AMERICAN INTERNATIONAL GROUP (AINN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AINN - US0268747849 - Common Stock
65.25 EUR
-1.02 (-1.54%)
Overall AINN gets a fundamental rating of 4 out of 10. We evaluated AINN against 48 industry peers in the Insurance industry. AINN has a medium profitability rating, but doesn't score so well on its financial health evaluation. AINN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- AINN had positive earnings in the past year.
- In the past year AINN had a positive cash flow from operations.
- In multiple years AINN reported negative net income over the last 5 years.
- AINN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 1.93%, AINN is in the better half of the industry, outperforming 77.50% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 7.71%, AINN is doing worse than 75.00% of the companies in the same industry.
- AINN has a better Return On Invested Capital (1.94%) than 65.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for AINN is in line with the industry average of 2.74%.
- The last Return On Invested Capital (1.94%) for AINN is above the 3 year average (1.44%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.93% | ||
| ROE | 7.71% | ||
| ROIC | 1.94% |
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
- With a decent Profit Margin value of 11.51%, AINN is doing good in the industry, outperforming 72.50% of the companies in the same industry.
- The Operating Margin of AINN (16.38%) is better than 77.50% of its industry peers.
- In the last couple of years the Operating Margin of AINN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.38% | ||
| PM (TTM) | 11.51% | ||
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AINN is destroying value.
- The number of shares outstanding for AINN has been reduced compared to 1 year ago.
- AINN has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for AINN is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of AINN is 2.83, which is a good value as it means it would take AINN, 2.83 years of fcf income to pay off all of its debts.
- AINN has a Debt to FCF ratio (2.83) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.22 indicates that AINN is not too dependend on debt financing.
- AINN's Debt to Equity ratio of 0.22 is amongst the best of the industry. AINN outperforms 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 2.83 | ||
| Altman-Z | N/A |
ROIC/WACC0.27
WACC7.28%
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 AINN have decreased strongly by -12.95% in the last year.
- Measured over the past 5 years, AINN shows a small growth in Earnings Per Share. The EPS has been growing by 3.49% on average per year.
- AINN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.53%.
- AINN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -11.79% yearly.
EPS 1Y (TTM)-12.95%
EPS 3Y2.17%
EPS 5Y3.49%
EPS Q2Q%56.03%
Revenue 1Y (TTM)2.53%
Revenue growth 3Y-20.13%
Revenue growth 5Y-11.79%
Sales Q2Q%8.09%
3.2 Future
- Based on estimates for the next years, AINN will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.98% on average per year.
- The Revenue is expected to grow by 4.77% on average over the next years.
EPS Next Y17.99%
EPS Next 2Y19.72%
EPS Next 3Y17.37%
EPS Next 5Y10.98%
Revenue Next Year4.54%
Revenue Next 2Y3.57%
Revenue Next 3Y3.9%
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.
- 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
- A Price/Earnings ratio of 13.88 indicates a correct valuation of AINN.
- Based on the Price/Earnings ratio, AINN is valued a bit more expensive than the industry average as 62.50% of the companies are valued more cheaply.
- AINN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 9.78, which indicates a very decent valuation of AINN.
- The rest of the industry has a similar Price/Forward Earnings ratio as AINN.
- AINN is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.88 | ||
| Fwd PE | 9.78 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, AINN is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AINN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.98 | ||
| EV/EBITDA | 6.12 |
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.
- AINN's earnings are expected to grow with 17.37% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)3.98
EPS Next 2Y19.72%
EPS Next 3Y17.37%
5. Dividend
5.1 Amount
- AINN has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 4.17, AINN's dividend is way lower than its industry peers. On top of this 82.50% of the companies listed in the same industry pay a better dividend than AINN!
- Compared to an average S&P500 Dividend Yield of 1.81, AINN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
5.2 History
- The dividend of AINN has a limited annual growth rate of 3.87%.
Dividend Growth(5Y)3.87%
Div Incr Years2
Div Non Decr Years6
5.3 Sustainability
- AINN pays out 30.82% of its income as dividend. This is a sustainable payout ratio.
- The dividend of AINN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP30.82%
EPS Next 2Y19.72%
EPS Next 3Y17.37%
AMERICAN INTERNATIONAL GROUP / AINN.DE FAQ
Can you provide the ChartMill fundamental rating for AMERICAN INTERNATIONAL GROUP?
ChartMill assigns a fundamental rating of 4 / 10 to AINN.DE.
Can you provide the valuation status for AMERICAN INTERNATIONAL GROUP?
ChartMill assigns a valuation rating of 5 / 10 to AMERICAN INTERNATIONAL GROUP (AINN.DE). This can be considered as Fairly Valued.
What is the profitability of AINN stock?
AMERICAN INTERNATIONAL GROUP (AINN.DE) has a profitability rating of 5 / 10.
Can you provide the expected EPS growth for AINN stock?
The Earnings per Share (EPS) of AMERICAN INTERNATIONAL GROUP (AINN.DE) is expected to grow by 17.99% in the next year.
Can you provide the dividend sustainability for AINN stock?
The dividend rating of AMERICAN INTERNATIONAL GROUP (AINN.DE) is 4 / 10 and the dividend payout ratio is 30.82%.