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AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis

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

81.14  +0.17 (+0.21%)

After market: 81.14 0 (0%)

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 has a valuation in line with the averages, 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.
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.
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

The Return On Assets of AIG (-0.88%) is worse than 85.31% of its industry peers.
AIG's Return On Equity of -3.35% is on the low side compared to the rest of the industry. AIG is outperformed by 85.31% of its industry peers.
AIG has a Return On Invested Capital (1.57%) which is in line with its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.43%. This is below the industry average of 4.47%.
The 3 year average ROIC (1.43%) for AIG is below the current ROIC(1.57%), indicating increased profibility in the last year.
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

AIG has a better Operating Margin (13.44%) than 60.14% of its industry peers.
AIG's Operating Margin has been stable in the last couple of years.
The Profit Margin and Gross Margin are not available for AIG so they could not be analyzed.
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

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIG is destroying value.
The number of shares outstanding for AIG has been reduced compared to 1 year ago.
The number of shares outstanding for AIG has been reduced compared to 5 years ago.
The debt/assets ratio for AIG is higher compared to a year ago.
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

The Debt to FCF ratio of AIG is 2.73, which is a good value as it means it would take AIG, 2.73 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.73, AIG is in line with its industry, outperforming 41.96% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that AIG is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.21, AIG is doing good in the industry, outperforming 70.63% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.21
Debt/FCF 2.73
Altman-Z N/A
ROIC/WACC0.2
WACC7.7%
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.
The Revenue for AIG has decreased by -27.31% in the past year. This is quite bad
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)-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

AIG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.00% yearly.
The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y14.52%
EPS Next 2Y19.94%
EPS Next 3Y17.61%
EPS Next 5Y11%
Revenue Next Year-0.35%
Revenue Next 2Y2.26%
Revenue Next 3Y2.79%
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.
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

A Price/Earnings ratio of 14.86 indicates a correct valuation of AIG.
AIG's Price/Earnings ratio is in line with the industry average.
AIG is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 12.98, the valuation of AIG can be described as correct.
AIG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, AIG is valued a bit cheaper.
Industry RankSector Rank
PE 14.86
Fwd PE 12.98
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIG indicates a somewhat cheap valuation: AIG is cheaper than 63.64% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIG.
Industry RankSector Rank
P/FCF 14.47
EV/EBITDA 7.62
AIG Per share dataAIG EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The 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 17.61% in the coming years.
PEG (NY)1.02
PEG (5Y)4.26
EPS Next 2Y19.94%
EPS Next 3Y17.61%

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3

5. Dividend

5.1 Amount

AIG has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
AIG's Dividend Yield is comparable with the industry average which is at 3.28.
Compared to the average S&P500 Dividend Yield of 2.52, AIG is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.97%

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.
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

AIG has negative earnings and hence a negative payout ratio. The dividend may be in danger.
AIG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-71.81%
EPS Next 2Y19.94%
EPS Next 3Y17.61%
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 (4/17/2025, 8:04:00 PM)

After market: 81.14 0 (0%)

81.14

+0.17 (+0.21%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-11 2025-02-11/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners95.43%
Inst Owner Change0%
Ins Owners0.21%
Ins Owner Change9.35%
Market Cap47.37B
Analysts75.83
Price Target87.93 (8.37%)
Short Float %2.23%
Short Ratio2.9
Dividend
Industry RankSector Rank
Dividend Yield 1.97%
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)2.83%
PT rev (3m)1.64%
EPS NQ rev (1m)-2.34%
EPS NQ rev (3m)-36.56%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)-7.51%
Revenue NQ rev (1m)-2.02%
Revenue NQ rev (3m)-4.32%
Revenue NY rev (1m)-2.12%
Revenue NY rev (3m)-3.36%
Valuation
Industry RankSector Rank
PE 14.86
Fwd PE 12.98
P/S 1.78
P/FCF 14.47
P/OCF 14.47
P/B 1.11
P/tB 1.21
EV/EBITDA 7.62
EPS(TTM)5.46
EY6.73%
EPS(NY)6.25
Fwd EY7.71%
FCF(TTM)5.61
FCFY6.91%
OCF(TTM)5.61
OCFY6.91%
SpS45.68
BVpS72.84
TBVpS67.06
PEG (NY)1.02
PEG (5Y)4.26
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
WACC7.7%
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 Y14.52%
EPS Next 2Y19.94%
EPS Next 3Y17.61%
EPS Next 5Y11%
Revenue 1Y (TTM)-27.31%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%-26.96%
Revenue Next Year-0.35%
Revenue Next 2Y2.26%
Revenue Next 3Y2.79%
Revenue Next 5Y4.77%
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