American International Group (AIG)
Financials · $41.3B market cap · SEC CIK 0000005272
ahead of 18% of the S&P 500 · #69 of 76 in Financials
Next reports on Feb 8, 2027, after the close, with analysts expecting $2.08 in earnings per share.
52-week range $71.25 to $87.29. 6% below its 52-week high and 16% above its low.
The case for AIG
- Trades at 1.00× book value, close to what the balance sheet says it owns.
- Moves less than the market (beta 0.48).
- Pays a modest 2.2% dividend.
The case against
- Revenue has shrunk 9.3% a year over five years.
- Value is weak (38/100): 12.5× earnings against a fair 11× for its growth, 1.5× sales.
- Return on equity of 8% is lower than 88% of Financials companies.
- Revenue grew only 1.2%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 38 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 14 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 35 |
| Momentumhow the price has behaved lately | 59 |
| Stabilityhow violently it moves, what it owes and what it pays you | 86 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +1.2% |
|---|---|
| Over 5 years | −9.3% a year |
| FY2025 revenue | $26.8B (−2%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? Yes, improving
| Gross margin | n/a |
|---|---|
| Operating margin | 16% |
| Net margin, FY24 → FY25 → now | −5.2% → 11.6% → 11.9% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $1.3B |
|---|---|
| Long-term debt | $9.2B |
| Net debt | $7.8B |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 12.5× |
|---|---|
| Fair P/E for its growth | 11× |
| Price / book | 1.00× |
| Fair P/B for its ROE | 0.8× |
| Forward P/E | 9.4× |
| EV / EBITDA | 6.2× |
At 12.5× earnings it trades close to the 11× that 0% a year of growth plus a 2.2% dividend would justify. At 1.00× book it trades above the 0.8× that its 8% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from American International Group's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $26.8B | $27.3B | $27.9B | $30.0B | $52.2B |
| Change on the year | −2% | −2% | −7% | −42% | — |
| Free cash flow | |||||
| Free cash flow | — | — | $6.0B | $3.9B | $5.9B |
| Of revenue | — | — | 21% | 13% | 11% |
| Profit margins | |||||
| Net margin | 11.6% | −5.2% | 13.0% | 34.1% | 19.9% |
| Debt vs. cash | |||||
| Cash | $1.3B | $1.4B | $1.6B | $1.6B | $2.4B |
| Long-term debt | $9.2B | $8.9B | $10.6B | $27.2B | $30.2B |
| Net cash (debt) | −$7.8B | −$7.5B | −$9.0B | −$25.6B | −$27.7B |
What American International Group says it does
2 • Available Information about AIG 2 • Operating Structure 3 • How We Generate Revenues and Profitability 4 • Human Capital Management 4 • Regulation