Aegon NV (AGN) AI Stock Analysis

• Market Cap: €9.86B
• Dividend Yield: 5.79%
• Average Volume (3M): 5.38M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 1.05
• Revenue Growth: -6.64%
• EPS Growth: N/A
• Country: NL
• Employees: 15,582
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 1,573,119,900
• 10 Day Avg. Volume: 5,483,647
• 30 Day Avg. Volume: 5,375,044
• PEG Ratio: -0.04
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 16.17
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €7.27
• Price Target Upside: 10.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €6.50 ▼(-1.52% Downside)

Aegon NV's overall stock score reflects a balance of mixed financial performance and attractive valuation metrics. While the company faces challenges in revenue consistency and leverage, its low P/E ratio and high dividend yield provide a compelling case for value investors. The technical analysis suggests caution due to bearish trends, but potential opportunities may arise if momentum shifts.

Positive Factors

Strategic Transformation

The strategic move to the US and rebranding as Transamerica indicates a focus on expanding market presence and aligning with growth opportunities in a key market, potentially enhancing long-term revenue and market position.

Profitability Improvement

The return to profitability with a positive net profit margin suggests improved cost management and operational efficiency, supporting sustainable financial health.

Cash Flow Stability

Aligned cash generation with profitability indicates resilience in cash flow, supporting ongoing operations and potential reinvestment opportunities.

Negative Factors

Revenue Volatility

Revenue inconsistency poses challenges for stable financial planning and may impact long-term growth if not addressed through strategic initiatives.

High Debt Levels

Elevated debt levels can strain financial flexibility and increase risk, necessitating careful leverage management to ensure long-term stability.

Equity Decline

A decline in equity levels raises concerns about financial resilience and the ability to absorb potential market shocks, impacting long-term sustainability.

Aegon NV Business Overview & Revenue Model

Company Description

Aegon N.V. provides insurance, pensions, and asset management services in the Americas, the Netherlands, and the United Kingdom. The company offers life, accident, and health insurance; savings, pension, annuities, and mutual funds; property and casualty insurance; retirement plans and individual retirement accounts; voluntary employee benefits; and stable value solutions. It also provides debt securities; mortgage loans; derivatives; reinsurance assets; other loans; money market and short-term investments; credit risk management; disability services; and digital banking solutions. Aegon N.V. was founded in 1983 and is headquartered in The Hague, the Netherlands.

How the Company Makes Money

Aegon generates revenue through multiple streams, primarily from insurance premiums, investment income, and asset management fees. The company's life insurance segment earns money by collecting premiums from policyholders, which are then invested to generate returns. Aegon's retirement solutions division also contributes significantly to revenue by offering pension products and plans, with fees tied to the assets under management. Additionally, the company earns income from managing investment portfolios for clients, including mutual funds and institutional investments, where it charges management fees. Strategic partnerships with financial institutions and investment firms further enhance Aegon's earnings potential, enabling access to broader customer bases and diversified investment opportunities.

Aegon NV Financial Statement Overview

Summary

Aegon NV demonstrates a mixed financial performance with improvements in profitability and cash flow stability. However, challenges remain in revenue consistency and leverage management. The high debt levels and low equity pose risks, necessitating a cautious approach to future financial planning and investment.

Income Statement

Aegon NV's income statement shows a challenging financial trajectory. The net profit margin improved from negative figures in previous years to a positive 3.52% in 2024, indicating a return to profitability. However, revenue has shown volatility, with a significant drop and subsequent recovery. The absence of EBIT in 2024 raises concerns about operational efficiency, although EBITDA margin has improved to 3.25%, suggesting cost management improvements.

Balance Sheet

The balance sheet reflects a relatively high debt-to-equity ratio of 0.54 in 2024, which indicates moderate leverage. The equity ratio stands at 2.81%, showing a low reliance on equity financing. Return on equity improved to 7.49%, but the overall equity levels have decreased over recent years, raising concerns about long-term financial resilience.

Cash Flow

Aegon NV's cash flow statement indicates a recovery in free cash flow, with a growth rate of -6.95% from 2023 to 2024, showing resilience despite the drop. The operating cash flow to net income ratio is 1.11, indicating that cash generation is aligned with profitability. However, the free cash flow to net income ratio is 1.01, suggesting limited cash surplus for reinvestment or debt reduction.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.95B	19.52B	29.54B	53.77B	46.14B	44.33B
Gross Profit	22.95B	19.52B	22.88B	-15.85B	46.14B	44.33B
EBITDA	-4.91B	635.00M	-204.00M	1.00B	2.21B	169.00M
Net Income	1.32B	688.00M	-179.00M	-570.00M	1.98B	-135.00M
Balance Sheet
Total Assets	310.63B	327.39B	301.58B	401.79B	468.25B	443.81B
Cash, Cash Equivalents and Short-Term Investments	0.00	58.18B	4.07B	64.31B	108.25B	109.00B
Total Debt	4.27B	5.00B	4.92B	6.67B	12.23B	11.07B
Total Liabilities	301.25B	318.08B	292.03B	387.60B	441.88B	419.15B
Stockholders Equity	9.26B	9.19B	7.55B	14.01B	26.18B	24.59B
Cash Flow
Free Cash Flow	-676.00M	711.00M	748.00M	2.75B	-1.91B	-2.97B
Operating Cash Flow	-621.00M	762.00M	864.00M	2.85B	-1.80B	-2.85B
Investing Cash Flow	16.00M	300.00M	-2.00B	616.00M	-54.00M	-139.00M
Financing Cash Flow	-970.00M	-1.75B	-3.24B	-1.92B	300.00M	-778.00M

Aegon NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NL:AGN, the sentiment is Positive. The current price of 6.6 is above the 20-day moving average (MA) of 6.56, below the 50-day MA of 6.64, and above the 200-day MA of 6.18, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NL:AGN.

Aegon NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HAL	81 Outperform	€13.10B	7.60	11.85%	2.07%	2.01%	79.48%
ABN	74 Outperform	€24.98B	11.50	9.85%	4.36%	-12.70%	-12.34%
NN	68 Neutral	€16.51B	13.97	6.47%	5.40%	-15.54%	10.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ASRNL	66 Neutral	€12.54B	11.62	12.65%	5.32%	16.35%	67.44%
AGN	61 Neutral	€9.86B	7.91	14.93%	5.79%	-6.64%	―
INGA	61 Neutral	€69.15B	12.18	12.05%	5.10%	0.12%	-2.71%