AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
NYSE:AIG - New York Stock Exchange, Inc. - US0268747849 - Common Stock - Currency: USD
AIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. AIG may be in some trouble as it scores bad on both profitability and health. AIG is valued correctly, but it does not seem to be growing.
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.
AIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AIG's Return On Assets of -0.88% is on the low side compared to the rest of the industry. AIG is outperformed by 85.31% of its industry peers.
Looking at the Return On Equity, with a value of -3.35%, AIG is doing worse than 84.62% of the companies in the same industry.
AIG has a Return On Invested Capital (1.57%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIG is below the industry average of 4.47%.
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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.88% | ||
| ROE | -3.35% | ||
| 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%
1.3 Margins
AIG has a Operating Margin of 13.44%. This is in the better half of the industry: AIG outperforms 60.84% of its industry peers.
AIG's Operating Margin has been stable in the last couple of years.
The Profit Margin and Gross Margin are not available for AIG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.44% | ||
| 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
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.
Compared to 5 years ago, AIG has less shares outstanding
AIG has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AIG is 2.73, which is a good value as it means it would take AIG, 2.73 years of fcf income to pay off all of its debts.
AIG has a Debt to FCF ratio of 2.73. This is comparable to the rest of the industry: AIG outperforms 42.66% of its industry peers.
AIG has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
AIG has a better Debt to Equity ratio (0.21) than 70.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.21
WACC7.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -42.84%.
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)-29.77%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-33.9%
Revenue 1Y (TTM)-42.84%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-46.92%
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 11.00% on average per year.
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 Y14.9%
EPS Next 2Y20.15%
EPS Next 3Y17.98%
EPS Next 5Y11%
Revenue Next Year-0.66%
Revenue Next 2Y2.16%
Revenue Next 3Y2.7%
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
Based on the Price/Earnings ratio of 17.29, the valuation of AIG can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as AIG.
Compared to an average S&P500 Price/Earnings ratio of 27.75, AIG is valued a bit cheaper.
A Price/Forward Earnings ratio of 10.66 indicates a reasonable valuation of AIG.
AIG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, AIG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 10.66 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIG is cheaper than 62.94% 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 | 14.99 | ||
| EV/EBITDA | 7.6 |
4.3 Compensation for Growth
The 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 17.98% in the coming years.
PEG (NY)1.16
PEG (5Y)4.96
EPS Next 2Y20.15%
EPS Next 3Y17.98%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.23, AIG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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
5.3 Sustainability
AIG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-71.81%
EPS Next 2Y20.15%
EPS Next 3Y17.98%
NYSE:AIG (5/2/2025, 3:39:09 PM)
84.025
+3.19 (+3.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.43%
Inst Owner Change0.19%
Ins Owners0.21%
Ins Owner Change9.29%
Market Cap49.05B
Analysts74.78
Price Target89.98 (7.09%)
Short Float %1.47%
Short Ratio1.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP-71.81%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.6%
Min EPS beat(2)4.69%
Max EPS beat(2)10.5%
EPS beat(4)3
Avg EPS beat(4)2.49%
Min EPS beat(4)-11.57%
Max EPS beat(4)10.5%
EPS beat(8)7
Avg EPS beat(8)5.95%
EPS beat(12)11
Avg EPS beat(12)7.58%
EPS beat(16)15
Avg EPS beat(16)10.26%
Revenue beat(2)1
Avg Revenue beat(2)3.79%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)7.63%
Revenue beat(4)3
Avg Revenue beat(4)3.98%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)8
Avg Revenue beat(12)6.17%
Revenue beat(16)11
Avg Revenue beat(16)7.98%
PT rev (1m)5.24%
PT rev (3m)4.01%
EPS NQ rev (1m)0.66%
EPS NQ rev (3m)-36.14%
EPS NY rev (1m)0.33%
EPS NY rev (3m)-7.2%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-2.08%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-3.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.29 | ||
| Fwd PE | 10.66 | ||
| P/S | 1.84 | ||
| P/FCF | 14.99 | ||
| P/OCF | 14.99 | ||
| P/B | 1.15 | ||
| P/tB | 1.25 | ||
| EV/EBITDA | 7.6 |
EPS(TTM)4.86
EY5.78%
EPS(NY)7.88
Fwd EY9.38%
FCF(TTM)5.61
FCFY6.67%
OCF(TTM)5.61
OCFY6.67%
SpS45.68
BVpS72.84
TBVpS67.06
PEG (NY)1.16
PEG (5Y)4.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.88% | ||
| ROE | -3.35% | ||
| ROCE | 2.25% | ||
| ROIC | 1.57% | ||
| ROICexc | 1.58% | ||
| ROICexgc | 2.28% | ||
| OM | 13.44% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 12.27% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.73 | ||
| Debt/EBITDA | 1.22 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 4.18 | ||
| Cash Conversion | 45.59% | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.58%
ROIC/WACC0.21
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 Y14.9%
EPS Next 2Y20.15%
EPS Next 3Y17.98%
EPS Next 5Y11%
Revenue 1Y (TTM)-42.84%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-46.92%
Revenue Next Year-0.66%
Revenue Next 2Y2.16%
Revenue Next 3Y2.7%
Revenue Next 5Y4.77%
EBIT growth 1Y-1.16%
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-47.57%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-47.57%
OCF growth 3Y-19.28%
OCF growth 5YN/A