AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
EPA:AF - FR001400J770 - Common Stock
13.415 EUR
-0.22 (-1.58%)
Overall AF gets a fundamental rating of 4 out of 10. We evaluated AF against 13 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 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AF had positive earnings in the past year.
AF had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 2.72%, AF is doing worse than 61.54% of the companies in the same industry.
AF has a Return On Invested Capital of 8.56%. This is in the better half of the industry: AF outperforms 69.23% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 9.61%.
The 3 year average ROIC (6.06%) for AF is below the current ROIC(8.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | N/A | ||
| ROIC | 8.56% |
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
Looking at the Profit Margin, with a value of 3.03%, AF is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of AF has declined.
Looking at the Operating Margin, with a value of 6.11%, AF is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
AF's Operating Margin has improved in the last couple of years.
AF has a Gross Margin of 45.70%. This is in the better half of the industry: AF outperforms 61.54% of its industry peers.
In the last couple of years the Gross Margin of AF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 3.03% | ||
| GM | 45.7% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AF is still creating some value.
Compared to 1 year ago, AF has about the same amount of shares outstanding.
AF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AF has a worse debt to assets ratio.
2.2 Solvency
AF has an Altman-Z score of 0.56. This is a bad value and indicates that AF is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.56, AF is doing worse than 76.92% of the companies in the same industry.
The Debt to FCF ratio of AF is 16.17, which is on the high side as it means it would take AF, 16.17 years of fcf income to pay off all of its debts.
AF has a Debt to FCF ratio (16.17) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.17 | ||
| Altman-Z | 0.56 |
ROIC/WACC1.37
WACC6.23%
2.3 Liquidity
AF has a Current Ratio of 0.65. 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 Current ratio of 0.65. This is in the lower half of the industry: AF underperforms 61.54% of its industry peers.
AF has a Quick Ratio of 0.65. 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's Quick ratio of 0.59 is on the low side compared to the rest of the industry. AF is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.36% over the past year.
Measured over the past years, AF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.31% on average per year.
Looking at the last year, AF shows a small growth in Revenue. The Revenue has grown by 5.85% in the last year.
AF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
3.2 Future
Based on estimates for the next years, AF will show a very strong growth in Earnings Per Share. The EPS will grow by 35.30% on average per year.
Based on estimates for the next years, AF will show a small growth in Revenue. The Revenue will grow by 3.14% on average per year.
EPS Next Y245.72%
EPS Next 2Y96.79%
EPS Next 3Y63.64%
EPS Next 5Y35.3%
Revenue Next Year5.78%
Revenue Next 2Y4.97%
Revenue Next 3Y5.18%
Revenue Next 5Y3.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
A Price/Earnings ratio of 3.63 indicates a rather cheap valuation of AF.
Based on the Price/Earnings ratio, AF is valued cheaper than 100.00% of the companies in the same industry.
AF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.08.
With a Price/Forward Earnings ratio of 3.04, the valuation of AF can be described as very cheap.
Based on the Price/Forward Earnings ratio, AF is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.72, AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.63 | ||
| Fwd PE | 3.04 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AF indicates a somewhat cheap valuation: AF is cheaper than 69.23% of the companies listed in the same industry.
100.00% of the companies in the same industry are more expensive than AF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.93 | ||
| EV/EBITDA | 2.67 |
4.3 Compensation for Growth
AF'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 AF's earnings are expected to grow with 63.64% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y96.79%
EPS Next 3Y63.64%
5. Dividend
5.1 Amount
No dividends for AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (8/29/2025, 7:00:00 PM)
13.415
-0.22 (-1.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.37%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.53B
Analysts53.91
Price Target11.99 (-10.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.54%
Min EPS beat(2)25.42%
Max EPS beat(2)129.67%
EPS beat(4)3
Avg EPS beat(4)50.51%
Min EPS beat(4)-13.15%
Max EPS beat(4)129.67%
EPS beat(8)5
Avg EPS beat(8)10.98%
EPS beat(12)8
Avg EPS beat(12)112.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.99%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)29.39%
PT rev (3m)40.23%
EPS NQ rev (1m)4.84%
EPS NQ rev (3m)N/A
EPS NY rev (1m)11.11%
EPS NY rev (3m)11.11%
Revenue NQ rev (1m)1.65%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.63 | ||
| Fwd PE | 3.04 | ||
| P/S | 0.11 | ||
| P/FCF | 3.93 | ||
| P/OCF | 0.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.67 |
EPS(TTM)3.7
EY27.58%
EPS(NY)4.41
Fwd EY32.91%
FCF(TTM)3.41
FCFY25.45%
OCF(TTM)18.54
OCFY138.24%
SpS123.55
BVpS-6.71
TBVpS-11.95
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | N/A | ||
| ROCE | 9.98% | ||
| ROIC | 8.56% | ||
| ROICexc | 10.83% | ||
| ROICexgc | 11.87% | ||
| OM | 6.11% | ||
| PM (TTM) | 3.03% | ||
| GM | 45.7% | ||
| FCFM | 2.76% |
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-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.17 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 143.07% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 102.31% | ||
| Profit Quality | 91.07% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.56 |
F-Score5
WACC6.23%
ROIC/WACC1.37
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)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
EPS Next Y245.72%
EPS Next 2Y96.79%
EPS Next 3Y63.64%
EPS Next 5Y35.3%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
Revenue Next Year5.78%
Revenue Next 2Y4.97%
Revenue Next 3Y5.18%
Revenue Next 5Y3.14%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year245.03%
EBIT Next 3Y58.73%
EBIT Next 5Y34.71%
FCF growth 1Y-25.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.39%
OCF growth 3Y31.6%
OCF growth 5Y-2.14%