American International Group Stock Return On Equity
| AIG Stock | USD 80.11 0.23 0.29% |
American International Group fundamentals help investors to digest information that contributes to American International's financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American International's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American International stock.
| Last Reported | Projected for Next Year | ||
| Return On Equity | 0.08 | 0.05 |
American | Return On Equity |
American International Group Company Return On Equity Analysis
American International's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Current American International Return On Equity | 0.12 |
Most of American International's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American International Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
American Return On Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for American International is extremely important. It helps to project a fair market value of American Stock properly, considering its historical fundamentals such as Return On Equity. Since American International's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of American International's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of American International's interrelated accounts and indicators.
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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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American Total Stockholder Equity
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Based on the latest financial disclosure, American International Group has a Return On Equity of 0.1167. This is 91.95% lower than that of the Insurance sector and significantly higher than that of the Financials industry. The return on equity for all United States stocks is 137.65% lower than that of the firm.
American Return On Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American International's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American International could also be used in its relative valuation, which is a method of valuing American International by comparing valuation metrics of similar companies.American International is currently under evaluation in return on equity category among related companies.
American International Current Valuation Drivers
We derive many important indicators used in calculating different scores of American International from analyzing American International's financial statements. These drivers represent accounts that assess American International's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of American International's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 45.0B | 32.9B | 48.6B | 49.2B | 48.7B | 33.9B | |
| Enterprise Value | 77.5B | 67.6B | 76.5B | 74.4B | 69.0B | 61.9B |
American International ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American International's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American International's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
American Fundamentals
| Return On Equity | 0.12 | |||
| Return On Asset | 0.0082 | |||
| Profit Margin | 0.1 % | |||
| Operating Margin | 0.18 % | |||
| Current Valuation | 63.94 B | |||
| Shares Outstanding | 663.67 M | |||
| Shares Owned By Insiders | 0.29 % | |||
| Shares Owned By Institutions | 94.41 % | |||
| Number Of Shares Shorted | 6.81 M | |||
| Price To Earning | 3.62 X | |||
| Price To Book | 1.11 X | |||
| Price To Sales | 1.08 X | |||
| Revenue | 47.25 B | |||
| Gross Profit | 24.97 B | |||
| EBITDA | 3.88 B | |||
| Net Income | 3.88 B | |||
| Cash And Equivalents | 16.82 B | |||
| Cash Per Share | 22.64 X | |||
| Total Debt | 22.39 B | |||
| Debt To Equity | 0.74 % | |||
| Current Ratio | 0.79 X | |||
| Book Value Per Share | 64.66 X | |||
| Cash Flow From Operations | 6.24 B | |||
| Short Ratio | 1.85 X | |||
| Earnings Per Share | 6.69 X | |||
| Price To Earnings To Growth | 0.55 X | |||
| Target Price | 84.31 | |||
| Number Of Employees | 25 K | |||
| Beta | 1.03 | |||
| Market Capitalization | 53.17 B | |||
| Total Asset | 539.31 B | |||
| Retained Earnings | 37.52 B | |||
| Annual Yield | 0.02 % | |||
| Five Year Return | 2.79 % | |||
| Net Asset | 539.31 B | |||
| Last Dividend Paid | 1.44 |
About American International Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American International Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American International using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American International Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with American International
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American International will appreciate offsetting losses from the drop in the long position's value.Moving together with American Stock
| 0.61 | ESGR | Enstar Group Limited | PairCorr |
| 0.85 | FIHL | Fidelis Insurance Report 28th of June 2024 | PairCorr |
| 0.73 | AEG | Aegon NV ADR | PairCorr |
| 0.85 | EQH | Axa Equitable Holdings | PairCorr |
Moving against American Stock
| 0.64 | GSHD | Goosehead Insurance | PairCorr |
The ability to find closely correlated positions to American International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American International Group to buy it.
The correlation of American International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out American International Piotroski F Score and American International Altman Z Score analysis. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Complementary Tools for American Stock analysis
When running American International's price analysis, check to measure American International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American International is operating at the current time. Most of American International's value examination focuses on studying past and present price action to predict the probability of American International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American International's price. Additionally, you may evaluate how the addition of American International to your portfolios can decrease your overall portfolio volatility.
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Is American International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American International. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 57 | Dividend Share 1.44 | Earnings Share 6.69 | Revenue Per Share 68.558 | Quarterly Revenue Growth 0.154 |
The market value of American International is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American International's value that differs from its market value or its book value, called intrinsic value, which is American International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American International's market value can be influenced by many factors that don't directly affect American International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American International's value and its price as these two are different measures arrived at by different means. Investors typically determine if American International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.