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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 5/10

vs
industry
vs
history
Cash to Debt 2.03
AEL's Cash to Debt is ranked higher than
80% of the 147 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.36 vs. AEL: 2.03 )
AEL' s 10-Year Cash to Debt Range
Min: 0.01   Max: No Debt
Current: 2.03

Equity to Asset 0.05
AEL's Equity to Asset is ranked higher than
70% of the 153 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.06 vs. AEL: 0.05 )
AEL' s 10-Year Equity to Asset Range
Min: 0   Max: 0.05
Current: 0.05

0
0.05
Interest Coverage 7.64
AEL's Interest Coverage is ranked higher than
76% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 7.86 vs. AEL: 7.64 )
AEL' s 10-Year Interest Coverage Range
Min: 0.08   Max: 15.73
Current: 7.64

0.08
15.73
F-Score: 5
Z-Score: 0.13
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 14.91
AEL's Operating margin (%) is ranked higher than
91% of the 149 Companies
in the Global Insurance - Life industry.

( Industry Median: 8.18 vs. AEL: 14.91 )
AEL' s 10-Year Operating margin (%) Range
Min: 5.08   Max: 41.53
Current: 14.91

5.08
41.53
Net-margin (%) 9.70
AEL's Net-margin (%) is ranked higher than
89% of the 151 Companies
in the Global Insurance - Life industry.

( Industry Median: 4.94 vs. AEL: 9.70 )
AEL' s 10-Year Net-margin (%) Range
Min: 0.48   Max: 9.7
Current: 9.7

0.48
9.7
ROE (%) 18.29
AEL's ROE (%) is ranked higher than
95% of the 151 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.91 vs. AEL: 18.29 )
AEL' s 10-Year ROE (%) Range
Min: 0.37   Max: 18.34
Current: 18.29

0.37
18.34
ROA (%) 0.64
AEL's ROA (%) is ranked higher than
81% of the 151 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.57 vs. AEL: 0.64 )
AEL' s 10-Year ROA (%) Range
Min: 0.02   Max: 0.64
Current: 0.64

0.02
0.64
Revenue Growth (%) 20.40
AEL's Revenue Growth (%) is ranked higher than
96% of the 141 Companies
in the Global Insurance - Life industry.

( Industry Median: 2.80 vs. AEL: 20.40 )
AEL' s 10-Year Revenue Growth (%) Range
Min: -25.2   Max: 58.6
Current: 20.4

-25.2
58.6
EBITDA Growth (%) -22.10
AEL's EBITDA Growth (%) is ranked higher than
66% of the 134 Companies
in the Global Insurance - Life industry.

( Industry Median: 4.90 vs. AEL: -22.10 )
AEL' s 10-Year EBITDA Growth (%) Range
Min: -38.3   Max: 71.5
Current: -22.1

-38.3
71.5
EPS Growth (%) 72.40
AEL's EPS Growth (%) is ranked higher than
99% of the 136 Companies
in the Global Insurance - Life industry.

( Industry Median: 6.50 vs. AEL: 72.40 )
AEL' s 10-Year EPS Growth (%) Range
Min: -36.4   Max: 148.8
Current: 72.4

-36.4
148.8
» AEL's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

AEL Guru Trades in Q3 2013

Ken Fisher 2,313,750 sh (New)
John Keeley 1,983,959 sh (New)
Jeremy Grantham 17,459 sh (New)
Diamond Hill Capital 1,282,910 sh (+5%)
Jim Simons 308,400 sh (-2.77%)
Richard Pzena 1,573,857 sh (-19.71%)
Paul Tudor Jones 10,200 sh (-55.26%)
Steven Cohen 57,792 sh (-60.92%)
» More
Q4 2013

AEL Guru Trades in Q4 2013

Chuck Royce 6,600 sh (New)
Joel Greenblatt 19,989 sh (New)
John Keeley 2,054,629 sh (+3.56%)
Ken Fisher 2,358,540 sh (+1.94%)
Paul Tudor Jones Sold Out
Steven Cohen Sold Out
Diamond Hill Capital 1,276,240 sh (-0.52%)
Jeremy Grantham 17,213 sh (-1.41%)
Richard Pzena 1,330,127 sh (-15.49%)
Jim Simons 232,400 sh (-24.64%)
» More
Q1 2014

