63
52.5
56.56
60.38
55.66
69.42
78.63
61.8
Book Value per Share
19.57
23.14
25.04
19.72
31.51
40.74
43.18
49.37
49.61
53.34
50.22
54.27
58.13
53.34
67.13
76.23
59.72
Tangible Book per Share
8.54
7.72
8.26
8.91
7.3
9.05
9.55
10.71
10.26
12.1
11.41
14.76
14.74
14.58
16.31
22.73
23.16
Total Debt per Share
25.54
35.91
28.88
22.88
24.95
32.29
36.89
39.52
57.72
60.72
72.08
88.12
109
90.53
110
87.62
127
Month End Stock Price

Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
8.45
16.83
12.83
7.07
16.55
11.68
7.7
10.86
10.26
9.54
7.43
13.65
9.27
10.29
15.96
11.21
38.04
ROE %
6.93
11.53
11.88
6.67
22.07
15.37
9.39
14.1
9.16
8.75
5.42
8.75
5.15
6.31
10.1
10.1
18.56
ROE % Adjusted to Book Value
0.91
1.89
1.51
0.75
1.92
1.6
1
1.3
1.16
1.01
0.72
1.24
0.82
0.85
1.34
1.02
4.17
ROA %
9.07
17.95
13.68
7.65
17.74
12.27
8.04
11.33
10.7
9.94
7.76
14.25
9.65
10.71
16.57
11.58
39.24
Return-on-Tangible-Equity
0.92
1.91
1.52
0.76
1.93
1.61
1.01
1.31
1.16
1.01
0.73
1.24
0.82
0.86
1.35
1.02
4.18
Return-on-Tangible-Asset
1.2
2.16
1.93
1.03
2.3
1.65
1.14
1.38
1.38
1.11
0.93
1.52
1.01
1
1.5
1.21
3.01
ROIC %
9.06
8.73
9.48
7.94
9.32
8.93
7.73
5.77
7.37
6.19
7.01
6.99
6.47
8.05
7.19
6.21
6.91
WACC %
7.55
7.55
7.68
7.12
7.21
8.76
7.85
7.95
7.61
7.5
7.29
6.75
6.58
4.76
4.9
5.12
4.77
Effective Interest Rate on Debt %
5.19
10.67
8.75
4.56
12.01
10.72
7.37
9.84
9.23
7.88
5.73
9.99
6.92
7.58
11.1
9.37
27.51
Net Margin %
23.66
21.06
17.09
21.59
19.75
17.57
12.51
16.48
14.89
21.47
22.02
17.7
26.28
29.8
30.38
27.95
22.55
FCF Margin %
0.41
0.31
0.31
0.41
0.22
0.21
0.21
0.21
0.2
0.22
0.22
0.26
0.24
0.26
0.24
0.29
0.38
Debt-to-Equity
0.11
0.12
0.12
0.09
0.14
0.14
0.12
0.12
0.11
0.1
0.09
0.09
0.09
0.08
0.09
0.09
0.18
Equity-to-Asset
0.04
0.04
0.04
0.04
0.03
0.03
0.03
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.02
0.03
0.07
Debt-to-Asset
0.88
0.87
0.88
0.9
0.86
0.86
0.87
0.88
0.89
0.89
0.9
0.91
0.91
0.92
0.91
0.91
0.83
Liabilities-to-Assets
0.18
0.18
0.17
0.16
0.16
0.15
0.14
0.13
0.13
0.13
0.13
0.12
0.12
0.11
0.12
0.11
0.15
Asset Turnover
0.2
0.1
0.13
0.3
0.12
0.13
0.2
0.14
0.16
0.18
0.26
0.16
0.24
0.25
0.17
0.23
0.13
Dividend Payout Ratio
0.02
0.02
0.01
0.01
0.01
0.02
0.02
--
--
--
--
--
--
--
--
--
-- Capex-to-Revenue
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Financial Satement



