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Aegon Ltd ADR AEG

Morningstar Rating
$5.82 −0.02 (0.34%)
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Company Report

Aegon May Not Be Pretty, but It Is Slowly Getting More Attractive and Moaty

Aegon has long been plagued by what is sometimes considered a strength of the insurance industry: the diversification of products and geographies. The problem in this strategy lies in the point at which a company chooses to diversify and whether or not it has pinned down its expertise and market leadership before it moves on to another product or country. In this case, a business can apply what it has learned in establishing the local and narrow competitive advantage to its new country or product group. In sum, diversification should be carried out only with core ascendency and it should be carried out in a very focussed and strategic way. Aegon had done neither.

Price vs Fair Value

AEG is trading at a 4% discount.
Price
$5.84
Fair Value
$3.70
Uncertainty
Medium
1-Star Price
$9.76
5-Star Price
$6.29
Economic Moat
Mrw
Capital Allocation
Llwnxfkm

Bulls Say, Bears Say

Bulls

Aegon is really knuckling down on a turnaround and investing in stable earnings and low-capital requirement strategic assets where nascent signs of competitive advantage lie.

Bears

There is a still long runway for releasing capital out of financial assets, and investors are still unsure of the validity of using it internally rather than delivering it back to shareholders.

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News

Trading Information

Previous Close Price
$5.84
Day Range
$5.825.87
52-Week Range
$4.026.03
Bid/Ask
$5.56 / $5.95
Market Cap
$10.28 Bil
Volume/Avg
2.5 Mil / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
18.05
Price/Sales
0.42
Dividend Yield (Trailing)
4.79%
Dividend Yield (Forward)
4.79%
Total Yield
11.77%

Company Profile

Aegon Ltd is a life insurance and long-term savings company listed in the Netherlands. It listed on the Amsterdam Stock Exchange in the 1980s and now has mature operations in the United States, United Kingdom, and four growth markets of Brazil, China, Portugal, and Spain. Over recent years, Aegon has been moving through a substantial transformation program where management has sought to divest noncore operations and improve the risk profile of the business by separating the company into strategic and financial assets. Financial assets are the parts of the business that are now being run down. Here, Aegon is looking to cycle out of highly capital-consumptive and volatile earnings products and recycle funds into capital-light and more predictable strategic business groups.
Sector
Financial Services
Industry
Insurance - Diversified
Stock Style Box
Mid Value
Total Number of Employees
19,087

Competitors

Valuation

Metric
AEG
ALV
AXAHY
Price/Earnings (Normalized)
18.0511.399.75
Price/Book Value
1.001.751.47
Price/Sales
0.420.540.81
Price/Cash Flow
2.239.33
Price/Earnings
AEG
ALV
AXAHY

Financial Strength

Metric
AEG
ALV
AXAHY
Quick Ratio
Current Ratio
Interest Coverage
−9.849.6217.86
Quick Ratio
No chart available

Profitability

Metric
AEG
ALV
AXAHY
Return on Assets (Normalized)
−0.28%1.27%1.16%
Return on Equity (Normalized)
−7.79%23.06%16.49%
Return on Invested Capital (Normalized)
−4.30%17.23%6.96%
Return on Assets
AEG
ALV
AXAHY
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Insurance - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
BRK.B
Berkshire Hathaway Inc Class BFkw$888.2 Bil
BRK.A
Berkshire Hathaway Inc Class ACkmtj$888.2 Bil
ALIZY
Allianz SE ADRFdyt$106.2 Bil
AXAHY
AXA SA ADRVrvb$75.5 Bil
ZURVY
Zurich Insurance Group AG ADRNcyzm$74.2 Bil
AIG
American International Group IncLfkt$46.8 Bil
SLF
Sun Life Financial IncPchx$31.4 Bil
AVVIY
Aviva PLC ADRHbsl$15.4 Bil
AGESY
Ageas SA/ NV ADRTvh$7.9 Bil

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