AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIG - US0268747849 - Common Stock
74.03 USD
+0.99 (+1.36%)
74.03 USD
0 (0%)
Overall AIG gets a fundamental rating of 4 out of 10. We evaluated AIG against 146 industry peers in the Insurance industry. There are concerns on the financial health of AIG while its profitability can be described as average. AIG has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- AIG had positive earnings in the past year.
- 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.
- AIG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- AIG's Return On Assets of 1.99% is in line compared to the rest of the industry. AIG outperforms 50.00% of its industry peers.
- The Return On Equity of AIG (7.93%) is worse than 68.49% of its industry peers.
- AIG's Return On Invested Capital of 1.98% is in line compared to the rest of the industry. AIG outperforms 47.95% of its industry peers.
- AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is significantly below the industry average of 15.11%.
- The 3 year average ROIC (1.44%) for AIG is below the current ROIC(1.98%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 11.89%, AIG is in the better half of the industry, outperforming 65.07% of the companies in the same industry.
- AIG's Operating Margin of 16.78% is fine compared to the rest of the industry. AIG outperforms 67.12% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AIG is destroying value.
- The number of shares outstanding for AIG has been reduced compared to 1 year ago.
- AIG has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, AIG has a worse debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of AIG is 3.20, which is a good value as it means it would take AIG, 3.20 years of fcf income to pay off all of its debts.
- AIG has a Debt to FCF ratio (3.20) which is in line with 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.
- With a decent Debt to Equity ratio value of 0.22, AIG is doing good in the industry, outperforming 65.75% 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
WACC7.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 8.91% over the past year.
- AIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.49% yearly.
- The Revenue has been growing slightly by 3.02% in the past year.
- The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
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
- Based on estimates for the next years, AIG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.98% on average per year.
- 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 Y30.02%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
EPS Next 5Y10.98%
Revenue Next Year3.25%
Revenue Next 2Y4.97%
Revenue Next 3Y5.66%
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.
- 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 reasonably with a Price/Earnings ratio of 11.42.
- Compared to the rest of the industry, the Price/Earnings ratio of AIG is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.54. AIG is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 9.28, the valuation of AIG can be described as reasonable.
- Based on the Price/Forward Earnings ratio, AIG is valued a bit cheaper than 63.01% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. AIG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 9.28 |
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 72.60% of the companies listed in the same industry.
- 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 | 13.83 | ||
| EV/EBITDA | 5.83 |
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 17.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.38
PEG (5Y)3.28
EPS Next 2Y20.86%
EPS Next 3Y17.66%
5. Dividend
5.1 Amount
- AIG has a Yearly Dividend Yield of 2.31%. Purely for dividend investing, there may be better candidates out there.
- AIG's Dividend Yield is a higher than the industry average which is at 2.42.
- Compared to an average S&P500 Dividend Yield of 1.92, AIG pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
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.
- The dividend of AIG decreased recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- AIG pays out 30.01% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.01%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
74.03
+0.99 (+1.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-09 2026-02-09/amc
Inst Owners101.07%
Inst Owner Change-0.09%
Ins Owners0.21%
Ins Owner Change-0.59%
Market Cap39.95B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts70.77
Price Target89.41 (20.78%)
Short Float %2.64%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.31% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.01%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)-0.28%
PT rev (3m)-0.07%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)2.07%
EPS NY rev (1m)0.4%
EPS NY rev (3m)10.19%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.42 | ||
| Fwd PE | 9.28 | ||
| P/S | 1.46 | ||
| P/FCF | 13.83 | ||
| P/OCF | 13.83 | ||
| P/B | 0.97 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 5.83 |
EPS(TTM)6.48
EY8.75%
EPS(NY)7.98
Fwd EY10.77%
FCF(TTM)5.35
FCFY7.23%
OCF(TTM)5.35
OCFY7.23%
SpS50.78
BVpS76.14
TBVpS69.77
PEG (NY)0.38
PEG (5Y)3.28
Graham Number105.36
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
WACC7.39%
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 Y30.02%
EPS Next 2Y20.86%
EPS Next 3Y17.66%
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 Year3.25%
Revenue Next 2Y4.97%
Revenue Next 3Y5.66%
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.
Can you provide the valuation status for AMERICAN INTERNATIONAL GROUP?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.
How profitable is AMERICAN INTERNATIONAL GROUP (AIG) stock?
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 11.42 and the Price/Book (PB) ratio is 0.97.
Can you provide the expected EPS growth for AIG stock?
The Earnings per Share (EPS) of AMERICAN INTERNATIONAL GROUP (AIG) is expected to grow by 30.02% in the next year.