AEL Guru Trades in Q1 2014

Ken Fisher 3,009,815 sh (+27.61%)
John Keeley 2,165,829 sh (+5.41%)
Diamond Hill Capital 1,317,198 sh (+3.21%)
Chuck Royce 6,600 sh (unchged)
Jeremy Grantham Sold Out
Jim Simons Sold Out
Richard Pzena 1,252,453 sh (-5.84%)
Joel Greenblatt 12,055 sh (-39.69%)
» More
Q2 2014

AEL Guru Trades in Q2 2014

Chuck Royce 18,200 sh (+175.76%)
Diamond Hill Capital 1,445,803 sh (+9.76%)
Joel Greenblatt 12,071 sh (+0.13%)
Ken Fisher 2,947,520 sh (-2.07%)
Richard Pzena 1,211,573 sh (-3.26%)
John Keeley 1,995,059 sh (-7.88%)
» More
» Details

Insider Trades

Latest Guru Trades with AEL

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2014-03-31 Reduce -39.69%0.01%$20.43 - $26.38 $ 24.747%12055
Joel Greenblatt 2013-12-31 New Buy0.01%$20.28 - $26.08 $ 24.749%19989
John Keeley 2013-09-30 New Buy0.77%$15.72 - $21.23 $ 24.7430%1983959
George Soros 2011-12-31 Sold Out 0.0029%$8.17 - $11.58 $ 24.74135%0
George Soros 2011-09-30 Add 36.36%$8.22 - $13.12 $ 24.74134%19500
George Soros 2011-06-30 Reduce -21.86%$12.04 - $13.41 $ 24.7496%14300
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on American Equity Investment Life Holding Co

Diamond Hill Capital Comments on American Equity Investment Life Holding Co - Jun 26, 2014

Life insurer American Equity Investment Life Holding Co. (AEL) reported disappointing results due to a mismatch in their hedge position. We believe the company will continue to benefit from the growing demand for indexed annuities and from any increase in long-term rates.



From Diamond Hill Capital's Small Cap Fund Commentary – First Quarter 2014.



Check out Diamond Hill Capital latest stock trades

Top Ranked Articles about American Equity Investment Life Holding Co

Diamond Hill Capital Comments on American Equity Investment Life Holding Co
Life insurer American Equity Investment Life Holding Co. (AEL) reported disappointing results due to a mismatch in their hedge position. We believe the company will continue to benefit from the growing demand for indexed annuities and from any increase in long-term rates. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 14.60
AEL's P/E(ttm) is ranked higher than
77% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 15.50 vs. AEL: 14.60 )
AEL' s 10-Year P/E(ttm) Range
Min: 5.95   Max: 57.84
Current: 14.6

5.95
57.84
P/B 0.96
AEL's P/B is ranked higher than
84% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.54 vs. AEL: 0.96 )
AEL' s 10-Year P/B Range
Min: 0.33   Max: 1.63
Current: 0.96

0.33
1.63
P/S 0.77
AEL's P/S is ranked higher than
74% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.87 vs. AEL: 0.77 )
AEL' s 10-Year P/S Range
Min: 0.35   Max: 1.8
Current: 0.77

0.35
1.8
PFCF 2.58
AEL's PFCF is ranked higher than
92% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.92 vs. AEL: 2.58 )
AEL' s 10-Year PFCF Range
Min: 0.7   Max: 185.14
Current: 2.58

0.7
185.14
EV-to-EBIT 9.36
AEL's EV-to-EBIT is ranked higher than
88% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 11.40 vs. AEL: 9.36 )
AEL' s 10-Year EV-to-EBIT Range
Min: 0.6   Max: 26.9
Current: 9.36

0.6
26.9
Shiller P/E 19.92
AEL's Shiller P/E is ranked higher than
75% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 23.42 vs. AEL: 19.92 )
AEL' s 10-Year Shiller P/E Range
Min: 3.43   Max: 21.38
Current: 19.92

