AIG American International Group, Inc. - Fundamental Analysis
NEUTRAL
AIG Stock | Fundamental Analysis & Investment Insights
NYSE
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Financial Services
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Insurance - Diversified
Current Price
$77.75
Analyst Target
$88.44
+13.8% Upside
52W High
$88.07
52W Low
$69.24
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
65%
Analysis Accuracy
American International Group (AIG) trades at a significant valuation discount to the broader Financial Services sector, supported by a solid balance sheet and attractive dividend yield. However, tepid revenue growth, inconsistent earnings delivery, and recent insider selling temper enthusiasm despite strong long-term price appreciation. The stock is priced for modest improvement, with a forward P/E of 11.59 well below the sector average of 24.97, but lackluster margins and operational execution raise concerns about sustained outperformance. Analysts are collectively bullish with a $88.44 target implying ~14% upside, yet the absence of recent earnings beats and weakening near-term momentum (-6.8% over 6M) suggest limited near-term catalysts.
Key Strengths
Attractive valuation: Forward P/E of 11.59 vs sector average of 24.97, offering significant relative discount
Low leverage: Debt/Equity of 0.22, well below sector average of 0.73, providing financial flexibility
Healthy dividend yield of 2.32% with sustainable 30.58% payout ratio
Strong operating margin of 15.24%, indicating pricing power and cost discipline
Analyst consensus target of $88.44 implies 13.7% upside from current levels
Key Risks
Revenue declining YoY by 4.10%, signaling underlying business weakness in core insurance operations
Poor earnings surprise record: 0 out of last 4 quarters beat estimates, indicating persistent execution issues
Weak liquidity profile: Current ratio of 0.62 and quick ratio of 0.21 suggest potential near-term cash flow constraints
ROE of 7.69% lags far behind sector average of 31.58%, reflecting inefficient capital use
Recent insider selling: $2.53M in officer sales with no offsetting buys, signaling lack of confidence
AI Fair Value Estimate
Based on comprehensive analysis
$88.44
+13.7% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare AIG against industry averages and similar companies
Insider Trading & Analyst Ratings
Track insider transactions and Wall Street analyst recommendations