AMERICAN INTERNATIONAL GROUP (AINN.DE) Stock Fundamental Analysis
FRA:AINN - Deutsche Boerse Ag - US0268747849 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to AINN. AINN was compared to 33 industry peers in the Insurance industry. There are concerns on the financial health of AINN while its profitability can be described as average. AINN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
AINN had positive earnings in the past year.
AINN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AINN reported negative net income in multiple years.
AINN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AINN has a worse Return On Assets (-0.88%) than 88.89% of its industry peers.
The Return On Equity of AINN (-3.35%) is worse than 88.89% of its industry peers.
With a decent Return On Invested Capital value of 1.57%, AINN is doing good in the industry, outperforming 63.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AINN is in line with the industry average of 2.25%.
The last Return On Invested Capital (1.57%) for AINN is above the 3 year average (1.43%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
AINN has a better Operating Margin (13.44%) than 69.44% of its industry peers.
AINN's Operating Margin has been stable in the last couple of years.
AINN does not have Profit Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AINN is destroying value.
Compared to 1 year ago, AINN has less shares outstanding
AINN has less shares outstanding than it did 5 years ago.
AINN has a worse debt/assets ratio than last year.
2.2 Solvency
AINN has a debt to FCF ratio of 2.73. This is a good value and a sign of high solvency as AINN would need 2.73 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.73, AINN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that AINN is not too dependend on debt financing.
AINN has a better Debt to Equity ratio (0.21) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 2.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.2
WACC7.71%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AINN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.47%.
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.
The Revenue for AINN has decreased by -27.31% in the past year. This is quite bad
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)-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
Based on estimates for the next years, AINN will show a decrease in Earnings Per Share. The EPS will decrease by -4.30% on average per year.
AINN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.41% yearly.
EPS Next Y14.62%
EPS Next 2Y20.65%
EPS Next 3Y18.05%
EPS Next 5Y-4.3%
Revenue Next Year1.81%
Revenue Next 2Y3.29%
Revenue Next 3Y2.83%
Revenue Next 5Y10.41%
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 decreasing.
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
AINN is valuated correctly with a Price/Earnings ratio of 14.76.
The rest of the industry has a similar Price/Earnings ratio as AINN.
AINN is valuated rather cheaply when we compare the Price/Earnings ratio to 29.35, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.88, which indicates a correct valuation of AINN.
AINN's Price/Forward Earnings ratio is rather expensive when compared to the industry. AINN is more expensive than 80.56% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.10. AINN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.88 |
4.2 Price Multiples
91.67% of the companies in the same industry are more expensive than AINN, based on the Enterprise Value to EBITDA ratio.
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 | 14.61 | ||
| EV/EBITDA | 7.69 |
4.3 Compensation for Growth
AINN'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 AINN's earnings are expected to grow with 18.05% in the coming years.
PEG (NY)1.01
PEG (5Y)4.23
EPS Next 2Y20.65%
EPS Next 3Y18.05%
5. Dividend
5.1 Amount
AINN has a Yearly Dividend Yield of 1.97%. Purely for dividend investing, there may be better candidates out there.
AINN's Dividend Yield is slightly below the industry average, which is at 4.64.
AINN's Dividend Yield is comparable with the S&P500 average which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
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 has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-71.81%
EPS Next 2Y20.65%
EPS Next 3Y18.05%
FRA:AINN (3/7/2025, 7:00:00 PM)
74.22
-0.9 (-1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners95.43%
Inst Owner ChangeN/A
Ins Owners0.21%
Ins Owner ChangeN/A
Market Cap44.04B
Analysts75
Price Target80.11 (7.94%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.97% |
Yearly Dividend1.46
Dividend Growth(5Y)3.87%
DP-71.81%
Div Incr Years2
Div Non Decr Years6
Ex-DateN/A
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)-4.37%
Revenue beat(12)8
Avg Revenue beat(12)3.12%
Revenue beat(16)11
Avg Revenue beat(16)5.69%
PT rev (1m)-0.61%
PT rev (3m)-2.91%
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)-1.01%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 12.88 | ||
| P/S | 1.79 | ||
| P/FCF | 14.61 | ||
| P/OCF | 14.61 | ||
| P/B | 1.12 | ||
| P/tB | 1.22 | ||
| EV/EBITDA | 7.69 |
EPS(TTM)5.03
EY6.78%
EPS(NY)5.76
Fwd EY7.77%
FCF(TTM)5.08
FCFY6.85%
OCF(TTM)5.08
OCFY6.85%
SpS41.39
BVpS66.01
TBVpS60.77
PEG (NY)1.01
PEG (5Y)4.23
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 Year1.81%
Revenue Next 2Y3.29%
Revenue Next 3Y2.83%
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