Aegon (AEG) AI Stock Analysis

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Aegon

(NYSE:AEG)

68Neutral

Aegon's overall score reflects a balanced outlook with strengths in financial recovery, strategic growth, and attractive valuation. However, revenue volatility, low equity retention, and international challenges pose risks. Strong dividend performance and strategic initiatives contribute positively.

Aegon (AEG) vs. S&P 500 (SPY)

Market Cap

$9.05B

Dividend Yield5.16%

Average Volume (3M)9.19M

Price to Earnings (P/E)12.7

Beta (1Y)1.04

Revenue Growth-5.03%

EPS GrowthN/A

CountryUS

Employees15,582

SectorFinancial

Sector Strength81

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)0.47

Shares Outstanding1,652,797,500

10 Day Avg. Volume10,317,664

30 Day Avg. Volume9,191,278

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

$7.26

Price Target Upside31.05% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering0

Aegon Business Overview & Revenue Model

Company DescriptionAegon N.V. (AEG) is a multinational life insurance, pensions, and asset management company headquartered in The Hague, Netherlands. It operates across various regions, including Europe, the Americas, and Asia, providing a diverse range of financial services and products. Aegon's core offerings include life and health insurance, retirement and pension plans, and investment solutions. The company aims to empower its customers to achieve a lifetime of financial security through its extensive portfolio of financial products.

How the Company Makes MoneyAegon generates revenue primarily through the sale of life insurance policies, pension products, and asset management services. A significant portion of its income comes from premiums paid by policyholders for life and health insurance coverage. Additionally, Aegon earns fees from managing pension plans and investment portfolios on behalf of individuals and institutions. The company also benefits from investment income, as it invests the premiums and assets under management in a diversified portfolio, generating returns that contribute to its earnings. Strategic partnerships with financial institutions and distribution networks further enhance Aegon's ability to reach a broad customer base and drive revenue growth.

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

Neutral

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.

Balance Sheet

Neutral

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.

Cash Flow

Neutral

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.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
12.67B	29.54B	-15.85B	46.14B	37.02B	61.14B
	Gross Profit
12.67B	9.97B	-31.69B	46.14B	44.33B	61.14B
	EBIT
5.96B	-63.00M	-540.00K	2.24B	-493.00M	1.33B
	EBITDA
258.00M	-110.00K	0.00	2.58B	169.00M	2.82B
	Net Income Common Stockholders
-119.00M	-179.00M	-570.00M	1.98B	-146.00M	1.24B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.23K	54.44B	64.31B	108.25B	109.00B	103.46B
	Total Assets
332.30B	301.58B	380.71B	459.56B	443.81B	439.77B
	Total Debt
8.52B	4.92B	6.67B	12.23B	11.07B	12.02B
	Net Debt
3.29B	842.00M	3.27B	5.34B	2.71B	-234.00M
	Total Liabilities
308.88B	292.03B	369.78B	445.98B	419.15B	415.34B
	Stockholders Equity
23.41B	9.43B	14.01B	26.18B	24.59B	24.42B
Cash Flow		Free Cash Flow
391.00M	748.00M	2.75B	-1.91B	-2.97B	7.15B
	Operating Cash Flow
450.00M	864.00M	2.85B	-1.80B	-2.85B	7.30B
	Investing Cash Flow
-2.01B	-2.00B	616.00M	-54.00M	-139.00M	-86.00M
	Financing Cash Flow
-2.75B	-3.24B	-1.92B	300.00M	-778.00M	-3.73B

Aegon Technical Analysis

Technical Analysis Sentiment

Negative

Last Price5.54

Price Trends

50DMA

6.43

Negative

100DMA

6.32

Negative

200DMA

6.24

Negative

Market Momentum

MACD

0.08

Negative

RSI

54.92

Neutral

STOCH

30.21

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AEG, the sentiment is Negative. The current price of 5.54 is below the 20-day moving average (MA) of 6.46, below the 50-day MA of 6.43, and below the 200-day MA of 6.24, indicating a bearish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 54.92 is Neutral, neither overbought nor oversold. The STOCH value of 30.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AEG.

Aegon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$32.41B	10.97	19.58%	1.74%	8.19%	29.77%
ORI	78 Outperform	$8.97B	11.19	14.17%	2.99%	13.41%	55.56%
AIG	70 Outperform	$46.84B	15.59	7.10%	2.03%	-28.56%	1.14%
AEG	68 Neutral	$9.05B	12.67	9.36%	5.16%	-5.03%	―
PFG	66 Neutral	$16.45B	10.92	14.28%	3.99%	18.02%	171.70%
Sector *	63 Neutral	$12.88B	9.21	9.18%	4.78%	16.30%	-8.66%
EQH	56 Neutral	$13.84B	11.94	61.74%	2.13%	16.81%	14.00%

* Financial Sector Average

Performance Comparison

AEG

Aegon

5.54

-0.42

-7.05%

AIG

American International Group

77.56

3.63

4.91%

HIG

Hartford Financial

109.83

12.65

13.02%

ORI

Old Republic International

35.25

7.67

27.81%

PFG

Principal Financial

71.65

-8.30

-10.38%

EQH

Equitable Holdings

44.86

8.08

21.97%

Aegon Earnings Call Summary

Earnings Call Date: Feb 20, 2025 | % Change Since: -17.93% | 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.