Income Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
2738
2918
3126
3302
2856
3001
3189
3165
3318
3986
4328
4352
4601
4865
5185
5099
5277
Total Premiums Earned
865
939
1005
1123
1200
1214
1297
1332
1460
1573
1754
1901
2053
346
388
253
321
Net Investment Income
--
--
--
--
--
--
--
--
--
--
--
--
--
79
85
63
7
Interest Income
382
393
247
-132
264
282
157
460
325
174
63
245
211
1699
2425
2396
2873
Fees and Other Income
3984
4250
4379
4293
4320
4497
4643
4957
5103
5733
6145
6498
6865
6989
8083
7811
8478
Revenue
--
--
1344
1352
1271
395
1269
404
--
--
--
--
--
--
--
--
-- Selling, General, & Admin. Expense
2945
2739
2150
2377
1983
2269
2614
2770
2731
3306
3558
3595
3873
4001
4422
4463
4357
Net Policyholder Benefits/Claims
150
142
175
177
187
219
195
282
178
193
179
186
173
261
253
306
56
Policy Acquisition Expense
79.5
72.5
71.3
70
67
78
74
75
71
74
75
77
85
62
68
88
95
Interest Expense (Positive)
482
603
0
-0
--
842
-67
889
1434
1534
1768
1853
2010
2026
2232
2106
2227
Other Expense
3657
3556
3740
3977
3508
3803
4085
4420
4414
5107
5580
5711
6141
6350
6975
6963
6735
Total Expenses
327
694
639
316
812
694
558
537
689
626
565
787
724
639
1108
848
1743
Pre-Tax Income
-106
-235
-226
-116
-282
-268
-239
-135
-236
-220
-195
-119
-247
-122
-239
-127
-343
Tax Provision
32.28
33.78
35.34
36.69
34.73
38.62
42.83
25.14
34.25
35.14
34.51
15.12
34.12
19.09
21.57
14.98
19.68
Tax Rate %
196
428
381
200
530
426
319
402
453
406
370
668
477
517
869
721
1400
Net Income (Continuing Operations)
10.5
25.2
1.8
--
--
--
--
--
--
--
--
--
--
--
--
--
914
Net Income (Discontinued Operations)
-25.4
-31.6
-31.7
-4.2
-11
56
23
86
18
46
-18
-19
-2
13
28
11
-2
  Other Income (Minority Interest)
207
453
383
196
519
482
342
488
471
452
352
649
475
530
897
732
2332
Net Income
5.19
10.67
8.75
4.56
12.01
10.72
7.37
9.84
9.23
7.88
5.73
9.99
6.92
7.58
11.1
9.37
27.51
Net Margin %
1.78
3.84
3.25
1.71
4.49
4.41
3.37
5.18
5.27
5.07
4.02
7.47
5.4
5.95
9.98
8.25
27.24
EPS (Basic)
1.75
3.75
3.1
1.67
4.45
4.36
3.32
5.09
5.16
4.97
3.94
7.33
5.28
5.85
9.85
8.2
27.03
EPS (Diluted)
118
121
123
117
117
111
103
95.9
91.2
91
89.4
88.5
89.8
90.6
91
89.2
85.2
Shares Outstanding (Diluted Average)
407
767
710
386
879
772
632
612
760
700
640
864
809
701
1176
936
1838
EBIT
213
167
194
221
198
202
180
257
142
144
134
134
107
210
259
299
211
Depreciation, Depletion and Amortization
620
934
905
606
1077
974
812
869
902
844
774
998
916
911
1435
1235
2049
EBITDA

