AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - EPA:AF - FR001400J770 - Common Stock
11.73 EUR
-0.06 (-0.51%)
Overall AF gets a fundamental rating of 4 out of 10. We evaluated AF against 12 industry peers in the Passenger Airlines industry. There are concerns on the financial health of AF while its profitability can be described as average. AF is valued quite cheap, while showing a decent growth score. This is a good combination!
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
AF's Return On Assets of 2.57% is on the low side compared to the rest of the industry. AF is outperformed by 66.67% of its industry peers.
The Return On Invested Capital of AF (8.30%) is better than 75.00% of its industry peers.
AF had an Average Return On Invested Capital over the past 3 years of 6.06%. This is below the industry average of 9.93%.
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 66.67% of its industry peers.
AF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.11%, AF is in line with its industry, outperforming 58.33% of the companies in the same industry.
AF's Operating Margin has improved in the last couple of years.
The Gross Margin of AF (45.70%) is better than 66.67% of its industry peers.
AF's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, AF has more shares outstanding
AF has a worse debt/assets ratio than last year.
2.2 Solvency
AF has an Altman-Z score of 0.47. 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 0.47, AF is doing worse than 75.00% of the companies in the same industry.
The Debt to FCF ratio of AF is 15.85, which is on the high side as it means it would take AF, 15.85 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AF (15.85) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.47 |
ROIC/WACC1.37
WACC6.07%
2.3 Liquidity
AF has a Current Ratio of 0.60. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.60, AF is doing worse than 66.67% of the companies in the same industry.
AF has a Quick Ratio of 0.60. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.55, AF is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
| 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 76.36%, which is quite impressive.
AF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.31% yearly.
AF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.85%.
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 35.21% on average per year.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.08% yearly.
EPS Next Y232.85%
EPS Next 2Y90.6%
EPS Next 3Y60.24%
EPS Next 5Y35.21%
Revenue Next Year6%
Revenue Next 2Y5.05%
Revenue Next 3Y5.25%
Revenue Next 5Y3.08%
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
Based on the Price/Earnings ratio of 3.17, the valuation of AF can be described as very cheap.
Based on the Price/Earnings ratio, AF is valued cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of AF to the average of the S&P500 Index (27.42), we can say AF is valued rather cheaply.
A Price/Forward Earnings ratio of 2.83 indicates a rather cheap valuation of AF.
100.00% of the companies in the same industry are more expensive than AF, based on the Price/Forward Earnings ratio.
AF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.17 | ||
| Fwd PE | 2.83 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 3.44 | ||
| EV/EBITDA | 3.52 |
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 AF's earnings are expected to grow with 60.24% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y90.6%
EPS Next 3Y60.24%
5. Dividend
5.1 Amount
AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (10/20/2025, 4:55:24 PM)
11.73
-0.06 (-0.51%)
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 Cap3.08B
Analysts70
Price Target12.43 (5.97%)
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)-0.58%
PT rev (3m)38.06%
EPS NQ rev (1m)-4.79%
EPS NQ rev (3m)-0.18%
EPS NY rev (1m)-3.72%
EPS NY rev (3m)6.98%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.17 | ||
| Fwd PE | 2.83 | ||
| P/S | 0.09 | ||
| P/FCF | 3.44 | ||
| P/OCF | 0.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.52 |
EPS(TTM)3.7
EY31.54%
EPS(NY)4.14
Fwd EY35.31%
FCF(TTM)3.41
FCFY29.1%
OCF(TTM)18.54
OCFY158.1%
SpS123.55
BVpS-3.11
TBVpS-8.4
PEG (NY)0.01
PEG (5Y)N/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
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 Turnover0.85
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 | 0.47 |
F-Score5
WACC6.07%
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 Y232.85%
EPS Next 2Y90.6%
EPS Next 3Y60.24%
EPS Next 5Y35.21%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
Revenue Next Year6%
Revenue Next 2Y5.05%
Revenue Next 3Y5.25%
Revenue Next 5Y3.08%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year256.34%
EBIT Next 3Y60.78%
EBIT Next 5Y34.63%
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%