AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - EPA:AF - FR001400J770 - Common Stock
11.77 EUR
-0.27 (-2.2%)
Overall AF gets a fundamental rating of 4 out of 10. We evaluated AF against 13 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year AF was profitable.
AF had a positive operating cash flow in the past year.
In multiple years AF reported negative net income over the last 5 years.
Of the past 5 years AF 4 years had a positive operating cash flow.
1.2 Ratios
AF has a worse Return On Assets (2.57%) than 69.23% of its industry peers.
The Return On Invested Capital of AF (8.30%) is better than 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 9.96%.
The last Return On Invested Capital (8.30%) for AF is above the 3 year average (6.06%), which is a sign of increasing profitability.
| 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's Profit Margin of 3.03% is on the low side compared to the rest of the industry. AF is outperformed by 69.23% of its industry peers.
AF's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.11%, AF perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
In the last couple of years the Operating Margin of AF has grown nicely.
Looking at the Gross Margin, with a value of 45.70%, AF is in the better half of the industry, outperforming 61.54% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AF is creating some value.
AF has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for AF has been increased compared to 5 years ago.
Compared to 1 year ago, AF has a worse debt to assets ratio.
2.2 Solvency
AF has an Altman-Z score of 0.47. 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 0.47 is on the low side compared to the rest of the industry. AF is outperformed by 61.54% of its industry peers.
AF has a debt to FCF ratio of 15.85. This is a negative value and a sign of low solvency as AF would need 15.85 years to pay back of all of its debts.
AF has a Debt to FCF ratio of 15.85. This is comparable to the rest of the industry: AF outperforms 46.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.47 |
ROIC/WACC1.37
WACC6.05%
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.
Looking at the Current ratio, with a value of 0.60, AF is doing worse than 61.54% of the companies in the same industry.
A Quick Ratio of 0.55 indicates that AF may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.55, AF is doing worse than 61.54% of the companies in the same industry.
| 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 76.36%, 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 5.85% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
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 35.21% on average per year.
Based on estimates for the next years, AF will show a small growth in Revenue. The Revenue will grow by 3.08% on average per year.
EPS Next Y232.85%
EPS Next 2Y90.6%
EPS Next 3Y60.24%
EPS Next 5Y35.21%
Revenue Next Year6%
Revenue Next 2Y5.05%
Revenue Next 3Y5.25%
Revenue Next 5Y3.08%
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.
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 3.18, which indicates a rather cheap valuation of AF.
Compared to the rest of the industry, the Price/Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 100.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of AF to the average of the S&P500 Index (27.40), we can say AF is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.84, 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 100.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AF to the average of the S&P500 Index (22.94), we can say AF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.18 | ||
| Fwd PE | 2.84 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AF is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, AF is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.45 | ||
| EV/EBITDA | 3.54 |
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 60.24% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y90.6%
EPS Next 3Y60.24%
5. Dividend
5.1 Amount
AF does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
EPA:AF (10/17/2025, 5:29:47 PM)
11.77
-0.27 (-2.2%)
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 Cap3.09B
Analysts70
Price Target12.43 (5.61%)
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)3.65%
PT rev (3m)38.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.84%
EPS NY rev (1m)-3.72%
EPS NY rev (3m)6.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.84%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.18 | ||
| Fwd PE | 2.84 | ||
| P/S | 0.1 | ||
| P/FCF | 3.45 | ||
| P/OCF | 0.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.54 |
EPS(TTM)3.7
EY31.44%
EPS(NY)4.14
Fwd EY35.19%
FCF(TTM)3.41
FCFY29%
OCF(TTM)18.54
OCFY157.56%
SpS123.55
BVpS-3.11
TBVpS-8.4
PEG (NY)0.01
PEG (5Y)N/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
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-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 | 0.47 |
F-Score5
WACC6.05%
ROIC/WACC1.37
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)76.36%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%378.26%
EPS Next Y232.85%
EPS Next 2Y90.6%
EPS Next 3Y60.24%
EPS Next 5Y35.21%
Revenue 1Y (TTM)5.85%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%6.21%
Revenue Next Year6%
Revenue Next 2Y5.05%
Revenue Next 3Y5.25%
Revenue Next 5Y3.08%
EBIT growth 1Y87.35%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year256.34%
EBIT Next 3Y60.78%
EBIT Next 5Y34.63%
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%