AIR FRANCE-KLM (AF.PA)

FR001400J770 - Common Stock

9.964  +0.03 (+0.3%)

Fundamental Rating

4

AF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. While AF is still in line with the averages on profitability rating, there are concerns on its financial health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AF.



4

1. Profitability

1.1 Basic Checks

In the past year AF was profitable.
In the past year AF had a positive cash flow from operations.
In multiple years AF reported negative net income over the last 5 years.
AF had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

With a decent Return On Assets value of 4.52%, AF is doing good in the industry, outperforming 64.29% of the companies in the same industry.
With a decent Return On Invested Capital value of 8.67%, AF is doing good in the industry, outperforming 71.43% of the companies in the same industry.
Industry RankSector Rank
ROA 4.52%
ROE N/A
ROIC 8.67%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

AF has a Profit Margin of 5.15%. This is in the better half of the industry: AF outperforms 64.29% of its industry peers.
In the last couple of years the Profit Margin of AF has grown nicely.
Looking at the Operating Margin, with a value of 6.01%, AF is doing worse than 71.43% of the companies in the same industry.
AF's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 46.81%, AF is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Gross Margin of AF has grown nicely.
Industry RankSector Rank
OM 6.01%
PM (TTM) 5.15%
GM 46.81%
OM growth 3YN/A
OM growth 5Y-0.65%
PM growth 3YN/A
PM growth 5Y11.29%
GM growth 3Y40.04%
GM growth 5Y14.53%

1

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AF is still creating some value.
There is no outstanding debt for AF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

Based on the Altman-Z score of 0.51, we must say that AF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AF (0.51) is comparable to the rest of the industry.
The Debt to FCF ratio of AF is 21.56, which is on the high side as it means it would take AF, 21.56 years of fcf income to pay off all of its debts.
AF has a Debt to FCF ratio (21.56) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 21.56
Altman-Z 0.51
ROIC/WACC1.78
WACC4.88%

2.3 Liquidity

A Current Ratio of 0.73 indicates that AF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.73, AF is doing worse than 64.29% of the companies in the same industry.
AF has a Quick Ratio of 0.73. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
AF has a Quick ratio of 0.68. This is in the lower half of the industry: AF underperforms 64.29% of its industry peers.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.68

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 325.51% over the past year.
The Earnings Per Share has been growing by 54.75% on average over the past years. This is a very strong growth
The Revenue has grown by 23.40% in the past year. This is a very strong growth!
Measured over the past years, AF shows a small growth in Revenue. The Revenue has been growing by 2.74% on average per year.
EPS 1Y (TTM)325.51%
EPS 3YN/A
EPS 5Y54.75%
EPS growth Q2Q21.76%
Revenue 1Y (TTM)23.4%
Revenue growth 3Y39.37%
Revenue growth 5Y2.74%
Revenue growth Q2Q6.74%

3.2 Future

Based on estimates for the next years, AF will show a small growth in Earnings Per Share. The EPS will grow by 6.78% on average per year.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.74% yearly.
EPS Next Y-8.05%
EPS Next 2Y5.12%
EPS Next 3Y7.75%
EPS Next 5Y6.78%
Revenue Next Year4.96%
Revenue Next 2Y4.47%
Revenue Next 3Y4.54%
Revenue Next 5Y2.74%

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 decreasing.
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.

7

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 1.53, the valuation of AF can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.25, AF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 2.63, the valuation of AF can be described as very cheap.
Based on the Price/Forward Earnings ratio, AF is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.67, AF is valued rather cheaply.
Industry RankSector Rank
PE 1.53
Fwd PE 2.63

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AF is valued a bit cheaper than 64.29% of the companies in the same industry.
AF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AF is cheaper than 85.71% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.28
EV/EBITDA 1.94

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.03
EPS Next 2Y5.12%
EPS Next 3Y7.75%

0

5. Dividend

5.1 Amount

AF does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

AIR FRANCE-KLM

EPA:AF (4/24/2024, 7:00:00 PM)

9.964

+0.03 (+0.3%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.62B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 1.53
Fwd PE 2.63
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.03
Profitability
Industry RankSector Rank
ROA 4.52%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 6.01%
PM (TTM) 5.15%
GM 46.81%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.88
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.73
Quick Ratio 0.68
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)325.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-8.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.4%
Revenue growth 3Y39.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y