AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - EPA:AF - FR001400J770 - Common Stock
9.666 EUR
-0.2 (-2.05%)
Taking everything into account, AF scores 3 out of 10 in our fundamental rating. AF was compared to 11 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
AF had positive earnings in the past year.
In the past year AF had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: AF reported negative net income in multiple years.
Of the past 5 years AF 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AF (2.57%) is worse than 72.73% of its industry peers.
AF's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. AF outperforms 63.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 10.22%.
The 3 year average ROIC (6.06%) for AF is below the current ROIC(8.30%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | N/A | ||
| ROIC | 8.3% |
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
AF has a worse Profit Margin (3.03%) than 72.73% of its industry peers.
In the last couple of years the Profit Margin of AF has declined.
AF's Operating Margin of 6.11% is in line compared to the rest of the industry. AF outperforms 54.55% of its industry peers.
AF's Operating Margin has improved in the last couple of years.
AF has a Gross Margin of 45.70%. This is in the better half of the industry: AF outperforms 63.64% of its industry peers.
AF's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, AF has about the same amount of shares outstanding.
Compared to 5 years ago, AF has more shares outstanding
Compared to 1 year ago, AF has a worse debt to assets ratio.
2.2 Solvency
AF has an Altman-Z score of 0.46. This is a bad value and indicates that AF is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AF (0.46) is worse than 72.73% of its industry peers.
The Debt to FCF ratio of AF is 15.85, which is on the high side as it means it would take AF, 15.85 years of fcf income to pay off all of its debts.
AF has a Debt to FCF ratio (15.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.46 |
ROIC/WACC1.44
WACC5.76%
2.3 Liquidity
AF has a Current Ratio of 0.60. 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 Current ratio of 0.60. This is in the lower half of the industry: AF underperforms 72.73% of its industry peers.
AF has a Quick Ratio of 0.60. 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 Quick ratio (0.55) than 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
AF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.66%.
AF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -24.31% yearly.
AF shows a small growth in Revenue. In the last year, the Revenue has grown by 4.80%.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-5.66%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-91.23%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%4.2%
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 35.79% on average per year.
Based on estimates for the next years, AF will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y35.79%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.51%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.76, the valuation of AF can be described as reasonable.
Based on the Price/Earnings ratio, AF is valued a bit more expensive than 72.73% of the companies in the same industry.
AF is valuated cheaply when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 2.35, the valuation of AF can be described as very cheap.
AF's Price/Forward Earnings ratio is rather cheap when compared to the industry. AF is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AF to the average of the S&P500 Index (34.59), we can say AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 2.35 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than AF, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.83 | ||
| EV/EBITDA | 3.42 |
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.
A more expensive valuation may be justified as AF's earnings are expected to grow with 61.40% in the coming years.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y90.05%
EPS Next 3Y61.4%
5. Dividend
5.1 Amount
AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (11/14/2025, 7:00:00 PM)
9.666
-0.2 (-2.05%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners12.75%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.54B
Revenue(TTM)31.46B
Net Income(TTM)985.00M
Analysts69.6
Price Target12.5 (29.32%)
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)0.53%
PT rev (3m)34.81%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)10.92%
EPS NY rev (3m)18.66%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 2.35 | ||
| P/S | 0.08 | ||
| P/FCF | 2.83 | ||
| P/OCF | 0.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.42 |
EPS(TTM)0.99
EY10.24%
EPS(NY)4.12
Fwd EY42.6%
FCF(TTM)3.41
FCFY35.32%
OCF(TTM)18.54
OCFY191.85%
SpS123.55
BVpS-3.11
TBVpS-8.4
PEG (NY)0.04
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.57% | ||
| ROE | N/A | ||
| ROCE | 9.93% | ||
| ROIC | 8.3% | ||
| ROICexc | 8.3% | ||
| ROICexgc | 8.9% | ||
| 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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 143.07% | ||
| Cap/Sales | 12.25% | ||
| Interest Coverage | 2.9 | ||
| Cash Conversion | 102.31% | ||
| Profit Quality | 91.07% | ||
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 | ||
| Altman-Z | 0.46 |
F-Score5
WACC5.76%
ROIC/WACC1.44
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)-5.66%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-91.23%
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y35.79%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%4.2%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.51%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year256.34%
EBIT Next 3Y60.78%
EBIT Next 5Y35.1%
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%
AIR FRANCE-KLM / AF.PA FAQ
Can you provide the ChartMill fundamental rating for AIR FRANCE-KLM?
ChartMill assigns a fundamental rating of 3 / 10 to AF.PA.
What is the valuation status of AIR FRANCE-KLM (AF.PA) stock?
ChartMill assigns a valuation rating of 8 / 10 to AIR FRANCE-KLM (AF.PA). This can be considered as Undervalued.
Can you provide the profitability details for AIR FRANCE-KLM?
AIR FRANCE-KLM (AF.PA) has a profitability rating of 4 / 10.
What is the valuation of AIR FRANCE-KLM based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AIR FRANCE-KLM (AF.PA) is 9.76 and the Price/Book (PB) ratio is -3.11.
What is the expected EPS growth for AIR FRANCE-KLM (AF.PA) stock?
The Earnings per Share (EPS) of AIR FRANCE-KLM (AF.PA) is expected to grow by 269.19% in the next year.