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Aegon NV (AEG)
NYSE:AEG
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Aegon
(NYSE:AEG)
57Neutral
Aegon (AEG) vs. S&P 500 (SPY)
Market Cap
$10.28B
Dividend Yield4.49%
Average Volume (3M)8.30M
Price to Earnings (P/E)14.6
Beta (1Y)0.94
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees15,582
SectorFinancial
Sector Strength82
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)0.47
Shares Outstanding1,652,797,500
10 Day Avg. Volume9,376,080
30 Day Avg. Volume8,295,572
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.16
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.26Price Target Upside9.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Aegon Business Overview & Revenue Model
Company DescriptionAegon N.V. is a multinational life insurance, pensions, and asset management company headquartered in The Hague, Netherlands. The company operates in a variety of sectors including life insurance, retirement solutions, and investment management. Aegon provides a wide array of products and services designed to meet the financial security needs of its customers, ranging from individual life insurance policies and savings products to pension plans and asset management services.
How the Company Makes MoneyAegon makes money primarily through premiums collected from its life insurance products, fees from its asset management services, and contributions to its pension plans. The company invests the premiums and contributions it receives in a diversified portfolio of investments, generating income through interest, dividends, and capital gains. Additionally, Aegon earns revenue from managing assets on behalf of clients and charging fees for these services. The company's earnings are also influenced by its strategic partnerships and business operations across various geographical markets, which help broaden its customer base and enhance its product offerings.
Aegon Financial Statement Overview
Summary
Aegon's financial statements reflect substantial challenges, particularly with profitability and revenue consistency. The balance sheet shows declining equity and stability concerns, although debt levels are under control. Cash flow management has seen some improvements, yet the negative trend in cash operations and profitability issues suggest a need for strategic restructuring and improved operational efficiency to enhance financial health.Income Statement
The income statement reveals significant volatility, with total revenue fluctuating dramatically over the years, including a negative revenue figure in 2022. The company reported negative EBIT and net income in recent years, indicating profitability issues. The gross profit margin for 2023 was approximately 33.7%, but these margins are overshadowed by the overall net loss, indicating operational challenges.45
Neutral
Balance Sheet
The balance sheet shows a gradual decline in stockholders' equity from 2019 to 2023, coupled with a reduction in total assets. The debt-to-equity ratio in 2023 is relatively moderate at 0.52, but the declining equity ratio suggests weakening financial stability. Return on equity (ROE) is negative due to net losses, indicating inefficiencies in generating returns on shareholder investments.55
Neutral
Cash Flow
Cash flow analysis indicates challenges, with a steep decline in operating cash flow from 2019 to 2023. Free cash flow in 2023 was positive, yet the free cash flow to net income ratio is not meaningful due to net losses. The company has improved its capital expenditure management, but overall cash flow stability remains a concern.60
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 28.46B | 29.54B | -15.85B | 46.14B | 44.33B | 61.14B | Gross Profit |
| -10.76B | 9.97B | -31.69B | 46.14B | 44.33B | 61.14B | EBIT |
| 1.09B | -63.00M | -1.62B | 2.24B | -493.00M | 1.33B | EBITDA |
| 2.45B | -110.00K | 0.00 | 3.41B | 169.00M | 2.51B | Net Income Common Stockholders |
| 775.00M | -179.00M | -1.02B | 1.98B | -135.00M | 1.24B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 3.89B | 54.44B | 64.31B | 108.25B | 109.00B | 103.46B | Total Assets |
| 315.87B | 301.58B | 401.79B | 468.25B | 443.81B | 440.35B | Total Debt |
| 4.62B | 4.92B | 6.67B | 12.23B | 11.07B | 12.02B | Net Debt |
| 728.00M | 842.00M | 3.27B | 5.34B | 2.71B | -234.00M | Total Liabilities |
| 307.26B | 292.03B | 387.60B | 441.88B | 419.15B | 415.91B | Stockholders Equity |
| 8.49B | 9.43B | 14.01B | 26.18B | 24.59B | 24.42B |
| Cash Flow | Free Cash Flow | ||||
| 1.01B | 748.00M | 2.75B | -1.91B | -2.97B | 7.15B | Operating Cash Flow |
| 1.13B | 864.00M | 2.85B | -1.80B | -2.85B | 7.30B | Investing Cash Flow |
| 465.00M | -2.00B | 616.00M | -54.00M | -139.00M | -86.00M | Financing Cash Flow |
| -1.58B | -3.24B | -1.92B | 300.00M | -778.00M | -3.73B |
Aegon Technical Analysis
Positive
6.61
Price Trends
6.46
Positive
6.33
Positive
6.23
Positive
Market Momentum
0.10
Negative
54.63
Neutral
58.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEG, the sentiment is Positive. The current price of 6.61 is above the 20-day moving average (MA) of 6.46, above the 50-day MA of 6.46, and above the 200-day MA of 6.23, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 54.63 is Neutral, neither overbought nor oversold. The STOCH value of 58.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AEG.
