American International Group, Inc. Fundamental Analysis (NYSE: AIG)
American International Group, Inc. Fundamental Analysis (NYSE: AIG)
American International Group, Inc. (NYSE: AIG) shows weak financial fundamentals with a PE ratio of 14.01, profit margin of 4.70%, and ROE of 3.07%. The company generates $26.5B in annual revenue with weak year-over-year growth of -1.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AIG's fundamental strength across five key dimensions:
Efficiency Score
WeakAIG struggles to generate sufficient returns from assets.
Valuation Score
ModerateAIG shows balanced valuation metrics.
Growth Score
ModerateAIG shows steady but slowing expansion.
Financial Health Score
ExcellentAIG maintains a strong and stable balance sheet.
Profitability Score
WeakAIG struggles to sustain strong margins.
Key Financial Metrics
Is AIG Expensive or Cheap?
P/E Ratio
AIG trades at 14.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AIG's PEG of 8.44 indicates potential overvaluation.
Price to Book
The market values American International Group, Inc. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.18 times EBITDA. This signals the market has high growth expectations.
How Well Does AIG Make Money?
Net Profit Margin
For every $100 in sales, American International Group, Inc. keeps $4.70 as profit after all expenses.
Operating Margin
Core operations generate 5.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.07 in profit for every $100 of shareholder equity.
ROA
American International Group, Inc. generates $0.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American International Group, Inc. produces operating cash flow of $3.82B, showing steady but balanced cash generation.
Free Cash Flow
American International Group, Inc. generates strong free cash flow of $3.82B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $7.21 in free cash annually.
FCF Yield
AIG converts 9.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.007
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
8.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.01
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.53
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.22
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.008
vs 25 benchmark
How AIG Stacks Against Its Sector Peers
| Metric | AIG Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.01 | 21.18 | Better (Cheaper) |
| ROE | 3.07% | 664.00% | Weak |
| Net Margin | 4.70% | 1007.00% | Weak |
| Debt/Equity | 0.22 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 8.73 | 906.73 | Strong Liquidity |
| ROA | 0.77% | 4475633.00% | Weak |
AIG outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American International Group, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-6.05%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
180.13%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
391.14%
Industry Style: Value, Dividend, Cyclical
High Growth