AMERICAN INTERNATIONAL GROUP (AIG) Fundamental Analysis & Valuation

NYSE:AIG • US0268747849

Current stock price

75.2101 USD
+0.87 (+1.17%)
Last:

This AIG fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. AIG Profitability Analysis

1.1 Basic Checks

  • In the past year AIG was profitable.
  • AIG had a positive operating cash flow in the past year.
  • AIG had positive earnings in 4 of the past 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B 15B

1.2 Ratios

  • The Return On Assets of AIG (1.92%) is comparable to the rest of the industry.
  • AIG has a worse Return On Equity (7.53%) than 63.51% of its industry peers.
  • With a Return On Invested Capital value of 1.96%, AIG perfoms like the industry average, outperforming 44.59% 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 significantly below the industry average of 9.34%.
  • The 3 year average ROIC (1.44%) for AIG is below the current ROIC(1.96%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 1.92%
ROE 7.53%
ROIC 1.96%
ROA(3y)0.57%
ROA(5y)1.08%
ROE(3y)4.05%
ROE(5y)10.54%
ROIC(3y)1.44%
ROIC(5y)1.63%
AIG Yearly ROA, ROE, ROICAIG Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 20

1.3 Margins

  • The Profit Margin of AIG (11.56%) is better than 68.24% of its industry peers.
  • In the last couple of years the Profit Margin of AIG has declined.
  • Looking at the Operating Margin, with a value of 15.65%, AIG is in the better half of the industry, outperforming 63.51% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AIG has grown nicely.
Industry RankSector Rank
OM 15.65%
PM (TTM) 11.56%
GM N/A
OM growth 3Y-18.62%
OM growth 5Y20.43%
PM growth 3Y-14.85%
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20

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3

2. AIG Health Analysis

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.
  • AIG has less shares outstanding than it did 5 years ago.
  • AIG has a worse debt/assets ratio than last year.
AIG Yearly Shares OutstandingAIG Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
AIG Yearly Total Debt VS Total AssetsAIG Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B 400B 500B

2.2 Solvency

  • The Debt to FCF ratio of AIG is 2.77, which is a good value as it means it would take AIG, 2.77 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.77, AIG is in line with its industry, outperforming 45.27% of the companies in the same industry.
  • AIG has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
  • AIG has a better Debt to Equity ratio (0.22) than 66.89% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.77
Altman-Z N/A
ROIC/WACC0.25
WACC7.91%
AIG Yearly LT Debt VS Equity VS FCFAIG Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B 40B 60B

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 2025 1B 2B 3B 4B

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4

3. AIG Growth Analysis

3.1 Past

  • AIG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.77%, which is quite impressive.
  • AIG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.16% yearly.
  • AIG shows a decrease in Revenue. In the last year, the revenue decreased by -1.75%.
  • The Revenue has been decreasing by -9.35% on average over the past years.
EPS 1Y (TTM)30.77%
EPS 3Y16.55%
EPS 5Y23.16%
EPS Q2Q%50.77%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-21.07%
Revenue growth 5Y-9.35%
Sales Q2Q%-8.74%

3.2 Future

  • AIG is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.25% yearly.
  • Based on estimates for the next years, AIG will show a quite strong growth in Revenue. The Revenue will grow by 10.35% on average per year.
EPS Next Y10.91%
EPS Next 2Y11.77%
EPS Next 3Y9.26%
EPS Next 5Y-1.25%
Revenue Next Year7.72%
Revenue Next 2Y6.31%
Revenue Next 3Y4.6%
Revenue Next 5Y10.35%

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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B 50B
AIG Yearly EPS VS EstimatesAIG Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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5

4. AIG Valuation Analysis

4.1 Price/Earnings Ratio

  • AIG is valuated reasonably with a Price/Earnings ratio of 10.53.
  • Compared to the rest of the industry, the Price/Earnings ratio of AIG is on the same level as its industry peers.
  • The average S&P500 Price/Earnings ratio is at 25.50. AIG is valued rather cheaply when compared to this.
  • With a Price/Forward Earnings ratio of 9.50, the valuation of AIG can be described as very reasonable.
  • AIG's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 22.67. AIG is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.53
Fwd PE 9.5
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

  • 66.89% of the companies in the same industry are more expensive than AIG, based on the Enterprise Value to EBITDA ratio.
  • AIG's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 12.18
EV/EBITDA 6.25
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.97
PEG (5Y)0.45
EPS Next 2Y11.77%
EPS Next 3Y9.26%

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5

5. AIG Dividend Analysis

5.1 Amount

  • AIG has a Yearly Dividend Yield of 2.44%.
  • AIG's Dividend Yield is a higher than the industry average which is at 2.84.
  • Compared to an average S&P500 Dividend Yield of 1.89, AIG pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.44%

5.2 History

  • The dividend of AIG has a limited annual growth rate of 5.46%.
  • 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)5.46%
Div Incr Years1
Div Non Decr Years1
AIG Yearly Dividends per shareAIG Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

5.3 Sustainability

  • 31.52% of the earnings are spent on dividend by AIG. This is a low number and sustainable payout ratio.
DP31.52%
EPS Next 2Y11.77%
EPS Next 3Y9.26%
AIG Yearly Income VS Free CF VS DividendAIG Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B 10B
AIG Dividend Payout.AIG Dividend Payout, showing the Payout Ratio.AIG Dividend Payout.PayoutRetained Earnings

