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AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis

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

81.62  -0.4 (-0.49%)

After market: 81.62 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
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

Looking at the Return On Assets, with a value of -1.19%, AIG is doing worse than 87.41% of the companies in the same industry.
With a Return On Equity value of -4.64%, AIG is not doing good in the industry: 86.71% of the companies in the same industry are doing better.
AIG has a Return On Invested Capital of 1.57%. This is comparable to the rest of the industry: AIG outperforms 45.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIG is below the industry average of 4.27%.
The 3 year average ROIC (1.43%) for AIG is below the current ROIC(1.57%), indicating increased profibility in the last year.
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

AIG has a better Operating Margin (13.22%) than 60.84% of its industry peers.
In the last couple of years the Operating Margin of AIG has remained more or less at the same level.
The Profit Margin and Gross Margin are not available for AIG so they could not be analyzed.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIG 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.
AIG has a worse debt/assets ratio than last year.
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

The Debt to FCF ratio of AIG is 3.24, which is a good value as it means it would take AIG, 3.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.24, AIG is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
AIG has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, AIG is in the better half of the industry, outperforming 71.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.24
Altman-Z N/A
ROIC/WACC0.2
WACC7.86%
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

The earnings per share for AIG have decreased strongly by -29.77% in the last 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 decreased by -2.58% in the past year.
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

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 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

The Price/Earnings ratio is 16.79, which indicates a correct valuation of AIG.
The rest of the industry has a similar Price/Earnings ratio as AIG.
AIG is valuated rather cheaply when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.29, which indicates a very decent valuation of AIG.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
AIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
Industry RankSector Rank
PE 16.79
Fwd PE 10.29
AIG Price Earnings VS Forward Price EarningsAIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
65.73% of the companies in the same industry are cheaper than AIG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 17.66
EV/EBITDA 7.72
AIG Per share dataAIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The 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 18.42% in the coming years.
PEG (NY)0.99
PEG (5Y)4.82
EPS Next 2Y20.54%
EPS Next 3Y18.42%

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4

5. Dividend

5.1 Amount

AIG has a Yearly Dividend Yield of 2.16%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.18, AIG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, AIG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.16%

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.
The dividend of AIG decreased 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 (5/23/2025, 9:12:32 PM)

After market: 81.62 0 (0%)

81.62

-0.4 (-0.49%)

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-0.84%
Ins Owners0.21%
Ins Owner Change8.29%
Market Cap47.65B
Analysts74.78
Price Target90.45 (10.82%)
Short Float %1.58%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
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)2.88%
PT rev (3m)5.79%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)1.81%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)5.52%
Revenue NY rev (3m)2.23%
Valuation
Industry RankSector Rank
PE 16.79
Fwd PE 10.29
P/S 1.75
P/FCF 17.66
P/OCF 17.66
P/B 1.15
P/tB 1.25
EV/EBITDA 7.72
EPS(TTM)4.86
EY5.95%
EPS(NY)7.93
Fwd EY9.72%
FCF(TTM)4.62
FCFY5.66%
OCF(TTM)4.62
OCFY5.66%
SpS46.72
BVpS70.97
TBVpS65.15
PEG (NY)0.99
PEG (5Y)4.82
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
WACC7.86%
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