American Financial (US:AFG) ZACKSยท2025-07-04 14:01Core Insights - American Financial Group, Inc. (AFG) has underperformed compared to its industry and broader market indices over the past year, with a share price increase of 6.5% versus 16.9% for the Finance sector and 21.1% for the Zacks S&P 500 composite [1] - AFG's current market capitalization stands at $10.64 billion, with a recent share price of $127.43, which is 15.1% lower than its 52-week high of $150.19 [2] - The company is trading at a forward 12-month price-to-book ratio of 2.43X, significantly above the industry average of 1.55X, indicating an expensive valuation [3] - The Zacks Consensus Estimate projects AFG's revenues for 2025 to be $8.21 billion, reflecting a year-over-year growth of 2.1% [4] - AFG has maintained a combined ratio better than the industry average for over 20 years, with a target of 92.5% for 2025 [7] - The company has a strong dividend history, with 18 consecutive years of increases and a 10-year compound annual growth rate (CAGR) of 12.4% [16][17] - Analysts have shown bearish sentiment, with three out of four lowering their earnings estimates for 2025 and 2026 over the past 60 days [8] - The average price target from analysts suggests a potential upside of 5.5% from the last closing price, with a target of $132.20 per share [9] - AFG's return on equity (ROE) has improved, currently at 18.3%, compared to the industry average of 7.8% [11] - The company is well-positioned for growth due to new business opportunities, a favorable renewal rate environment, and strategic acquisitions [12][19]