American Financial Revenue vs. Beta
| AFGE Stock | USD 19.91 0.02 0.10% |
Total Revenue | First Reported 1985-09-30 | Previous Quarter 1.9 B | Current Value 2.4 B | Quarterly Volatility 515.9 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Profit Margin | 0.12 | 0.1143 |
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| Operating Profit Margin | 0.15 | 0.1612 |
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| Pretax Profit Margin | 0.14 | 0.144 |
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| Return On Assets | 0.0218 | 0.0286 |
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| Return On Equity | 0.21 | 0.2001 |
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For American Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Financial Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Financial Group over time as well as its relative position and ranking within its peers.
American |
Is Property & Casualty Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Financial. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Financial is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Financial's value that differs from its market value or its book value, called intrinsic value, which is American Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Financial's market value can be influenced by many factors that don't directly affect American Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
American Financial Beta vs. Revenue Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining American Financial's current stock value. Our valuation model uses many indicators to compare American Financial value to that of its competitors to determine the firm's financial worth. American Financial Group is rated second in revenue category among its peers. It also is rated second in beta category among its peers . The ratio of Revenue to Beta for American Financial Group is about 10,070,270,270 . At present, American Financial's Total Revenue is projected to increase significantly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value American Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.American Revenue vs. Competition
American Financial Group is rated second in revenue category among its peers. Market size based on revenue of Financials industry is presently estimated at about 35.13 Billion. American Financial totals roughly 7.45 Billion in revenue claiming about 21% of equities under Financials industry.
American Beta vs. Revenue
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
American Financial |
| = | 7.45 B |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
American Financial |
| = | 0.74 |
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
American Beta Comparison
American Financial is currently under evaluation in beta category among its peers.
Beta Analysis
As returns on the market increase, American Financial's returns are expected to increase less than the market. However, during the bear market, the loss of holding American Financial is expected to be smaller as well.
American Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in American Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Financial will eventually generate negative long term returns. The profitability progress is the general direction of American Financial's change in net profit over the period of time. It can combine multiple indicators of American Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -319 M | -303.1 M | |
| Operating Income | 1.2 B | 1.1 B | |
| Income Before Tax | 1.1 B | 693.5 M | |
| Total Other Income Expense Net | -128 M | -121.6 M | |
| Net Income | 852 M | 894.6 M | |
| Income Tax Expense | 221 M | 136.5 M | |
| Net Income From Continuing Ops | 1 B | 726.2 M | |
| Net Income Applicable To Common Shares | 1 B | 872.6 M | |
| Change To Netincome | -27.9 M | -26.5 M | |
| Net Income Per Share | 10.06 | 10.56 | |
| Income Quality | 2.31 | 2.20 | |
| Net Income Per E B T | 0.79 | 0.83 |
American Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on American Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Financial's important profitability drivers and their relationship over time.
Use American Financial in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Financial will appreciate offsetting losses from the drop in the long position's value.American Financial Pair Trading
American Financial Group Pair Trading Analysis
The ability to find closely correlated positions to American Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Financial Group to buy it.
The correlation of American Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your American Financial position
In addition to having American Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Asset Allocation ETFs Thematic Idea Now
Asset Allocation ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Asset Allocation ETFs theme has 144 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Asset Allocation ETFs Theme or any other thematic opportunities.
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To fully project American Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Financial's income statement, its balance sheet, and the statement of cash flows.