AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - NYSE:AIG - US0268747849 - Common Stock
77.72 USD
+0.7 (+0.91%)
Overall AIG gets a fundamental rating of 4 out of 10. We evaluated AIG against 145 industry peers in the Insurance industry. There are concerns on the financial health of AIG while its profitability can be described as average. AIG has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AIG had positive earnings in the past year.
AIG had a positive operating cash flow in the past year.
In multiple years AIG reported negative net income over the last 5 years.
In the past 5 years AIG always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 1.93%, AIG perfoms like the industry average, outperforming 48.28% of the companies in the same industry.
AIG has a Return On Equity of 7.71%. This is in the lower half of the industry: AIG underperforms 60.69% of its industry peers.
The Return On Invested Capital of AIG (1.94%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AIG is below the industry average of 4.40%.
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
The Profit Margin of AIG (11.51%) is better than 70.34% of its industry peers.
AIG has a Operating Margin of 16.38%. This is in the better half of the industry: AIG outperforms 70.34% 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.
Compared to 5 years ago, AIG has less shares outstanding
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's Debt to FCF ratio of 2.83 is in line compared to the rest of the industry. AIG outperforms 48.28% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
AIG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 66.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.26
WACC7.38%
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%.
Measured over the past 5 years, AIG shows a small growth in Earnings Per Share. The EPS has been growing by 3.49% on average per year.
AIG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
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 Y17.99%
EPS Next 2Y19.72%
EPS Next 3Y17.37%
EPS Next 5Y10.98%
Revenue Next Year4.54%
Revenue Next 2Y3.57%
Revenue Next 3Y3.9%
Revenue Next 5Y4.77%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.11, which indicates a correct valuation of AIG.
AIG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.29. AIG is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 9.93 indicates a reasonable valuation of AIG.
AIG's Price/Forward Earnings is on the same level as the industry average.
AIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than 72.41% of the companies in the same industry.
AIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.17 | ||
| EV/EBITDA | 6.15 |
4.3 Compensation for Growth
AIG'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 AIG's earnings are expected to grow with 17.37% in the coming years.
PEG (NY)0.78
PEG (5Y)4.04
EPS Next 2Y19.72%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.16%, AIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.54, AIG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
5.2 History
The dividend of AIG has a limited annual growth rate of 3.87%.
AIG has been paying a dividend for at least 10 years, so it has 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 2Y19.72%
EPS Next 3Y17.37%
NYSE:AIG (10/17/2025, 12:37:04 PM)
77.72
+0.7 (+0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change0.08%
Ins Owners0.25%
Ins Owner Change-2.79%
Market Cap43.06B
Analysts72.5
Price Target89.47 (15.12%)
Short Float %1.92%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.16% |
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)0%
PT rev (3m)-2.48%
EPS NQ rev (1m)-0.82%
EPS NQ rev (3m)-0.75%
EPS NY rev (1m)0.02%
EPS NY rev (3m)1.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.2%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.11 | ||
| Fwd PE | 9.93 | ||
| P/S | 1.55 | ||
| P/FCF | 13.17 | ||
| P/OCF | 13.17 | ||
| P/B | 1.04 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 6.15 |
EPS(TTM)5.51
EY7.09%
EPS(NY)7.83
Fwd EY10.07%
FCF(TTM)5.9
FCFY7.59%
OCF(TTM)5.9
OCFY7.59%
SpS50.18
BVpS74.91
TBVpS68.68
PEG (NY)0.78
PEG (5Y)4.04
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
WACC7.38%
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 Y17.99%
EPS Next 2Y19.72%
EPS Next 3Y17.37%
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 Year4.54%
Revenue Next 2Y3.57%
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