AMERICAN INTERNATIONAL GROUP (AIG)
US0268747849 - Common Stock
Overall AIG gets a fundamental rating of 3 out of 10. We evaluated AIG against 141 industry peers in the Insurance industry. AIG may be in some trouble as it scores bad on both profitability and health. AIG has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year AIG was profitable.
In the past year AIG had a positive cash flow from operations.
AIG had positive earnings in 4 of the past 5 years.
AIG had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of AIG (-1.32%) is worse than 85.00% of its industry peers.
AIG's Return On Equity of -4.97% is on the low side compared to the rest of the industry. AIG is outperformed by 80.71% of its industry peers.
AIG has a Return On Invested Capital of 0.37%. This is in the lower half of the industry: AIG underperforms 65.71% of its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.54%. This is below the industry average of 4.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.32% | ||
| ROE | -4.97% | ||
| ROIC | 0.37% |
ROA(3y)1.45%
ROA(5y)0.79%
ROE(3y)16.18%
ROE(5y)8.92%
ROIC(3y)1.54%
ROIC(5y)1.21%
1.3 Margins
AIG has a worse Operating Margin (2.62%) than 77.14% of its industry peers.
In the last couple of years the Operating Margin of AIG has grown nicely.
The Profit Margin and Gross Margin are not available for AIG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | N/A |
OM growth 3Y13.07%
OM growth 5Y18.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIG is destroying value.
The number of shares outstanding for AIG has been reduced compared to 1 year ago.
The number of shares outstanding for AIG has been reduced compared to 5 years ago.
The debt/assets ratio for AIG has been reduced compared to a year ago.
2.2 Solvency
AIG has a debt to FCF ratio of 1.96. This is a very positive value and a sign of high solvency as it would only need 1.96 years to pay back of all of its debts.
AIG's Debt to FCF ratio of 1.96 is in line compared to the rest of the industry. AIG outperforms 51.43% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
AIG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.16%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.30%.
AIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.35% yearly.
Looking at the last year, AIG shows a very negative growth in Revenue. The Revenue has decreased by -23.08% in the last year.
AIG shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.42% yearly.
EPS 1Y (TTM)-6.3%
EPS 3Y39.08%
EPS 5Y43.35%
EPS Q2Q%-23.6%
Revenue 1Y (TTM)-23.08%
Revenue growth 3Y2.18%
Revenue growth 5Y-0.42%
Sales Q2Q%-47.15%
3.2 Future
AIG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.10% yearly.
The Revenue is expected to grow by 2.57% on average over the next years.
EPS Next Y-24.52%
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
EPS Next 5Y-0.1%
Revenue Next Year-47.45%
Revenue Next 2Y-26.49%
Revenue Next 3Y-17.43%
Revenue Next 5Y2.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AIG is valuated correctly with a Price/Earnings ratio of 12.35.
AIG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.54, AIG is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.87, the valuation of AIG can be described as very reasonable.
AIG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.99. AIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.87 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is in line with the industry average.
AIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.92 | ||
| EV/EBITDA | 12.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.28
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.25%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is comparable with the industry average which is at 4.35.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
5.2 History
The dividend of AIG has a limited annual growth rate of 2.27%.
AIG has been paying a dividend for at least 10 years, so it has a reliable track record.
AIG has decreased its dividend recently.
Dividend Growth(5Y)2.27%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
AIG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-46.29%
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
AMERICAN INTERNATIONAL GROUP
NYSE:AIG (12/26/2024, 12:42:33 PM)
73.47
+0.63 (+0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.02%
Inst Owner Change-2.41%
Ins Owners0.19%
Ins Owner Change3.59%
Market Cap45.83B
Analysts76.52
Price Target86.51 (17.75%)
Short Float %1.6%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)2.27%
DP-46.29%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.53%
Min EPS beat(2)-11.57%
Max EPS beat(2)10.5%
EPS beat(4)3
Avg EPS beat(4)3.35%
Min EPS beat(4)-11.57%
Max EPS beat(4)10.5%
EPS beat(8)7
Avg EPS beat(8)5.89%
EPS beat(12)11
Avg EPS beat(12)9.82%
EPS beat(16)14
Avg EPS beat(16)9.96%
Revenue beat(2)1
Avg Revenue beat(2)0.88%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)1.8%
Revenue beat(4)2
Avg Revenue beat(4)-3.49%
Min Revenue beat(4)-22.24%
Max Revenue beat(4)6.54%
Revenue beat(8)4
Avg Revenue beat(8)-0.89%
Revenue beat(12)8
Avg Revenue beat(12)7.16%
Revenue beat(16)10
Avg Revenue beat(16)6.76%
PT rev (1m)0.06%
PT rev (3m)2.1%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.16%
EPS NY rev (1m)3.02%
EPS NY rev (3m)-5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)-7.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.35 | ||
| Fwd PE | 10.87 | ||
| P/S | 1.54 | ||
| P/FCF | 8.92 | ||
| P/OCF | 8.92 | ||
| P/B | 1.02 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 12.41 |
EPS(TTM)5.95
EY8.1%
EPS(NY)6.76
Fwd EY9.2%
FCF(TTM)8.24
FCFY11.22%
OCF(TTM)8.24
OCFY11.22%
SpS47.66
BVpS72.2
TBVpS66.67
PEG (NY)N/A
PEG (5Y)0.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.32% | ||
| ROE | -4.97% | ||
| ROCE | 0.46% | ||
| ROIC | 0.37% | ||
| ROICexc | 0.37% | ||
| ROICexgc | 0.53% | ||
| OM | 2.62% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM | 17.29% |
ROA(3y)1.45%
ROA(5y)0.79%
ROE(3y)16.18%
ROE(5y)8.92%
ROIC(3y)1.54%
ROIC(5y)1.21%
ROICexc(3y)1.54%
ROICexc(5y)1.21%
ROICexgc(3y)2.3%
ROICexgc(5y)1.79%
ROCE(3y)1.95%
ROCE(5y)1.53%
ROICexcg growth 3Y18.66%
ROICexcg growth 5YN/A
ROICexc growth 3Y18.68%
ROICexc growth 5YN/A
OM growth 3Y13.07%
OM growth 5Y18.95%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.96 | ||
| Debt/EBITDA | 2.31 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 0.87 | ||
| Cash Conversion | 118.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.16%
ROIC/WACC0.05
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)91.16%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-6.3%
EPS 3Y39.08%
EPS 5Y43.35%
EPS Q2Q%-23.6%
EPS Next Y-24.52%
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
EPS Next 5Y-0.1%
Revenue 1Y (TTM)-23.08%
Revenue growth 3Y2.18%
Revenue growth 5Y-0.42%
Sales Q2Q%-47.15%
Revenue Next Year-47.45%
Revenue Next 2Y-26.49%
Revenue Next 3Y-17.43%
Revenue Next 5Y2.57%
EBIT growth 1Y-87.85%
EBIT growth 3Y15.53%
EBIT growth 5Y18.45%
EBIT Next Year27.04%
EBIT Next 3Y13.11%
EBIT Next 5YN/A
FCF growth 1Y5.72%
FCF growth 3Y81.86%
FCF growth 5Y152.35%
OCF growth 1Y5.72%
OCF growth 3Y81.86%
OCF growth 5Y152.35%