AIR FRANCE-KLM (AFR0.DE) Stock Fundamental Analysis
FRA:AFR0 - Deutsche Boerse Ag - FR001400J770 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to AFR0. AFR0 was compared to 11 industry peers in the Passenger Airlines industry. AFR0 has a bad profitability rating. Also its financial health evaluation is rather negative. AFR0 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year AFR0 was profitable.
In the past year AFR0 had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AFR0 reported negative net income in multiple years.
Of the past 5 years AFR0 4 years had a positive operating cash flow.
1.2 Ratios
AFR0 has a Return On Assets of 0.67%. This is amonst the worse of the industry: AFR0 underperforms 81.82% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.31%, AFR0 is in line with its industry, outperforming 45.45% of the companies in the same industry.
AFR0 had an Average Return On Invested Capital over the past 3 years of 6.06%. This is below the industry average of 8.32%.
The 3 year average ROIC (6.06%) for AFR0 is below the current ROIC(6.31%), indicating increased profibility in the last year.
| 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
AFR0 has a worse Profit Margin (0.78%) than 81.82% of its industry peers.
In the last couple of years the Profit Margin of AFR0 has declined.
AFR0's Operating Margin of 4.65% is on the low side compared to the rest of the industry. AFR0 is outperformed by 63.64% of its industry peers.
AFR0's Operating Margin has improved in the last couple of years.
AFR0 has a better Gross Margin (46.94%) than 63.64% of its industry peers.
AFR0'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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AFR0 is still creating some value.
Compared to 1 year ago, AFR0 has about the same amount of shares outstanding.
AFR0 has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AFR0 has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that AFR0 is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.46, AFR0 is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC1.16
WACC5.44%
2.3 Liquidity
AFR0 has a Current Ratio of 0.65. This is a bad value and indicates that AFR0 is not financially healthy enough and could expect problems in meeting its short term obligations.
AFR0 has a Current ratio of 0.65. This is in the lower half of the industry: AFR0 underperforms 72.73% of its industry peers.
A Quick Ratio of 0.59 indicates that AFR0 may have some problems paying its short term obligations.
AFR0 has a worse Quick ratio (0.59) than 72.73% 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 for AFR0 have decreased strongly by -44.60% in the last year.
Measured over the past years, AFR0 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.31% on average per year.
The Revenue has been growing slightly by 5.36% in the past year.
Measured over the past years, AFR0 shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
EPS 1Y (TTM)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
3.2 Future
The Earnings Per Share is expected to grow by 31.87% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.06% on average over the next years.
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.87%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y3.06%
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
The Price/Earnings ratio is 3.95, which indicates a rather cheap valuation of AFR0.
100.00% of the companies in the same industry are more expensive than AFR0, based on the Price/Earnings ratio.
AFR0 is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 1.84, which indicates a rather cheap valuation of AFR0.
Based on the Price/Forward Earnings ratio, AFR0 is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AFR0 is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 1.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AFR0 indicates a somewhat cheap valuation: AFR0 is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.72 |
4.3 Compensation for Growth
AFR0's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AFR0's earnings are expected to grow with 57.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y92.17%
EPS Next 3Y57.03%
5. Dividend
5.1 Amount
AFR0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:AFR0 (6/19/2025, 7:00:00 PM)
7.744
-0.25 (-3.15%)
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 Cap2.03B
Analysts53.6
Price Target8.86 (14.41%)
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)3.35%
PT rev (3m)-11.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.41%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.95 | ||
| Fwd PE | 1.84 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 0.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.72 |
EPS(TTM)1.96
EY25.31%
EPS(NY)4.21
Fwd EY54.36%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)13.3
OCFY171.8%
SpS119.72
BVpS-6.71
TBVpS-11.95
PEG (NY)0.02
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
WACC5.44%
ROIC/WACC1.16
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)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.87%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y3.06%
EBIT growth 1Y-6.28%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year245.03%
EBIT Next 3Y58.73%
EBIT Next 5Y32.83%
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%