AIR FRANCE-KLM (AF.PA) Stock Fundamental Analysis
EPA:AF - Euronext Paris - Matif - FR001400J770 - Common Stock - Currency: EUR
Overall AF gets a fundamental rating of 3 out of 10. We evaluated AF against 12 industry peers in the Passenger Airlines industry. AF has a bad profitability rating. Also its financial health evaluation is rather negative. AF scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
AF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AF's Return On Assets of 0.67% is on the low side compared to the rest of the industry. AF is outperformed by 91.67% of its industry peers.
The Return On Invested Capital of AF (6.31%) is worse than 66.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AF is below the industry average of 8.15%.
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's Profit Margin of 0.78% is on the low side compared to the rest of the industry. AF is outperformed by 91.67% of its industry peers.
In the last couple of years the Profit Margin of AF has declined.
AF has a Operating Margin of 4.65%. This is in the lower half of the industry: AF underperforms 75.00% of its industry peers.
AF's Operating Margin has improved in the last couple of years.
AF's Gross Margin of 46.94% is in line compared to the rest of the industry. AF outperforms 50.00% of its industry peers.
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 | 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
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.
AF has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, AF has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.47, we must say that AF is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AF (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.47 |
ROIC/WACC1.07
WACC5.91%
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.
The Current ratio of AF (0.65) is worse than 83.33% of its industry peers.
AF has a Quick 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.
Looking at the Quick ratio, with a value of 0.59, AF is doing worse than 83.33% of the companies in the same industry.
| 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 -44.60%.
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 5.36% in the past year.
The Revenue has been growing slightly by 2.96% on average over the past years.
EPS 1Y (TTM)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
3.2 Future
AF is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.40% yearly.
AF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.69% yearly.
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.4%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y2.69%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
AF is valuated cheaply with a Price/Earnings ratio of 5.60.
Compared to the rest of the industry, the Price/Earnings ratio of AF indicates a rather cheap valuation: AF is cheaper than 83.33% of the companies listed in the same industry.
AF is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 2.61, 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 83.33% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 2.61 |
4.2 Price Multiples
AF's Enterprise Value to EBITDA is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 2.93 |
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 (7/11/2025, 7:00:00 PM)
10.98
-0.07 (-0.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners8.37%
Inst Owner ChangeN/A
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap2.89B
Analysts54.17
Price Target9 (-18.03%)
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)5.28%
PT rev (3m)-15.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.98%
Revenue NQ rev (1m)0.66%
Revenue NQ rev (3m)0.49%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.6 | ||
| Fwd PE | 2.61 | ||
| P/S | 0.09 | ||
| P/FCF | N/A | ||
| P/OCF | 0.83 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 2.93 |
EPS(TTM)1.96
EY17.85%
EPS(NY)4.21
Fwd EY38.34%
FCF(TTM)-0.88
FCFYN/A
OCF(TTM)13.3
OCFY121.17%
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 | 0.47 |
F-Score4
WACC5.91%
ROIC/WACC1.07
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)-44.6%
EPS 3YN/A
EPS 5Y-24.31%
EPS Q2Q%41.41%
EPS Next Y211.14%
EPS Next 2Y92.17%
EPS Next 3Y57.03%
EPS Next 5Y31.4%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y30.01%
Revenue growth 5Y2.96%
Sales Q2Q%7.68%
Revenue Next Year5.19%
Revenue Next 2Y4.48%
Revenue Next 3Y4.47%
Revenue Next 5Y2.69%
EBIT growth 1Y-6.28%
EBIT growth 3YN/A
EBIT growth 5Y6.27%
EBIT Next Year245.03%
EBIT Next 3Y58.73%
EBIT Next 5Y32.36%
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%