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AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis

EPA:AF - Euronext Paris - Matif - FR001400J770 - Common Stock - Currency: EUR

11.56  -0.28 (-2.32%)

Fundamental Rating

2

Taking everything into account, AF scores 2 out of 10 in our fundamental rating. AF was compared to 12 industry peers in the Passenger Airlines industry. Both the profitability and financial health of AF have multiple concerns. AF is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year AF was profitable.
AF had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AF reported negative net income in multiple years.
The reported operating cash flow has been mixed in the past 5 years: AF reported negative operating cash flow in multiple years.
AF.PA Yearly Net Income VS EBIT VS OCF VS FCFAF.PA 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 0 2B -2B 4B -4B -6B

1.2 Ratios

The Return On Assets of AF (0.18%) is worse than 91.67% of its industry peers.
The Return On Invested Capital of AF (4.19%) is worse than 75.00% of its industry peers.
Industry RankSector Rank
ROA 0.18%
ROE N/A
ROIC 4.19%
ROA(3y)-2.38%
ROA(5y)-5.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
AF.PA Yearly ROA, ROE, ROICAF.PA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

1.3 Margins

The Profit Margin of AF (0.20%) is worse than 91.67% of its industry peers.
AF's Profit Margin has improved in the last couple of years.
AF's Operating Margin of 2.96% is on the low side compared to the rest of the industry. AF is outperformed by 91.67% of its industry peers.
In the last couple of years the Operating Margin of AF has remained more or less at the same level.
The Gross Margin of AF (45.94%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of AF has declined.
Industry RankSector Rank
OM 2.96%
PM (TTM) 0.2%
GM 45.94%
OM growth 3YN/A
OM growth 5Y-0.65%
PM growth 3YN/A
PM growth 5Y11.29%
GM growth 3Y8.53%
GM growth 5Y-1.71%
AF.PA Yearly Profit, Operating, Gross MarginsAF.PA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 -40 -60

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0

2. Health

2.1 Basic Checks

AF has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
There is no outstanding debt for AF. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
AF.PA Yearly Shares OutstandingAF.PA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M
AF.PA Yearly Total Debt VS Total AssetsAF.PA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B

2.2 Solvency

AF has an Altman-Z score of 0.40. 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 0.40 is on the low side compared to the rest of the industry. AF is outperformed by 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Altman-Z 0.4
ROIC/WACC0.68
WACC6.16%
AF.PA Yearly LT Debt VS Equity VS FCFAF.PA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B -5B 10B 15B

2.3 Liquidity

AF has a Current Ratio of 0.64. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.64, AF is doing worse than 83.33% of the companies in the same industry.
AF has a Quick Ratio of 0.64. This is a bad value and indicates that AF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AF (0.58) is worse than 83.33% of its industry peers.
Industry RankSector Rank
Current Ratio 0.64
Quick Ratio 0.58
AF.PA Yearly Current Assets VS Current LiabilitesAF.PA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

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3

3. Growth

3.1 Past

The earnings per share for AF have decreased strongly by -65.46% in the last year.
AF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -20.89% yearly.
EPS 1Y (TTM)-65.46%
EPS 3YN/A
EPS 5Y-20.89%
EPS Q2Q%93.05%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.15%

3.2 Future

AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.69% yearly.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y158.21%
EPS Next 2Y69.7%
EPS Next 3Y55.77%
EPS Next 5Y37.69%
Revenue Next Year4.63%
Revenue Next 2Y4.49%
Revenue Next 3Y3.55%
Revenue Next 5Y4.28%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
AF.PA Yearly Revenue VS EstimatesAF.PA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
AF.PA Yearly EPS VS EstimatesAF.PA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 -20 -40 -60

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 8.14, the valuation of AF can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as AF.
AF is valuated cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 3.15, the valuation of AF can be described as very cheap.
83.33% of the companies in the same industry are more expensive than AF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AF to the average of the S&P500 Index (22.10), we can say AF is valued rather cheaply.
Industry RankSector Rank
PE 8.14
Fwd PE 3.15
AF.PA Price Earnings VS Forward Price EarningsAF.PA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

