AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIG - US0268747849 - Common Stock
75.01 USD
-0.1 (-0.13%)
75.1 USD
+0.09 (+0.12%)
We assign a fundamental rating of 4 out of 10 to AIG. AIG was compared to 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
AIG had positive earnings in the past year.
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.
In the past 5 years AIG always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AIG (1.99%) is comparable to the rest of the industry.
AIG has a worse Return On Equity (7.93%) than 69.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.98%, AIG is in line with its industry, outperforming 47.62% of the companies in the same industry.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is below the industry average of 4.52%.
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
AIG has a Profit Margin of 11.89%. This is in the better half of the industry: AIG outperforms 64.63% of its industry peers.
AIG has a better Operating Margin (16.78%) than 68.03% of its industry peers.
AIG's Operating Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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.
Looking at the Debt to FCF ratio, with a value of 3.20, AIG is in line with its industry, outperforming 46.94% 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 65.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.35%
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.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
Looking at the last year, AIG shows a small growth in Revenue. The Revenue has grown by 3.02% in the last year.
Measured over the past years, AIG shows a very negative growth in Revenue. The Revenue has been decreasing by -11.79% on average per year.
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 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.
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 11.58, the valuation of AIG can be described as very reasonable.
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 (25.98), we can say AIG is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.55, the valuation of AIG can be described as very reasonable.
AIG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 35.79. AIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 9.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than 72.11% 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 | 14.39 | ||
| EV/EBITDA | 6.03 |
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 17.39% in the coming years.
PEG (NY)0.56
PEG (5Y)3.32
EPS Next 2Y19.91%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is comparable with the industry average which is at 3.46.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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.
The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.01%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
75.01
-0.1 (-0.13%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change3.17%
Ins Owners0.25%
Ins Owner Change-1.23%
Market Cap41.56B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72.5
Price Target90.06 (20.06%)
Short Float %2.54%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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)0.65%
PT rev (3m)0.65%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)2.2%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.58 | ||
| Fwd PE | 9.55 | ||
| P/S | 1.52 | ||
| P/FCF | 14.39 | ||
| P/OCF | 14.39 | ||
| P/B | 1.01 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 6.03 |
EPS(TTM)6.48
EY8.64%
EPS(NY)7.85
Fwd EY10.47%
FCF(TTM)5.21
FCFY6.95%
OCF(TTM)5.21
OCFY6.95%
SpS49.46
BVpS74.16
TBVpS67.95
PEG (NY)0.56
PEG (5Y)3.32
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
WACC7.35%
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 11.58 and the Price/Book (PB) ratio is 1.01.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.