AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
NYSE:AIG - US0268747849 - Common Stock
81.6 USD
-0.61 (-0.74%)
81.6 USD
0 (0%)
Taking everything into account, AIG scores 4 out of 10 in our fundamental rating. AIG was compared to 143 industry peers in the Insurance industry. There are concerns on the financial health of AIG while its profitability can be described as average. AIG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AIG had positive earnings in the past year.
In the past year AIG had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AIG reported negative net income in multiple years.
Each year in the past 5 years AIG had a positive operating cash flow.
1.2 Ratios
AIG has a Return On Assets (1.93%) which is in line with its industry peers.
AIG has a Return On Equity of 7.71%. This is in the lower half of the industry: AIG underperforms 60.14% of its industry peers.
AIG has a Return On Invested Capital (1.94%) which is comparable to the rest of the industry.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is below the industry average of 4.11%.
The 3 year average ROIC (1.44%) for AIG is below the current ROIC(1.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.71% | ||
| ROIC | 1.94% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
1.3 Margins
Looking at the Profit Margin, with a value of 11.51%, AIG is in the better half of the industry, outperforming 70.63% of the companies in the same industry.
AIG has a better Operating Margin (16.38%) than 72.03% of its industry peers.
In the last couple of years the Operating Margin of AIG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.38% | ||
| PM (TTM) | 11.51% | ||
| GM | N/A |
OM growth 3Y-15.59%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIG is destroying value.
AIG has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AIG has been reduced compared to 5 years ago.
The debt/assets ratio for AIG is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AIG is 2.83, which is a good value as it means it would take AIG, 2.83 years of fcf income to pay off all of its debts.
AIG has a Debt to FCF ratio of 2.83. This is comparable to the rest of the industry: AIG outperforms 46.85% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
AIG has a Debt to Equity ratio of 0.22. This is in the better half of the industry: AIG outperforms 67.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.26
WACC7.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.95%.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
The Revenue has been growing slightly by 2.53% in the past year.
The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
EPS 1Y (TTM)-12.95%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%56.03%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%8.09%
3.2 Future
Based on estimates for the next years, AIG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.98% on average per year.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y17.97%
EPS Next 2Y19.8%
EPS Next 3Y17.55%
EPS Next 5Y10.98%
Revenue Next Year4.51%
Revenue Next 2Y3.65%
Revenue Next 3Y3.9%
Revenue Next 5Y4.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.81 indicates a correct valuation of AIG.
Compared to the rest of the industry, the Price/Earnings ratio of AIG is on the same level as its industry peers.
AIG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.17, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.41, the valuation of AIG can be described as very reasonable.
AIG's Price/Forward Earnings ratio is in line with the industry average.
AIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIG indicates a somewhat cheap valuation: AIG is cheaper than 69.23% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.83 | ||
| EV/EBITDA | 6.46 |
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.
AIG's earnings are expected to grow with 17.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.82
PEG (5Y)4.25
EPS Next 2Y19.8%
EPS Next 3Y17.55%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.18%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is a higher than the industry average which is at 3.52.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
The dividend of AIG has a limited annual growth rate of 3.87%.
AIG has paid a dividend for at least 10 years, which is a reliable track record.
AIG has decreased its dividend recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.82% of the earnings are spent on dividend by AIG. This is a low number and sustainable payout ratio.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.82%
EPS Next 2Y19.8%
EPS Next 3Y17.55%
81.6
-0.61 (-0.74%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.56%
Inst Owner Change-6.31%
Ins Owners0.25%
Ins Owner Change-8.29%
Market Cap45.21B
Analysts74.78
Price Target89.47 (9.64%)
Short Float %1.68%
Short Ratio2.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.43%
Min EPS beat(2)12.13%
Max EPS beat(2)14.73%
EPS beat(4)4
Avg EPS beat(4)10.51%
Min EPS beat(4)4.69%
Max EPS beat(4)14.73%
EPS beat(8)7
Avg EPS beat(8)6.42%
EPS beat(12)11
Avg EPS beat(12)8.45%
EPS beat(16)15
Avg EPS beat(16)9.89%
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)2.88%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)3.5%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)6
Avg Revenue beat(8)0.1%
Revenue beat(12)8
Avg Revenue beat(12)-12.87%
Revenue beat(16)12
Avg Revenue beat(16)-4.78%
PT rev (1m)-2.48%
PT rev (3m)-1.09%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)1.28%
EPS NY rev (3m)0.84%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.81 | ||
| Fwd PE | 10.41 | ||
| P/S | 1.63 | ||
| P/FCF | 13.83 | ||
| P/OCF | 13.83 | ||
| P/B | 1.09 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 6.46 |
EPS(TTM)5.51
EY6.75%
EPS(NY)7.84
Fwd EY9.6%
FCF(TTM)5.9
FCFY7.23%
OCF(TTM)5.9
OCFY7.23%
SpS50.18
BVpS74.91
TBVpS68.68
PEG (NY)0.82
PEG (5Y)4.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.71% | ||
| ROCE | 2.77% | ||
| ROIC | 1.94% | ||
| ROICexc | 1.96% | ||
| ROICexgc | 2.84% | ||
| OM | 16.38% | ||
| PM (TTM) | 11.51% | ||
| GM | N/A | ||
| FCFM | 11.76% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
ROICexc(3y)1.45%
ROICexc(5y)1.22%
ROICexgc(3y)2.12%
ROICexgc(5y)1.8%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexcg growth 3Y3.84%
ROICexcg growth 5Y12.95%
ROICexc growth 3Y5.2%
ROICexc growth 5Y12.23%
OM growth 3Y-15.59%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 40.12% | ||
| Profit Quality | 102.19% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.58%
ROIC/WACC0.26
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.95%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%56.03%
EPS Next Y17.97%
EPS Next 2Y19.8%
EPS Next 3Y17.55%
EPS Next 5Y10.98%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%8.09%
Revenue Next Year4.51%
Revenue Next 2Y3.65%
Revenue Next 3Y3.9%
Revenue Next 5Y4.77%
EBIT growth 1Y25.19%
EBIT growth 3Y-32.58%
EBIT growth 5Y-11.79%
EBIT Next Year134.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-25.87%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-25.87%
OCF growth 3Y-19.28%
OCF growth 5YN/A