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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 : 4/10

vs
industry
vs
history
Cash to Debt 0.44
AEL's Cash to Debt is ranked lower than
86% of the 72 Companies
in the Global Insurance - Life industry.

( Industry Median: 3.22 vs. AEL: 0.44 )
Ranked among companies with meaningful Cash to Debt only.
AEL' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.64 Max: N/A
Current: 0.44
Equity to Asset 0.05
AEL's Equity to Asset is ranked lower than
72% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.08 vs. AEL: 0.05 )
Ranked among companies with meaningful Equity to Asset only.
AEL' s 10-Year Equity to Asset Range
Min: 0  Med: 0.04 Max: 0.05
Current: 0.05
0
0.05
Interest Coverage 4.04
AEL's Interest Coverage is ranked lower than
76% of the 59 Companies
in the Global Insurance - Life industry.

( Industry Median: 12.97 vs. AEL: 4.04 )
Ranked among companies with meaningful Interest Coverage only.
AEL' s 10-Year Interest Coverage Range
Min: 0.08  Med: 2.57 Max: 7.64
Current: 4.04
0.08
7.64
F-Score: 5
WACC vs ROIC
13.64%
7.36%
WACC
ROIC
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 : 7/10

vs
industry
vs
history
Operating margin (%) 10.30
AEL's Operating margin (%) is ranked higher than
61% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 8.15 vs. AEL: 10.30 )
Ranked among companies with meaningful Operating margin (%) only.
AEL' s 10-Year Operating margin (%) Range
Min: -6.8  Med: 10.11 Max: 22.8
Current: 10.3
-6.8
22.8
Net-margin (%) 6.64
AEL's Net-margin (%) is ranked higher than
58% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.54 vs. AEL: 6.64 )
Ranked among companies with meaningful Net-margin (%) only.
AEL' s 10-Year Net-margin (%) Range
Min: 0.48  Med: 5.08 Max: 9.7
Current: 6.64
0.48
9.7
ROE (%) 7.08
AEL's ROE (%) is ranked lower than
64% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 10.14 vs. AEL: 7.08 )
Ranked among companies with meaningful ROE (%) only.
AEL' s 10-Year ROE (%) Range
Min: 1.72  Med: 8.82 Max: 23.67
Current: 7.08
1.72
23.67
ROA (%) 0.33
AEL's ROA (%) is ranked lower than
81% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.66 vs. AEL: 0.33 )
Ranked among companies with meaningful ROA (%) only.
AEL' s 10-Year ROA (%) Range
Min: 0.02  Med: 0.26 Max: 0.68
Current: 0.33
0.02
0.68
ROC (Joel Greenblatt) (%) 1034.99
AEL's ROC (Joel Greenblatt) (%) is ranked higher than
82% of the 61 Companies
in the Global Insurance - Life industry.

( Industry Median: 260.72 vs. AEL: 1034.99 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
AEL' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 16.94  Med: 52.99 Max: 2829.32
Current: 1034.99
16.94
2829.32
Revenue Growth (3Y)(%) 14.90
AEL's Revenue Growth (3Y)(%) is ranked higher than
66% of the 64 Companies
in the Global Insurance - Life industry.

( Industry Median: 10.20 vs. AEL: 14.90 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
AEL' s 10-Year Revenue Growth (3Y)(%) Range
Min: -25.5  Med: 12.45 Max: 58.6
Current: 14.9
-25.5
58.6
EBITDA Growth (3Y)(%) 0.90
AEL's EBITDA Growth (3Y)(%) is ranked lower than
75% of the 63 Companies
in the Global Insurance - Life industry.

( Industry Median: 11.40 vs. AEL: 0.90 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
AEL' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -34.4  Med: 18.20 Max: 72.1
Current: 0.9
-34.4
72.1
EPS Growth (3Y)(%) 5.10
AEL's EPS Growth (3Y)(%) is ranked lower than
77% of the 60 Companies
in the Global Insurance - Life industry.

( Industry Median: 15.50 vs. AEL: 5.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
AEL' s 10-Year EPS Growth (3Y)(%) Range
Min: -36.4  Med: 12.00 Max: 148.8
Current: 5.1
-36.4
148.8
» AEL's 10-Y Financials

Financials


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

» Details

Guru Trades

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
Q3 2014

AEL Guru Trades in Q3 2014

Chuck Royce 27,130 sh (+49.07%)
Diamond Hill Capital 1,538,273 sh (+6.40%)
Joel Greenblatt Sold Out
Ken Fisher 2,944,905 sh (-0.09%)
Richard Pzena 1,203,123 sh (-0.70%)
John Keeley 1,917,109 sh (-3.91%)
» More
Q4 2014