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AIG Fundamentals: All Metrics, Ratios and Statistics

AMERICAN INTERNATIONAL GROUP

NYSE:AIG (3/25/2026, 3:10:04 PM)

75.2101

+0.87 (+1.17%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-10
Earnings (Next)04-29
Inst Owners99.32%
Inst Owner Change-1.27%
Ins Owners0.33%
Ins Owner Change13.33%
Market Cap40.35B
Revenue(TTM)26.77B
Net Income(TTM)3.10B
Analysts70.77
Price Target89.28 (18.71%)
Short Float %1.45%
Short Ratio1.59
Dividend
Industry RankSector Rank
Dividend Yield 2.44%
Yearly Dividend1.71
Dividend Growth(5Y)5.46%
DP31.52%
Div Incr Years1
Div Non Decr Years1
Ex-Date03-16
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.7%
Min EPS beat(2)2.14%
Max EPS beat(2)27.25%
EPS beat(4)4
Avg EPS beat(4)14.06%
Min EPS beat(4)2.14%
Max EPS beat(4)27.25%
EPS beat(8)7
Avg EPS beat(8)8.28%
EPS beat(12)11
Avg EPS beat(12)8.65%
EPS beat(16)15
Avg EPS beat(16)9.2%
Revenue beat(2)0
Avg Revenue beat(2)-6.95%
Min Revenue beat(2)-7.7%
Max Revenue beat(2)-6.2%
Revenue beat(4)2
Avg Revenue beat(4)-1.87%
Min Revenue beat(4)-7.7%
Max Revenue beat(4)3.53%
Revenue beat(8)5
Avg Revenue beat(8)1.06%
Revenue beat(12)7
Avg Revenue beat(12)-0.49%
Revenue beat(16)10
Avg Revenue beat(16)-7.48%
PT rev (1m)0.18%
PT rev (3m)-0.43%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.3%
Revenue NY rev (3m)1.25%
Valuation
Industry RankSector Rank
PE 10.53
Fwd PE 9.5
P/S 1.51
P/FCF 12.18
P/OCF 12.18
P/B 0.98
P/tB 1.07
EV/EBITDA 6.25
EPS(TTM)7.14
EY9.49%
EPS(NY)7.92
Fwd EY10.53%
FCF(TTM)6.18
FCFY8.21%
OCF(TTM)6.18
OCFY8.21%
SpS49.9
BVpS76.67
TBVpS70.27
PEG (NY)0.97
PEG (5Y)0.45
Graham Number110.98
Profitability
Industry RankSector Rank
ROA 1.92%
ROE 7.53%
ROCE 2.62%
ROIC 1.96%
ROICexc 1.98%
ROICexgc 2.87%
OM 15.65%
PM (TTM) 11.56%
GM N/A
FCFM 12.38%
ROA(3y)0.57%
ROA(5y)1.08%
ROE(3y)4.05%
ROE(5y)10.54%
ROIC(3y)1.44%
ROIC(5y)1.63%
ROICexc(3y)1.45%
ROICexc(5y)1.63%
ROICexgc(3y)2.11%
ROICexgc(5y)2.4%
ROCE(3y)1.93%
ROCE(5y)2.18%
ROICexgc growth 3Y-5.15%
ROICexgc growth 5Y41.1%
ROICexc growth 3Y-4.42%
ROICexc growth 5Y41.72%
OM growth 3Y-18.62%
OM growth 5Y20.43%
PM growth 3Y-14.85%
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.17
Health
Industry RankSector Rank
Debt/Equity 0.22
Debt/FCF 2.77
Debt/EBITDA 1.2
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 10.77
Cash Conversion 43.35%
Profit Quality 107.04%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC7.91%
ROIC/WACC0.25
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)30.77%
EPS 3Y16.55%
EPS 5Y23.16%
EPS Q2Q%50.77%
EPS Next Y10.91%
EPS Next 2Y11.77%
EPS Next 3Y9.26%
EPS Next 5Y-1.25%
Revenue 1Y (TTM)-1.75%
Revenue growth 3Y-21.07%
Revenue growth 5Y-9.35%
Sales Q2Q%-8.74%
Revenue Next Year7.72%
Revenue Next 2Y6.31%
Revenue Next 3Y4.6%
Revenue Next 5Y10.35%
EBIT growth 1Y12.31%
EBIT growth 3Y-35.77%
EBIT growth 5Y9.17%
EBIT Next Year118.93%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y1.25%
FCF growth 3Y-7.1%
FCF growth 5Y26.13%
OCF growth 1Y1.25%
OCF growth 3Y-7.1%
OCF growth 5Y26.13%

AMERICAN INTERNATIONAL GROUP / AIG Fundamental Analysis FAQ

What is the fundamental rating for AIG stock?

ChartMill assigns a fundamental rating of 4 / 10 to AIG.


Can you provide the valuation status for AMERICAN INTERNATIONAL GROUP?

ChartMill assigns a valuation rating of 5 / 10 to AMERICAN INTERNATIONAL GROUP (AIG). This can be considered as Fairly Valued.


How profitable is AMERICAN INTERNATIONAL GROUP (AIG) stock?

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 10.53 and the Price/Book (PB) ratio is 0.98.


Can you provide the expected EPS growth for AIG stock?

The Earnings per Share (EPS) of AMERICAN INTERNATIONAL GROUP (AIG) is expected to grow by 10.91% in the next year.