AIR FRANCE-KLM (1AF.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1AF • FR001400J770
10.65 EUR
+0.06 (+0.57%)
Last: Jan 23, 2026, 07:00 PM
We assign a fundamental rating of 4 out of 10 to 1AF. 1AF was compared to 14 industry peers in the Passenger Airlines industry. While 1AF is still in line with the averages on profitability rating, there are concerns on its financial health. 1AF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
- In the past year 1AF was profitable.
- 1AF had a positive operating cash flow in the past year.
- In multiple years 1AF reported negative net income over the last 5 years.
- 1AF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.46%, 1AF is doing worse than 78.57% of the companies in the same industry.
- 1AF's Return On Equity of 1248.68% is amongst the best of the industry. 1AF outperforms 85.71% of its industry peers.
- The Return On Invested Capital of 1AF (7.89%) is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for 1AF is below the industry average of 9.17%.
- The last Return On Invested Capital (7.89%) for 1AF is above the 3 year average (6.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 1248.68% | ||
| ROIC | 7.89% |
ROA(3y)1.58%
ROA(5y)-6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.06%
ROIC(5y)N/A
1.3 Margins
- 1AF has a worse Profit Margin (2.90%) than 78.57% of its industry peers.
- 1AF's Profit Margin has declined in the last couple of years.
- 1AF has a Operating Margin of 6.12%. This is in the lower half of the industry: 1AF underperforms 64.29% of its industry peers.
- In the last couple of years the Operating Margin of 1AF has grown nicely.
- The Gross Margin of 1AF (45.30%) is comparable to the rest of the industry.
- In the last couple of years the Gross Margin of 1AF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 2.9% | ||
| GM | 45.3% |
OM growth 3YN/A
OM growth 5Y3.22%
PM growth 3YN/A
PM growth 5Y-5.03%
GM growth 3Y0.72%
GM growth 5Y-1.01%
2. Health
2.1 Basic Checks
- 1AF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for 1AF remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, 1AF has more shares outstanding
- The debt/assets ratio for 1AF is higher compared to a year ago.
2.2 Solvency
- 1AF has an Altman-Z score of 0.55. This is a bad value and indicates that 1AF is not financially healthy and even has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.55, 1AF is in line with its industry, outperforming 42.86% of the companies in the same industry.
- 1AF has a debt to FCF ratio of 17.97. This is a negative value and a sign of low solvency as 1AF would need 17.97 years to pay back of all of its debts.
- 1AF has a worse Debt to FCF ratio (17.97) than 78.57% of its industry peers.
- A Debt/Equity ratio of 163.37 is on the high side and indicates that 1AF has dependencies on debt financing.
- With a Debt to Equity ratio value of 163.37, 1AF is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 163.37 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.33
WACC5.91%
2.3 Liquidity
- A Current Ratio of 0.65 indicates that 1AF may have some problems paying its short term obligations.
- 1AF has a Current ratio of 0.65. This is in the lower half of the industry: 1AF underperforms 64.29% of its industry peers.
- 1AF has a Quick Ratio of 0.65. This is a bad value and indicates that 1AF is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.60, 1AF is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 209.52% over the past year.
- The earnings per share for 1AF have been decreasing by -24.31% on average. This is quite bad
- The Revenue has been growing slightly by 5.52% in the past year.
- 1AF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)209.52%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-15.15%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%2.61%
3.2 Future
- 1AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.70% yearly.
- The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y227.2%
EPS Next 2Y88.22%
EPS Next 3Y62.58%
EPS Next 5Y35.7%
Revenue Next Year5.04%
Revenue Next 2Y4.73%
Revenue Next 3Y5.06%
Revenue Next 5Y3.2%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 3.28, which indicates a rather cheap valuation of 1AF.
- Compared to the rest of the industry, the Price/Earnings ratio of 1AF indicates a rather cheap valuation: 1AF is cheaper than 85.71% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, 1AF is valued rather cheaply.
- 1AF is valuated cheaply with a Price/Forward Earnings ratio of 2.64.
- Based on the Price/Forward Earnings ratio, 1AF is valued cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of 1AF to the average of the S&P500 Index (25.57), we can say 1AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.28 | ||
| Fwd PE | 2.64 |
4.2 Price Multiples
- 1AF's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, 1AF is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.37 | ||
| EV/EBITDA | 3.62 |
4.3 Compensation for Growth
- 1AF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as 1AF's earnings are expected to grow with 62.58% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y88.22%
EPS Next 3Y62.58%
5. Dividend
5.1 Amount
- No dividends for 1AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AIR FRANCE-KLM / 1AF.MI FAQ
What is the ChartMill fundamental rating of AIR FRANCE-KLM (1AF.MI) stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1AF.MI.
What is the valuation status of AIR FRANCE-KLM (1AF.MI) stock?
ChartMill assigns a valuation rating of 9 / 10 to AIR FRANCE-KLM (1AF.MI). This can be considered as Undervalued.
Can you provide the profitability details for AIR FRANCE-KLM?
AIR FRANCE-KLM (1AF.MI) has a profitability rating of 4 / 10.
What are the PE and PB ratios of AIR FRANCE-KLM (1AF.MI) stock?
The Price/Earnings (PE) ratio for AIR FRANCE-KLM (1AF.MI) is 3.28 and the Price/Book (PB) ratio is 36.82.
Can you provide the financial health for 1AF stock?
The financial health rating of AIR FRANCE-KLM (1AF.MI) is 1 / 10.