AEL Guru Trades in Q4 2014

David Dreman 2,119 sh (New)
Chuck Royce Sold Out
Ken Fisher 2,910,165 sh (-1.18%)
John Keeley 1,821,119 sh (-5.01%)
Richard Pzena 888,485 sh (-26.15%)
Diamond Hill Capital 1,012,518 sh (-34.18%)
» More
Q1 2015

AEL Guru Trades in Q1 2015

David Dreman 4,757 sh (+124.49%)
John Keeley 1,860,814 sh (+2.18%)
Ken Fisher 2,847,775 sh (-2.14%)
Richard Pzena 639,809 sh (-27.99%)
Diamond Hill Capital 331,285 sh (-67.28%)
» 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%)

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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

Ratios

vs
industry
vs
history
P/E(ttm) 15.02
AEL's P/E(ttm) is ranked lower than
60% of the 67 Companies
in the Global Insurance - Life industry.

( Industry Median: 14.20 vs. AEL: 15.02 )
Ranked among companies with meaningful P/E(ttm) only.
AEL' s 10-Year P/E(ttm) Range
Min: 5.95  Med: 11.31 Max: 57.84
Current: 15.02
5.95
57.84
Forward P/E 4.48
AEL's Forward P/E is ranked higher than
98% of the 51 Companies
in the Global Insurance - Life industry.

( Industry Median: 12.17 vs. AEL: 4.48 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 15.60
AEL's PE(NRI) is ranked lower than
61% of the 67 Companies
in the Global Insurance - Life industry.

( Industry Median: 14.20 vs. AEL: 15.60 )
Ranked among companies with meaningful PE(NRI) only.
AEL' s 10-Year PE(NRI) Range
Min: 5.94  Med: 11.44 Max: 59.62
Current: 15.6
5.94
59.62
P/B 0.88
AEL's P/B is ranked higher than
64% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.23 vs. AEL: 0.88 )
Ranked among companies with meaningful P/B only.
AEL' s 10-Year P/B Range
Min: 0.33  Med: 0.84 Max: 1.63
Current: 0.88
0.33
1.63
P/S 1.01
AEL's P/S is ranked higher than
51% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.03 vs. AEL: 1.01 )
Ranked among companies with meaningful P/S only.
AEL' s 10-Year P/S Range
Min: 0.35  Med: 0.71 Max: 1.81
Current: 1.01
0.35
1.81
PFCF 4.12
AEL's PFCF is ranked higher than
61% of the 46 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.56 vs. AEL: 4.12 )
Ranked among companies with meaningful PFCF only.
AEL' s 10-Year PFCF Range
Min: 0.7  Med: 2.25 Max: 185.14
Current: 4.12
0.7
185.14
POCF 4.10
AEL's POCF is ranked higher than
58% of the 65 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.24 vs. AEL: 4.10 )
Ranked among companies with meaningful POCF only.
AEL' s 10-Year POCF Range
Min: 0.7  Med: 2.24 Max: 76.24
Current: 4.1
0.7
76.24
EV-to-EBIT 9.38
AEL's EV-to-EBIT is ranked higher than
55% of the 69 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.53 vs. AEL: 9.38 )
Ranked among companies with meaningful EV-to-EBIT only.
AEL' s 10-Year EV-to-EBIT Range
Min: -12.6  Med: 10.60 Max: 30.3
Current: 9.38
-12.6
30.3
Shiller P/E 17.93
AEL's Shiller P/E is ranked lower than
54% of the 57 Companies
in the Global Insurance - Life industry.

( Industry Median: 17.40 vs. AEL: 17.93 )
Ranked among companies with meaningful Shiller P/E only.
AEL' s 10-Year Shiller P/E Range
Min: 3.43  Med: 13.60 Max: 21.38
Current: 17.93
3.43
21.38
Days Sales Outstanding 1.58
AEL's Days Sales Outstanding is ranked higher than
91% of the 35 Companies
in the Global Insurance - Life industry.

( Industry Median: 34.01 vs. AEL: 1.58 )
Ranked among companies with meaningful Days Sales Outstanding only.
AEL' s 10-Year Days Sales Outstanding Range
Min: 1.18  Med: 4.75 Max: 89.15
Current: 1.58
1.18
89.15

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.75
AEL's Dividend Yield is ranked lower than
153% of the 93 Companies
in the Global Insurance - Life industry.

( Industry Median: 3.39 vs. AEL: 0.75 )
Ranked among companies with meaningful Dividend Yield only.
AEL' s 10-Year Dividend Yield Range
Min: 0.09  Med: 0.75 Max: 2.19
Current: 0.75
0.09
2.19
Dividend Payout 0.11
AEL's Dividend Payout is ranked higher than
89% of the 79 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.30 vs. AEL: 0.11 )
Ranked among companies with meaningful Dividend Payout only.
AEL' s 10-Year Dividend Payout Range
Min: 0.03  Med: 0.16 Max: 0.79
Current: 0.11
0.03
0.79
Dividend growth (3y) 18.60
AEL's Dividend growth (3y) is ranked higher than
66% of the 50 Companies
in the Global Insurance - Life industry.

