AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIG - US0268747849 - Common Stock
75.24 USD
-2.66 (-3.41%)
Overall AIG gets a fundamental rating of 4 out of 10. We evaluated AIG against 148 industry peers in the Insurance industry. AIG has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIG has a decent growth rate and is not valued too expensively.
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.
In the past 5 years AIG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.99%, AIG is in line with its industry, outperforming 50.68% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.93%, AIG is doing worse than 67.57% of the companies in the same industry.
AIG's Return On Invested Capital of 1.98% is in line compared to the rest of the industry. AIG outperforms 47.30% 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 14.93%.
The last Return On Invested Capital (1.98%) for AIG is above the 3 year average (1.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROIC | 1.98% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
1.3 Margins
With a decent Profit Margin value of 11.89%, AIG is doing good in the industry, outperforming 65.54% of the companies in the same industry.
AIG has a better Operating Margin (16.78%) than 66.22% of its industry peers.
In the last couple of years the Operating Margin of AIG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.78% | ||
| PM (TTM) | 11.89% | ||
| 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.
AIG has less shares outstanding than it did 5 years ago.
AIG has a worse debt/assets ratio than last year.
2.2 Solvency
AIG has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as AIG would need 3.20 years to pay back of all of its debts.
AIG has a Debt to FCF ratio (3.20) 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.
The Debt to Equity ratio of AIG (0.22) is better than 66.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.47%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.91% over the past year.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
The Revenue has been growing slightly by 3.02% in the past year.
Measured over the past years, AIG shows a very negative growth in Revenue. The Revenue has been decreasing by -11.79% on average per year.
EPS 1Y (TTM)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
3.2 Future
AIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.98% yearly.
AIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.77% yearly.
EPS Next Y30.02%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
EPS Next 5Y10.98%
Revenue Next Year3.25%
Revenue Next 2Y4.97%
Revenue Next 3Y5.66%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.61, which indicates a very decent valuation of AIG.
The rest of the industry has a similar Price/Earnings ratio as AIG.
AIG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.00.
AIG is valuated reasonably with a Price/Forward Earnings ratio of 9.43.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
When comparing the Price/Forward Earnings ratio of AIG to the average of the S&P500 Index (23.70), we can say AIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIG indicates a somewhat cheap valuation: AIG is cheaper than 73.65% of the companies listed in the same industry.
AIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.06 | ||
| EV/EBITDA | 6.08 |
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.
AIG's earnings are expected to grow with 17.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.39
PEG (5Y)3.33
EPS Next 2Y20.86%
EPS Next 3Y17.66%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.10%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is comparable with the industry average which is at 2.48.
Compared to an average S&P500 Dividend Yield of 1.94, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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.
The dividend of AIG decreased recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AIG pays out 30.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.01%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
NYSE:AIG (1/9/2026, 3:07:09 PM)
75.24
-2.66 (-3.41%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners101.07%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change-1.2%
Market Cap40.60B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72
Price Target89.41 (18.83%)
Short Float %2.64%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.01%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.69%
Min EPS beat(2)12.13%
Max EPS beat(2)27.25%
EPS beat(4)4
Avg EPS beat(4)14.7%
Min EPS beat(4)4.69%
Max EPS beat(4)27.25%
EPS beat(8)7
Avg EPS beat(8)9.03%
EPS beat(12)11
Avg EPS beat(12)8.83%
EPS beat(16)15
Avg EPS beat(16)11.04%
Revenue beat(2)1
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-7.7%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-7.7%
Max Revenue beat(4)7.63%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)7
Avg Revenue beat(12)-15.59%
Revenue beat(16)11
Avg Revenue beat(16)-5.88%
PT rev (1m)-0.71%
PT rev (3m)-0.07%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)0.4%
EPS NY rev (3m)10.19%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.61 | ||
| Fwd PE | 9.43 | ||
| P/S | 1.48 | ||
| P/FCF | 14.06 | ||
| P/OCF | 14.06 | ||
| P/B | 0.99 | ||
| P/tB | 1.08 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)6.48
EY8.61%
EPS(NY)7.98
Fwd EY10.6%
FCF(TTM)5.35
FCFY7.11%
OCF(TTM)5.35
OCFY7.11%
SpS50.78
BVpS76.14
TBVpS69.77
PEG (NY)0.39
PEG (5Y)3.33
Graham Number105.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROCE | 2.84% | ||
| ROIC | 1.98% | ||
| ROICexc | 2% | ||
| ROICexgc | 2.91% | ||
| OM | 16.78% | ||
| PM (TTM) | 11.89% | ||
| GM | N/A | ||
| FCFM | 10.54% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
ROICexc(3y)1.45%
ROICexc(5y)1.22%
ROICexgc(3y)2.12%
ROICexgc(5y)1.8%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexgc growth 3Y3.84%
ROICexgc growth 5Y12.95%
ROICexc growth 3Y5.2%
ROICexc growth 5Y12.23%
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 8.43 | ||
| Cash Conversion | 35.36% | ||
| Profit Quality | 88.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.47%
ROIC/WACC0.27
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)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
EPS Next Y30.02%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
EPS Next 5Y10.98%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
Revenue Next Year3.25%
Revenue Next 2Y4.97%
Revenue Next 3Y5.66%
Revenue Next 5Y4.77%
EBIT growth 1Y41.53%
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-33.35%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-33.35%
OCF growth 3Y-19.28%
OCF growth 5YN/A
AMERICAN INTERNATIONAL GROUP / AIG 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 5 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.
How profitable is AMERICAN INTERNATIONAL GROUP (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 11.61 and the Price/Book (PB) ratio is 0.99.
Can you provide the expected EPS growth for AIG stock?
The Earnings per Share (EPS) of AMERICAN INTERNATIONAL GROUP (AIG) is expected to grow by 30.02% in the next year.