American Funds The Income Fund of America Class A
American Funds The Income Fund of America Class A Fundamental Analysis
American Funds The Income Fund of America Class A (AMECX) shows moderate financial fundamentals with a PE ratio of 7.93, profit margin of 28.51%, and ROE of 9.46%. The company generates $63.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 37.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze AMECX's fundamental strength across five key dimensions:
Efficiency Score
WeakAMECX struggles to generate sufficient returns from assets.
Valuation Score
ModerateAMECX shows balanced valuation metrics.
Growth Score
ModerateAMECX shows steady but slowing expansion.
Financial Health Score
WeakAMECX carries high financial risk with limited liquidity.
Profitability Score
WeakAMECX struggles to sustain strong margins.
Key Financial Metrics
Is AMECX Expensive or Cheap?
P/E Ratio
AMECX trades at 7.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, AMECX's PEG of 2.33 indicates potential overvaluation.
Price to Book
The market values American Funds The Income Fund of America Class A at 0.74 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.00 times EBITDA. This is generally considered low.
How Well Does AMECX Make Money?
Net Profit Margin
For every $100 in sales, American Funds The Income Fund of America Class A keeps $28.51 as profit after all expenses.
Operating Margin
Core operations generate 38.09 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.46 in profit for every $100 of shareholder equity.
ROA
American Funds The Income Fund of America Class A generates $0.82 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Funds The Income Fund of America Class A generates limited operating cash flow of $-14.66B, signaling weaker underlying cash strength.
Free Cash Flow
American Funds The Income Fund of America Class A generates weak or negative free cash flow of $-14.66B, restricting financial flexibility.
FCF Per Share
Each share generates $-2.84 in free cash annually.
FCF Yield
AMECX converts -15.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.33
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.74
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.47
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How AMECX Stacks Against Its Sector Peers
| Metric | AMECX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.93 | 18.86 | Better (Cheaper) |
| ROE | 9.46% | 847.00% | Weak |
| Net Margin | 28.51% | 4202.00% | Weak |
| Debt/Equity | 1.01 | 0.91 | Neutral |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 0.82% | -21543.00% (disorted) | Weak |
AMECX outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Funds The Income Fund of America Class A's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical