AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - NYSE:AIG - US0268747849 - Common Stock
76.93 USD
+0.65 (+0.85%)
76.93 USD
0 (0%)
AIG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 correct valuation and a medium growth rate.
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.
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's Return On Equity of 7.71% is on the low side compared to the rest of the industry. AIG is outperformed by 63.70% of its industry peers.
With a Return On Invested Capital value of 1.94%, AIG perfoms like the industry average, outperforming 45.21% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AIG is below the industry average of 4.53%.
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 69.18% of the companies in the same industry.
Looking at the Operating Margin, with a value of 16.38%, AIG is in the better half of the industry, outperforming 69.86% of the companies in the same industry.
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
AIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AIG has been reduced compared to 1 year ago.
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 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 (2.83) which is in line with its industry peers.
AIG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
AIG has a Debt to Equity ratio of 0.22. This is in the better half of the industry: AIG outperforms 66.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.26
WACC7.43%
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.
Looking at the last year, AIG shows a very negative growth in Revenue. The Revenue has decreased by -42.84% in the last year.
AIG shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.79% yearly.
EPS 1Y (TTM)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
Revenue 1Y (TTM)-42.84%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%4.53%
3.2 Future
The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
Based on estimates for the next years, AIG will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
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
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.
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 11.87 indicates a reasonable valuation of AIG.
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 25.83.
AIG is valuated reasonably with a Price/Forward Earnings ratio of 9.80.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIG is on the same level as its industry peers.
AIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.8 |
4.2 Price Multiples
72.60% of the companies in the same industry are more expensive than AIG, based on the Enterprise Value to EBITDA ratio.
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 | 13.04 | ||
| EV/EBITDA | 6.1 |
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)3.4
EPS Next 2Y19.91%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.36%, AIG has a reasonable but not impressive dividend return.
AIG's Dividend Yield is a higher than the industry average which is at 3.31.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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 30.82% of its income as dividend. This is a sustainable payout ratio.
The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.82%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
76.93
+0.65 (+0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change-0.28%
Ins Owners0.25%
Ins Owner Change-3.01%
Market Cap42.62B
Revenue(TTM)26.66B
Net Income(TTM)3.20B
Analysts72.5
Price Target90.45 (17.57%)
Short Float %2.25%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)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 | 11.87 | ||
| Fwd PE | 9.8 | ||
| P/S | 1.53 | ||
| P/FCF | 13.04 | ||
| P/OCF | 13.04 | ||
| P/B | 1.03 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)6.48
EY8.42%
EPS(NY)7.85
Fwd EY10.2%
FCF(TTM)5.9
FCFY7.67%
OCF(TTM)5.9
OCFY7.67%
SpS50.18
BVpS74.91
TBVpS68.68
PEG (NY)0.58
PEG (5Y)3.4
Graham Number104.51
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%
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-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
WACC7.43%
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)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)-42.84%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%4.53%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
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
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 11.87 and the Price/Book (PB) ratio is 1.03.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.