AIG Investment Analysis Report & Stock Research, American International Group, Inc.

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American International Group, Incorporated (AIG)

AIG Stock Report

2-Year Price History

Recent Price
(6/5 4:00PM) +4.3%
$1.71
52-Week Price
$0.33 - $31.09
Market Capitalization
$4.6 Billion
Dividend Yield
0.00%
Most Recent Dividend
$0.62
All Financial News about AIG is here.

About American International Group, Inc.

American International Group, Incorporated is considered to operate in the Financial sector. They specifically operate in the Property/Casualty Insurance business segment contained within the Insurance industry.

A holding company, through its subsidiaries, is engaged in insurance and insurance related activities in the United States and abroad.

A Word Of Caution

The Ockham Research Team has placed an alert on this security because there have been significant developments associated with American Intl Group, Inc. (AIG). Eventually, these externalities may have an impact on our valuation but these recent events have not yet been fully factored into our analysis.

Please take a moment to look at the RazorWire feed on the left had side of the report. Each mention of American Intl Group, Inc. on business television will be displayed to the right of the report. This should help bring you up to speed on any major issues they are facing right now.

Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect these significant factors surrounding this company as our data sources are still being updated. This alert shall remain in effect until the situation surrounding this security normalizes substantially.

Therefore, (and as always), check additional sources and available information regarding AIG before making an investment decision.

Ockham's Rating

Rating specific information requires Premium Access.
Buy Now or Take the Tour.

AIG Revenue

As we have often noted, in our valuation methodology, "Cash is King." Well, it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, AIG the high and low end of the Price to Sales per share ratios are 2.06x and 1.18x respectively.

Notice that AIG's current Price to Sales per share ratio is 0.03x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $1.71, AIG is 98% below where we would expect to see it. This will beneficially factor into our final analysis of AIG as it is not often that this stock sinks to these levels.

AIG Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to anticipated negative cash flows for this year. A negative cash flow presents many complications when comparing the company's current value to historically normal valuations. Clearly, when a company fails to earn a profit, it should be a concern for investors. As such, we have taken a negative view on AIG from a cash perspective. We should point out that this metric is a significant element in Ockham’s methodology for analyzing the outlook for any company. Many young companies have come through difficult times like this before; these companies have an opportunity to grow revenue appropriately to bring them around to profitablity. However, for mature company's with a history of positive cash flow this can be much more distressing. Therefore, for AIG, our overall valutaion is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

AIG Dividends

A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.

Peer Comparison

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American International Group, Inc. Industry Grouping

(6/5/2009)
Company Ticker Market Cap (Ml) Latest
Price
Price/Cash Earnings Price/Sales 5-Yr. Rev.
Growth Rate
5-Yr.
Avg. ROE.
Current 10-Yr. Range* Current 10-Yr. Range*
Peer Company Averages (not incuding AIG) 113.72 5.13 » 112.91 1.03 0.62 » 2.29 3.08% 14.06%
*10 year range does not include current year values
Willis Group Holdings Limited WSH $4.7 Billion $28.02 10.61 8.25 » 55.94 1.28 1.15 » 3.31 7.18% 26.34%
American International Group, Inc. AIG $4.6 Billion $1.71 -1.00 10.75 » 45.69 0.03 0.04 » 5.73 3.32% 8.56%
Everest Reinsurance Group Limited RE $4.6 Billion $74.30 391.05 5.06 » 36.70 1.12 0.64 » 2.32 -2.99% 8.91%
Fairfax Financial Holdings,Inc. FFH $4.4 Billion $251.66 2.99 2.43 » 17.11 0.70 0.12 » 0.78 6.90% 13.02%
Cincinnati Financial Corp. CINF $3.9 Billion $24.12 7.76 5.14 » 58.61 1.12 0.58 » 2.99 3.75% 11.52%
PartnerRe Ltd. PRE $3.8 Billion $67.16 156.19 4.74 » 396.21 0.95 0.62 » 2.05 0.58% 10.50%
>
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The latest TV Media Discussion