Cashflow Statement

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
207
453
383
200
530
426
319
402
453
406
370
668
477
517
869
721
2334
Net Income From Continuing Operations
213
167
194
221
198
202
180
257
142
144
134
134
107
210
259
299
211
Depreciation, Depletion and Amortization
188
-45.8
-28
-560
352
555
-228
-495
176
-199
-10
-315
-963
-211
-112
-533
-923
  Change In Receivables
-415
16
48.8
139
-41
-150
155
--
51
134
-54
43
109
9
62
13
189
  Change In Payables And Accrued Expense
282
-172
-256
67.8
-293
-321
66
666
-167
439
260
52
1376
529
836
904
1655
  Change In Other Working Capital
55.7
-201
-235
-354
18
84
-7
171
60
374
196
-220
522
327
786
384
921
Change In Working Capital
547
549
446
906
169
152
175
-13
105
307
653
568
698
1029
542
779
-1554
Cash Flow from Others
1022
968
789
973
915
864
667
817
760
1231
1353
1150
1804
2083
2456
2183
1912
Cash Flow from Operations
-79.4
-72.4
-40.3
-46.2
-62
-74
-86
--
--
--
--
--
--
--
--
--
-- Purchase Of Property, Plant, Equipment
127
--
25.8
5.2
1
4
--
--
--
--
--
--
--
--
--
--
-- Sale Of Property, Plant, Equipment
--
--
-259
-113
-28.6
-128
-5
-34
-5
-267
-49
--
--
-36
--
-428
-- Purchase Of Business
--
--
--
44.3
--
95
9
322
--
1078
7
--
--
13
--
3
-- Sale Of Business
-4546
-3478
-4341
-6415
-4876
-6210
-7281
-6588
-8577
-9321
-9835
-10736
-13477
-13841
-10891
-13138
-12200
Purchase Of Investment
3239
3073
3315
5758
4316
4688
4856
5188
5849
5216
5247
7911
10276
8527
8127
12343
10562
Sale Of Investment
3.97
115
17.6
45.5
-133
-80
68
-313
-182
-334
57
-156
-91
-13
-301
-344
743
Cash From Other Investing Activities
-1256
-362
-1282
-721
-783
-1705
-2439
-1425
-2915
-3628
-4573
-2981
-3292
-5350
-3065
-1564
-895
Cash Flow from Investing
25.8
38.7
18.3
22.6
15
32
39
46
54
47
61
35
37
33
36
22
67
Issuance of Stock
--
--
-199
-47.4
-81
-292
-315
-415
-70
-191
-126
-133
--
-6
--
-313
-398
Repurchase of Stock
-22.61
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Net Issuance of Preferred Stock
29.7
118
242
715
581
159
2
372
--
145
145
302
712
--
315
634
-1
  Issuance of Debt
-145
-210
-228
-622
-880
-39
-20
-365
-40
-2
-192
-18
-745
--
-150
-150
-150
  Payments of Debt
-115
-92.4
14.1
92.6
-299
120
-18
7
-40
143
-47
284
-33
--
165
484
-151
Net Issuance of Debt
-33.1
-38.2
-41.9
-50.7
-60
-63
-67
-90
-160
-167
-176
-185
-417
-394
-444
-334
-1697
Cash Flow for Dividends
-11.19
344
189
179
149
1023
2358
1441
2305
2269
3385
2717
2132
2811
1651
18
248
Other Financing
-156
252
-19.9
196
-276
820
1997
989
2089
2101
3097
2718
1719
2444
1408
-123
-1931
Cash Flow from Financing
-390
857
-513
448
-144
-21
225
381
-66
-296
-123
887
231
-823
799
496
-914
Net Change in Cash
-79.4
-72.4
-40.3
-46.2
-62
-74
-86
--
--
--
--
--
--
--
--
--
-- Capital Expenditure
943
895
748
927
853
790
581
817
760
1231
1353
1150
1804
2083
2456
2183
1912
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Financial Satement


