AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - NYSE:AIG - US0268747849 - Common Stock
77.75 USD
-0.6 (-0.77%)
77.75 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AIG. AIG was compared to 146 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
In the past year AIG was profitable.
In the past year AIG had a positive cash flow from operations.
In multiple years AIG reported negative net income over the last 5 years.
AIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AIG has a Return On Assets of 1.99%. This is comparable to the rest of the industry: AIG outperforms 47.95% of its industry peers.
AIG has a Return On Equity of 7.93%. This is in the lower half of the industry: AIG underperforms 66.44% of its industry peers.
AIG has a Return On Invested Capital (1.98%) which is in line with its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is below the industry average of 4.51%.
The 3 year average ROIC (1.44%) for AIG is below the current ROIC(1.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROIC | 1.98% |
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
AIG's Profit Margin of 11.89% is fine compared to the rest of the industry. AIG outperforms 68.49% of its industry peers.
The Operating Margin of AIG (16.78%) is better than 71.92% 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 | 16.78% | ||
| PM (TTM) | 11.89% | ||
| 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.
Compared to 1 year ago, AIG has less shares outstanding
Compared to 5 years ago, AIG has less shares outstanding
Compared to 1 year ago, AIG has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AIG is 3.20, which is a good value as it means it would take AIG, 3.20 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.20, AIG perfoms like the industry average, outperforming 49.32% of the companies in the same industry.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
The Debt to Equity ratio of AIG (0.22) is better than 67.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.44%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.91% over the past year.
AIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.49% yearly.
AIG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
EPS 1Y (TTM)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
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 Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
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.
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
With a Price/Earnings ratio of 12.00, the valuation of AIG can be described as very reasonable.
AIG's Price/Earnings ratio is in line with the industry average.
AIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.91.
Based on the Price/Forward Earnings ratio of 9.90, the valuation of AIG can be described as reasonable.
AIG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.57, AIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 9.9 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIG is cheaper than 72.60% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.91 | ||
| EV/EBITDA | 6.25 |
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 AIG's earnings are expected to grow with 17.39% in the coming years.
PEG (NY)0.58
PEG (5Y)3.44
EPS Next 2Y19.91%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.31%.
Compared to an average industry Dividend Yield of 3.46, AIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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
AIG pays out 30.01% of its income as dividend. This is a sustainable payout ratio.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.01%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
77.75
-0.6 (-0.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change0.54%
Ins Owners0.25%
Ins Owner Change-1.38%
Market Cap43.07B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72.5
Price Target90.45 (16.33%)
Short Float %2.25%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.69%
Min EPS beat(2)12.13%
Max EPS beat(2)27.25%
EPS beat(4)4
Avg EPS beat(4)14.7%
Min EPS beat(4)4.69%
Max EPS beat(4)27.25%
EPS beat(8)7
Avg EPS beat(8)9.03%
EPS beat(12)11
Avg EPS beat(12)8.83%
EPS beat(16)15
Avg EPS beat(16)11.04%
Revenue beat(2)1
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-7.7%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-7.7%
Max Revenue beat(4)7.63%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)7
Avg Revenue beat(12)-15.59%
Revenue beat(16)11
Avg Revenue beat(16)-5.88%
PT rev (1m)1.09%
PT rev (3m)-1.41%
EPS NQ rev (1m)8.41%
EPS NQ rev (3m)8.34%
EPS NY rev (1m)2.18%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12 | ||
| Fwd PE | 9.9 | ||
| P/S | 1.57 | ||
| P/FCF | 14.91 | ||
| P/OCF | 14.91 | ||
| P/B | 1.05 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.25 |
EPS(TTM)6.48
EY8.33%
EPS(NY)7.85
Fwd EY10.1%
FCF(TTM)5.21
FCFY6.7%
OCF(TTM)5.21
OCFY6.7%
SpS49.46
BVpS74.16
TBVpS67.95
PEG (NY)0.58
PEG (5Y)3.44
Graham Number103.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROCE | 2.84% | ||
| ROIC | 1.98% | ||
| ROICexc | 2% | ||
| ROICexgc | 2.91% | ||
| OM | 16.78% | ||
| PM (TTM) | 11.89% | ||
| GM | N/A | ||
| FCFM | 10.54% |
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%
ROICexgc growth 3Y3.84%
ROICexgc 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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 8.43 | ||
| Cash Conversion | 35.36% | ||
| Profit Quality | 88.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.44%
ROIC/WACC0.27
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)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
EPS Next Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
Revenue Next 5Y4.77%
EBIT growth 1Y41.53%
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-33.35%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-33.35%
OCF growth 3Y-19.28%
OCF growth 5YN/A
AMERICAN INTERNATIONAL GROUP / AIG FAQ
What is the fundamental rating for AIG stock?
ChartMill assigns a fundamental rating of 4 / 10 to AIG.
What is the valuation status for AIG stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN INTERNATIONAL GROUP?
AMERICAN INTERNATIONAL GROUP (AIG) has a profitability rating of 4 / 10.
What is the valuation of AMERICAN INTERNATIONAL GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN INTERNATIONAL GROUP (AIG) is 12 and the Price/Book (PB) ratio is 1.05.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.