( Industry Median: 8.40 vs. AEL: 18.60 )
Ranked among companies with meaningful Dividend growth (3y) only.
AEL' s 10-Year Dividend growth (3y) Range
Min: 0  Med: 18.60 Max: 71
Current: 18.6
0
71
Yield on cost (5-Year) 1.91
AEL's Yield on cost (5-Year) is ranked lower than
114% of the 93 Companies
in the Global Insurance - Life industry.

( Industry Median: 5.05 vs. AEL: 1.91 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
AEL' s 10-Year Yield on cost (5-Year) Range
Min: 0.23  Med: 1.91 Max: 5.59
Current: 1.91
0.23
5.59
Share Buyback Rate -7.90
AEL's Share Buyback Rate is ranked lower than
94% of the 54 Companies
in the Global Insurance - Life industry.

( Industry Median: -0.20 vs. AEL: -7.90 )
Ranked among companies with meaningful Share Buyback Rate only.
AEL' s 10-Year Share Buyback Rate Range
Min: 0.8  Med: -5.55 Max: -42.2
Current: -7.9

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 0.88
AEL's Price/Tangible Book is ranked higher than
75% of the 72 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.48 vs. AEL: 0.88 )
Ranked among companies with meaningful Price/Tangible Book only.
AEL' s 10-Year Price/Tangible Book Range
Min: 0.37  Med: 0.84 Max: 1.63
Current: 0.88
0.37
1.63
Price/Projected FCF 0.29
AEL's Price/Projected FCF is ranked higher than
81% of the 53 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.56 vs. AEL: 0.29 )
Ranked among companies with meaningful Price/Projected FCF only.
AEL' s 10-Year Price/Projected FCF Range
Min: 0.12  Med: 0.29 Max: 3.59
Current: 0.29
0.12
3.59
Price/Median PS Value 1.40
AEL's Price/Median PS Value is ranked lower than
86% of the 73 Companies
in the Global Insurance - Life industry.

( Industry Median: 1.07 vs. AEL: 1.40 )
Ranked among companies with meaningful Price/Median PS Value only.
AEL' s 10-Year Price/Median PS Value Range
Min: 0.52  Med: 0.98 Max: 1.95
Current: 1.4
0.52
1.95
Price/Graham Number 0.75
AEL's Price/Graham Number is ranked higher than
66% of the 67 Companies
in the Global Insurance - Life industry.

( Industry Median: 0.92 vs. AEL: 0.75 )
Ranked among companies with meaningful Price/Graham Number only.
AEL' s 10-Year Price/Graham Number Range
Min: 0.36  Med: 0.68 Max: 1.43
Current: 0.75
0.36
1.43
Earnings Yield (Greenblatt) (%) 10.99
AEL's Earnings Yield (Greenblatt) (%) is ranked higher than
58% of the 74 Companies
in the Global Insurance - Life industry.

( Industry Median: 9.80 vs. AEL: 10.99 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
AEL' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 3.3  Med: 9.20 Max: 4146.8
Current: 10.99
3.3
4146.8
Forward Rate of Return (Yacktman) (%) 17.64
AEL's Forward Rate of Return (Yacktman) (%) is ranked higher than
50% of the 56 Companies
in the Global Insurance - Life industry.

( Industry Median: 17.64 vs. AEL: 17.64 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
AEL' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 3.6  Med: 37.00 Max: 104.8
Current: 17.64
3.6
104.8

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 was incorporated in the state of Iowa on December 15, 1995. The Company is engaged in the development and sale of fixed index and fixed rate annuity products. It 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, American Equity Investment Life Insurance Company of New York and Eagle Life Insurance Company. Its target market includes the group of individuals ages 45-75 who are seeking to accumulate tax-deferred savings. The Company is currently licensed to sell its products in 50 states and the District of Columbia. The Company markets its products through a variable cost brokerage distribution network of approximately 45 national marketing organizations and, through them, approximately 27,000 independent agents. The Company competes with Allianz Life Insurance Company of North America; Security Benefit Life; Great American Life Insurance Company; Athene USA Corp; EquiTrust Life Insurance Company; Midland National Life Insurance Company; North American Company for Life and Health Insurance and among others. The Company is subject to extensive laws and regulations that are administered and enforced by a number of different regulatory authorities including state insurance regulators, the NAIC, the SEC and the New York Stock Exchange.
» 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 

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