AIR FRANCE-KLM (AFR0.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:AFR0 • FR001400J770
10.865 EUR
+0.29 (+2.79%)
Last: Jan 30, 2026, 07:00 PM
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
- In the past year AFR0 was profitable.
- In the past year AFR0 had a positive cash flow from operations.
- In multiple years AFR0 reported negative net income over the last 5 years.
- Of the past 5 years AFR0 4 years had a positive operating cash flow.
1.2 Ratios
- With a Return On Assets value of 2.46%, AFR0 is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
- Looking at the Return On Equity, with a value of 1248.68%, AFR0 belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 7.89%, AFR0 is in the better half of 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 last Return On Invested Capital (7.89%) for AFR0 is above the 3 year average (6.06%), which is a sign of increasing profitability.
| 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's Profit Margin of 2.90% is on the low side compared to the rest of the industry. AFR0 is outperformed by 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.
- Looking at the Gross Margin, with a value of 45.30%, AFR0 is in line with its industry, outperforming 57.14% of the companies in the same 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.
- The number of shares outstanding for AFR0 has been increased compared to 5 years ago.
- Compared to 1 year ago, AFR0 has a worse debt to assets ratio.
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 has a worse Altman-Z score (0.55) than 71.43% of its industry peers.
- The Debt to FCF ratio of AFR0 is 17.97, which is on the high side as it means it would take AFR0, 17.97 years of fcf income to pay off all of its debts.
- AFR0 has a worse Debt to FCF ratio (17.97) than 64.29% of its industry peers.
- A Debt/Equity ratio of 163.37 is on the high side and indicates that AFR0 has dependencies on debt financing.
- The Debt to Equity ratio of AFR0 (163.37) is worse than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 163.37 | ||
| Debt/FCF | 17.97 | ||
| Altman-Z | 0.55 |
ROIC/WACC1.33
WACC5.94%
2.3 Liquidity
- A Current Ratio of 0.65 indicates that AFR0 may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.65, AFR0 is in line with its industry, outperforming 50.00% of the companies in the same industry.
- 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.
- With a Quick ratio value of 0.60, AFR0 perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| 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.
- The earnings per share for AFR0 have been decreasing by -24.31% on average. This is quite bad
- The Revenue has been growing slightly by 5.52% in the past year.
- 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.
- 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
- AFR0 is valuated cheaply with a Price/Earnings ratio of 3.34.
- 100.00% of the companies in the same industry are more expensive than AFR0, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.30. AFR0 is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 2.67, the valuation of AFR0 can be described as very cheap.
- Based on the Price/Forward Earnings ratio, AFR0 is valued cheaper than 100.00% of the companies in the same industry.
- AFR0 is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.34 | ||
| Fwd PE | 2.67 |
4.2 Price Multiples
- AFR0's Enterprise Value to EBITDA ratio is in line with the industry average.
- AFR0's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AFR0 is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.44 | ||
| EV/EBITDA | 3.62 |
4.3 Compensation for Growth
- AFR0'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 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.