American Financial Intrinsic Value – Is American Express a Sure Bet for Investors?

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When it comes to investing, American ($NYSE:AFG) Express (AMEX) is often at the top of the list of stocks that investors look to buy. With a long history of successful operations and a strong balance sheet, American Express has a reputation for being a safe, reliable investment. But should American Express be a must-have investment in your portfolio? It operates globally, providing credit cards, charge cards, traveler’s cheques, corporate travel, insurance, and other financial products and services. It is one of the largest and most profitable card issuers in the world, and is listed on the New York Stock Exchange. American Express is an attractive investment due to its strong financial performance. The company has reported consistent profits since its founding and continues to show steady growth. Its stock price has also been steadily rising over the years, making it a safe bet for long-term investors. The company also pays a healthy dividend, which is a great way to earn passive income from your investments. Investors should also consider the potential risks associated with investing in American Express stock. The company is heavily reliant on consumer spending, which can be volatile. In addition, the company faces stiff competition from other card issuers and digital payment systems. As such, investors should perform their own due diligence before deciding whether or not to invest in American Express. The company has demonstrated consistent performance and its stock price has been steadily rising over the years.

However, investors should still research the company and its competitors before investing to make sure they understand all of the associated risks.

Stock Price

American Express, or AMERICAN FINANCIAL, has been a popular choice for investors for some time now.

However, on Monday it opened at $119.4 and closed at $117.7, down by 1.4% from prior closing price of 119.4. This could be indicative of a change in the stock’s outlook, or simply just a blip in the road. The financial services company has a strong track record of growth and profitability, and its products and services are well-regarded by consumers. However, when analyzing the stock, investors must take into account the macroeconomic environment, the company’s competitive position, and the company’s financial condition. Overall, investments in American Express could be considered a safe bet for investors willing to do research and analysis to determine if it is the right fit for their portfolios. With solid fundamentals and a long history of strong performance, American Express is worthy of consideration as an investment option. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for American Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for American Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for American Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for American Financial are shown below. More…

Analysis – American Financial Intrinsic Value

At GoodWhale, we have been analyzing AMERICAN FINANCIAL‘s financials and have come to the conclusion that the intrinsic value of its share is around $106.9. This was calculated using our proprietary Valuation Line approach. We believe that the stock is currently priced at $117.7, giving an indication of fair price overvaluation by 10.1%. In other words, investors should be mindful of the fact that they may not get a good return for their money due to this gap between the intrinsic value and current price. More…

Peers

The company’s main competitors are HCI Group Inc, The Hanover Insurance Group Inc, and Donegal Group Inc.

– HCI Group Inc ($NYSE:HCI)

The company’s market cap is 280.02M as of 2022 and its ROE is -1.61%. The company is a provider of healthcare services.

– The Hanover Insurance Group Inc ($NYSE:THG)

The Hanover Insurance Group, Inc., together with its subsidiaries, provides various property and casualty products and services in the United States. The company operates in three segments: Commercial Lines, Personal Lines, and Other. The Commercial Lines segment offers property, automobile liability, workers’ compensation, commercial multi-peril, and surety products to small, medium, and large businesses, including professional service organizations, contractors, real estate firms, retailers, and not-for-profit organizations. The Personal Lines segment provides personal automobile and homeowners insurance products to individuals. The Other segment offers reinsurance products. The company markets and distributes its products and services through independent local, regional, and national agents and brokers.

– Donegal Group Inc ($NASDAQ:DGICA)

As of 2022, Donegal Group Inc has a market cap of 461.86M. It has a return on equity of 0.82%. The company provides insurance products and services to policyholders in the United States. Its products include personal automobile, homeowners, commercial automobile, workers’ compensation, and commercial property and liability insurance, as well as surety bonds.

Summary

It has also successfully developed new technologies and digital services to improve customer experience and increase market share. Overall, American Express appears to be a promising investment for those seeking a low-risk, long-term return.