AMERICAN INTERNATIONAL GROUP (AINN.DE) Stock Fundamental Analysis
FRA:AINN - Deutsche Boerse Ag - US0268747849 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to AINN. AINN was compared to 38 industry peers in the Insurance industry. While AINN is still in line with the averages on profitability rating, there are concerns on its financial health. AINN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AINN was profitable.
In the past year AINN had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AINN reported negative net income in multiple years.
AINN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -1.19%, AINN is not doing good in the industry: 89.47% of the companies in the same industry are doing better.
AINN has a worse Return On Equity (-4.64%) than 89.47% of its industry peers.
With a decent Return On Invested Capital value of 1.57%, AINN is doing good in the industry, outperforming 71.05% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AINN is in line with the industry average of 2.05%.
The 3 year average ROIC (1.43%) for AINN is below the current ROIC(1.57%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
AINN has a better Operating Margin (13.22%) than 68.42% of its industry peers.
In the last couple of years the Operating Margin of AINN has remained more or less at the same level.
AINN does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AINN is destroying value.
The number of shares outstanding for AINN has been reduced compared to 1 year ago.
The number of shares outstanding for AINN has been reduced compared to 5 years ago.
AINN has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AINN is 3.24, which is a good value as it means it would take AINN, 3.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AINN (3.24) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.21 indicates that AINN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, AINN belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.2
WACC7.78%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for AINN have decreased strongly by -29.77% in the last year.
The Earnings Per Share has been growing slightly by 3.49% on average over the past years.
Looking at the last year, AINN shows a decrease in Revenue. The Revenue has decreased by -2.58% in the last year.
The Revenue for AINN 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, AINN will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.00% on average per year.
The Revenue is expected to grow by 4.77% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 17.43, AINN is valued on the expensive side.
AINN's Price/Earnings ratio is a bit more expensive when compared to the industry. AINN is more expensive than 63.16% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.29. AINN is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 10.69 indicates a reasonable valuation of AINN.
AINN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. AINN is cheaper than 60.53% of the companies in the same industry.
AINN is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 10.69 |
4.2 Price Multiples
81.58% of the companies in the same industry are more expensive than AINN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AINN is valued a bit more expensive than 63.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.11 | ||
| EV/EBITDA | 7.86 |
4.3 Compensation for Growth
AINN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
AINN's earnings are expected to grow with 18.42% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)5
EPS Next 2Y20.54%
EPS Next 3Y18.42%
5. Dividend
5.1 Amount
AINN has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.54, AINN's dividend is way lower than its industry peers. On top of this 86.84% of the companies listed in the same industry pay a better dividend than AINN!
AINN's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
The dividend of AINN has a limited annual growth rate of 3.87%.
Dividend Growth(5Y)3.87%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
The earnings of AINN are negative and hence is the payout ratio. AINN will probably not be able to sustain this dividend level.
The dividend of AINN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-51.66%
EPS Next 2Y20.54%
EPS Next 3Y18.42%
FRA:AINN (6/2/2025, 7:00:00 PM)
74.26
+0.29 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.43%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap42.80B
Analysts74.78
Price Target80.53 (8.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.39
Dividend Growth(5Y)3.87%
DP-51.66%
Div Incr Years2
Div Non Decr Years6
Ex-DateN/A
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)-14.51%
Revenue beat(16)11
Avg Revenue beat(16)-7.66%
PT rev (1m)3.89%
PT rev (3m)-0.09%
EPS NQ rev (1m)-1.55%
EPS NQ rev (3m)-0.85%
EPS NY rev (1m)1.81%
EPS NY rev (3m)2.07%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)0.5%
Revenue NY rev (1m)5.85%
Revenue NY rev (3m)3.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.43 | ||
| Fwd PE | 10.69 | ||
| P/S | 1.79 | ||
| P/FCF | 18.11 | ||
| P/OCF | 18.11 | ||
| P/B | 1.18 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 7.86 |
EPS(TTM)4.26
EY5.74%
EPS(NY)6.95
Fwd EY9.36%
FCF(TTM)4.1
FCFY5.52%
OCF(TTM)4.1
OCFY5.52%
SpS41.44
BVpS62.95
TBVpS57.79
PEG (NY)1.03
PEG (5Y)5
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.78%
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