AIR FRANCE-KLM (1AF.MI) Stock Fundamental Analysis
BIT:1AF - Euronext Milan - FR001400J770 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to 1AF. 1AF was compared to 13 industry peers in the Passenger Airlines industry. 1AF has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on 1AF.
1. Profitability
1.1 Basic Checks
1AF had positive earnings in the past year.
In the past year 1AF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1AF reported negative net income in multiple years.
1AF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
1AF has a Return On Assets of 0.67%. This is in the lower half of the industry: 1AF underperforms 76.92% of its industry peers.
1AF has a Return On Invested Capital (6.31%) which is comparable to the rest of the industry.
1AF had an Average Return On Invested Capital over the past 3 years of 6.06%. This is in line with the industry average of 7.98%.
The 3 year average ROIC (6.06%) for 1AF is below the current ROIC(6.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROIC | 6.31% |
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 Profit Margin of 0.78%. This is in the lower half of the industry: 1AF underperforms 76.92% of its industry peers.
1AF's Profit Margin has declined in the last couple of years.
1AF has a worse Operating Margin (4.65%) than 61.54% of its industry peers.
In the last couple of years the Operating Margin of 1AF has grown nicely.
1AF's Gross Margin of 46.94% is fine compared to the rest of the industry. 1AF outperforms 61.54% of its industry peers.
1AF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% |
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.
1AF has about the same amout of shares outstanding than it did 1 year ago.
1AF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for 1AF is higher compared to a year ago.
2.2 Solvency
1AF has an Altman-Z score of 0.47. This is a bad value and indicates that 1AF is not financially healthy and even has some risk of bankruptcy.
1AF's Altman-Z score of 0.47 is on the low side compared to the rest of the industry. 1AF is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC1.1
WACC5.75%
2.3 Liquidity
1AF has a Current 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.
1AF's Current ratio of 0.65 is on the low side compared to the rest of the industry. 1AF is outperformed by 61.54% 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 0.59, 1AF is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
1AF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.60%.
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 5.36% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
3.2 Future
Based on estimates for the next years, 1AF will show a very strong growth in Earnings Per Share. The EPS will grow by 31.14% on average per year.
1AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.91% yearly.
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y2.91%
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
With a Price/Earnings ratio of 5.01, the valuation of 1AF can be described as very cheap.
Based on the Price/Earnings ratio, 1AF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
1AF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.31.
1AF is valuated cheaply with a Price/Forward Earnings ratio of 2.33.
Based on the Price/Forward Earnings ratio, 1AF is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.06, 1AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 2.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AF is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.86 |
4.3 Compensation for Growth
The 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 57.03% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y92.17%
EPS Next 3Y57.03%
5. Dividend
5.1 Amount
1AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AF (6/3/2025, 7:00:00 PM)
9.824
+0.67 (+7.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.65%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap2.58B
Analysts51.2
Price Target8.62 (-12.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.47%
Min EPS beat(2)-13.15%
Max EPS beat(2)60.08%
EPS beat(4)1
Avg EPS beat(4)-29.02%
Min EPS beat(4)-91.85%
Max EPS beat(4)60.08%
EPS beat(8)4
Avg EPS beat(8)-11.33%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-0.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.13%
PT rev (1m)-19.04%
PT rev (3m)-13.76%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 2.33 | ||
| P/S | 0.08 | ||
| P/FCF | N/A | ||
| P/OCF | 0.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.86 |
EPS(TTM)1.96
EY19.95%
EPS(NY)4.21
Fwd EY42.85%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)13.3
OCFY135.43%
SpS119.72
BVpS-6.71
TBVpS-11.95
PEG (NY)0.02
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROCE | 7.35% | ||
| ROIC | 6.31% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 8.75% | ||
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% | ||
| FCFM | N/A |
ROA(3y)1.58%
ROA(5y)-6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.06%
ROIC(5y)N/A
ROICexc(3y)9.52%
ROICexc(5y)N/A
ROICexgc(3y)10.72%
ROICexgc(5y)N/A
ROCE(3y)7.14%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y5.52%
ROICexc growth 3YN/A
ROICexc growth 5Y5.83%
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%
F-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 141.05% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 85.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.47 |
F-Score4
WACC5.75%
ROIC/WACC1.1
Cap/Depr(3y)135.34%
Cap/Depr(5y)114.46%
Cap/Sales(3y)11.65%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y2.91%
EBIT growth 1Y-6.28%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year245.03%
EBIT Next 3Y58.73%
EBIT Next 5Y33.61%
FCF growth 1Y-521.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.05%
OCF growth 3Y31.6%
OCF growth 5Y-2.14%