AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
EPA:AF - Euronext Paris - Matif - FR001400J770 - Common Stock - Currency: EUR
Overall AF gets a fundamental rating of 3 out of 10. We evaluated AF against 14 industry peers in the Passenger Airlines industry. Both the profitability and financial health of AF have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on AF.
1. Profitability
1.1 Basic Checks
In the past year AF was profitable.
AF had a positive operating cash flow in the past year.
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
With a Return On Assets value of 0.67%, AF is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 6.31%, AF perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
AF had an Average Return On Invested Capital over the past 3 years of 6.06%. This is in line with the industry average of 7.77%.
The last Return On Invested Capital (6.31%) for AF is above the 3 year average (6.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROIC | 6.31% |
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
With a Profit Margin value of 0.78%, AF is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
AF's Profit Margin has declined in the last couple of years.
AF has a Operating Margin of 4.65%. This is in the lower half of the industry: AF underperforms 78.57% of its industry peers.
AF's Operating Margin has improved in the last couple of years.
The Gross Margin of AF (46.94%) is comparable to the rest of the industry.
AF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AF is creating some value.
AF has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AF has been increased compared to 5 years ago.
Compared to 1 year ago, AF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that AF is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.46, AF perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC1.14
WACC5.54%
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 worse Current ratio (0.65) than 78.57% 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.
With a Quick ratio value of 0.59, AF is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
AF shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.80%.
AF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.31% yearly.
The Revenue has been growing slightly by 5.36% in the past year.
Measured over the past years, AF shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
EPS 1Y (TTM)-14.8%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%94.67%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%-0.32%
3.2 Future
AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.14% yearly.
Based on estimates for the next years, AF will show a small growth in Revenue. The Revenue will grow by 2.91% on average per year.
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue Next Year5.2%
Revenue Next 2Y4.53%
Revenue Next 3Y4.5%
Revenue Next 5Y2.91%
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 2.76 indicates a rather cheap valuation of AF.
AF's Price/Earnings ratio is rather cheap when compared to the industry. AF is cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.10, AF is valued rather cheaply.
A Price/Forward Earnings ratio of 1.97 indicates a rather cheap valuation of AF.
Based on the Price/Forward Earnings ratio, AF is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of AF to the average of the S&P500 Index (20.74), we can say AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 1.97 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.75 |
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 57.03% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y92.17%
EPS Next 3Y57.03%
5. Dividend
5.1 Amount
No dividends for AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (5/5/2025, 5:29:46 PM)
8.312
+0.2 (+2.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.65%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap2.18B
Analysts51.2
Price Target8.64 (3.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.47%
Min EPS beat(2)-13.15%
Max EPS beat(2)60.08%
EPS beat(4)1
Avg EPS beat(4)-29.02%
Min EPS beat(4)-91.85%
Max EPS beat(4)60.08%
EPS beat(8)4
Avg EPS beat(8)-11.33%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-0.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.13%
PT rev (1m)-15.87%
PT rev (3m)-13.27%
EPS NQ rev (1m)14.69%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.98%
EPS NY rev (3m)-5.74%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.55%
Revenue NY rev (3m)0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.76 | ||
| Fwd PE | 1.97 | ||
| P/S | 0.07 | ||
| P/FCF | N/A | ||
| P/OCF | 0.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.75 |
EPS(TTM)3.01
EY36.21%
EPS(NY)4.21
Fwd EY50.65%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)13.3
OCFY160.06%
SpS119.72
BVpS-6.71
TBVpS-11.95
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROCE | 7.35% | ||
| ROIC | 6.31% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 8.75% | ||
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 141.05% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 85.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.46 |
F-Score4
WACC5.54%
ROIC/WACC1.14
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)-14.8%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%94.67%
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%-0.32%
Revenue Next Year5.2%
Revenue Next 2Y4.53%
Revenue Next 3Y4.5%
Revenue Next 5Y2.91%
EBIT growth 1Y-6.28%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year249.35%
EBIT Next 3Y59.71%
EBIT Next 5Y33.61%
FCF growth 1Y-521.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.05%
OCF growth 3Y31.6%
OCF growth 5Y-2.14%