AIR FRANCE-KLM (AFR0.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFR0 - FR001400J770 - Common Stock
10.395 EUR
-0.19 (-1.75%)
We assign a fundamental rating of 4 out of 10 to AFR0. AFR0 was compared to 14 industry peers in the Passenger Airlines industry. While AFR0 is still in line with the averages on profitability rating, there are concerns on its financial health. AFR0 may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
- AFR0 had positive earnings in the past year.
- AFR0 had a positive operating cash flow in the past year.
- The reported net income has been mixed in the past 5 years: AFR0 reported negative net income in multiple years.
- AFR0 had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- AFR0 has a worse Return On Assets (2.46%) than 64.29% of its industry peers.
- AFR0's Return On Equity of 1248.68% is amongst the best of the industry. AFR0 outperforms 100.00% of its industry peers.
- With a decent Return On Invested Capital value of 7.89%, AFR0 is doing good in the industry, outperforming 64.29% of the companies in the same industry.
- AFR0 had an Average Return On Invested Capital over the past 3 years of 6.06%. This is below the industry average of 9.17%.
- The 3 year average ROIC (6.06%) for AFR0 is below the current ROIC(7.89%), indicating increased profibility in the last year.
| 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
- AFR0 has a Profit Margin of 2.90%. This is in the lower half of the industry: AFR0 underperforms 64.29% of its industry peers.
- In the last couple of years the Profit Margin of AFR0 has declined.
- AFR0 has a Operating Margin (6.12%) which is comparable to the rest of the industry.
- AFR0's Operating Margin has improved in the last couple of years.
- AFR0 has a Gross Margin (45.30%) which is comparable to the rest of the industry.
- AFR0'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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), AFR0 is creating some value.
- The number of shares outstanding for AFR0 remains at a similar level compared to 1 year ago.
- Compared to 5 years ago, AFR0 has more shares outstanding
- The debt/assets ratio for AFR0 is higher compared to a year ago.
2.2 Solvency
- AFR0 has an Altman-Z score of 0.55. This is a bad value and indicates that AFR0 is not financially healthy and even has some risk of bankruptcy.
- AFR0's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. AFR0 is outperformed by 71.43% of its industry peers.
- AFR0 has a debt to FCF ratio of 17.97. This is a negative value and a sign of low solvency as AFR0 would need 17.97 years to pay back of all of its debts.
- Looking at the Debt to FCF ratio, with a value of 17.97, AFR0 is doing worse than 64.29% of the companies in the same industry.
- AFR0 has a Debt/Equity ratio of 163.37. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 163.37, AFR0 is doing worse than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 163.37 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.34
WACC5.88%
2.3 Liquidity
- A Current Ratio of 0.65 indicates that AFR0 may have some problems paying its short term obligations.
- AFR0 has a Current ratio (0.65) which is in line with its industry peers.
- AFR0 has a Quick Ratio of 0.65. This is a bad value and indicates that AFR0 is not financially healthy enough and could expect problems in meeting its short term obligations.
- AFR0 has a Quick ratio (0.60) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.6 |
3. Growth
3.1 Past
- AFR0 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 209.52%, which is quite impressive.
- Measured over the past years, AFR0 shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -24.31% on average per year.
- AFR0 shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
- Measured over the past years, AFR0 shows a small growth in Revenue. The Revenue has been growing by 2.96% on average per year.
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 35.70% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y225.52%
EPS Next 2Y89.03%
EPS Next 3Y62.64%
EPS Next 5Y35.7%
Revenue Next Year5.04%
Revenue Next 2Y4.73%
Revenue Next 3Y5.06%
Revenue Next 5Y3.2%
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
- A Price/Earnings ratio of 3.20 indicates a rather cheap valuation of AFR0.
- Based on the Price/Earnings ratio, AFR0 is valued cheaper than 100.00% of the companies in the same industry.
- AFR0's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 2.55, the valuation of AFR0 can be described as very cheap.
- AFR0's Price/Forward Earnings ratio is rather cheap when compared to the industry. AFR0 is cheaper than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, AFR0 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.2 | ||
| Fwd PE | 2.55 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFR0.
- Based on the Price/Free Cash Flow ratio, AFR0 is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.29 | ||
| EV/EBITDA | 3.61 |
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.
- A more expensive valuation may be justified as AFR0's earnings are expected to grow with 62.64% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y89.03%
EPS Next 3Y62.64%
5. Dividend
5.1 Amount
- AFR0 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
AIR FRANCE-KLM / AFR0.DE FAQ
Can you provide the ChartMill fundamental rating for AIR FRANCE-KLM?
ChartMill assigns a fundamental rating of 4 / 10 to AFR0.DE.
What is the valuation status of AIR FRANCE-KLM (AFR0.DE) stock?
ChartMill assigns a valuation rating of 9 / 10 to AIR FRANCE-KLM (AFR0.DE). This can be considered as Undervalued.
How profitable is AIR FRANCE-KLM (AFR0.DE) stock?
AIR FRANCE-KLM (AFR0.DE) has a profitability rating of 4 / 10.
What is the financial health of AIR FRANCE-KLM (AFR0.DE) stock?
The financial health rating of AIR FRANCE-KLM (AFR0.DE) is 1 / 10.
Can you provide the expected EPS growth for AFR0 stock?
The Earnings per Share (EPS) of AIR FRANCE-KLM (AFR0.DE) is expected to grow by 225.52% in the next year.