11:43:34 AM AIG $1.67 American International Group, Inc.
2 days ago (06/05)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Fox Business said about AMERICAN INTERNATIONAL GROUP, INC. …more details… LEARN MORE
7:23:38 AM AIG $1.64 American International Group, Inc.
2 days ago (06/05)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Money For Breakfast said about AMERICAN INTERNATIONAL GROUP, INC. …more details… LEARN MORE
7:17:53 AM AIG $1.64 American International Group, Inc.
2 days ago (06/05)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Money For Breakfast said about AMERICAN INTERNATIONAL GROUP, INC. …more details… LEARN MORE
6:12:51 AM AIG $1.64 American International Group, Inc.
Squawk Box
2 days ago (06/05)
Premium Content - please sign up for Ockham PREMIUM to gain full access and to see what Squawk Box said about AMERICAN INTERNATIONAL GROUP, INC. …more details… LEARN MORE
1:50:13 PM AIG $1.59 American International Group, Inc.
3 days ago (06/04)
“…>> not at all, stuart. You're spot on. This is real simple. If the government did not want to exercise authority over these ins tuesdays, whether the car companies, the banks, AIG, whatever, it could make the shares nonvoting, period, the end and it hasn't chosen to do it plans to exercise its voting …” …more details…
1:44:06 PM AIG $1.59 American International Group, Inc.
3 days ago (06/04)
“…Recently, you had a bust. >>> five months where commodities weren't down. Lehman brothers went broke and AIG went broke. In 1987, stocks were down 40 to 80% around the world. Was it the end of the bull market in stocks? Anybody who sold in '87 lost a lot of money. …” …more details…
12:25:47 PM AIG $1.56 American International Group, Inc.
3 days ago (06/04)
“…It's hit a iceberg now, taking on water. Barack obama is trying to get >> yes, he is. >> he's spending money full steam ahead. >> he's bailing out auto industry, banks, AIG, anything else and forgive some of the >> all of the economic failures has to fix before -- >> at some point, you're going to have to -- >> at some point the bush …” …more details…
7:30:50 PM AIG $1.49 American International Group, Inc.
America's Nightly Scoreboard
4 days ago (06/03)
“…>> you most certainly can. Look who has been in, kashkari, former goldman guy. We have a lot of goldman entrenched in d.C. They got paid back for AIG before anybody else and got paid back in full no questions asked we're seeing more and more of this. The worst part about it that it is so obvious. So transparent actually. …” …more details…
6:08:23 PM AIG $1.47 American International Group, Inc.
4 days ago (06/03)
“…Issue. >> look, I set it in the shoveling billions of dollars in the financial institutions , tens of billions into AIG, they made a mistake. Work. The bankruptcy court would have restructured, we would have …” …more details…
4:56:26 PM AIG $1.48 American International Group, Inc.
4 days ago (06/03)
“…Moves will result in large job losses and hurt the communities, both henderson and press say the cuts are necessary because there are currently just too many dealers out there, often cannibalizing each other's >>> and AIG has announced it has agreed to sell its new york city headquarters as well as another building in the city, but the disclosing who the buyer is nor how much was paid. The move all part of AIG's plan to sell assets in order to repay the government's bailout loans. >>> investors are awaiting tomorrow's weekly jobless claims data. We'll find out what else could move the market when we come …” …more details…
4:55:00 PM AIG $1.48 American International Group, Inc.
4 days ago (06/03)
“…Stories to watch. Singapore's investment firm tomasek holdings and hong kong tie coop richard lee have joined in a bid for AIG's asset management business. Meanwhile, mitsubishi fa financial group joins china's sovereign wealth fund in investing in morgan stanley's common stock offering. >>> and more protests in hong …” …more details…
10:45:00 AM AIG $1.50 American International Group, Inc.
4 days ago (06/03)
“…They're conventional securities. Those are the two biggest components of the balance sheet. Of course, about 100 billion about 5% of our billion sheet is dedicated to the bear stearns and AIG rescues, as I said, those things are now open to audit by the gao and we'll cooperate in every way and pro ride whatever information is needed on that. So, I would urge you to look at the new monthly report we will …” …more details…
10:44:57 AM AIG $1.51 American International Group, Inc.
4 days ago (06/03)
“…They're just conventional those are the two biggest components of our balance sheet. Of course, there's $100 billion, 5% of the balance sheet, is dedicated to the bear stearns and AIG rescues. As I said, those things are now open to audit by the gao. We will cooperate in every way and provide whatever information is needed on that. So I would urge you to look at our new monthly report we will …” …more details…
10:43:11 AM AIG $1.50 American International Group, Inc.
4 days ago (06/03)