AF's Enterprise Value to EBITDA is on the same level as the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 2.66
AF.PA Per share dataAF.PA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80 100

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.
AF's earnings are expected to grow with 55.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.05
PEG (5Y)N/A
EPS Next 2Y69.7%
EPS Next 3Y55.77%

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0

5. Dividend

5.1 Amount

AF does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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AIR FRANCE-KLM

EPA:AF (3/7/2025, 7:00:00 PM)

11.56

-0.28 (-2.32%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)03-06 2025-03-06/bmo
Earnings (Next)04-30 2025-04-30
Inst Owners8.65%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap3.04B
Analysts52.8
Price Target9.94 (-14.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.35
Dividend Growth(5Y)-5.03%
DP1.59%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-42.15%
Min EPS beat(2)-71.16%
Max EPS beat(2)-13.15%
EPS beat(4)1
Avg EPS beat(4)-32.85%
Min EPS beat(4)-91.85%
Max EPS beat(4)44.76%
EPS beat(8)4
Avg EPS beat(8)115.02%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-2.79%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)-2.15%
Revenue beat(4)0
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-2.15%
Revenue beat(8)1
Avg Revenue beat(8)-2.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.83%
Revenue beat(16)6
Avg Revenue beat(16)-0.23%
PT rev (1m)-0.28%
PT rev (3m)-8.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-26.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.57%
Valuation
Industry RankSector Rank
PE 8.14
Fwd PE 3.15
P/S 0.1
P/FCF N/A
P/OCF 1.35
P/B N/A
P/tB N/A
EV/EBITDA 2.66
EPS(TTM)1.42
EY12.28%
EPS(NY)3.67
Fwd EY31.77%
FCF(TTM)-7.4
FCFYN/A
OCF(TTM)8.59
OCFY74.33%
SpS117.93
BVpS-6.55
TBVpS-11.71
PEG (NY)0.05
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.18%
ROE N/A
ROCE 4.89%
ROIC 4.19%
ROICexc 6.02%
ROICexgc 6.72%
OM 2.96%
PM (TTM) 0.2%
GM 45.94%
FCFM N/A
ROA(3y)-2.38%
ROA(5y)-5.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y5.37%
ROICexc growth 3YN/A
ROICexc growth 5Y5.1%
OM growth 3YN/A
OM growth 5Y-0.65%
PM growth 3YN/A
PM growth 5Y11.29%
GM growth 3Y8.53%
GM growth 5Y-1.71%
F-Score5
Asset Turnover0.89
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF N/A
Debt/EBITDA 3.06
Cap/Depr 155.98%
Cap/Sales 13.56%
Interest Coverage 1.4
Cash Conversion 62.53%
Profit Quality N/A
Current Ratio 0.64
Quick Ratio 0.58
Altman-Z 0.4
F-Score5
WACC6.16%
ROIC/WACC0.68
Cap/Depr(3y)119.28%
Cap/Depr(5y)108.83%
Cap/Sales(3y)12.82%
Cap/Sales(5y)13.96%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-65.46%
EPS 3YN/A
EPS 5Y-20.89%
EPS Q2Q%93.05%
EPS Next Y158.21%
EPS Next 2Y69.7%
EPS Next 3Y55.77%
EPS Next 5Y37.69%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.15%
Revenue Next Year4.63%
Revenue Next 2Y4.49%
Revenue Next 3Y3.55%
Revenue Next 5Y4.28%
EBIT growth 1Y-48.71%
EBIT growth 3YN/A
EBIT growth 5Y2.07%
EBIT Next Year134.9%
EBIT Next 3Y41.96%
EBIT Next 5Y26.16%
FCF growth 1Y-173.33%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-57.86%
OCF growth 3YN/A
OCF growth 5Y-3.83%