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AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis

NYSE:AIG - New York Stock Exchange, Inc. - US0268747849 - Common Stock - Currency: USD

85.59  +1 (+1.18%)

After market: 85.2 -0.39 (-0.46%)

Fundamental Rating

3

Overall AIG gets a fundamental rating of 3 out of 10. We evaluated AIG against 144 industry peers in the Insurance industry. AIG may be in some trouble as it scores bad on both profitability and health. AIG is valued expensive and it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

AIG had positive earnings in the past year.
AIG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AIG reported negative net income in multiple years.
Each year in the past 5 years AIG had a positive operating cash flow.
AIG Yearly Net Income VS EBIT VS OCF VS FCFAIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

Looking at the Return On Assets, with a value of -1.19%, AIG is doing worse than 86.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of -4.64%, AIG is doing worse than 88.19% of the companies in the same industry.
AIG has a Return On Invested Capital of 1.57%. This is comparable to the rest of the industry: AIG outperforms 45.14% of its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.43%. This is below the industry average of 4.07%.
The 3 year average ROIC (1.43%) for AIG is below the current ROIC(1.57%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA -1.19%
ROE -4.64%
ROIC 1.57%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
AIG Yearly ROA, ROE, ROICAIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

AIG has a better Operating Margin (13.22%) than 61.81% of its industry peers.
In the last couple of years the Operating Margin of AIG has remained more or less at the same level.
AIG does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM 13.22%
PM (TTM) N/A
GM N/A
OM growth 3Y-15.59%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
AIG Yearly Profit, Operating, Gross MarginsAIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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2

2. Health

2.1 Basic Checks

AIG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, AIG has less shares outstanding
Compared to 5 years ago, AIG has less shares outstanding
The debt/assets ratio for AIG is higher compared to a year ago.
AIG Yearly Shares OutstandingAIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
AIG Yearly Total Debt VS Total AssetsAIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

The Debt to FCF ratio of AIG is 3.24, which is a good value as it means it would take AIG, 3.24 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.24, AIG is not doing good in the industry: 61.11% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.21 indicates that AIG is not too dependend on debt financing.
AIG has a better Debt to Equity ratio (0.21) than 71.53% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.24
Altman-Z N/A
ROIC/WACC0.18
WACC8.98%
AIG Yearly LT Debt VS Equity VS FCFAIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AIG Yearly Current Assets VS Current LiabilitesAIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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3

3. Growth

3.1 Past

The earnings per share for AIG have decreased strongly by -29.77% in the last year.
Measured over the past 5 years, AIG shows a small growth in Earnings Per Share. The EPS has been growing by 3.49% on average per year.
AIG shows a decrease in Revenue. In the last year, the revenue decreased by -2.58%.
The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
EPS 1Y (TTM)-29.77%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-33.9%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-45.57%

3.2 Future

The Earnings Per Share is expected to grow by 11.00% on average over the next years. This is quite good.
Based on estimates for the next years, AIG will show a small growth in Revenue. The Revenue will grow by 4.77% on average per year.
EPS Next Y17.08%
EPS Next 2Y20.29%
EPS Next 3Y18.35%
EPS Next 5Y11%
Revenue Next Year4.9%
Revenue Next 2Y4.23%
Revenue Next 3Y5.18%
Revenue Next 5Y4.77%

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 accelerating: in the next years the growth will be better than in the last years.
AIG Yearly Revenue VS EstimatesAIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
AIG Yearly EPS VS EstimatesAIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

AIG is valuated rather expensively with a Price/Earnings ratio of 17.61.
Compared to the rest of the industry, the Price/Earnings ratio of AIG indicates a slightly more expensive valuation: AIG is more expensive than 60.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.15, AIG is valued a bit cheaper.
The Price/Forward Earnings ratio is 10.83, which indicates a very decent valuation of AIG.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
The average S&P500 Price/Forward Earnings ratio is at 21.60. AIG is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.61
Fwd PE 10.83
AIG Price Earnings VS Forward Price EarningsAIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIG indicates a somewhat cheap valuation: AIG is cheaper than 63.89% of the companies listed in the same industry.
63.89% of the companies in the same industry are cheaper than AIG, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.28
EV/EBITDA 7.84
AIG Per share dataAIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AIG's earnings are expected to grow with 18.35% in the coming years.
PEG (NY)1.03
PEG (5Y)5.05
EPS Next 2Y20.29%
EPS Next 3Y18.35%

