AIG American International Group, Inc. - Fundamental Analysis
At a glance
Key valuation, profitability, growth, and risk metrics.
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
AIG is significantly cheaper than the Financial Services sector on earnings and book value, but its lower profitability and growth justify only part of the discount, suggesting some value trap risk.
- Forward P/E of 11.59 at a steep discount to sector average of 24.97
- Price/Book of 1.03 suggests shares trade near tangible book value, typical of insurance peers
- EV/EBITDA and other enterprise metrics unavailable, limiting full valuation picture
- Low ROE (7.69%) questions the quality of earnings despite low P/B
Despite strong YoY earnings growth, the persistent revenue decline and lack of earnings beats undermine confidence in future momentum, especially as 6-month price performance is negative (-6.8%).
- Earnings growth of 32.30% YoY indicates some profitability improvement
- Q/Q earnings growth of 13.10% shows recent acceleration in bottom-line performance
- Revenue declining by 4.10% YoY raises concerns about top-line sustainability
- No recent earnings beats, suggesting growth is not translating into upside surprises
While AIG has delivered strong long-term returns, recent price action and a complete lack of earnings beats over the last year highlight deteriorating operational consistency and investor sentiment.
- 5-year stock return of +127.0% reflects strong long-term capital appreciation
- Consistent profitability with 12.02% net margin and positive operating leverage
- Last 4 quarters missed or matched estimates with 0% average surprise, indicating poor execution
- 1-year return of only +4.9% and 6-month decline of -6.8% show recent underperformance
AIG’s balance sheet is conservatively leveraged, but its weak liquidity ratios suggest potential operational cash flow challenges, especially for an insurance firm requiring strong short-term asset coverage.
- Very low Debt/Equity ratio of 0.22, well below sector average of 0.73
- No immediate refinancing risk given conservative leverage
- Current ratio of 0.62 and quick ratio of 0.21 indicate severe liquidity constraints
- Total cash and debt figures unavailable, raising transparency concerns
The dividend appears sustainable given the low payout ratio and stable earnings, but absence of long-term yield and growth data limits confidence in its strategic importance to capital allocation.
- Dividend yield of 2.32% is attractive in current rate environment
- Payout ratio of 30.58% is well-covered by earnings, indicating sustainability
- No data on dividend growth history or policy consistency
- Lack of long-term yield average limits visibility into income reliability
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for AIG and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
AIG
American International Group, Inc.
Primary
|
+127.0% | +37.3% | +4.9% | -6.8% | -4.3% | +1.1% |
|
AMP
Ameriprise Financial, Inc.
Peer
|
+165.9% | +47.8% | -17.4% | -12.0% | -4.5% | -0.4% |
|
MSCI
MSCI Inc.
Peer
|
+49.6% | +16.3% | -5.3% | -0.6% | +3.2% | -2.7% |
|
PRU
Prudential Financial, Inc.
Peer
|
+80.8% | +15.1% | -10.6% | +2.4% | +3.9% | +0.8% |
|
ACGL
Arch Capital Group Ltd.
Peer
|
+175.6% | +73.1% | -2.8% | -2.2% | +3.3% | +3.3% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Financial Services Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
AIG
American International Group, Inc.
|
NEUTRAL | $42.28B | 13.98 | 7.7% | 12.0% | $77.75 | |
|
AMP
Ameriprise Financial, Inc.
|
BULLISH | $42.68B | 12.59 | 59.6% | 19.6% | $458.0 | |
|
MSCI
MSCI Inc.
|
BULLISH | $43.08B | 35.84 | -% | 40.0% | $565.15 | |
|
PRU
Prudential Financial, Inc.
|
NEUTRAL | $37.74B | 14.68 | 8.5% | 4.5% | $107.16 | |
|
ACGL
Arch Capital Group Ltd.
|
BULLISH | $33.64B | 8.67 | 17.8% | 21.0% | $92.52 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-10-16 | DANDRIDGE EDWARD LEE | Officer | Stock Award | 2,811 | - |
| 2025-09-30 | INGLIS JOHN C | Director | Purchase | 15 | $1,193 |
| 2025-08-18 | ZAFFINO PETER | Chief Executive Officer | Gift | 31,760 | - |
| 2025-08-08 | INGLIS JOHN C | Director | Purchase | 653 | $50,307 |
| 2025-06-27 | INGLIS JOHN C | Director | Purchase | 10 | $895 |
| 2025-06-16 | FRY CHARLES ANTHONY | Officer | Stock Award | 4,531 | - |
| 2025-05-20 | CARBONE KATHLEEN | Officer | Option Exercise | 25,809 | $1,477,916 |
| 2025-05-20 | CARBONE KATHLEEN | Officer | Sale | 30,073 | $2,527,891 |
Wall Street Analysts
Professional analyst ratings and price targets