Aegon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.14B | 8.46 | 17.26% | 2.03% | 4.03% | 45.42% | |
74 Outperform | $59.93B | 11.40 | 22.64% | 1.89% | 1.21% | 24.08% | |
68 Neutral | $53.97B | 13.33 | 15.41% | 2.75% | 6.10% | 225.22% | |
67 Neutral | $6.08B | 1.94 | 43.24% | 5.04% | 47.95% | ― | |
64 Neutral | $14.25B | 10.26 | 8.97% | 4.33% | 16.33% | -11.91% | |
61 Neutral | $38.96B | 14.67 | 9.79% | 4.77% | 34.25% | 11.22% | |
57 Neutral | $10.28B | 14.56 | 9.36% | 4.49% | ― | ― |
* Financial Sector Average
Performance Comparison
AEG
Aegon
6.61
0.89
15.56%
AFL
AFLAC
109.80
26.35
31.58%
LNC
Lincoln National
35.68
5.86
19.65%
MET
Metlife
79.23
7.66
10.70%
PRU
Prudential Financial
110.07
-1.17
-1.05%
UNM
Unum Group
80.00
27.58
52.61%
Aegon Earnings Call Summary
Earnings Call Date: Feb 20, 2025 | % Change Since: -2.07% | Next Earnings Date: May 22, 2025
Earnings Call Sentiment Neutral
Aegon's earnings call highlights progress in strategic growth areas, dividend increases, and strong asset management performance. However, challenges such as net outflows in the U.K. Adviser platform, decreased life sales in international markets, and onerous contracts in the U.S. contribute to a balanced outlook.Highlights
Consistent Financial Performance
Aegon reported an operating result of nearly €1.5 billion over 2024, in line with the previous year, with improvements in claims experience.
Dividend and Share Buybacks
Aegon increased its full-year dividend by 17% to €0.35 per share and returned €1.4 billion to shareholders through dividends and share buybacks.
U.S. Strategic Growth
In the U.S., the number of licensed agents increased by 17% and annuity sales through the WFG network increased by 22%.
Strong Asset Management Performance
Aegon Asset Management reported strong net deposits of €9.2 billion in Global Platforms and €4.5 billion in Strategic Partnerships, increasing assets under management to €332 billion.
UK Workplace Platform Success
Net deposits in the Workplace platform amounted to £3.7 billion, more than double compared to 2023.
Lowlights
Net Outflows in U.K. Adviser Platform
The U.K. Adviser platform experienced net outflows of £3.5 billion, reflecting customer withdrawals and ongoing consolidation.
Decreased Life Sales in International Segment
New life sales in the International segment decreased by 15% due to pricing actions in China, unfavorable exchange rates in Brazil, and fewer mortgage-linked life sales in Spain and Portugal.
Onerous Contracts Impact
In the U.S., there was a €147 million unfavorable experience on onerous contracts, impacting net results.
Increased Capital Sensitivity in U.S.
The U.S. RBC ratio showed increased sensitivity to market movements due to flooring on VA reserves and deferred tax asset constraints.
Company Guidance
During Aegon's Second Half 2024 Results Call, the company provided several key financial metrics and strategic updates. Aegon's operating result for 2024 was nearly €1.5 billion, with an operating capital generation before holding and funding expenses of €1.2 billion, aligning with their guidance. Free cash flow was reported at €759 million, and a final dividend of €0.19 per common share was proposed, bringing the full-year dividend to €0.35 per share, a 17% increase from 2023. The company also returned €1.4 billion to shareholders through dividends and share buybacks, with an additional €150 million buyback program underway. In the U.S., the number of licensed agents grew by 17% to over 86,000, and assets under administration in individual retirement accounts rose by 22% to nearly $13 billion. The U.K. saw record growth in the Workplace platform, with net deposits doubling to £3.7 billion. Despite challenges in China affecting the International segment, Aegon Asset Management achieved €9.2 billion in third-party net deposits. The group’s solvency ratio was reported at 188%, with a gross financial leverage of €5.2 billion. Aegon reiterated its 2025 operating capital generation guidance of around €1.2 billion, supported by strong performance in the U.S., U.K., and Asset Management, despite pressures in the International segment.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.