AEL Stock Fair Value – AMERICAN EQUITY INVESTMENT LIFE HOLDING Reports Q2 FY2023 Earnings Results for August 7 2023
August 11, 2023
🌥️Earnings Overview
AMERICAN EQUITY INVESTMENT LIFE HOLDING ($NYSE:AEL) reported their second quarter FY2023 earnings results on June 30 2023, for the period ending August 7 2023. Total revenue was USD 637.9 million, a 36.7% decrease from the same period the year before. Net income was USD 355.4 million, down 1.4% from the same period the prior year.
Share Price
The stock opened at $53.7 and closed at $53.3, down 0.8% from its previous closing price of $53.7. This decrease in stock price may be attributed to the announcement of AEL’s earnings results, which fell short of analyst expectations. Despite the disappointing earnings results, AEL reported positive news regarding their investments. Overall, AEL’s Q2 FY2023 earnings report was mixed.
While the net income was lower than expected and there were some minor losses, the investment yield and AUM both indicated positive trends. Investors will be watching to see how AEL will continue to progress in the coming quarters. Live Quote…
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% |
Analysis – AEL Stock Fair Value
At GoodWhale, we have conducted an analysis of AMERICAN EQUITY INVESTMENT LIFE HOLDING’s wellbeing. Our proprietary Valuation Line has computed the intrinsic value of AMERICAN EQUITY INVESTMENT LIFE HOLDING’s share to be around $37.4. At the moment, AMERICAN EQUITY INVESTMENT LIFE HOLDING stock is traded at $53.3, which is an overvaluation of 42.4%. We believe that investors should exercise caution when considering investing in AMERICAN EQUITY INVESTMENT LIFE HOLDING at this time given this significant overvaluation. More…
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
Investors analyzing AMERICAN EQUITY INVESTMENT LIFE HOLDING for the second quarter of FY2023, ending August 7 2023, have seen a decrease in total revenue of 36.7% to USD 637.9 million, compared to the same period in the previous year. Net income has also decreased by 1.4% to USD 355.4 million. This has caused concern among investors about the company’s performance, as the downward trend continues. Moving forward, investors are encouraged to do their own further research into the company and its financials, and assess whether or not it is a good long-term investment.
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