American International Group Inc
Exchange: NYSESector: Financial ServicesIndustry: Insurance - Diversified
American International Group, Inc. (AIG) is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 130 countries. It diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It earns revenues primarily from insurance premiums, policy fees from universal life insurance and investment products, and income from investments. Its segments include AIG Property Casualty and AIG Life and Retirement. During the year ended December 31, 2012, the Chartis segment was renamed AIG Property Casualty and the SunAmerica segment was renamed AIG Life and Retirement.
Did you know?
Profit margin stands at 11.6%.
Current Price
$75.42
-0.19%GoodMoat Value
$180.32
139.1% undervaluedProfile
Valuation (TTM)
Market Cap$40.69B
P/E13.14
EV$48.43B
P/B0.99
Shares Out539.58M
P/Sales1.52
Revenue$26.77B
EV/EBITDA6.29
American International Group Inc (AIG) Stock Analysis
GoodMoat Analysis
American International Group (AIG) is a global insurance giant with a potentially durable moat, but it presents a mixed picture for value investors. The stock appears deeply undervalued relative to a $180.32 target, yet its current financial quality shows some weaknesses that require careful investigation.
Read full analysis
American International Group Inc (AIG) is a global leader in insurance and financial services, offering a diversified portfolio of property-casualty, life, and retirement products. Applying the GoodMoat framework, the business likely possesses a durable competitive advantage. Its moat is built on a combination of **scale privilege** as a massive global underwriter, **regulatory barriers** from operating in heavily licensed markets, and a **strong brand** with deep institutional relationships. While a full moat score requires deeper analysis, its industry position suggests it meets the framework's threshold of 5+ criteria to proceed. Financially, the picture is mixed. The company is GAAP profitable with an EPS of $5.43 and a solid operating margin of 15.9%. Its balance sheet is reasonable with a Debt/Equity ratio of 0.22. However, quality indicators show areas of concern: revenue growth is negative at -7.2% YoY, and the ROE of 7.5% is below the desired 15-20% threshold for high returns on capital. The valuation is the most compelling aspect. At a price of $75.47, the stock trades at a P/E of 13.2 and offers a Free Cash Flow Yield of 8.1%. The GoodMoat Target of $180.32 implies a significant margin of safety, placing it in the 'Deeply Undervalued' band (>40%) per the framework's DCF logic. According to the Decision Framework, AIG likely passes the Moat & Quality Gate for further analysis, but the valuation opportunity must be weighed against the weaker quality metrics. This discrepancy makes it a company worth investigating further to understand if the operational weaknesses are cyclical or structural, and if the deep undervaluation is justified. Analysis based on data as of 2024-05-15.
Market Cap$40.69B
Current Price$75.42
P/E Ratio13.14
Forward P/E—
PEG Ratio4.34
EPS$5.43
Book Value$76.24
P/B Ratio0.99
AIG Financial Charts
FCF vs CAPEX
FCFCAPEX
Cash vs Debt
Net Debt: 7.9B
Revenue
49.7B
FY19
43.7B
FY20
52.2B
FY21
30.0B
FY22
27.9B
FY23
27.3B
FY24
26.8B
FY25
Net Income
3.3B
FY19
—
FY20
10.4B
FY21
10.2B
FY22
3.6B
FY23
—
FY24
3.1B
FY25
AIG 52-Week Range
$71.47
$86.08
50-Day MA: $76.27200-Day MA: $78.25
Did you know?
Price sits at 27% of its 52-week range.
American International Group Inc (AIG) Financial Summary
American International Group Inc (AIG) is a Financial Services company in the Insurance - Diversified industry, listed on NYSE. The stock currently trades at $75.42 with a market capitalization of $40.69B.
Key valuation metrics include a P/E ratio of 13.14, price-to-book ratio of 0.99, and EPS of $5.43. The company reports a profit margin of 11.6% and return on equity of 7.5%.
AIG Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $40.69B |
| P/E Ratio | 13.14 |
| EPS | $5.43 |
| P/B Ratio | 0.99 |
| P/S Ratio | 1.52 |
| EV/EBITDA | 6.29 |
| Dividend Yield | 2.40% |
| Profit Margin | 11.6% |
| Return on Equity | 7.5% |
| Debt/Equity | 0.22 |
AIG Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $49.75B | $3.35B |
| FY20 | $43.74B | $-5.94B |
| FY21 | $52.16B | $10.37B |
| FY22 | $30.00B | $10.23B |
| FY23 | $27.94B | $3.64B |
| FY24 | $27.25B | $-1.40B |
| FY25 | $26.77B | $3.10B |
American International Group Inc (AIG) Valuation
Based on GoodMoat's DCF model, American International Group Inc has a fair value estimate of $180.32. At the current price of $75.42, the stock appears 58.2% undervalued relative to our intrinsic value estimate.
AIG Quality Indicators
American International Group Inc maintains a profit margin of 11.6% and an operating margin of 15.9%. Return on equity stands at 7.5%. Debt-to-equity ratio is 0.22.
About American International Group Inc
American International Group, Inc. (AIG) is a global insurance company. The Company provides a range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 130 countries. It diverse offerings include products and services that help businesses and individuals protect their assets, manage risks and provide for retirement security. It earns revenues primarily from insurance premiums, policy fees from universal life insurance and investment products, and income from investments. Its segments include AIG Property Casualty and AIG Life and Retirement. During the year ended December 31, 2012, the Chartis segment was renamed AIG Property Casualty and the SunAmerica segment was renamed AIG Life and Retirement.
AIG Free Cash Flow
American International Group Inc generated $3.31B in trailing twelve-month free cash flow, representing an FCF yield of 8.14%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
AIG Shares Outstanding
American International Group Inc has 0.54 billion shares outstanding at a share price of $75.42, giving it a market capitalization of $40.69B.
AIG Recent Insider Trades
Recent insider transactions at American International Group Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Inglis John C | BUY | 13.88 | $1200.13 |
| Walsh Keith (EVP and CFO) | BUY | 5.55 | $406.19 |