AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - NYSE:AIG - US0268747849 - Common Stock
75.75 USD
-1.32 (-1.71%)
Taking everything into account, AIG scores 4 out of 10 in our fundamental rating. AIG was compared to 147 industry peers in the Insurance industry. While AIG is still in line with the averages on profitability rating, there are concerns on its financial health. AIG has a correct valuation and a medium growth rate.
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.
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.
1.2 Ratios
AIG's Return On Assets of 1.99% is in line compared to the rest of the industry. AIG outperforms 48.30% of its industry peers.
AIG's Return On Equity of 7.93% is on the low side compared to the rest of the industry. AIG is outperformed by 68.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.98%, AIG is in line with its industry, outperforming 48.30% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AIG is below the industry average of 4.39%.
The last Return On Invested Capital (1.98%) for AIG is above the 3 year average (1.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROIC | 1.98% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
1.3 Margins
The Profit Margin of AIG (11.89%) is better than 68.71% of its industry peers.
With a decent Operating Margin value of 16.78%, AIG is doing good in the industry, outperforming 72.11% of the companies in the same industry.
In the last couple of years the Operating Margin of AIG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.78% | ||
| PM (TTM) | 11.89% | ||
| 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIG is destroying value.
Compared to 1 year ago, AIG has less shares outstanding
Compared to 5 years ago, AIG has less shares outstanding
Compared to 1 year ago, AIG has a worse debt to assets ratio.
2.2 Solvency
AIG has a debt to FCF ratio of 3.20. This is a good value and a sign of high solvency as AIG would need 3.20 years to pay back of all of its debts.
The Debt to FCF ratio of AIG (3.20) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, AIG is in the better half of the industry, outperforming 67.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.41%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.91%, which is quite good.
AIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.49% yearly.
AIG shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
Measured over the past years, AIG shows a very negative growth in Revenue. The Revenue has been decreasing by -11.79% on average per year.
EPS 1Y (TTM)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
3.2 Future
AIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.98% yearly.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
Revenue Next 5Y4.77%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.69, the valuation of AIG can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as AIG.
The average S&P500 Price/Earnings ratio is at 25.47. AIG is valued rather cheaply when compared to this.
AIG is valuated reasonably with a Price/Forward Earnings ratio of 9.65.
AIG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of AIG to the average of the S&P500 Index (35.42), we can say AIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 9.65 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIG is cheaper than 72.79% of the companies in the same industry.
AIG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.53 | ||
| EV/EBITDA | 6.08 |
4.3 Compensation for Growth
AIG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AIG's earnings are expected to grow with 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)3.35
EPS Next 2Y19.91%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.30%, AIG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.51, AIG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
5.2 History
The dividend of AIG has a limited annual growth rate of 3.87%.
AIG has paid a dividend for at least 10 years, which is a reliable track record.
AIG has decreased its dividend recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.01% of the earnings are spent on dividend by AIG. This is a low number and sustainable payout ratio.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.01%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
NYSE:AIG (11/19/2025, 2:58:23 PM)
75.75
-1.32 (-1.71%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change3.05%
Ins Owners0.25%
Ins Owner Change-2.04%
Market Cap41.97B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72.5
Price Target90.45 (19.41%)
Short Float %2.54%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.3% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.69%
Min EPS beat(2)12.13%
Max EPS beat(2)27.25%
EPS beat(4)4
Avg EPS beat(4)14.7%
Min EPS beat(4)4.69%
Max EPS beat(4)27.25%
EPS beat(8)7
Avg EPS beat(8)9.03%
EPS beat(12)11
Avg EPS beat(12)8.83%
EPS beat(16)15
Avg EPS beat(16)11.04%
Revenue beat(2)1
Avg Revenue beat(2)-2.08%
Min Revenue beat(2)-7.7%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)1.59%
Min Revenue beat(4)-7.7%
Max Revenue beat(4)7.63%
Revenue beat(8)5
Avg Revenue beat(8)-0.95%
Revenue beat(12)7
Avg Revenue beat(12)-15.59%
Revenue beat(16)11
Avg Revenue beat(16)-5.88%
PT rev (1m)1.09%
PT rev (3m)-1.41%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)2.18%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.69 | ||
| Fwd PE | 9.65 | ||
| P/S | 1.53 | ||
| P/FCF | 14.53 | ||
| P/OCF | 14.53 | ||
| P/B | 1.02 | ||
| P/tB | 1.11 | ||
| EV/EBITDA | 6.08 |
EPS(TTM)6.48
EY8.55%
EPS(NY)7.85
Fwd EY10.36%
FCF(TTM)5.21
FCFY6.88%
OCF(TTM)5.21
OCFY6.88%
SpS49.46
BVpS74.16
TBVpS67.95
PEG (NY)0.57
PEG (5Y)3.35
Graham Number103.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.99% | ||
| ROE | 7.93% | ||
| ROCE | 2.84% | ||
| ROIC | 1.98% | ||
| ROICexc | 2% | ||
| ROICexgc | 2.91% | ||
| OM | 16.78% | ||
| PM (TTM) | 11.89% | ||
| GM | N/A | ||
| FCFM | 10.54% |
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.44%
ROIC(5y)1.21%
ROICexc(3y)1.45%
ROICexc(5y)1.22%
ROICexgc(3y)2.12%
ROICexgc(5y)1.8%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexgc growth 3Y3.84%
ROICexgc growth 5Y12.95%
ROICexc growth 3Y5.2%
ROICexc growth 5Y12.23%
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-Score7
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 8.43 | ||
| Cash Conversion | 35.36% | ||
| Profit Quality | 88.62% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.41%
ROIC/WACC0.27
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)8.91%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%78.86%
EPS Next Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-5.93%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
Revenue Next 5Y4.77%
EBIT growth 1Y41.53%
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-33.35%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-33.35%
OCF growth 3Y-19.28%
OCF growth 5YN/A
AMERICAN INTERNATIONAL GROUP / AIG FAQ
What is the fundamental rating for AIG stock?
ChartMill assigns a fundamental rating of 4 / 10 to AIG.
What is the valuation status for AIG stock?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.
Can you provide the profitability details for AMERICAN INTERNATIONAL GROUP?
AMERICAN INTERNATIONAL GROUP (AIG) has a profitability rating of 4 / 10.
What is the valuation of AMERICAN INTERNATIONAL GROUP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN INTERNATIONAL GROUP (AIG) is 11.69 and the Price/Book (PB) ratio is 1.02.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.