AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - Euronext Paris - EPA:AF - FR001400J770 - Common Stock
11.325 EUR
+0.01 (+0.13%)
AF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 13 industry peers in the Passenger Airlines industry. AF has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on AF.
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.
AF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AF (2.46%) is worse than 76.92% of its industry peers.
With an excellent Return On Equity value of 1248.68%, AF belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
AF has a Return On Invested Capital of 7.89%. This is comparable to the rest of the industry: AF outperforms 46.15% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 9.36%.
The last Return On Invested Capital (7.89%) for AF is above the 3 year average (6.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 1248.68% | ||
| ROIC | 7.89% |
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 Profit Margin of 2.90%. This is in the lower half of the industry: AF underperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of AF has declined.
Looking at the Operating Margin, with a value of 6.12%, AF is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Operating Margin of AF has grown nicely.
AF's Gross Margin of 45.30% is in line compared to the rest of the industry. AF outperforms 46.15% of its industry peers.
AF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.12% | ||
| PM (TTM) | 2.9% | ||
| GM | 45.3% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so AF is still creating some value.
Compared to 1 year ago, AF has about the same amount of shares outstanding.
The number of shares outstanding for AF has been increased compared to 5 years ago.
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 69.23% of its industry peers.
AF has a debt to FCF ratio of 17.97. This is a negative value and a sign of low solvency as AF would need 17.97 years to pay back of all of its debts.
AF's Debt to FCF ratio of 17.97 is on the low side compared to the rest of the industry. AF is outperformed by 76.92% of its industry peers.
A Debt/Equity ratio of 163.37 is on the high side and indicates that AF has dependencies on debt financing.
AF has a worse Debt to Equity ratio (163.37) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 163.37 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.32
WACC5.99%
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 69.23% of its industry peers.
A Quick Ratio of 0.60 indicates that AF may have some problems paying its short term obligations.
AF has a Quick ratio of 0.60. This is in the lower half of the industry: AF underperforms 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.6 |
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.
The earnings per share for AF have been decreasing by -24.31% on average. This is quite bad
The Revenue has been growing slightly by 5.52% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
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
The Earnings Per Share is expected to grow by 36.10% on average over the next years. This is a very strong growth
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.50% yearly.
EPS Next Y227.2%
EPS Next 2Y88.22%
EPS Next 3Y62.58%
EPS Next 5Y36.1%
Revenue Next Year5.04%
Revenue Next 2Y4.73%
Revenue Next 3Y5.06%
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
A Price/Earnings ratio of 3.48 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.
When comparing the Price/Earnings ratio of AF to the average of the S&P500 Index (26.92), we can say AF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 2.80, the valuation of AF can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 92.31% of the companies listed in the same industry.
AF is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 2.8 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AF indicates a rather cheap valuation: AF is cheaper than 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 3.66 |
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.
A more expensive valuation may be justified as AF's earnings are expected to grow with 62.58% in the coming years.
PEG (NY)0.02
PEG (5Y)N/A
EPS Next 2Y88.22%
EPS Next 3Y62.58%
5. Dividend
5.1 Amount
No dividends for AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
EPA:AF (12/29/2025, 3:05:45 PM)
11.325
+0.01 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners13.14%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.98B
Revenue(TTM)32.70B
Net Income(TTM)949.00M
Analysts68.8
Price Target11.69 (3.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.11%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)60.25%
Min EPS beat(2)-9.17%
Max EPS beat(2)129.67%
EPS beat(4)3
Avg EPS beat(4)51.5%
Min EPS beat(4)-9.17%
Max EPS beat(4)129.67%
EPS beat(8)4
Avg EPS beat(8)9.32%
EPS beat(12)7
Avg EPS beat(12)93.85%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-4.58%
Max Revenue beat(2)-2.99%
Revenue beat(4)0
Avg Revenue beat(4)-2.09%
Min Revenue beat(4)-4.58%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.46%
Revenue beat(12)1
Avg Revenue beat(12)-2.09%
Revenue beat(16)4
Avg Revenue beat(16)-1.15%
PT rev (1m)-2.61%
PT rev (3m)-6.48%
EPS NQ rev (1m)133.85%
EPS NQ rev (3m)130.29%
EPS NY rev (1m)-11.38%
EPS NY rev (3m)-1.7%
Revenue NQ rev (1m)-0.76%
Revenue NQ rev (3m)0.17%
Revenue NY rev (1m)-0.65%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.48 | ||
| Fwd PE | 2.8 | ||
| P/S | 0.09 | ||
| P/FCF | 3.58 | ||
| P/OCF | 0.6 | ||
| P/B | 39.16 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.66 |
EPS(TTM)3.25
EY28.7%
EPS(NY)4.04
Fwd EY35.66%
FCF(TTM)3.16
FCFY27.92%
OCF(TTM)18.91
OCFY166.98%
SpS124.44
BVpS0.29
TBVpS-5
PEG (NY)0.02
PEG (5Y)N/A
Graham Number4.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.46% | ||
| ROE | 1248.68% | ||
| ROCE | 9.2% | ||
| ROIC | 7.89% | ||
| ROICexc | 7.89% | ||
| ROICexgc | 8.43% | ||
| OM | 6.12% | ||
| PM (TTM) | 2.9% | ||
| GM | 45.3% | ||
| FCFM | 2.54% |
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 | 163.37 | ||
| Debt/FCF | 17.97 | ||
| Debt/EBITDA | 2.53 | ||
| Cap/Depr | 142.84% | ||
| Cap/Sales | 12.65% | ||
| Interest Coverage | 2.96 | ||
| Cash Conversion | 101.43% | ||
| Profit Quality | 87.57% | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.6 | ||
| Altman-Z | 0.55 |
F-Score5
WACC5.99%
ROIC/WACC1.32
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 Y227.2%
EPS Next 2Y88.22%
EPS Next 3Y62.58%
EPS Next 5Y36.1%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%2.61%
Revenue Next Year5.04%
Revenue Next 2Y4.73%
Revenue Next 3Y5.06%
Revenue Next 5Y3.5%
EBIT growth 1Y118.32%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year257.06%
EBIT Next 3Y61.49%
EBIT Next 5Y35.32%
FCF growth 1Y36.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y30.25%
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 3.48 and the Price/Book (PB) ratio is 39.16.
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 227.2% in the next year.