American Equity Investment Life Holding Company
American Equity Investment Life Holding Company Fundamental Analysis
American Equity Investment Life Holding Company (AEL-PB) shows weak financial fundamentals with a PE ratio of 8.97, profit margin of 3.44%, and ROE of 4.83%. The company generates $13.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AEL-PB's fundamental strength across five key dimensions:
Efficiency Score
WeakAEL-PB struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAEL-PB trades at attractive valuation levels.
Growth Score
ModerateAEL-PB shows steady but slowing expansion.
Financial Health Score
ExcellentAEL-PB maintains a strong and stable balance sheet.
Profitability Score
WeakAEL-PB struggles to sustain strong margins.
Key Financial Metrics
Is AEL-PB Expensive or Cheap?
P/E Ratio
AEL-PB trades at 8.97 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AEL-PB's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values American Equity Investment Life Holding Company at 0.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 33.24 times EBITDA. This signals the market has high growth expectations.
How Well Does AEL-PB Make Money?
Net Profit Margin
For every $100 in sales, American Equity Investment Life Holding Company keeps $3.44 as profit after all expenses.
Operating Margin
Core operations generate -7.20 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.83 in profit for every $100 of shareholder equity.
ROA
American Equity Investment Life Holding Company generates $0.38 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Equity Investment Life Holding Company produces operating cash flow of $2.23B, showing steady but balanced cash generation.
Free Cash Flow
American Equity Investment Life Holding Company generates strong free cash flow of $2.27B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $30.82 in free cash annually.
FCF Yield
AEL-PB converts 54.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.010
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.31
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
56.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How AEL-PB Stacks Against Its Sector Peers
| Metric | AEL-PB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.97 | 18.86 | Better (Cheaper) |
| ROE | 4.83% | 847.00% | Weak |
| Net Margin | 3.44% | 4202.00% | Weak |
| Debt/Equity | 0.02 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 56.71 | 667.17 | Strong Liquidity |
| ROA | 0.38% | -21543.00% (disorted) | Weak |
AEL-PB outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Equity Investment Life Holding Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical