AIA Group Limited
AIA Group Limited Fundamental Analysis
AIA Group Limited (AAIGF) shows moderate financial fundamentals with a PE ratio of 2.28, profit margin of 19.18%, and ROE of 14.86%. The company generates $252.0B in annual revenue with weak year-over-year growth of -1.12%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AAIGF's fundamental strength across five key dimensions:
Efficiency Score
WeakAAIGF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAAIGF trades at attractive valuation levels.
Growth Score
ModerateAAIGF shows steady but slowing expansion.
Financial Health Score
ModerateAAIGF shows balanced financial health with some risks.
Profitability Score
ModerateAAIGF maintains healthy but balanced margins.
Key Financial Metrics
Is AAIGF Expensive or Cheap?
P/E Ratio
AAIGF trades at 2.28 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AAIGF's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values AIA Group Limited at 0.33 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.16 times EBITDA. This signals the market has high growth expectations.
How Well Does AAIGF Make Money?
Net Profit Margin
For every $100 in sales, AIA Group Limited keeps $19.18 as profit after all expenses.
Operating Margin
Core operations generate 31.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.86 in profit for every $100 of shareholder equity.
ROA
AIA Group Limited generates $1.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
AIA Group Limited produces operating cash flow of $41.11B, showing steady but balanced cash generation.
Free Cash Flow
AIA Group Limited generates strong free cash flow of $39.61B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.78 in free cash annually.
FCF Yield
AAIGF converts 4.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.28
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.39
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AAIGF Stacks Against Its Sector Peers
| Metric | AAIGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.28 | 19.11 | Better (Cheaper) |
| ROE | 14.86% | 821.00% | Weak |
| Net Margin | 19.18% | 1655.00% | Weak |
| Debt/Equity | 0.48 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 659.22 | Weak Liquidity |
| ROA | 1.80% | 1976.00% | Weak |
AAIGF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews AIA Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-53.68%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
12.20%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
6.69%
Industry Style: Value, Dividend, Cyclical
Growing