AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
NYSE:AIG - New York Stock Exchange, Inc. - US0268747849 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to AIG. AIG was compared to 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 correctly, but it does not seem to be growing.
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.
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
With a Return On Assets value of -1.32%, AIG is not doing good in the industry: 85.21% of the companies in the same industry are doing better.
AIG has a worse Return On Equity (-4.97%) than 81.69% 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 66.90% 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 4.61%.
| 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's Operating Margin of 2.62% is on the low side compared to the rest of the industry. AIG is outperformed by 78.17% of its industry peers.
AIG's Operating Margin has improved in the last couple of years.
AIG does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIG is destroying value.
Compared to 1 year ago, AIG has less shares outstanding
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 51.41% of its industry peers.
AIG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
AIG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.96 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.18%
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%.
Measured over the past years, AIG shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.35% on average per year.
The Revenue for AIG has decreased by -23.08% in the past year. This is quite bad
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
Based on estimates for the next years, AIG will show a decrease in Earnings Per Share. The EPS will decrease by -0.10% on average per year.
AIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.57% yearly.
EPS Next Y-24.52%
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
EPS Next 5Y-0.1%
Revenue Next Year-47.22%
Revenue Next 2Y-26.32%
Revenue Next 3Y-17.33%
Revenue Next 5Y2.57%
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 decreasing.
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
With a Price/Earnings ratio of 12.67, AIG is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as AIG.
The average S&P500 Price/Earnings ratio is at 28.28. AIG is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.15 indicates a reasonable valuation of AIG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AIG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of AIG to the average of the S&P500 Index (91.29), we can say AIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 11.15 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.15 | ||
| EV/EBITDA | 12.77 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-0.14%
EPS Next 3Y5.32%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is comparable with the industry average which is at 3.10.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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 (1/29/2025, 8:04:00 PM)
After market: 75.41 0 (0%)75.41
+0.24 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners94.02%
Inst Owner Change0.09%
Ins Owners0.19%
Ins Owner Change3.06%
Market Cap47.04B
Analysts76.52
Price Target86.51 (14.72%)
Short Float %1.3%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.44
Dividend Growth(5Y)2.27%
DP-46.29%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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%
PT rev (3m)0.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.16%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.22%
Revenue NY rev (1m)0.43%
Revenue NY rev (3m)-6.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 11.15 | ||
| P/S | 1.58 | ||
| P/FCF | 9.15 | ||
| P/OCF | 9.15 | ||
| P/B | 1.04 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 12.77 |
EPS(TTM)5.95
EY7.89%
EPS(NY)6.76
Fwd EY8.97%
FCF(TTM)8.24
FCFY10.93%
OCF(TTM)8.24
OCFY10.93%
SpS47.66
BVpS72.2
TBVpS66.67
PEG (NY)N/A
PEG (5Y)0.29
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
WACC7.18%
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-47.22%
Revenue Next 2Y-26.32%
Revenue Next 3Y-17.33%
Revenue Next 5Y2.57%
EBIT growth 1Y-87.85%
EBIT growth 3Y15.53%
EBIT growth 5Y18.45%
EBIT Next Year17.24%
EBIT Next 3Y11.26%
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%