AEL Intrinsic Value Calculation – American Equity Investment Life Holding Reports 36.7% Decrease in Revenue for Q2 2023
August 14, 2023
🌥️Earnings Overview
For the second quarter of 2023, AMERICAN EQUITY INVESTMENT LIFE HOLDING ($NYSE:AEL) reported total revenue of USD 637.9 million on August 7, a decrease of 36.7% compared to the same period from the previous year. Net income for the quarter was USD 355.4 million, a decline of 1.4% year over year.
Analysis – AEL Intrinsic Value Calculation
GoodWhale provides investors with a comprehensive analysis of AMERICAN EQUITY INVESTMENT LIFE HOLDING’s financials. Our analysis reveals that the intrinsic value of AMERICAN EQUITY INVESTMENT LIFE HOLDING share is around $37.5, calculated by our proprietary Valuation Line. The stock is currently traded at $53.3, which is 42.1% higher than its intrinsic value. This implies that the stock is overvalued in the current market and may not be the best investment option. Therefore, investors should be wary of AMERICAN EQUITY INVESTMENT LIFE HOLDING’s stock and exercise caution when investing. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for AEL. More…
| Total Revenues | Net Income | Net Margin |
| 1.92k | 449.83 | 25.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for AEL. More…
| Operations | Investing | Financing |
| 2.81k | -2.45k | -2.18k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for AEL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 77.65k | 75.05k | 32.95 |
Key Ratios Snapshot
Some of the financial key ratios for AEL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -3.3% | – | 58.8% |
| FCF Margin | ROE | ROA |
| 144.1% | 27.2% | 0.9% |
Peers
The company’s products include fixed index annuities, fixed rate annuities, and variable annuities. American Equity Investment Life Holding Co operates through two segments: Life Insurance and Annuities. The Life Insurance segment provides whole life insurance, term life insurance, and universal life insurance products. The Annuities segment provides fixed and variable annuity products. American Equity Investment Life Holding Co has a market capitalization of $3.6 billion. The company’s competitors include Genworth Financial Inc, T&D Holdings Inc, and Midwest Holding Inc.
– Genworth Financial Inc ($NYSE:GNW)
With a market cap of $2.24B as of 2022, Genworth Financial Inc has a ROE of 6.09%. The company is a financial services organization that offers a variety of products and services, including life insurance, long-term care insurance, mortgage insurance, and annuities. Genworth has a long history dating back to 1871 and is a Fortune 500 company. The company’s products are sold in more than 25 countries and territories. Genworth is committed to helping families secure their financial future and live their best lives.
– T&D Holdings Inc ($TSE:8795)
T&D Holdings Inc is a Japanese electrical equipment manufacturer. The company operates in three segments: Transmission and Distribution Systems, Power Systems, and Smart Community Systems. The Transmission and Distribution Systems segment offers power transmission and distribution equipment, including transformers, circuit breakers, and switchgear. The Power Systems segment provides power generation equipment, such as gas turbines, diesel generators, and fuel cells. The Smart Community Systems segment offers smart grid technologies and solutions, including smart meters, demand response management systems, and energy storage systems.
– Midwest Holding Inc ($NASDAQ:MDWT)
Midwest Holding Inc is a financial holding company that operates through its subsidiaries. The company has a market cap of 53.97M as of 2022 and a Return on Equity of -16.6%. The company provides a range of banking and financial services to its customers. These services include personal and commercial banking, lending, wealth management, and insurance. The company serves its customers through a network of branches and ATMs located in Illinois, Indiana, and Michigan.
Summary
American Equity Investment Life Holding reported total revenue of USD 637.9 million in the second quarter of 2023, a decrease of 36.7% compared to the same period in 2022. Net income for the quarter was USD 355.4 million, down 1.4% from the year prior. These results were released on August 7th, 2023. This reflects a decline in investor confidence and demand for the company’s services.
The company is likely to see more challenging times ahead as it works to regain the trust of its shareholders and customers. Investors should pay close attention to the company’s performance going forward to determine whether its decline will continue.
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