Air France-KLM SA
Air France-KLM SA Fundamental Analysis
Air France-KLM SA (AFLYY) shows weak financial fundamentals with a PE ratio of 17.68, profit margin of 4.77%, and ROE of -1.20%. The company generates $32.8B in annual revenue with moderate year-over-year growth of 4.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 137.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze AFLYY's fundamental strength across five key dimensions:
Efficiency Score
WeakAFLYY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAFLYY trades at attractive valuation levels.
Growth Score
WeakAFLYY faces weak or negative growth trends.
Financial Health Score
ModerateAFLYY shows balanced financial health with some risks.
Profitability Score
WeakAFLYY struggles to sustain strong margins.
Key Financial Metrics
Is AFLYY Expensive or Cheap?
P/E Ratio
AFLYY trades at 17.68 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AFLYY's PEG of 0.54 indicates potential undervaluation.
Price to Book
The market values Air France-KLM SA at -28.22 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.78 times EBITDA. This is generally considered low.
How Well Does AFLYY Make Money?
Net Profit Margin
For every $100 in sales, Air France-KLM SA keeps $4.77 as profit after all expenses.
Operating Margin
Core operations generate 6.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.20 in profit for every $100 of shareholder equity.
ROA
Air France-KLM SA generates $3.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Air France-KLM SA produces operating cash flow of $4.90B, showing steady but balanced cash generation.
Free Cash Flow
Air France-KLM SA generates weak or negative free cash flow of $449.39M, restricting financial flexibility.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
AFLYY converts 1.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.54
vs 25 benchmark
P/B Ratio
Price to book value ratio
-28.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.84
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-22.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-1.20
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How AFLYY Stacks Against Its Sector Peers
| Metric | AFLYY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.68 | 26.73 | Better (Cheaper) |
| ROE | -119.70% | 1281.00% | Weak |
| Net Margin | 4.77% | -43969.00% (disorted) | Weak |
| Debt/Equity | -22.55 | 0.72 | Strong (Low Leverage) |
| Current Ratio | 0.62 | 10.11 | Weak Liquidity |
| ROA | 3.98% | -1510685.00% (disorted) | Weak |
AFLYY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Air France-KLM SA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-3.93%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
107.32%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
152.12%
Industry Style: Cyclical, Value, Infrastructure
High Growth