Balance Sheet

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
--
15630
16338
14713
17606
20411
928
939
56
195
166
56
1662
1814
1937
1663
993
Equity Investments
--
--
--
--
--
--
22247
24439
27884
32501
34091
36405
38727
42102
46618
43273
10456
Short-term investments
259
532
632
593
652
732
653
835
1019
1345
1268
1339
1309
1242
1493
1774
537
Net Loan
--
1329
816
1264
1120
1099
1324
1705
1639
1343
1220
2107
2338
1515
2314
2810
2833
Cash and cash equivalents
575
599
561
630
554
535
3507
4386
3896
4127
3573
3734
4515
4583
4750
11323
5015
  Accounts Receivable
--
425
475
415
774
674
895
539
854
910
820
908
1030
1090
975
959
1097
  Other Current Receivables
575
1024
1036
1045
1328
1209
4402
4925
4750
5037
4393
4642
5545
5673
5725
12282
6112
Total Receivables
1140
1267
1394
2343
1570
1244
901
550
975
821
1184
1239
1216
1682
1037
546
262
Deferred Policy Acquisition Costs
167
168
204
210
208
186
186
185
185
201
199
199
199
207
207
207
176
Intangible Assets
--
168
204
210
208
186
186
185
185
201
199
199
199
207
207
207
176
  Goodwill
20676
5151
5387
6260
5199
7573
5197
5593
5579
6092
7316
9085
9662
9221
10799
11011
8573
Other Assets for Insurance Companies
22816
25101
25808
26428
27683
32454
35838
39171
42087
47535
49837
55072
60658
63456
70130
73566
29942
Total Assets
5791
16971
6168
6764
6412
6413
4282
4129
4288
5645
5926
6261
6721
6799
7208
7275
7591
Unpaid Loss & Loss Reserve
1644
1654
1668
1698
1568
1534
1484
1651
1757
1956
2060
2171
2410
2595
2830
2803
3415
Unearned Premiums
--
--
10097
10653
11335
12905
17147
19668
22952
25939
27327
30598
33974
37251
41018
43180
-- Future Policy Benefits
--
--
1484
1540
1603
1650
--
--
--
--
--
--
--
--
--
--
-- Policyholder Funds
--
--
1615
1726
462
320
2713
3191
2630
2872
2792
2936
3700
3694
3838
3924
4546
Accounts Payable & Accrued Expense for Financial Companies
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Short-Term Debt & Capital Lease Obligation
1000
921
937
1030
828
952
934
953
913
1061
998
1283
1301
1302
1473
1963
1964
Long-Term Debt & Capital Lease Obligation
0.41
0.31
0.31
0.41
0.22
0.21
0.21
0.21
0.2
0.22
0.22
0.26
0.24
0.26
0.24
0.29
0.38
Debt-to-Equity
11662
2342
692
416
1556
4060
4721
4831
4778
5008
5964
6904
7221
6843
7494
7632
7186
Other Liabilities for Insurance Companies
20097
21888
22662
23826
23764
27834
31281
34423
37318
42481
45067
50153
55327
58484
63861
66777
24702
Total Liabilities
117
119
--
--
--
--
98
89
90
88
87
87
88
89
90
86
85
Common Stock
1134
1534
1734
1842
2274
2720
2612
2595
2826
2912
2987
3343
3248
3588
4009
4149
3680
Retained Earnings
--
55.5
12.6
-703
163
479
580
831
560
727
304
375
813
48
863
1273
160
Accumulated other comprehensive income (loss)
1156
1221
1300
1351
1344
1271
1121
1063
1123
1152
1214
1111
1181
1245
1307
1281
1315
Additional Paid-In Capital
51.2
0
--
--
--
--
--
--
--
--
--
--
--
--
--
--
-- Other Stockholders Equity
2458
2929
3046
2490
3781
4470
4411
4578
4599
4879
4592
4916
5330
4970
6269
6789
5240
Total Stockholders Equity
261
284
99.9
112
138
150
146
170
170
175
178
3
1
2
--
--
-- Minority Interest
2719
3213
3146
2602
3919
4620
4557
4748
4769
5054
4770
4919
5331
4972
6269
6789
5240
Total Equity
0.11
0.12
0.12
0.09
0.14
0.14
0.12
0.12
0.11
0.1
0.09
0.09
0.09
0.08
0.09
0.09
0.18
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Valuation Ratios