3.43
21.38

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.73
AEL's Dividend Yield is ranked lower than
90% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 2.16 vs. AEL: 0.73 )
AEL' s 10-Year Dividend Yield Range
Min: 0.08   Max: 1.82
Current: 0.73

0.08
1.82
Dividend Payout 0.11
AEL's Dividend Payout is ranked higher than
95% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.38 vs. AEL: 0.11 )
AEL' s 10-Year Dividend Payout Range
Min: 0.03   Max: 0.79
Current: 0.11

0.03
0.79
Dividend growth (3y) 21.60
AEL's Dividend growth (3y) is ranked higher than
90% of the 101 Companies
in the Global Insurance - Life industry.

( Industry Median: 6.60 vs. AEL: 21.60 )
AEL' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 71
Current: 21.6

0
71
Yield on cost (5-Year) 1.93
AEL's Yield on cost (5-Year) is ranked lower than
57% of the 136 Companies
in the Global Insurance - Life industry.

( Industry Median: 3.23 vs. AEL: 1.93 )
AEL' s 10-Year Yield on cost (5-Year) Range
Min: 0.22   Max: 5.02
Current: 1.93

0.22
5.02
Share Buyback Rate -5.10
AEL's Share Buyback Rate is ranked higher than
69% of the 126 Companies
in the Global Insurance - Life industry.

( Industry Median: -0.40 vs. AEL: -5.10 )
AEL' s 10-Year Share Buyback Rate Range
Min: 0.8   Max: -42.2
Current: -5.1

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.96
AEL's Price/Tangible Book is ranked higher than
93% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.83 vs. AEL: 0.96 )
AEL' s 10-Year Price/Tangible Book Range
Min: 0.37   Max: 1.63
Current: 0.96

0.37
1.63
Price/DCF (Projected) 0.28
AEL's Price/DCF (Projected) is ranked higher than
93% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.44 vs. AEL: 0.28 )
AEL' s 10-Year Price/DCF (Projected) Range
Min: 0.15   Max: 1.8
Current: 0.28

0.15
1.8
Price/Median PS Value 1.14
AEL's Price/Median PS Value is ranked higher than
75% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.04 vs. AEL: 1.14 )
AEL' s 10-Year Price/Median PS Value Range
Min: 0.55   Max: 2.03
Current: 1.14

0.55
2.03
Price/Graham Number 0.76
AEL's Price/Graham Number is ranked higher than
92% of the 155 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.02 vs. AEL: 0.76 )
AEL' s 10-Year Price/Graham Number Range
Min: 0.36   Max: 1.74
Current: 0.76

0.36
1.74
Earnings Yield (Greenblatt) 10.70
AEL's Earnings Yield (Greenblatt) is ranked higher than
86% of the 150 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.20 vs. AEL: 10.70 )
AEL' s 10-Year Earnings Yield (Greenblatt) Range
Min: 3.7   Max: 172.5
Current: 10.7

3.7
172.5
Forward Rate of Return (Yacktman) 27.36
AEL's Forward Rate of Return (Yacktman) is ranked higher than
86% of the 135 Companies
in the Global Insurance - Life industry.

( Industry Median: 22.41 vs. AEL: 27.36 )
AEL' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 4.9   Max: 94
Current: 27.36

