AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIG - US0268747849 - Common Stock
76.42 USD
+0.11 (+0.14%)
76.42 USD
0 (0%)
Overall AIG gets a fundamental rating of 4 out of 10. We evaluated AIG against 147 industry peers in the Insurance industry. While AIG is still in line with the averages on profitability rating, there are concerns on its financial health. AIG is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AIG was profitable.
AIG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AIG reported negative net income in multiple years.
In the past 5 years AIG always reported a positive cash flow from operatings.
1.2 Ratios
AIG's Return On Assets of 1.99% is in line compared to the rest of the industry. AIG outperforms 48.30% of its industry peers.
AIG has a worse Return On Equity (7.93%) than 69.39% of its industry peers.
AIG's Return On Invested Capital of 1.98% is in line compared to the rest of the industry. AIG outperforms 46.26% of its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is significantly below the industry average of 14.90%.
The last Return On Invested Capital (1.98%) for AIG is above the 3 year average (1.44%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 11.89%, AIG is doing good in the industry, outperforming 64.63% of the companies in the same industry.
The Operating Margin of AIG (16.78%) is better than 66.67% 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
AIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, AIG has a worse debt to assets ratio.
2.2 Solvency
AIG has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as AIG would need 3.20 years to pay back of all of its debts.
AIG's Debt to FCF ratio of 3.20 is in line compared to the rest of the industry. AIG outperforms 46.94% of 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's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 66.67% 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.
The Revenue has been growing slightly by 3.02% in the past year.
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
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 Y29.5%
EPS Next 2Y20.76%
EPS Next 3Y17.67%
EPS Next 5Y10.98%
Revenue Next Year3.12%
Revenue Next 2Y4.79%
Revenue Next 3Y5.77%
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
The Price/Earnings ratio is 11.79, which indicates a very decent valuation of AIG.
AIG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AIG to the average of the S&P500 Index (26.28), we can say AIG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.60, the valuation of AIG can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
AIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than the industry average as 70.75% of the companies are valued more expensively.
AIG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.28 | ||
| EV/EBITDA | 5.99 |
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.
AIG's earnings are expected to grow with 17.67% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.4
PEG (5Y)3.38
EPS Next 2Y20.76%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, AIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.48, AIG has a dividend in line with its industry peers.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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
30.01% 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.
DP30.01%
EPS Next 2Y20.76%
EPS Next 3Y17.67%
76.42
+0.11 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.14%
Inst Owner Change3.18%
Ins Owners0.2%
Ins Owner Change-1.21%
Market Cap41.23B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72
Price Target89.66 (17.33%)
Short Float %2.35%
Short Ratio3.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
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)-0.87%
PT rev (3m)0.21%
EPS NQ rev (1m)3.42%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)7.41%
EPS NY rev (3m)9.77%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)-1.29%
Revenue NY rev (3m)-1.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.79 | ||
| Fwd PE | 9.6 | ||
| P/S | 1.5 | ||
| P/FCF | 14.28 | ||
| P/OCF | 14.28 | ||
| P/B | 1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)6.48
EY8.48%
EPS(NY)7.96
Fwd EY10.42%
FCF(TTM)5.35
FCFY7%
OCF(TTM)5.35
OCFY7%
SpS50.78
BVpS76.14
TBVpS69.77
PEG (NY)0.4
PEG (5Y)3.38
Graham Number105.36
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 Y29.5%
EPS Next 2Y20.76%
EPS Next 3Y17.67%
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 Year3.12%
Revenue Next 2Y4.79%
Revenue Next 3Y5.77%
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 11.79 and the Price/Book (PB) ratio is 1.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.