Valuation Ratios

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
14.59
9.58
9.32
13.7
5.61
7.41
11.11
7.76
11.19
12.22
18.29
12.02
20.56
15.48
11.13
10.69
4.7
PE Ratio
15.39
10.14
9.35
13.7
5.61
7.41
11.11
7.76
11.19
12.22
18.29
12.02
20.56
15.48
11.13
10.69
7.75
PE Ratio without NRI
7.43
12.21
12.97
458
4.31
4.91
8.08
4.25
8.79
6.13
10.81
16.25
9.47
--
--
--
23.5
Price-to-Owner-Earnings
1.22
1.46
1.08
1.06
0.75
0.76
0.82
0.77
1.12
1.09
1.37
1.56
1.8
1.63
1.58
1.11
2.05
PB Ratio
1.31
1.55
1.15
1.16
0.79
0.79
0.85
0.8
1.16
1.14
1.44
1.62
1.87
1.7
1.63
1.15
2.13
Price-to-Tangible-Book
3.19
4.83
4.76
2.88
3.42
4.52
6.53
4.64
6.93
4.49
4.76
6.78
5.4
3.94
4.06
3.58
5.72
Price-to-Free-Cash-Flow
2.94
4.47
4.51
2.74
3.18
4.13
5.69
4.64
6.93
4.49
4.76
6.78
5.4
3.94
4.06
3.58
5.72
Price-to-Operating-Cash-Flow
0.76
1.02
0.81
0.62
0.67
0.79
0.82
0.76
1.03
0.96
1.05
1.2
1.42
1.17
1.23
1
1.29
PS Ratio
0.45
0.37
0.69
5.93
5.84
1.07
3.54
0.92
1.4
5.31
9.94
7.81
4.44
3.27
1.25
5.29
0.78
PEG Ratio
1.07
0.98
0.8
0.59
0.62
0.76
0.72
0.59
0.9
0.91
1.02
1.05
1.24
1.13
1.12
0.86
1.17
EV-to-Revenue
6.86
4.45
3.87
4.16
2.48
3.49
4.14
3.38
5.08
6.18
8.09
6.85
9.33
8.64
6.31
5.44
4.83
EV-to-EBITDA
10.46
5.42
4.93
6.54
3.04
4.4
5.33
4.79
6.03
7.46
9.78
7.92
10.56
11.23
7.7
7.18
5.38
EV-to-EBIT
9.56
18.45
20.28
15.29
32.89
22.73
18.76
20.88
16.58
13.4
10.22
12.63
9.47
8.9
12.99
13.93
18.59
Earnings Yield (Joel Greenblatt) %
48.09
41.07
39.13
35.33
30.65
28.93
21.27
26.61
20.46
16.24
15.56
14.23
17.56
23.41
27.04
26.48
27.17
Forward Rate of Return (Yacktman) %
16.81
22.34
14.95
11.89
11.24
11.66
11.52
10.79
14.86
15.14
17.09
19.18
22.35
16.96
18.52
13.86
15.25
Shiller PE Ratio
1.3
1.02
1.39
2.19
2.08
1.79
1.8
1.82
1.39
1.5
1.43
1.31
1.19
1.6
1.5
2.11
1.67
Dividend Yield %