4.9
94

Business Description

Industry: Insurance - Life » Insurance - Life
Compare:LFC, PIAIF, AAGIY, CNPAY, CHPXF » details
Traded in other countries:AM5.Germany
American Equity Investment Life Holding Company or American Equity was incorporated in the state of Iowa on December 15, 1995. The Company is a full service underwriter of fixed annuity and life insurance products through its wholly-owned life insurance subsidiaries, American Equity Investment Life Insurance Company or American Equity Life and American Equity Investment Life Insurance Company of New York. American Equity formed a new wholly-owned life insurance company, Eagle Life Insurance Company or Eagle Life. The Company's business consists mainly of the sale of index and fixed rate annuities and, accordingly, it has only one business segment. American Equity's business strategy is to focus on its annuity business and earn predictable returns by managing investment spreads and investment risk. The Company is currently licensed to sell its products in 50 states and the District of Columbia. It mainly markets index and fixed rate annuities and to a lesser extent, life insurance. In connection with its reinsured group life business, the Company also collects renewal premiums on certain accident and health insurance policies. American Equity's target market includes the group of individual's ages 45-75 who are seeking to accumulate tax-deferred savings. Annuities offer the Company's policyholders a tax-deferred means of accumulating retirement savings, as well as a reliable source of income during the payout period. Index annuities allow policyholders to earn index credits based on the performance of a particular index without the risk of loss of their principal. Most of these products allow policyholders to transfer funds once a year among several different crediting strategies, including one or more index based strategies and a traditional fixed rate strategy. Fixed rate deferred annuities include annual reset and multi-year rate guaranteed products. The Company's annual reset fixed rate annuities have an annual interest rate that is guaranteed for the first policy year. American Equity's multi-year rate guaranteed annuities are similar to its annual reset products except that the initial crediting rate is guaranteed for up to a five-year period before it might be changed at its discretion. The Company also sells single premium immediate annuities. American Equity's SPIAs are designed to provide a series of periodic payments for a fixed period of time or for life, according to the policyholder's choice at the time of issue. The amounts, frequency, and length of time of the payments are fixed at the outset of the annuity contract. Investment activities are an integral part of its business, and net investment income is a component of its total revenues. Profitability of many of the Company's products is significantly affected by spreads between interest yields on investments, the cost of options to fund the annual index credits on its index annuities and rates credited on its fixed rate annuities. American Equity manages the inde
» More Articles for AEL

Headlines

Articles On GuruFocus.com
Diamond Hill Capital Comments on American Equity Investment Life Holding Co Jun 26 2014 
Ken Fisher’s Top 5 Stock Buys Oct 23 2013 
3 Financial Dividend Stocks with a Big Short-Selling Army Jun 10 2013 
My 4 Top Dividend Growth Stocks From Last Week Nov 18 2012 
6 Dividend Challengers Under Book Value with 'Buy' or Better Rating Jan 18 2012 
4 Stocks with Double-Digit Dividend Growth from Last Week to Consider Nov 29 2011 
American Equity Investment Life Holding Reports Operating Results (10-K) Mar 10 2011 
American Equity Investment Life Holding Reports Operating Results (10-Q) Aug 06 2010 
American Equity Investment Life Holding Reports Operating Results (10-Q) May 10 2010 
American Equity Reports Second Quarter 2009 Operating Earnings of $21.6 Million or $0.38 Per Diluted Aug 04 2009 

More From Other Websites
American Equity Announces Stock Repurchase Program Aug 27 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Financials Aug 15 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Files SEC form 10-Q, Quarterly Report Aug 08 2014
American Equity Investment Life Holding Co Earnings Call scheduled for 12:00 pm ET today Jul 31 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Files SEC form 8-K, Results of Operations and Financial... Jul 30 2014
American Equity Reports Second Quarter 2014 Results Jul 30 2014
Q2 2014 American Equity Investment Life Holding Co. Earnings Release - After Market Close Jul 30 2014
American Equity Named Top Company as Life-Health Insurer Jul 29 2014
American Equity Schedules Earnings Release, Conference Call and Webcast Jul 10 2014
American Equity Investment (AEL) Enters Overbought Territory Jun 11 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Files SEC form 8-K, Submission of Matters to a Vote of... Jun 09 2014
Why Is American Equity Investment a Strong Sell? May 30 2014
Why Is American Equity Investment a Strong Sell? May 29 2014
American Equity Investment Life Holding to hold a conference May 29 2014
Iowa Insurance Companies to Host Des Moines Insurance Conference May 21 2014
SunTrust to hold a conference May 20 2014
Zacks Rank #5 Additions for Monday May 19 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Files SEC form 10-Q, Quarterly Report May 08 2014
American Equity Investment Life Holding's CEO Discusses Q1 2014 Results - Earnings Call Transcript May 02 2014
AMERICAN EQUITY INVESTMENT LIFE HOLDING CO Files SEC form 8-K, Results of Operations and Financial... May 01 2014

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