AMERICAN INTERNATIONAL GROUP (AIG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIG - US0268747849 - Common Stock
75.96 USD
+0.27 (+0.36%)
75.96 USD
0 (0%)
AIG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 industry peers in the Insurance industry. AIG has a medium profitability rating, but doesn't score so well on its financial health evaluation. AIG has a decent growth rate and is not valued too expensively.
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.
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
The Return On Assets of AIG (1.99%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 7.93%, AIG is doing worse than 68.71% of the companies in the same industry.
AIG has a Return On Invested Capital of 1.98%. This is comparable to the rest of the industry: AIG outperforms 47.62% of its industry peers.
AIG had an Average Return On Invested Capital over the past 3 years of 1.44%. This is below the industry average of 4.37%.
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 68.71% of the companies in the same industry.
The Operating Margin of AIG (16.78%) is better than 72.11% of its industry peers.
AIG's Operating Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, AIG has less shares outstanding
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 comparable to the rest of the industry.
A Debt/Equity ratio of 0.22 indicates that AIG is not too dependend on debt financing.
AIG's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. AIG outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 3.2 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.38%
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.
Looking at the last year, AIG shows a small growth in Revenue. The Revenue has grown by 3.02% in the last year.
AIG shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.79% yearly.
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
The Earnings Per Share is expected to grow by 10.98% on average over the next years. This is quite good.
AIG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.77% yearly.
EPS Next Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
EPS Next 5Y10.98%
Revenue Next Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
Revenue Next 5Y4.77%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.72, which indicates a very decent valuation of AIG.
AIG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.45, AIG is valued rather cheaply.
AIG is valuated reasonably with a Price/Forward Earnings ratio of 9.68.
The rest of the industry has a similar Price/Forward Earnings ratio as AIG.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.46, AIG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 9.68 |
4.2 Price Multiples
AIG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AIG is cheaper than 72.79% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AIG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.57 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The 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 17.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.57
PEG (5Y)3.36
EPS Next 2Y19.91%
EPS Next 3Y17.39%
5. Dividend
5.1 Amount
AIG has a Yearly Dividend Yield of 2.38%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.43, AIG has a dividend in line with its industry peers.
AIG's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
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
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 2Y19.91%
EPS Next 3Y17.39%
75.96
+0.27 (+0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.16%
Inst Owner Change3.05%
Ins Owners0.25%
Ins Owner Change-2.04%
Market Cap42.08B
Revenue(TTM)27.40B
Net Income(TTM)3.26B
Analysts72.5
Price Target90.06 (18.56%)
Short Float %2.54%
Short Ratio3.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Yearly Dividend1.58
Dividend Growth(5Y)3.87%
DP30.01%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)1.09%
PT rev (3m)-1.41%
EPS NQ rev (1m)-0.52%
EPS NQ rev (3m)-2.53%
EPS NY rev (1m)2.18%
EPS NY rev (3m)3.52%
Revenue NQ rev (1m)0.68%
Revenue NQ rev (3m)0.24%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.72 | ||
| Fwd PE | 9.68 | ||
| P/S | 1.54 | ||
| P/FCF | 14.57 | ||
| P/OCF | 14.57 | ||
| P/B | 1.02 | ||
| P/tB | 1.12 | ||
| EV/EBITDA | 6.07 |
EPS(TTM)6.48
EY8.53%
EPS(NY)7.85
Fwd EY10.34%
FCF(TTM)5.21
FCFY6.86%
OCF(TTM)5.21
OCFY6.86%
SpS49.46
BVpS74.16
TBVpS67.95
PEG (NY)0.57
PEG (5Y)3.36
Graham Number103.98
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
WACC7.38%
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 Y20.57%
EPS Next 2Y19.91%
EPS Next 3Y17.39%
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 Year4.47%
Revenue Next 2Y3.36%
Revenue Next 3Y4.51%
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.
What is the valuation status for AIG stock?
ChartMill assigns a valuation rating of 6 / 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 11.72 and the Price/Book (PB) ratio is 1.02.
Can you provide the financial health for AIG stock?
The financial health rating of AMERICAN INTERNATIONAL GROUP (AIG) is 3 / 10.