AMERICAN INTERNATIONAL GROUP (AIG) Fundamental Analysis & Valuation

NYSE:AIG • US0268747849

Current stock price

78.77 USD
+3.97 (+5.31%)
At close:
78.77 USD
0 (0%)
After Hours:

This AIG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. AIG Profitability Analysis

1.1 Basic Checks

  • AIG had positive earnings in the past year.
  • In the past year AIG had a positive cash flow from operations.
  • AIG had positive earnings in 4 of the past 5 years.
  • In the past 5 years AIG always reported a positive cash flow from operatings.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B 15B

1.2 Ratios

  • The Return On Assets of AIG (1.92%) is comparable to the rest of the industry.
  • The Return On Equity of AIG (7.53%) is worse than 65.31% of its industry peers.
  • AIG's Return On Invested Capital of 1.96% is in line compared to the rest of the industry. AIG outperforms 46.26% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for AIG is significantly below the industry average of 9.60%.
  • The last Return On Invested Capital (1.96%) for AIG is above the 3 year average (1.44%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 1.92%
ROE 7.53%
ROIC 1.96%
ROA(3y)0.57%
ROA(5y)1.08%
ROE(3y)4.05%
ROE(5y)10.54%
ROIC(3y)1.44%
ROIC(5y)1.63%
AIG Yearly ROA, ROE, ROICAIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • Looking at the Profit Margin, with a value of 11.56%, AIG is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
  • AIG's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 15.65%, AIG is doing good in the industry, outperforming 64.63% of the companies in the same industry.
  • AIG's Operating Margin has improved in the last couple of years.
Industry RankSector Rank
OM 15.65%
PM (TTM) 11.56%
GM N/A
OM growth 3Y-18.62%
OM growth 5Y20.43%
PM growth 3Y-14.85%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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3

2. AIG Health Analysis

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
  • Compared to 5 years ago, AIG has less shares outstanding
  • Compared to 1 year ago, AIG has a worse debt to assets ratio.
AIG Yearly Shares OutstandingAIG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
AIG Yearly Total Debt VS Total AssetsAIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • AIG has a debt to FCF ratio of 2.77. This is a good value and a sign of high solvency as AIG would need 2.77 years to pay back of all of its debts.
  • AIG has a Debt to FCF ratio (2.77) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
  • AIG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.77
Altman-Z N/A
ROIC/WACC0.24
WACC8.03%
AIG Yearly LT Debt VS Equity VS FCFAIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

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 2025 1B 2B 3B 4B

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4

3. AIG Growth Analysis

3.1 Past

  • AIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 66.26%, which is quite impressive.
  • Measured over the past years, AIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 23.16% on average per year.
  • AIG shows a small growth in Revenue. In the last year, the Revenue has grown by 0.41%.
  • AIG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.35% yearly.
EPS 1Y (TTM)66.26%
EPS 3Y16.55%
EPS 5Y23.16%
EPS Q2Q%80.34%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y-21.07%
Revenue growth 5Y-9.35%
Sales Q2Q%2.76%

3.2 Future

  • AIG is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.43% yearly.
  • The Revenue is expected to grow by 3.23% on average over the next years.
EPS Next Y10.99%
EPS Next 2Y11.77%
EPS Next 3Y9.29%
EPS Next 5Y5.43%
Revenue Next Year8%
Revenue Next 2Y6.62%
Revenue Next 3Y4.94%
Revenue Next 5Y3.23%

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 decreasing.
  • 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
AIG Yearly EPS VS EstimatesAIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. AIG Valuation Analysis

4.1 Price/Earnings Ratio

  • AIG is valuated reasonably with a Price/Earnings ratio of 9.75.
  • Based on the Price/Earnings ratio, AIG is valued a bit cheaper than the industry average as 61.22% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of AIG to the average of the S&P500 Index (26.77), we can say AIG is valued rather cheaply.
  • A Price/Forward Earnings ratio of 8.83 indicates a reasonable valuation of AIG.
  • Based on the Price/Forward Earnings ratio, AIG is valued a bit cheaper than 68.03% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. AIG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.75
Fwd PE 8.83
AIG Price Earnings VS Forward Price EarningsAIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • AIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIG is cheaper than 70.07% of the companies in the same industry.
  • AIG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 12.71
EV/EBITDA 6.27
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.89
PEG (5Y)0.42
EPS Next 2Y11.77%
EPS Next 3Y9.29%

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5

5. AIG Dividend Analysis

5.1 Amount

  • AIG has a Yearly Dividend Yield of 2.44%.
  • Compared to an average industry Dividend Yield of 2.37, AIG pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, AIG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.44%

5.2 History

  • The dividend of AIG has a limited annual growth rate of 5.46%.
  • AIG has been paying a dividend for at least 10 years, so it has a reliable track record.
  • AIG has decreased its dividend in the last 3 years.
Dividend Growth(5Y)5.46%
Div Incr Years2
Div Non Decr Years2
AIG Yearly Dividends per shareAIG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • AIG pays out 31.52% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of AIG is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.52%
EPS Next 2Y11.77%
EPS Next 3Y9.29%
AIG Yearly Income VS Free CF VS DividendAIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B
AIG Dividend Payout.AIG Dividend Payout, showing the Payout Ratio.AIG Dividend Payout.PayoutRetained Earnings

