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| Comapny name |
: |
American International Group |
| Share |
: |
AIG |
Analysis date |
: |
13-Aug-2007 |
| Stock exchange |
: |
NYSE |
Rating |
: |
6/9 |
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| 1 |
History of Consistently Increasing EPS, Sales & Cash Flow. |
| |
1) EPS has increased consistently over 5 years? |
Yes |
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2) Sales has increased Consistently over 5 years? |
Yes |
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3) Cash Flow has increased consistently over 5 years? |
No |
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4) What is the historical/projected EPS growth rate?
|
10.50% |
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|
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| 2 |
Sunstainable Competitive Advantage |
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1) The company has a sustainable competitive advantage? |
Yes |
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Yes, AIG is the world\'s leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. |
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| 3 |
Future Growth Drivers |
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1) The company has future growth drivers in place? |
Yes |
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Yes, AIG plans to expand its operations even further. For full details, refer to the 2007 Annual Meeting of Shareholders speech given by AIG Chairman Bob Willumstad and AIG President and Chief Executive Officer Martin J. Sullivan.
Click here to view |
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| 4 |
Conservative Debt |
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1) The company has Long Term Debt <3x Net Profit? |
No |
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2) Long-Term Debt is $
|
125,354.0 Million |
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3) Net Profit is $
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14,048.0 Million |
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|
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| 5 |
High & Consistent ROE and ROA |
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1) The company has ROE>12-15% over 5 years? |
No |
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2) The company has ROA>7% over 5 years? |
No |
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| 6 |
Low CAPEX for Maintenance of Current Operations? (Not a key criterion) |
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1) The business requires low CAPEX for maintenance of Current operations? |
Yes |
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2) Is ( Free Cash Flow/Sales Revenue )>5%? |
No |
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Free Cash Flow/Sales Revenue data not available. |
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| 7 |
Management is Holding/Buying the Stock |
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1) Key Management has not been selling large Proportion of company stock? |
Yes |
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| 8 |
The Stock Price is Selling at a Discount (High Margin of Safety) |
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1) Current operating cash flow/EPS
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5.36 (EPS) |
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2) Projected Earnings Growth Rate
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10.50% |
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3) Number of shares outstanding
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2623 Million |
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4) Intrinsic Value
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$71.74 |
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5) Share price is below intrinsic value? |
Yes |
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| 9 |
Stock Price is Consolidating or on an Uptrend |
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1) Stock price breaking out of consolidating |
No |
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2) Stock price at a dip on a uptrend |
No |
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3) Stock price above 20 or 50 day moving average |
No |
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