AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
EPA:AF - Euronext Paris - Matif - FR001400J770 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to AF. AF was compared to 12 industry peers in the Passenger Airlines industry. AF has a bad profitability rating. Also its financial health evaluation is rather negative. 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
Looking at the Return On Assets, with a value of 0.67%, AF is doing worse than 91.67% of the companies in the same industry.
AF has a Return On Invested Capital of 6.31%. This is in the lower half of the industry: AF underperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AF is in line with the industry average of 8.02%.
The 3 year average ROIC (6.06%) for AF is below the current ROIC(6.31%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROIC | 6.31% |
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 0.78%. This is amonst the worse of the industry: AF underperforms 91.67% 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 4.65%, AF is doing worse than 75.00% of the companies in the same industry.
AF's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 46.94%, AF is in line with its industry, outperforming 50.00% of the companies in the same industry.
AF's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% |
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.
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
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.
The Altman-Z score of AF (0.46) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.46 |
ROIC/WACC1.16
WACC5.44%
2.3 Liquidity
A Current Ratio of 0.65 indicates that AF may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.65, AF is doing worse than 83.33% of the companies in the same industry.
A Quick Ratio of 0.59 indicates that AF may have some problems paying its short term obligations.
AF's Quick ratio of 0.59 is on the low side compared to the rest of the industry. AF is outperformed by 83.33% 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -72.32%.
The earnings per share for AF have been decreasing by -24.31% on average. This is quite bad
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)-72.32%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%22.5%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.36%
3.2 Future
The Earnings Per Share is expected to grow by 31.14% 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 2.91% yearly.
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue Next Year4.63%
Revenue Next 2Y4.49%
Revenue Next 3Y3.55%
Revenue Next 5Y2.91%
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
The Price/Earnings ratio is 6.72, which indicates a rather cheap valuation of AF.
AF's Price/Earnings is on the same level as the industry average.
AF is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
AF is valuated cheaply with a Price/Forward Earnings ratio of 2.16.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 91.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.38, AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 2.16 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AF is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.71 |
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 57.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y92.17%
EPS Next 3Y57.03%
5. Dividend
5.1 Amount
No dividends for AF!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (4/25/2025, 7:00:00 PM)
7.66
+0.07 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.65%
Inst Owner ChangeN/A
Ins Owners0.02%
Ins Owner ChangeN/A
Market Cap2.01B
Analysts53.6
Price Target10.62 (38.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)-58.45%
DP0.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)23.47%
Min EPS beat(2)-13.15%
Max EPS beat(2)60.08%
EPS beat(4)1
Avg EPS beat(4)-29.02%
Min EPS beat(4)-91.85%
Max EPS beat(4)60.08%
EPS beat(8)4
Avg EPS beat(8)-11.33%
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)-1.19%
Min Revenue beat(2)-2.15%
Max Revenue beat(2)-0.23%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)-0.23%
Revenue beat(8)0
Avg Revenue beat(8)-2.67%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)6
Avg Revenue beat(16)-0.13%
PT rev (1m)6.85%
PT rev (3m)-2.04%
EPS NQ rev (1m)14.69%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.41%
EPS NY rev (3m)-13.95%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.72 | ||
| Fwd PE | 2.16 | ||
| P/S | 0.06 | ||
| P/FCF | N/A | ||
| P/OCF | 0.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.71 |
EPS(TTM)1.14
EY14.88%
EPS(NY)3.55
Fwd EY46.31%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)13.3
OCFY173.69%
SpS119.72
BVpS-6.71
TBVpS-11.95
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | N/A | ||
| ROCE | 7.35% | ||
| ROIC | 6.31% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 8.75% | ||
| OM | 4.65% | ||
| PM (TTM) | 0.78% | ||
| GM | 46.94% | ||
| FCFM | N/A |
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-Score4
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.92 | ||
| Cap/Depr | 141.05% | ||
| Cap/Sales | 11.85% | ||
| Interest Coverage | 2.2 | ||
| Cash Conversion | 85.16% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 | ||
| Altman-Z | 0.46 |
F-Score4
WACC5.44%
ROIC/WACC1.16
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)-72.32%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%22.5%
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.14%
Revenue 1Y (TTM)4.8%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.36%
Revenue Next Year4.63%
Revenue Next 2Y4.49%
Revenue Next 3Y3.55%
Revenue Next 5Y2.91%
EBIT growth 1Y-6.28%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year249.35%
EBIT Next 3Y59.71%
EBIT Next 5Y33.61%
FCF growth 1Y-521.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-3.05%
OCF growth 3Y31.6%
OCF growth 5Y-2.14%