American Funds American Mutual Fund
American Funds American Mutual Fund Fundamental Analysis
American Funds American Mutual Fund (AMFCX) shows weak financial fundamentals with a PE ratio of 23.43, profit margin of 3.46%, and ROE of 5.04%. The company generates $86.0B 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 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AMFCX's fundamental strength across five key dimensions:
Efficiency Score
WeakAMFCX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAMFCX trades at attractive valuation levels.
Growth Score
ModerateAMFCX shows steady but slowing expansion.
Financial Health Score
ExcellentAMFCX maintains a strong and stable balance sheet.
Profitability Score
WeakAMFCX struggles to sustain strong margins.
Key Financial Metrics
Is AMFCX Expensive or Cheap?
P/E Ratio
AMFCX trades at 23.43 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AMFCX's PEG of 0.23 indicates potential undervaluation.
Price to Book
The market values American Funds American Mutual Fund at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -728.88 times EBITDA. This is generally considered low.
How Well Does AMFCX Make Money?
Net Profit Margin
For every $100 in sales, American Funds American Mutual Fund keeps $3.46 as profit after all expenses.
Operating Margin
Core operations generate 5.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.04 in profit for every $100 of shareholder equity.
ROA
American Funds American Mutual Fund generates $1.76 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Funds American Mutual Fund produces operating cash flow of $8.82B, showing steady but balanced cash generation.
Free Cash Flow
American Funds American Mutual Fund produces free cash flow of $5.88B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.84 in free cash annually.
FCF Yield
AMFCX converts 0.75% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
23.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.23
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.35
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How AMFCX Stacks Against Its Sector Peers
| Metric | AMFCX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 23.43 | 18.59 | Worse (Expensive) |
| ROE | 5.04% | 801.00% | Weak |
| Net Margin | 3.46% | -498.00% (disorted) | Weak |
| Debt/Equity | 0.35 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 1.80 | 661.40 | Neutral |
| ROA | 1.76% | -21324.00% (disorted) | Weak |
AMFCX outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Funds American Mutual Fund'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