Valuation and Quality

Dec05
Dec06
Dec07
Dec08
Dec09
Dec10
Dec11
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
TTM Fiscal Period
2991
4284
3278
2645
2829
3396
3610
3516
5136
5326
6305
7660
9581
8084
9902
7566
10766
Market Cap
4252
4160
3499
2523
2675
3399
3366
2934
4580
5219
6261
6839
8545
7873
9061
6719
9897
Enterprise Value
25.54
35.91
28.88
22.88
24.95
32.29
36.89
39.52
57.72
60.72
72.08
88.12
109
90.53
110
87.62
127
Month End Stock Price
-174
-175
-193
-196
-201
-256
-84.79
-98.56
-92.94
-104
-116
-138
-166
-168
-167
-240
-135
Net Cash per Share
-170
-171
-190
-192
-197
-252
-57.9
-61.59
-60.1
-68.21
-85.83
-106
-127
-129
-127
-142
-90.58
Net-Net Working Capital
74.25
81.82
85.27
88.15
97.95
116
116
134
152
161
164
180
189
198
251
265
262
Intrinsic Value: Projected FCF
17.11
19.22
19.57
20.77
22.6
26.28
30.86
39.51
44.34
51.37
57.57
62.03
67.07
76.41
90.66
91.1
103
Median PS Value
41.5
88.5
41.7
--
--
30.3
--
42.72
41.26
--
--
--
--
--
88.04
--
154
Peter Lynch Fair Value
27.03
42.93
41.72
27.22
56.17
63.21
56.79
75.19
75.89
77.23
66.72
94.6
83.1
83.79
122
119
148
Graham Number
-13.38
-0.66
-4
-0.57
-0.24
-1.1
221
270
307
357
375
409
89.99
--
--
--
424
Earnings Power Value (EPV)
5
8
4
4
7
5
5
7
5
5
5
7
4
6
7
5
7
Piotroski F-Score
--
--
--
-2.58
-2.5
-2.41
1.23
-2.23
-2.43
-2.52
-2.69
-2.55
-2.39
--
--
--
-- Beneish M-Score
0.17
0.12
0.13
0.09
0.14
0.16
0.13
0.11
0.1
0.11
0.1
0.08
0.08
0.08
0.09
0.09
0.15
Scaled Net Operating Assets
1.93
-0.6
3.4
-0.21
1.4
4.08
5.9
2.8
6.24
5.99
7.17
4.5
3.24
5.98
2.15
0.15
4.39
Sloan Ratio %
5.11
10.58
9.96
5.51
13.12
9.9
8.54
8.16
10.7
9.46
8.53
11.22
9.52
11.31
17.29
10.64
19.35
Interest Coverage
25.92
36.35
36.5
32
26.42
32.61
37.3
40.25
58.16
62.36
75.17
88.12
109
120
112
115
147
Highest Stock Price
18.68
24.83
25.57
15.41
13.04
24.3
30.09
36.58
39.97
52.93
58.04
65.14
85.86
85.28
89.1
46.98
79.21
Lowest Stock Price
-1.87
-1.88
4.87
-1.87
1.93
7.25
6.96
9.06
--
1.43
0.27
0.63
-1.55
-1.15
-1.13
4.38
2.83
Shares Buyback Ratio %
-0.86
-0.9
5.52
0.94
2.33
7.66
7.65
10.49
0.31
2.7
1.03
1.28
-0.39
-0.33
-0.36
3.85
3.07
Buyback Yield %
-1.93
4.28
0.77
3.49
0.55
10.03
10.87
14.56
8.25
12.59
9.1
6.82
4.12
0.91
15.14
-1.42
46.47
YoY Rev. per Sh. Growth
-45.48
114
-17.33
-46.13
166
-2.02
-23.85
53.31
1.38
-3.68
-20.72
86.04
-27.97
10.8
68.38
-16.75
865
YoY EPS Growth
-29.8
47.34
-5.26
-29.23
77.46
-4.41
-10.47
14.84
9.14
-6.22
-6.65
30.25
-9.55
-1.42
56.83
-12.2
230
YoY EBITDA Growth
34.57
27.29
13.54
2.31
0.96
6.95
3.14
8.41
7.98
2.3
1.84
1.54
4.63
4.73
8.92
2.02
10
5-Year EBITDA Growth Rate
116
118
118
114
116
109
101
94.2
89.3
89
87.6
86.9
87.8
89
89.9
88.7
84.8
Shares Outstanding (Basic Average)
117
119
113
116
113
105
97.85
88.98
88.98
87.71
87.47
86.92
88.28
89.29
90.3
86.35
84.81
Shares Outstanding (EOP)
0.92
0.79
1.11
1.14
1.18
1.09
1.1
0.77
0.84
0.71
0.84
0.8
0.72
1.02
0.95
0.92
0.92
Beta
03/07/06
03/01/07
02/28/08
02/27/09
02/26/10
02/28/11
02/28/12
02/28/13
02/28/14
02/26/15
02/26/16
02/24/17
02/23/18
02/26/19
02/25/20
02/25/21
  Filing Date
02/28/08
02/28/08
02/27/09
02/26/10
02/28/11
02/28/13
02/28/14
02/26/15
02/26/16
02/24/17
02/23/18
02/26/19
02/25/20
02/25/21
02/25/21
02/25/21
  Restated Filing Date
02/10/10
02/04/11
02/02/12
02/12/13
01/31/14
02/03/15
02/03/16
02/02/17
02/01/18
01/31/19
02/04/20
02/04/21
  Earnings Release Date
--
--
8500
8200
7900
7500
7200
6900
6900
5900
5700
5500
5200
5500
5200
5000
5000
Number of Shareholders
4400
6700
5300
7300
6900
6450
6500
6100
6300
7200
6500
6600
6700
6700
6800
6500
6500
Number of Employees
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  Jan 23, 2022
American Financial Group Inc (NYSE:AFG)
www.gurufocus.com/stock/NYSE:AFG

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

Disclaimer

GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.