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AIG Fundamentals: All Metrics, Ratios and Statistics

AMERICAN INTERNATIONAL GROUP

NYSE:AIG (5/1/2026, 4:48:22 PM)

After market: 78.77 0 (0%)

78.77

+3.97 (+5.31%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Industry Strength35.4
Industry Growth90.06
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners99.69%
Inst Owner Change0.01%
Ins Owners0.56%
Ins Owner Change13.76%
Market Cap42.13B
Revenue(TTM)26.77B
Net Income(TTM)3.10B
Analysts71.54
Price Target88.32 (12.12%)
Short Float %1.39%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 2.44%
Yearly Dividend1.71
Dividend Growth(5Y)5.46%
DP31.52%
Div Incr Years2
Div Non Decr Years2
Ex-Date03-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.7%
Min EPS beat(2)2.14%
Max EPS beat(2)27.25%
EPS beat(4)4
Avg EPS beat(4)14.06%
Min EPS beat(4)2.14%
Max EPS beat(4)27.25%
EPS beat(8)7
Avg EPS beat(8)8.28%
EPS beat(12)11
Avg EPS beat(12)8.65%
EPS beat(16)15
Avg EPS beat(16)9.2%
Revenue beat(2)0
Avg Revenue beat(2)-6.95%
Min Revenue beat(2)-7.7%
Max Revenue beat(2)-6.2%
Revenue beat(4)2
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-7.7%
Max Revenue beat(4)3.53%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)10
Avg Revenue beat(16)-7.48%
PT rev (1m)-0.16%
PT rev (3m)-0.99%
EPS NQ rev (1m)-1.29%
EPS NQ rev (3m)-1.86%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.09%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)1.28%
Valuation
Industry RankSector Rank
PE 9.75
Fwd PE 8.83
P/S 1.57
P/FCF 12.71
P/OCF 12.71
P/B 1.02
P/tB 1.12
EV/EBITDA 6.27
EPS(TTM)8.08
EY10.26%
EPS(NY)8.92
Fwd EY11.32%
FCF(TTM)6.2
FCFY7.87%
OCF(TTM)6.2
OCFY7.87%
SpS50.06
BVpS76.91
TBVpS70.49
PEG (NY)0.89
PEG (5Y)0.42
Graham Number118.25 (50.12%)
Profitability
Industry RankSector Rank
ROA 1.92%
ROE 7.53%
ROCE 2.62%
ROIC 1.96%
ROICexc 1.98%
ROICexgc 2.87%
OM 15.65%
PM (TTM) 11.56%
GM N/A
FCFM 12.38%
ROA(3y)0.57%
ROA(5y)1.08%
ROE(3y)4.05%
ROE(5y)10.54%
ROIC(3y)1.44%
ROIC(5y)1.63%
ROICexc(3y)1.45%
ROICexc(5y)1.63%
ROICexgc(3y)2.11%
ROICexgc(5y)2.4%
ROCE(3y)1.93%
ROCE(5y)2.18%
ROICexgc growth 3Y-5.15%
ROICexgc growth 5Y41.1%
ROICexc growth 3Y-4.42%
ROICexc growth 5Y41.72%
OM growth 3Y-18.62%
OM growth 5Y20.43%
PM growth 3Y-14.85%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.77
Debt/EBITDA 1.2
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 10.77
Cash Conversion 43.35%
Profit Quality 107.04%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC8.03%
ROIC/WACC0.24
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)66.26%
EPS 3Y16.55%
EPS 5Y23.16%
EPS Q2Q%80.34%
EPS Next Y10.99%
EPS Next 2Y11.77%
EPS Next 3Y9.29%
EPS Next 5Y5.43%
Revenue 1Y (TTM)0.41%
Revenue growth 3Y-21.07%
Revenue growth 5Y-9.35%
Sales Q2Q%2.76%
Revenue Next Year8%
Revenue Next 2Y6.62%
Revenue Next 3Y4.94%
Revenue Next 5Y3.23%
EBIT growth 1Y12.31%
EBIT growth 3Y-35.77%
EBIT growth 5Y9.17%
EBIT Next Year118.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.25%
FCF growth 3Y-7.1%
FCF growth 5Y26.13%
OCF growth 1Y1.25%
OCF growth 3Y-7.1%
OCF growth 5Y26.13%

AMERICAN INTERNATIONAL GROUP / AIG Fundamental Analysis FAQ

What is the fundamental rating for AIG stock?

ChartMill assigns a fundamental rating of 4 / 10 to AIG.


Can you provide the valuation status for AMERICAN INTERNATIONAL GROUP?

ChartMill assigns a valuation rating of 6 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.


What is the profitability of AIG stock?

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 9.75 and the Price/Book (PB) ratio is 1.02.


How sustainable is the dividend of AMERICAN INTERNATIONAL GROUP (AIG) stock?

The dividend rating of AMERICAN INTERNATIONAL GROUP (AIG) is 5 / 10 and the dividend payout ratio is 31.52%.