AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AF - FR001400J770 - Common Stock
11.165 EUR
-0.19 (-1.63%)
We assign a fundamental rating of 3 out of 10 to AF. AF was compared to 13 industry peers in the Passenger Airlines industry. AF has a bad profitability rating. Also its financial health evaluation is rather negative. AF may be a bit undervalued, certainly considering the very reasonable score on growth
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.
Of the past 5 years AF 4 years had a positive operating cash flow.
1.2 Ratios
AF's Return On Assets of 2.57% is on the low side compared to the rest of the industry. AF is outperformed by 84.62% of its industry peers.
AF has a Return On Invested Capital (8.30%) which is comparable to the rest of the industry.
AF had an Average Return On Invested Capital over the past 3 years of 6.06%. This is below the industry average of 9.96%.
The last Return On Invested Capital (8.30%) for AF is above the 3 year average (6.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | N/A | ||
| ROIC | 8.3% |
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
The Profit Margin of AF (3.03%) is worse than 84.62% of its industry peers.
AF's Profit Margin has declined in the last couple of years.
AF has a worse Operating Margin (6.11%) than 69.23% of its industry peers.
AF's Operating Margin has improved in the last couple of years.
The Gross Margin of AF (45.70%) is comparable to the rest of the industry.
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.
AF has about the same amout of shares outstanding than it did 1 year ago.
AF has more shares outstanding than it did 5 years ago.
AF has a worse debt/assets ratio than last year.
2.2 Solvency
AF has an Altman-Z score of 0.46. This is a bad value and indicates that AF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.46, AF is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
AF has a debt to FCF ratio of 15.85. This is a negative value and a sign of low solvency as AF would need 15.85 years to pay back of all of its debts.
AF's Debt to FCF ratio of 15.85 is on the low side compared to the rest of the industry. AF is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.46 |
ROIC/WACC1.39
WACC5.97%
2.3 Liquidity
A Current Ratio of 0.60 indicates that AF may have some problems paying its short term obligations.
With a Current ratio value of 0.60, AF is not doing good in the industry: 76.92% of the companies in the same industry are doing better.
A Quick Ratio of 0.55 indicates that AF may have some problems paying its short term obligations.
AF has a worse Quick ratio (0.55) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
AF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 209.52%, which is quite impressive.
The earnings per share for AF have been decreasing by -24.31% on average. This is quite bad
AF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
The Revenue has been growing slightly by 2.96% on average over the past years.
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
AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.10% yearly.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y36.1%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.5%
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.
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
With a Price/Earnings ratio of 3.44, the valuation of AF can be described as very cheap.
Based on the Price/Earnings ratio, AF is valued cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.15, AF is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.71, the valuation of AF can be described as very cheap.
AF's Price/Forward Earnings ratio is rather cheap when compared to the industry. AF is cheaper than 84.62% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.22, AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.44 | ||
| Fwd PE | 2.71 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AF indicates a rather cheap valuation: AF is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| EV/EBITDA | 3.5 |
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 61.40% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y90.05%
EPS Next 3Y61.4%
5. Dividend
5.1 Amount
AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (12/2/2025, 7:00:00 PM)
11.165
-0.19 (-1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners12.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.93B
Revenue(TTM)32.70B
Net Income(TTM)985.00M
Analysts69.6
Price Target12.01 (7.57%)
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)-3.41%
PT rev (3m)0.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.91%
EPS NY rev (1m)10.92%
EPS NY rev (3m)6.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.44 | ||
| Fwd PE | 2.71 | ||
| P/S | 0.09 | ||
| P/FCF | 3.27 | ||
| P/OCF | 0.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.5 |
EPS(TTM)3.25
EY29.11%
EPS(NY)4.12
Fwd EY36.88%
FCF(TTM)3.41
FCFY30.57%
OCF(TTM)18.54
OCFY166.1%
SpS123.55
BVpS-3.11
TBVpS-8.4
PEG (NY)0.01
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | N/A | ||
| ROCE | 9.93% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.3% | ||
| ROICexgc | 8.9% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 143.07% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 102.31% | ||
| Profit Quality | 91.07% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.97%
ROIC/WACC1.39
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)209.52%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-15.15%
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y36.1%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%2.61%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.5%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year256.34%
EBIT Next 3Y60.78%
EBIT Next 5Y35.32%
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%
AIR FRANCE-KLM / AF.PA FAQ
Can you provide the ChartMill fundamental rating for AIR FRANCE-KLM?
ChartMill assigns a fundamental rating of 3 / 10 to AF.PA.
What is the valuation status of AIR FRANCE-KLM (AF.PA) stock?
ChartMill assigns a valuation rating of 9 / 10 to AIR FRANCE-KLM (AF.PA). This can be considered as Undervalued.
Can you provide the profitability details for AIR FRANCE-KLM?
AIR FRANCE-KLM (AF.PA) has a profitability rating of 3 / 10.
What is the valuation of AIR FRANCE-KLM based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AIR FRANCE-KLM (AF.PA) is 3.44 and the Price/Book (PB) ratio is -3.6.
What is the expected EPS growth for AIR FRANCE-KLM (AF.PA) stock?
The Earnings per Share (EPS) of AIR FRANCE-KLM (AF.PA) is expected to grow by 269.19% in the next year.