AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - NYSE:AIG - US0268747849 - Common Stock
78.15 USD
-0.24 (-0.31%)
AIG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 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.
In multiple years AIG reported negative net income over the last 5 years.
In the past 5 years AIG always reported a positive cash flow from operatings.
1.2 Ratios
AIG's Return On Assets of 1.93% is in line compared to the rest of the industry. AIG outperforms 48.30% of its industry peers.
The Return On Equity of AIG (7.71%) is worse than 60.54% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.94%, AIG is in line with its industry, outperforming 46.26% of the companies in the same industry.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is below the industry average of 4.49%.
The 3 year average ROIC (1.44%) for AIG is below the current ROIC(1.94%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.71% | ||
| ROIC | 1.94% |
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
With a decent Profit Margin value of 11.51%, AIG is doing good in the industry, outperforming 69.39% of the companies in the same industry.
AIG has a better Operating Margin (16.38%) than 70.75% 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 | 16.38% | ||
| PM (TTM) | 11.51% | ||
| 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.
Compared to 1 year ago, AIG has less shares outstanding
AIG has less shares outstanding than it did 5 years ago.
AIG has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AIG is 2.83, which is a good value as it means it would take AIG, 2.83 years of fcf income to pay off all of its debts.
AIG has a Debt to FCF ratio of 2.83. This is comparable to the rest of the industry: AIG outperforms 48.98% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
AIG has a better Debt to Equity ratio (0.22) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.26
WACC7.37%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.95%.
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.
Looking at the last year, AIG shows a small growth in Revenue. The Revenue has grown by 2.53% in the last year.
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)-12.95%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%56.03%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%8.09%
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.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y20.57%
EPS Next 2Y19.8%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue Next Year4.47%
Revenue Next 2Y4.16%
Revenue Next 3Y4.51%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.18, AIG is valued correctly.
AIG's Price/Earnings is on the same level as the industry average.
AIG is valuated rather cheaply when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 9.97, the valuation of AIG can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
AIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 9.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than 71.43% 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 | 13.24 | ||
| EV/EBITDA | 6.24 |
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.
A more expensive valuation may be justified as AIG's earnings are expected to grow with 17.39% in the coming years.
PEG (NY)0.69
PEG (5Y)4.07
EPS Next 2Y19.8%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.28%.
Compared to an average industry Dividend Yield of 3.26, AIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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.
The dividend of AIG decreased recently.
Dividend Growth(5Y)3.87%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
30.82% of the earnings are spent on dividend by AIG. This is a low number and sustainable payout ratio.
The dividend of AIG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.82%
EPS Next 2Y19.8%
EPS Next 3Y17.39%
NYSE:AIG (10/29/2025, 1:26:09 PM)
78.15
-0.24 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change0%
Ins Owners0.25%
Ins Owner Change-3.01%
Market Cap43.30B
Revenue(TTM)27.80B
Net Income(TTM)3.20B
Analysts72.5
Price Target89.47 (14.48%)
Short Float %2.25%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.82%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.43%
Min EPS beat(2)12.13%
Max EPS beat(2)14.73%
EPS beat(4)4
Avg EPS beat(4)10.51%
Min EPS beat(4)4.69%
Max EPS beat(4)14.73%
EPS beat(8)7
Avg EPS beat(8)6.42%
EPS beat(12)11
Avg EPS beat(12)8.45%
EPS beat(16)15
Avg EPS beat(16)9.89%
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)2.88%
Max Revenue beat(2)3.53%
Revenue beat(4)3
Avg Revenue beat(4)3.5%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)6
Avg Revenue beat(8)0.1%
Revenue beat(12)8
Avg Revenue beat(12)-12.87%
Revenue beat(16)12
Avg Revenue beat(16)-4.78%
PT rev (1m)0%
PT rev (3m)-2.48%
EPS NQ rev (1m)7.52%
EPS NQ rev (3m)8.34%
EPS NY rev (1m)2.18%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.18 | ||
| Fwd PE | 9.97 | ||
| P/S | 1.56 | ||
| P/FCF | 13.24 | ||
| P/OCF | 13.24 | ||
| P/B | 1.04 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 6.24 |
EPS(TTM)5.51
EY7.05%
EPS(NY)7.84
Fwd EY10.03%
FCF(TTM)5.9
FCFY7.55%
OCF(TTM)5.9
OCFY7.55%
SpS50.18
BVpS74.91
TBVpS68.68
PEG (NY)0.69
PEG (5Y)4.07
Graham Number96.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.71% | ||
| ROCE | 2.77% | ||
| ROIC | 1.94% | ||
| ROICexc | 1.96% | ||
| ROICexgc | 2.84% | ||
| OM | 16.38% | ||
| PM (TTM) | 11.51% | ||
| GM | N/A | ||
| FCFM | 11.76% |
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-Score8
Asset Turnover0.17
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Debt/EBITDA | 1.13 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 7.74 | ||
| Cash Conversion | 40.12% | ||
| Profit Quality | 102.19% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.37%
ROIC/WACC0.26
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)-12.95%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%56.03%
EPS Next Y20.57%
EPS Next 2Y19.8%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%8.09%
Revenue Next Year4.47%
Revenue Next 2Y4.16%
Revenue Next 3Y4.51%
Revenue Next 5Y4.77%
EBIT growth 1Y25.19%
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-25.87%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-25.87%
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 5 / 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 14.18 and the Price/Book (PB) ratio is 1.04.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.