NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, attractive valuation levels and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 77.1% when compared to the same quarter one year prior, rising from $11,176.00 million to $19,798.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, AMERICAN INTERNATIONAL GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- AMERICAN INTERNATIONAL GROUP's earnings per share declined by 22.4% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AMERICAN INTERNATIONAL GROUP reported lower earnings of $7.93 versus $14.47 in the prior year. For the next year, the market is expecting a contraction of 68.5% in earnings ($2.50 versus $7.93).
- Net operating cash flow has significantly decreased to $1,118.00 million or 63.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
American International Group, Inc. is an international insurance organization. The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. The company has a P/E ratio of 3.3, above the average insurance industry P/E ratio of 1.7 and below the S&P 500 P/E ratio of 17.7. American International Group has a market cap of $48.09 billion and is part of the
industry. Shares are up 23.5% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff