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AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis

NYSE:AIG - New York Stock Exchange, Inc. - US0268747849 - Common Stock - Currency: USD

82.59  -0.35 (-0.42%)

After market: 82.6 +0.01 (+0.01%)

Fundamental Rating

3

AIG gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of AIG have multiple concerns. AIG is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year AIG was profitable.
AIG had a positive operating cash flow in the past year.
In multiple years AIG reported negative net income over the last 5 years.
AIG had a positive operating cash flow in each of the past 5 years.
AIG Yearly Net Income VS EBIT VS OCF VS FCFAIG Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B 15B

1.2 Ratios

AIG has a Return On Assets of -0.88%. This is amonst the worse of the industry: AIG underperforms 86.62% of its industry peers.
AIG has a Return On Equity of -3.35%. This is amonst the worse of the industry: AIG underperforms 81.69% of its industry peers.
AIG's Return On Invested Capital of 1.57% is in line compared to the rest of the industry. AIG outperforms 45.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AIG is below the industry average of 4.54%.
The last Return On Invested Capital (1.57%) for AIG is above the 3 year average (1.43%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.88%
ROE -3.35%
ROIC 1.57%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
AIG Yearly ROA, ROE, ROICAIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20

1.3 Margins

With a Operating Margin value of 13.44%, AIG perfoms like the industry average, outperforming 59.86% of the companies in the same industry.
AIG's Operating Margin has been stable 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 RankSector Rank
OM 13.44%
PM (TTM) N/A
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
AIG Yearly Profit, Operating, Gross MarginsAIG Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20

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3

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.
Compared to 5 years ago, AIG has less shares outstanding
AIG has a worse debt/assets ratio than last year.
AIG Yearly Shares OutstandingAIG Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
AIG Yearly Total Debt VS Total AssetsAIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100B 200B 300B 400B 500B

2.2 Solvency

AIG has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as AIG would need 2.73 years to pay back of all of its debts.
AIG has a Debt to FCF ratio (2.73) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.21 indicates that AIG is not too dependend on debt financing.
AIG has a Debt to Equity ratio of 0.21. This is in the better half of the industry: AIG outperforms 70.42% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.73
Altman-Z N/A
ROIC/WACC0.2
WACC7.71%
AIG Yearly LT Debt VS Equity VS FCFAIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20B 40B 60B 80B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AIG Yearly Current Assets VS Current LiabilitesAIG Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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3

3. Growth

3.1 Past

AIG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.47%.
AIG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.49% yearly.
Looking at the last year, AIG shows a very negative growth in Revenue. The Revenue has decreased by -27.31% in the last year.
The Revenue for AIG have been decreasing by -11.79% on average. This is quite bad
EPS 1Y (TTM)-19.47%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-27.37%
Revenue 1Y (TTM)-27.31%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-26.96%

3.2 Future

The Earnings Per Share is expected to decrease by -4.30% on average over the next years.
Based on estimates for the next years, AIG will show a quite strong growth in Revenue. The Revenue will grow by 10.41% on average per year.
EPS Next Y14.62%
EPS Next 2Y20.65%
EPS Next 3Y18.05%
EPS Next 5Y-4.3%
Revenue Next Year1.52%
Revenue Next 2Y3.07%
Revenue Next 3Y2.81%
Revenue Next 5Y10.41%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
AIG Yearly Revenue VS EstimatesAIG Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
AIG Yearly EPS VS EstimatesAIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

AIG is valuated correctly with a Price/Earnings ratio of 15.13.
AIG's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of AIG to the average of the S&P500 Index (29.75), we can say AIG is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.20, AIG is valued correctly.
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 (22.44), we can say AIG is valued slightly cheaper.
Industry RankSector Rank
PE 15.13
Fwd PE 13.2
AIG Price Earnings VS Forward Price EarningsAIG Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AIG is valued a bit cheaper than the industry average as 68.31% of the companies are valued more expensively.
AIG's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.29
EV/EBITDA 8.03
AIG Per share dataAIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

AIG's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as AIG's earnings are expected to grow with 18.05% in the coming years.
PEG (NY)1.03
PEG (5Y)4.34
EPS Next 2Y20.65%
EPS Next 3Y18.05%

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3

5. Dividend

5.1 Amount

AIG has a Yearly Dividend Yield of 2.01%.
Compared to an average industry Dividend Yield of 3.06, AIG has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, AIG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.01%

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
AIG Yearly Dividends per shareAIG Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

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-71.81%
EPS Next 2Y20.65%
EPS Next 3Y18.05%
AIG Yearly Income VS Free CF VS DividendAIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5B -5B 10B

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AMERICAN INTERNATIONAL GROUP

NYSE:AIG (3/3/2025, 8:11:31 PM)

After market: 82.6 +0.01 (+0.01%)

82.59

-0.35 (-0.42%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-11 2025-02-11/amc
Earnings (Next)04-29 2025-04-29/amc
Inst Owners95.43%
Inst Owner Change-4.83%
Ins Owners0.21%
Ins Owner Change13.95%
Market Cap50.06B
Analysts75
Price Target86.14 (4.3%)
Short Float %1.6%
Short Ratio2.35
Dividend
Industry RankSector Rank
Dividend Yield 2.01%
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP-71.81%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-17 2025-03-17 (0.4)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.6%
Min EPS beat(2)4.69%
Max EPS beat(2)10.5%
EPS beat(4)3
Avg EPS beat(4)2.49%
Min EPS beat(4)-11.57%
Max EPS beat(4)10.5%
EPS beat(8)7
Avg EPS beat(8)5.95%
EPS beat(12)11
Avg EPS beat(12)7.58%
EPS beat(16)15
Avg EPS beat(16)10.26%
Revenue beat(2)1
Avg Revenue beat(2)3.79%
Min Revenue beat(2)-0.04%
Max Revenue beat(2)7.63%
Revenue beat(4)3
Avg Revenue beat(4)3.98%
Min Revenue beat(4)-0.04%
Max Revenue beat(4)7.63%
Revenue beat(8)5
Avg Revenue beat(8)0.2%
Revenue beat(12)8
Avg Revenue beat(12)6.17%
Revenue beat(16)11
Avg Revenue beat(16)7.98%
PT rev (1m)0.75%
PT rev (3m)-0.43%
EPS NQ rev (1m)-33.88%
EPS NQ rev (3m)-34.51%
EPS NY rev (1m)-6.56%
EPS NY rev (3m)-7.06%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)-1.3%
Revenue NY rev (3m)-0.83%
Valuation
Industry RankSector Rank
PE 15.13
Fwd PE 13.2
P/S 1.88
P/FCF 15.29
P/OCF 15.29
P/B 1.18
P/tB 1.28
EV/EBITDA 8.03
EPS(TTM)5.46
EY6.61%
EPS(NY)6.26
Fwd EY7.58%
FCF(TTM)5.4
FCFY6.54%
OCF(TTM)5.4
OCFY6.54%
SpS43.99
BVpS70.16
TBVpS64.59
PEG (NY)1.03
PEG (5Y)4.34
Profitability
Industry RankSector Rank
ROA -0.88%
ROE -3.35%
ROCE 2.25%
ROIC 1.57%
ROICexc 1.58%
ROICexgc 2.28%
OM 13.44%
PM (TTM) N/A
GM N/A
FCFM 12.27%
ROA(3y)0.58%
ROA(5y)0.49%
ROE(3y)9.84%
ROE(5y)7.24%
ROIC(3y)1.43%
ROIC(5y)1.21%
ROICexc(3y)1.44%
ROICexc(5y)1.22%
ROICexgc(3y)2.11%
ROICexgc(5y)1.79%
ROCE(3y)2.06%
ROCE(5y)1.74%
ROICexcg growth 3Y3.35%
ROICexcg growth 5Y12.63%
ROICexc growth 3Y4.86%
ROICexc growth 5Y12.01%
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-Score5
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.73
Debt/EBITDA 1.22
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 4.18
Cash Conversion 45.59%
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score5
WACC7.71%
ROIC/WACC0.2
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)-19.47%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%-27.37%
EPS Next Y14.62%
EPS Next 2Y20.65%
EPS Next 3Y18.05%
EPS Next 5Y-4.3%
Revenue 1Y (TTM)-27.31%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-26.96%
Revenue Next Year1.52%
Revenue Next 2Y3.07%
Revenue Next 3Y2.81%
Revenue Next 5Y10.41%
EBIT growth 1Y-1.16%
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-47.57%
FCF growth 3Y-19.28%
FCF growth 5YN/A
OCF growth 1Y-47.57%
OCF growth 3Y-19.28%
OCF growth 5YN/A