AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
Europe - EPA:AF - FR001400J770 - Common Stock
9.626 EUR
-0.38 (-3.79%)
Taking everything into account, AF scores 4 out of 10 in our fundamental rating. AF was compared to 12 industry peers in the Passenger Airlines industry. AF has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
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 Return On Assets of 2.57%. This is in the lower half of the industry: AF underperforms 66.67% of its industry peers.
AF's Return On Invested Capital of 8.30% is fine compared to the rest of the industry. AF outperforms 75.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AF is below the industry average of 9.54%.
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
Looking at the Profit Margin, with a value of 3.03%, AF is doing worse than 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of AF has declined.
AF has a Operating Margin of 6.11%. This is comparable to the rest of the industry: AF outperforms 58.33% of its industry peers.
In the last couple of years the Operating Margin of AF has grown nicely.
With a Gross Margin value of 45.70%, AF perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
In the last couple of years the Gross Margin of AF has remained more or less at the same level.
| 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.
Compared to 1 year ago, AF has about the same amount of shares outstanding.
AF has more shares outstanding than it did 5 years ago.
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 75.00% 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.
With a Debt to FCF ratio value of 15.85, AF perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 15.85 | ||
| Altman-Z | 0.46 |
ROIC/WACC1.44
WACC5.75%
2.3 Liquidity
A Current Ratio of 0.60 indicates that AF may have some problems paying its short term obligations.
AF has a Current ratio of 0.60. This is in the lower half of the industry: AF underperforms 66.67% 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.
Looking at the Quick ratio, with a value of 0.55, AF is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.6 | ||
| Quick Ratio | 0.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 76.36% over the past year.
The earnings per share for AF have been decreasing by -24.31% on average. This is quite bad
Looking at the last year, AF shows a small growth in Revenue. The Revenue has grown by 5.85% in the last 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.
The Revenue is expected to grow by 3.08% on average over the next years.
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 2.60, which indicates a rather cheap valuation of AF.
Based on the Price/Earnings ratio, AF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AF is valuated cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.32, the valuation of AF can be described as very cheap.
Based on the Price/Forward Earnings ratio, AF is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
AF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 32.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.6 | ||
| Fwd PE | 2.32 |
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.
AF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AF is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.82 | ||
| EV/EBITDA | 3.42 |
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 (11/7/2025, 7:00:00 PM)
9.626
-0.38 (-3.79%)
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 Cap2.53B
Revenue(TTM)32.46B
Net Income(TTM)985.00M
Analysts70
Price Target12.5 (29.86%)
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)-0.06%
PT rev (3m)34.81%
EPS NQ rev (1m)-7.91%
EPS NQ rev (3m)-3.45%
EPS NY rev (1m)0%
EPS NY rev (3m)6.98%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.71%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.6 | ||
| Fwd PE | 2.32 | ||
| P/S | 0.08 | ||
| P/FCF | 2.82 | ||
| P/OCF | 0.52 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.42 |
EPS(TTM)3.7
EY38.44%
EPS(NY)4.14
Fwd EY43.02%
FCF(TTM)3.41
FCFY35.46%
OCF(TTM)18.54
OCFY192.65%
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
WACC5.75%
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)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%
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 2.6 and the Price/Book (PB) ratio is -3.1.
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 232.85% in the next year.