AIR FRANCE-KLM (AF.PA)
FR001400J770 - Common Stock
We assign a fundamental rating of 3 out of 10 to AF. AF was compared to 14 industry peers in the Passenger Airlines industry. AF has a medium profitability rating, but doesn't score so well on its financial health evaluation. AF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year AF was profitable.
AF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AF reported negative net income in multiple years.
AF 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 4.52%, AF is in line with its industry, outperforming 57.14% 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 64.29% of the companies in the same industry.
| Industry Rank | Sector 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
Looking at the Profit Margin, with a value of 5.15%, AF is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of AF has grown nicely.
With a Operating Margin value of 6.01%, AF is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
AF's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 46.81%, AF perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
AF's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
AF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AF has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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.
Looking at the Altman-Z score, with a value of 0.51, AF is in line with its industry, outperforming 50.00% of the companies in the same industry.
AF has a debt to FCF ratio of 21.56. This is a negative value and a sign of low solvency as AF would need 21.56 years to pay back of all of its debts.
The Debt to FCF ratio of AF (21.56) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 21.56 | ||
| Altman-Z | 0.51 |
ROIC/WACC1.77
WACC4.9%
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 71.43% of the companies in the same industry.
A Quick Ratio of 0.68 indicates that AF may have some problems paying its short term obligations.
AF has a Quick ratio of 0.68. This is in the lower half of the industry: AF underperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.73 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
AF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 325.51%, which is quite impressive.
Measured over the past years, AF shows a very strong growth in Earnings Per Share. The EPS has been growing by 54.75% on average per year.
AF shows a strong growth in Revenue. In the last year, the Revenue has grown by 23.40%.
AF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.74% yearly.
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
AF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.78% yearly.
Based on estimates for the next years, AF will show a small growth in Revenue. The Revenue will grow by 2.74% on average per year.
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 1.55, which indicates a rather cheap valuation of AF.
Compared to the rest of the industry, the Price/Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 85.71% of the companies listed in the same industry.
AF is valuated cheaply when we compare the Price/Earnings ratio to 24.95, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 2.67 indicates a rather cheap valuation of AF.
Based on the Price/Forward Earnings ratio, AF is valued a bit cheaper than 78.57% of the companies in the same industry.
AF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.55 | ||
| Fwd PE | 2.67 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA is on the same level as the industry average.
AF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. AF is cheaper than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.35 | ||
| EV/EBITDA | 1.95 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.03
EPS Next 2Y5.12%
EPS Next 3Y7.75%
5. Dividend
5.1 Amount
No dividends for AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AIR FRANCE-KLM
EPA:AF (4/23/2024, 12:16:14 PM)
10.125
+0.04 (+0.4%)
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 Cap2.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 1.55 | ||
| Fwd PE | 2.67 | ||
| 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 Rank | Sector 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 Rank | Sector 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