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4

5. Dividend

5.1 Amount

AIG has a Yearly Dividend Yield of 2.12%.
AIG's Dividend Yield is comparable with the industry average which is at 3.51.
Compared to an average S&P500 Dividend Yield of 2.42, AIG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.12%

5.2 History

The dividend of AIG has a limited annual growth rate of 3.87%.
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)3.87%
Div Incr Years1
Div Non Decr Years1
AIG Yearly Dividends per shareAIG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

The earnings of AIG are negative and hence is the payout ratio. AIG will probably not be able to sustain this dividend level.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-51.66%
EPS Next 2Y20.29%
EPS Next 3Y18.35%
AIG Yearly Income VS Free CF VS DividendAIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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AMERICAN INTERNATIONAL GROUP

NYSE:AIG (6/30/2025, 5:20:40 PM)

After market: 85.2 -0.39 (-0.46%)

85.59

+1 (+1.18%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)05-01 2025-05-01/amc
Earnings (Next)07-29 2025-07-29/amc
Inst Owners95.85%
Inst Owner Change-0.86%
Ins Owners0.24%
Ins Owner Change6.56%
Market Cap49.33B
Analysts74.78
Price Target91.75 (7.2%)
Short Float %1.84%
Short Ratio2.59
Dividend
Industry RankSector Rank
Dividend Yield 2.12%
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP-51.66%
Div Incr Years1
Div Non Decr Years1
Ex-Date06-13 2025-06-13 (0.45)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.71%
Min EPS beat(2)4.69%
Max EPS beat(2)14.73%
EPS beat(4)3
Avg EPS beat(4)4.59%
Min EPS beat(4)-11.57%
Max EPS beat(4)14.73%
EPS beat(8)7
Avg EPS beat(8)6.06%
EPS beat(12)11
Avg EPS beat(12)8.06%
EPS beat(16)15
Avg EPS beat(16)10.7%
Revenue beat(2)2
Avg Revenue beat(2)5.26%
Min Revenue beat(2)2.88%
Max Revenue beat(2)7.63%
Revenue beat(4)3
Avg Revenue beat(4)3.07%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)6
Avg Revenue beat(8)1.37%
Revenue beat(12)8
Avg Revenue beat(12)-11.48%
Revenue beat(16)11
Avg Revenue beat(16)-5.38%
PT rev (1m)1.43%
PT rev (3m)5.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.39%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.13%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)3.04%
Valuation
Industry RankSector Rank
PE 17.61
Fwd PE 10.83
P/S 1.81
P/FCF 18.28
P/OCF 18.28
P/B 1.19
P/tB 1.3
EV/EBITDA 7.84
EPS(TTM)4.86
EY5.68%
EPS(NY)7.9
Fwd EY9.23%
FCF(TTM)4.68
FCFY5.47%
OCF(TTM)4.68
OCFY5.47%
SpS47.32
BVpS71.89
TBVpS65.99
PEG (NY)1.03
PEG (5Y)5.05
Profitability
Industry RankSector Rank
ROA -1.19%
ROE -4.64%
ROCE 2.25%
ROIC 1.57%
ROICexc 1.59%
ROICexgc 2.32%
OM 13.22%
PM (TTM) N/A
GM N/A
FCFM 9.89%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
ROICexc(3y)1.44%
ROICexc(5y)1.22%
ROICexgc(3y)2.11%
ROICexgc(5y)1.79%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexcg growth 3Y3.35%
ROICexcg growth 5Y12.63%
ROICexc growth 3Y4.86%
ROICexc growth 5Y12.01%
OM growth 3Y-15.59%
OM growth 5Y-0.01%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 3.24
Debt/EBITDA 1.2
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 4.81
Cash Conversion 37.71%
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC8.98%
ROIC/WACC0.18
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-29.77%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-33.9%
EPS Next Y17.08%
EPS Next 2Y20.29%
EPS Next 3Y18.35%
EPS Next 5Y11%
Revenue 1Y (TTM)-2.58%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-45.57%
Revenue Next Year4.9%
Revenue Next 2Y4.23%
Revenue Next 3Y5.18%
Revenue Next 5Y4.77%
EBIT growth 1Y-10.46%
EBIT growth 3Y-32.58%
EBIT growth 5Y-11.79%
EBIT Next Year134.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.25%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-41.25%
OCF growth 3Y-19.28%
OCF growth 5YN/A