AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AF - FR001400J770 - Common Stock
10.55 EUR
-0.05 (-0.52%)
Overall AF gets a fundamental rating of 4 out of 10. We evaluated AF against 13 industry peers in the Passenger Airlines industry. There are concerns on the financial health of AF while its profitability can be described as average. AF may be a bit undervalued, certainly considering the very reasonable score on growth
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.
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 69.23% of its industry peers.
AF has a Return On Invested Capital of 8.30%. This is in the better half of the industry: AF outperforms 61.54% of its industry peers.
AF had an Average Return On Invested Capital over the past 3 years of 6.06%. This is below the industry average of 9.99%.
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
The Profit Margin of AF (3.03%) is worse than 69.23% of its industry peers.
AF's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.11%, AF is in line with its industry, outperforming 53.85% of the companies in the same industry.
AF's Operating Margin has improved in the last couple of years.
AF has a better Gross Margin (45.70%) than 61.54% 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.
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
AF has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.46, we must say that AF is in the distress zone and has some risk of bankruptcy.
AF's Altman-Z score of 0.46 is on the low side compared to the rest of the industry. AF is outperformed by 61.54% 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.46 |
ROIC/WACC1.41
WACC5.88%
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's Current ratio of 0.60 is on the low side compared to the rest of the industry. AF is outperformed by 69.23% 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 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
AF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 209.52%, which is quite impressive.
Measured over the past years, AF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.31% on average per year.
AF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
AF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.96% yearly.
EPS 1Y (TTM)209.52%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-15.15%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%2.61%
3.2 Future
AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.10% yearly.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y36.1%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.5%
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
The Price/Earnings ratio is 3.25, which indicates a rather cheap valuation of AF.
AF's Price/Earnings ratio is rather cheap when compared to the industry. AF is cheaper than 92.31% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. AF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 2.56, the valuation of AF can be described as very cheap.
92.31% of the companies in the same industry are more expensive than AF, based on the Price/Forward Earnings ratio.
AF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.25 | ||
| Fwd PE | 2.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AF is valued a bit cheaper than 61.54% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, AF is valued cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.09 | ||
| EV/EBITDA | 3.46 |
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)0.01
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 (11/28/2025, 7:00:00 PM)
10.55
-0.05 (-0.52%)
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 Cap2.77B
Revenue(TTM)32.70B
Net Income(TTM)985.00M
Analysts69.6
Price Target12.01 (13.84%)
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)-3.41%
PT rev (3m)11.26%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-7.91%
EPS NY rev (1m)10.92%
EPS NY rev (3m)18.66%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)0.05%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.25 | ||
| Fwd PE | 2.56 | ||
| P/S | 0.09 | ||
| P/FCF | 3.09 | ||
| P/OCF | 0.57 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.46 |
EPS(TTM)3.25
EY30.81%
EPS(NY)4.12
Fwd EY39.03%
FCF(TTM)3.41
FCFY32.36%
OCF(TTM)18.54
OCFY175.78%
SpS123.55
BVpS-3.11
TBVpS-8.4
PEG (NY)0.01
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
WACC5.88%
ROIC/WACC1.41
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)209.52%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%-15.15%
EPS Next Y269.19%
EPS Next 2Y90.05%
EPS Next 3Y61.4%
EPS Next 5Y36.1%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%2.61%
Revenue Next Year5.72%
Revenue Next 2Y4.84%
Revenue Next 3Y5.05%
Revenue Next 5Y3.5%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year256.34%
EBIT Next 3Y60.78%
EBIT Next 5Y35.32%
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 4 / 10 to AF.PA.
What is the valuation status of AIR FRANCE-KLM (AF.PA) stock?
ChartMill assigns a valuation rating of 9 / 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 3.25 and the Price/Book (PB) ratio is -3.4.
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.