AMERICAN INTERNATIONAL GROUP (AIG)
US0268747849 - Common Stock
AIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 141 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AIG was profitable.
AIG had a positive operating cash flow in the past year.
Of the past 5 years AIG 4 years were profitable.
Of the past 5 years AIG 4 years had a positive operating cash flow.
1.2 Ratios
AIG has a Return On Assets of 0.67%. This is comparable to the rest of the industry: AIG outperforms 41.01% of its industry peers.
AIG has a Return On Equity (7.97%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 7.97% | ||
| ROIC | N/A |
ROA(3y)1.4%
ROA(5y)0.76%
ROE(3y)15.72%
ROE(5y)8.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AIG's Profit Margin of 7.72% is in line compared to the rest of the industry. AIG outperforms 57.55% of its industry peers.
With a Operating Margin value of 9.22%, AIG perfoms like the industry average, outperforming 52.52% of the companies in the same industry.
AIG's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.22% | ||
| PM (TTM) | 7.72% | ||
| GM | N/A |
OM growth 3Y13.07%
OM growth 5Y18.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AIG does not have a ROIC to compare to the WACC, probably because it is not profitable.
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.
The debt/assets ratio for AIG has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AIG is 3.59, which is a good value as it means it would take AIG, 3.59 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.59, AIG is not doing good in the industry: 60.43% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.49 indicates that AIG is not too dependend on debt financing.
AIG's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. AIG is outperformed by 62.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.32%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.33%, which is quite impressive.
AIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.35% yearly.
The Revenue for AIG has decreased by -13.64% in the past year. This is quite bad
The Revenue has been decreasing by -0.42% on average over the past years.
EPS 1Y (TTM)50.33%
EPS 3Y39.08%
EPS 5Y43.35%
EPS growth Q2Q31.62%
Revenue 1Y (TTM)-13.64%
Revenue growth 3Y2.18%
Revenue growth 5Y-0.42%
Revenue growth Q2Q-15.19%
3.2 Future
AIG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.92% yearly.
Based on estimates for the next years, AIG will show a decrease in Revenue. The Revenue will decrease by -3.39% on average per year.
EPS Next Y4.96%
EPS Next 2Y9.57%
EPS Next 3Y12.73%
EPS Next 5Y-0.92%
Revenue Next Year-0.98%
Revenue Next 2Y-26.78%
Revenue Next 3Y-17.17%
Revenue Next 5Y-3.39%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.06, the valuation of AIG can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as AIG.
Compared to an average S&P500 Price/Earnings ratio of 25.25, AIG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.54, the valuation of AIG can be described as reasonable.
AIG's Price/Forward Earnings is on the same level as the industry average.
AIG is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.67, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
69.78% of the companies in the same industry are more expensive than AIG, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.09 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as AIG's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)2.23
PEG (5Y)0.26
EPS Next 2Y9.57%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.36, AIG has a dividend in line with its industry peers.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
5.2 History
The dividend of AIG has a limited annual growth rate of 2.27%.
AIG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.27%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
28.39% of the earnings are spent on dividend by AIG. This is a low number and sustainable payout ratio.
DP28.39%
EPS Next 2Y9.57%
EPS Next 3Y12.73%
AMERICAN INTERNATIONAL GROUP
NYSE:AIG (4/24/2024, 7:04:00 PM)
After market: 74.97 0 (0%)74.97
+0.04 (+0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap50.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.06 | ||
| Fwd PE | 10.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.23
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 7.97% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.22% | ||
| PM (TTM) | 7.72% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.09
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)50.33%
EPS 3Y39.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.96%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-13.64%
Revenue growth 3Y2.18%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y