American International Group, Inc. (AIG) stock analysis

P/E above its 5-year median

American International's P/E of 13.5 is above its own 5-year median of 10.7.

P/E above the industry

American International's P/E of 13.5 is above the Fire, Marine, and Casualty Insurance median of 10.4.

P/S above the industry

American International's price-to-sales of 1.56 is above the Fire, Marine, and Casualty Insurance median of 1.28.

P/B below the industry

American International's price-to-book of 1.11 is below the Fire, Marine, and Casualty Insurance median of 1.62.

Trading above fair value

The share price of $82.85 is above our fair value estimate of $81.80.

Margin of safety under 20%

The price is 1.3% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -3.7% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -25.1% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 1.2% over the last twelve months; the Fire, Marine, and Casualty Insurance median is 5.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on assets

Needs net income and total assets.

Return on equity against the industry

Needs positive equity.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin against its history

Needs five years of revenue and net income.

Net margin against the industry

Needs revenue and net income.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

American International paid dividends worth 2.3% of the share price over the last twelve months.

Yield below Treasuries

The 2.3% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; American International yields 2.3%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 8 fiscal years.

Earnings cover

Needs dividends paid and net income.

Cash-flow cover

Needs dividends paid and free cash flow.