AMERICAN INTERNATIONAL GROUP (AIG)
US0268747849 - Common Stock
We assign a fundamental rating of 3 out of 10 to AIG. AIG was compared to 140 industry peers in the Insurance industry. AIG has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
Of the past 5 years AIG 4 years were profitable.
Of the past 5 years AIG 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AIG (-0.40%) is worse than 75.54% of its industry peers.
The Return On Equity of AIG (-1.52%) is worse than 76.26% of its industry peers.
AIG has a Return On Invested Capital (1.80%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIG is below the industry average of 4.27%.
The last Return On Invested Capital (1.80%) for AIG is above the 3 year average (1.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.52% | ||
| ROIC | 1.8% |
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 has a Operating Margin of 10.63%. This is comparable to the rest of the industry: AIG outperforms 51.80% of its industry peers.
AIG's Operating Margin has improved in the last couple of years.
The Profit Margin and Gross Margin are not available for AIG so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.63% | ||
| 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.
AIG has less shares outstanding than it did 1 year ago.
AIG has less shares outstanding than it did 5 years ago.
AIG has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AIG is 1.48, which is an excellent value as it means it would take AIG, only 1.48 years of fcf income to pay off all of its debts.
AIG's Debt to FCF ratio of 1.48 is in line compared to the rest of the industry. AIG outperforms 57.55% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.22, AIG is doing good in the industry, outperforming 68.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | N/A |
ROIC/WACC0.25
WACC7.1%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for AIG have decreased by -6.30% in the last year.
The Earnings Per Share has been growing by 43.35% on average over the past years. This is a very strong growth
AIG shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -14.32%.
The Revenue has been decreasing by -0.42% on average over the past years.
EPS 1Y (TTM)-6.3%
EPS 3Y39.08%
EPS 5Y43.35%
EPS Q2Q%-23.6%
Revenue 1Y (TTM)-14.32%
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.
The Revenue is expected to grow by 2.57% on average over the next years.
EPS Next Y-26.74%
EPS Next 2Y-0.16%
EPS Next 3Y5.8%
EPS Next 5Y-0.1%
Revenue Next Year-47.78%
Revenue Next 2Y-26.69%
Revenue Next 3Y-17.88%
Revenue Next 5Y2.57%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
AIG is valuated correctly with a Price/Earnings ratio of 12.77.
AIG's Price/Earnings ratio is in line with the industry average.
AIG is valuated cheaply when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 11.24, the valuation of AIG can be described as reasonable.
AIG's Price/Forward Earnings ratio is in line with the industry average.
AIG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than 71.94% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AIG indicates a somewhat cheap valuation: AIG is cheaper than 61.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.07 | ||
| EV/EBITDA | 7.47 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.29
EPS Next 2Y-0.16%
EPS Next 3Y5.8%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.11%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.25, AIG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, AIG has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
5.2 History
The dividend of AIG has a limited annual growth rate of 2.27%.
AIG has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.27%
Div Incr Years0
Div Non Decr Years0
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.
DP-154.06%
EPS Next 2Y-0.16%
EPS Next 3Y5.8%
AMERICAN INTERNATIONAL GROUP
NYSE:AIG (11/21/2024, 8:11:31 PM)
After market: 75.98 0 (0%)75.98
+1.32 (+1.77%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.11% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.77 | ||
| Fwd PE | 11.24 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | -1.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.63% | ||
| PM (TTM) | N/A | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.3%
EPS 3Y39.08%
EPS 5Y
EPS Q2Q%
EPS Next Y-26.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.32%
Revenue growth 3Y2.18%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y