AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - EPA:AF - FR001400J770 - Common Stock
12.555 EUR
-0.42 (-3.2%)
Overall AF gets a fundamental rating of 4 out of 10. We evaluated AF against 12 industry peers in the Passenger Airlines industry. While AF is still in line with the averages on profitability rating, there are concerns on its financial health. AF scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
AF had positive earnings in the past year.
AF had a positive operating cash flow in the past year.
In multiple years AF reported negative net income over the last 5 years.
AF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.72%, AF is doing worse than 66.67% of the companies in the same industry.
AF has a Return On Invested Capital of 8.56%. This is in the better half of the industry: AF outperforms 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 9.96%.
The 3 year average ROIC (6.06%) for AF is below the current ROIC(8.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | N/A | ||
| ROIC | 8.56% |
ROA(3y)1.58%
ROA(5y)-6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.06%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of AF (3.03%) is worse than 66.67% of its industry peers.
In the last couple of years the Profit Margin of AF has declined.
AF has a Operating Margin (6.11%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AF has grown nicely.
Looking at the Gross Margin, with a value of 45.70%, AF is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Gross Margin of AF has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.11% | ||
| PM (TTM) | 3.03% | ||
| GM | 45.7% |
OM growth 3YN/A
OM growth 5Y3.22%
PM growth 3YN/A
PM growth 5Y-5.03%
GM growth 3Y0.72%
GM growth 5Y-1.01%
2. Health
2.1 Basic Checks
AF has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
AF has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, AF has more shares outstanding
The debt/assets ratio for AF is higher compared to a year ago.
2.2 Solvency
AF has an Altman-Z score of 0.55. This is a bad value and indicates that AF is not financially healthy and even has some risk of bankruptcy.
AF's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. AF is outperformed by 75.00% of its industry peers.
The Debt to FCF ratio of AF is 16.17, which is on the high side as it means it would take AF, 16.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AF (16.17) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.17 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.4
WACC6.12%
2.3 Liquidity
AF has a Current Ratio of 0.65. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
AF has a worse Current ratio (0.65) than 66.67% of its industry peers.
A Quick Ratio of 0.59 indicates that AF may have some problems paying its short term obligations.
AF has a worse Quick ratio (0.59) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
AF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 76.36%, which is quite impressive.
AF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.31% yearly.
The Revenue has been growing slightly by 5.85% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
3.2 Future
Based on estimates for the next years, AF will show a very strong growth in Earnings Per Share. The EPS will grow by 35.33% on average per year.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.17% yearly.
EPS Next Y245.72%
EPS Next 2Y96.79%
EPS Next 3Y63.64%
EPS Next 5Y35.33%
Revenue Next Year6.07%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y3.17%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.39, the valuation of AF can be described as very cheap.
100.00% of the companies in the same industry are more expensive than AF, based on the Price/Earnings ratio.
AF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.27.
AF is valuated cheaply with a Price/Forward Earnings ratio of 2.84.
Based on the Price/Forward Earnings ratio, AF is valued cheaper than 100.00% of the companies in the same industry.
AF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 2.84 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than AF, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AF indicates a rather cheap valuation: AF is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.68 | ||
| EV/EBITDA | 2.63 |
4.3 Compensation for Growth
AF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AF's earnings are expected to grow with 63.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y96.79%
EPS Next 3Y63.64%
5. Dividend
5.1 Amount
AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (9/15/2025, 7:00:00 PM)
12.555
-0.42 (-3.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.37%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap3.30B
Analysts70
Price Target12.5 (-0.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.2%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)77.54%
Min EPS beat(2)25.42%
Max EPS beat(2)129.67%
EPS beat(4)3
Avg EPS beat(4)50.51%
Min EPS beat(4)-13.15%
Max EPS beat(4)129.67%
EPS beat(8)5
Avg EPS beat(8)10.98%
EPS beat(12)8
Avg EPS beat(12)112.98%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.99%
Max Revenue beat(2)-0.58%
Revenue beat(4)0
Avg Revenue beat(4)-1.49%
Min Revenue beat(4)-2.99%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.45%
Revenue beat(12)2
Avg Revenue beat(12)-1.65%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)15.87%
PT rev (3m)42.47%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)11.11%
EPS NY rev (3m)11.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.39 | ||
| Fwd PE | 2.84 | ||
| P/S | 0.1 | ||
| P/FCF | 3.68 | ||
| P/OCF | 0.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.63 |
EPS(TTM)3.7
EY29.47%
EPS(NY)4.41
Fwd EY35.16%
FCF(TTM)3.41
FCFY27.19%
OCF(TTM)18.54
OCFY147.71%
SpS123.55
BVpS-6.71
TBVpS-11.95
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | N/A | ||
| ROCE | 9.98% | ||
| ROIC | 8.56% | ||
| ROICexc | 10.83% | ||
| ROICexgc | 11.87% | ||
| OM | 6.11% | ||
| PM (TTM) | 3.03% | ||
| GM | 45.7% | ||
| FCFM | 2.76% |
ROA(3y)1.58%
ROA(5y)-6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)6.06%
ROIC(5y)N/A
ROICexc(3y)9.52%
ROICexc(5y)N/A
ROICexgc(3y)10.72%
ROICexgc(5y)N/A
ROCE(3y)7.14%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y5.52%
ROICexc growth 3YN/A
ROICexc growth 5Y5.83%
OM growth 3YN/A
OM growth 5Y3.22%
PM growth 3YN/A
PM growth 5Y-5.03%
GM growth 3Y0.72%
GM growth 5Y-1.01%
F-Score5
Asset Turnover0.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 16.17 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 143.07% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 102.31% | ||
| Profit Quality | 91.07% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.55 |
F-Score5
WACC6.12%
ROIC/WACC1.4
Cap/Depr(3y)135.34%
Cap/Depr(5y)114.46%
Cap/Sales(3y)11.65%
Cap/Sales(5y)13.85%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
EPS Next Y245.72%
EPS Next 2Y96.79%
EPS Next 3Y63.64%
EPS Next 5Y35.33%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
Revenue Next Year6.07%
Revenue Next 2Y5.14%
Revenue Next 3Y5.33%
Revenue Next 5Y3.17%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year245.03%
EBIT Next 3Y58.73%
EBIT Next 5Y34.74%
FCF growth 1Y-25.56%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y18.39%
OCF growth 3Y31.6%
OCF growth 5Y-2.14%