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AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis

NYSE:AIG - New York Stock Exchange, Inc. - US0268747849 - Common Stock - Currency: USD

85.8  +1.4 (+1.66%)

After market: 85.8 0 (0%)

Fundamental Rating

3

Overall AIG gets a fundamental rating of 3 out of 10. We evaluated AIG against 143 industry peers in the Insurance industry. Both the profitability and financial health of AIG have multiple concerns. AIG has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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.
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.
AIG Yearly Net Income VS EBIT VS OCF VS FCFAIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

AIG's Return On Assets of -1.19% is on the low side compared to the rest of the industry. AIG is outperformed by 86.71% of its industry peers.
AIG has a Return On Equity of -4.64%. This is amonst the worse of the industry: AIG underperforms 87.41% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.57%, AIG is in line with its industry, outperforming 45.45% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AIG is below the industry average of 4.07%.
The last Return On Invested Capital (1.57%) for AIG is above the 3 year average (1.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -1.19%
ROE -4.64%
ROIC 1.57%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
AIG Yearly ROA, ROE, ROICAIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

Looking at the Operating Margin, with a value of 13.22%, AIG is in the better half of the industry, outperforming 62.24% 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.
AIG does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 13.22%
PM (TTM) N/A
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
AIG Yearly Profit, Operating, Gross MarginsAIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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2

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.
Compared to 1 year ago, AIG has less shares outstanding
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.
AIG Yearly Shares OutstandingAIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
AIG Yearly Total Debt VS Total AssetsAIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

AIG has a debt to FCF ratio of 3.24. This is a good value and a sign of high solvency as AIG would need 3.24 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.24, AIG is doing worse than 62.24% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that AIG is not too dependend on debt financing.
The Debt to Equity ratio of AIG (0.21) is better than 72.03% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.24
Altman-Z N/A
ROIC/WACC0.2
WACC7.79%
AIG Yearly LT Debt VS Equity VS FCFAIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AIG Yearly Current Assets VS Current LiabilitesAIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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3

3. Growth

3.1 Past

AIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.77%.
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 decrease in Revenue. In the last year, the revenue decreased by -2.58%.
The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
EPS 1Y (TTM)-29.77%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-33.9%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-45.57%

3.2 Future

The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y16.99%
EPS Next 2Y20.54%
EPS Next 3Y18.42%
EPS Next 5Y11%
Revenue Next Year5.15%
Revenue Next 2Y4.14%
Revenue Next 3Y5.18%
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.
AIG Yearly Revenue VS EstimatesAIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
AIG Yearly EPS VS EstimatesAIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 17.65, AIG is valued on the expensive side.
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 (26.60), we can say AIG is valued slightly cheaper.
AIG is valuated reasonably with a Price/Forward Earnings ratio of 10.81.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, AIG is valued rather cheaply.
Industry RankSector Rank
PE 17.65
Fwd PE 10.81
AIG Price Earnings VS Forward Price EarningsAIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

63.64% of the companies in the same industry are more expensive than AIG, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AIG is valued a bit more expensive than 66.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.33
EV/EBITDA 7.83
AIG Per share dataAIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

AIG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AIG's earnings are expected to grow with 18.42% in the coming years.
PEG (NY)1.04
PEG (5Y)5.06
EPS Next 2Y20.54%
EPS Next 3Y18.42%

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4

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.11%, AIG has a reasonable but not impressive dividend return.
AIG's Dividend Yield is a higher than the industry average which is at 3.10.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.39.
Industry RankSector Rank
Dividend Yield 2.11%

5.2 History

The dividend of AIG has a limited annual growth rate of 3.87%.
AIG has paid a dividend for at least 10 years, which is a reliable track record.
AIG has decreased its dividend recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
AIG Yearly Dividends per shareAIG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

The earnings of AIG are negative and hence is the payout ratio. AIG will probably not be able to sustain this dividend level.
The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-51.66%
EPS Next 2Y20.54%
EPS Next 3Y18.42%
AIG Yearly Income VS Free CF VS DividendAIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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AMERICAN INTERNATIONAL GROUP

NYSE:AIG (6/12/2025, 8:04:00 PM)

After market: 85.8 0 (0%)

85.8

+1.4 (+1.66%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners95.43%
Inst Owner Change-0.86%
Ins Owners0.21%
Ins Owner Change6.62%
Market Cap49.45B
Analysts74.78
Price Target91.75 (6.93%)
Short Float %1.66%
Short Ratio2.02
Dividend
Industry RankSector Rank
Dividend Yield 2.11%
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP-51.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-13 2025-06-13 (0.45)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.71%
Min EPS beat(2)4.69%
Max EPS beat(2)14.73%
EPS beat(4)3
Avg EPS beat(4)4.59%
Min EPS beat(4)-11.57%
Max EPS beat(4)14.73%
EPS beat(8)7
Avg EPS beat(8)6.06%
EPS beat(12)11
Avg EPS beat(12)8.06%
EPS beat(16)15
Avg EPS beat(16)10.7%
Revenue beat(2)2
Avg Revenue beat(2)5.26%
Min Revenue beat(2)2.88%
Max Revenue beat(2)7.63%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)6
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)-11.48%
Revenue beat(16)11
Avg Revenue beat(16)-5.38%
PT rev (1m)1.43%
PT rev (3m)7.3%
EPS NQ rev (1m)-1.24%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)1.81%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)4.07%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)3.28%
Valuation
Industry RankSector Rank
PE 17.65
Fwd PE 10.81
P/S 1.81
P/FCF 18.33
P/OCF 18.33
P/B 1.19
P/tB 1.3
EV/EBITDA 7.83
EPS(TTM)4.86
EY5.66%
EPS(NY)7.93
Fwd EY9.25%
FCF(TTM)4.68
FCFY5.46%
OCF(TTM)4.68
OCFY5.46%
SpS47.32
BVpS71.89
TBVpS65.99
PEG (NY)1.04
PEG (5Y)5.06
Profitability
Industry RankSector Rank
ROA -1.19%
ROE -4.64%
ROCE 2.25%
ROIC 1.57%
ROICexc 1.59%
ROICexgc 2.32%
OM 13.22%
PM (TTM) N/A
GM N/A
FCFM 9.89%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
ROICexc(3y)1.44%
ROICexc(5y)1.22%
ROICexgc(3y)2.11%
ROICexgc(5y)1.79%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexcg growth 3Y3.35%
ROICexcg growth 5Y12.63%
ROICexc growth 3Y4.86%
ROICexc growth 5Y12.01%
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-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.24
Debt/EBITDA 1.2
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 4.81
Cash Conversion 37.71%
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC7.79%
ROIC/WACC0.2
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)-29.77%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-33.9%
EPS Next Y16.99%
EPS Next 2Y20.54%
EPS Next 3Y18.42%
EPS Next 5Y11%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-45.57%
Revenue Next Year5.15%
Revenue Next 2Y4.14%
Revenue Next 3Y5.18%
Revenue Next 5Y4.77%
EBIT growth 1Y-10.46%
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-41.25%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-41.25%
OCF growth 3Y-19.28%
OCF growth 5YN/A