“…That request. I would just note that the senate and I think the congress passed a rule recently that would allow the gao to directly audit AIG and others individual bank or other interventions and we're perfectly comfortable with we provided extensive information to congress on AIG and those other rescues, including monthly reports required by congress on all 133 lending so we have been quite open about it. …” …more details…
10:43:11 AM AIG $1.50 American International Group, Inc.
4 days ago (06/03)
“…That request. I would just note that the senate oh of I think the congress passed a rule recently that would allow the gao to directly audit the AIG and other individual bank or other interventions, and we are perfectly comfortable with that. We provided extensive information to the congress on AIG and those other rescues, including monthly reports required by congress on all 13 lending. We have been quite open about if there are specific issues -- >> how about specific issues on …” …more details…
10:40:01 AM AIG $1.49 American International Group, Inc.
4 days ago (06/03)
“…Portion of the bailout is the congressional oversight panel. Yet, the fed has not responded to that panel's april request for specific information about your continued assistance to AIG, even though our oversight panel told you that the lack of information, quote, has substantially hampered meanwhile, we've learned that the AIG bailout was also a bailout of goldman sachs and some of the world's largest foreign banks, all of whom were not asked to accept a penny of losses. I have four questions or …” …more details…
10:39:59 AM AIG $1.48 American International Group, Inc.
4 days ago (06/03)
“…Portion of the bailout is the congressional oversight panel. Yet, the fed has not responded to that panel's april request for specific information about your continued assistance to AIG even though our oversight panel told you that the lack of information, quote, has substantially hampered meanwhile, we've learned that the AIG bailout was also a bailout of goldman sachs and some of the world's largest foreign banks. All of whom were not asked to accept a penny of losses. I have four questions or …” …more details…
9:46:56 AM AIG $1.48 American International Group, Inc.
4 days ago (06/03)
“…>> they could fly the plane. Robert: serving yourself drinks connell: anyway, next, dave kansas wall street journal. >> interesting story today in the wall street journal, sports pages. AIG's been a long time sponsor of the manchester united soccer team and of course AIG is in a little bit of a pickle, a difficulty and east is aon, the financial based services firm is going it take over the jersey sponsor in AIG, the funny thing it doesn't start until june 2010, manchester united ashley, you'll be glad to know will have to wear AIG all next season even though AIG is not the best to be on the jersey. Maybe that's why they lost. Ashley: you know what ag stands for accord to go fans, alex is god, the coach, so they're happy with AIG. >> they won't have to change the they have the aon. Come upping with something. …” …more details…
8:05:18 AM AIG $1.59 American International Group, Inc.
Squawk Box
4 days ago (06/03)
“…Less demand. Airplane values are down 30, >> fred is ritz carlton. So you had to deal with -- not just the economy and the stock market is off, you had the AIG effect at monarch bay. You had the auto executives headed to d.C. But that didn't help, right? >> not only did it not help, you take the bad economy, you take …” …more details…
7:36:54 AM AIG $1.59 American International Group, Inc.
Squawk Box
4 days ago (06/03)
“…Darren rovell hass that. Had scored a goal this season. It is that insurance giant -- aon is taking over -- it was an offensive score. >> apparently. But aon is taking over AIG for the jersey sponsor of manchester darren rovell joins you with this drives people crazy in europe. >> this team has more fans than people in the united states. …” …more details…
7:26:16 AM AIG $1.59 American International Group, Inc.
Squawk Box
4 days ago (06/03)
“…Away from the adp report, two key economic sur stlas could still to come, has the redshirt of manchester united been tainted since the fall of AIG. The insurance giant signing a deal to have their logo all over the richest sports team. Darren rovell has that story. …” …more details…
6:53:48 PM AIG $1.60 American International Group, Inc.
Mad Money
5 days ago (06/02)
“…Someone comes down off the hall and today is no exception. Today ed liddy, the departing chairman and ceo of the black hole known as AIG gets to take his -- gets his face taken down from the number one spot. Liddy's inept manager, I know he only earned a dollar, that's his net management was only eclipsed by husband cluelessness and deciding to resign may be the best decision he's made as AIG's top dog even though he's widely considered to be well too ridiculed by me, I don't know. He made a lot of mistation. Normally I don't put freshmen ceos on the wall of shame, but liddy who only took the job eight months ago is a real record-breaker. By the way, third guy from AIG i've had to put on the wall. Liddy's departure is good for the company but not to me. Nothing, I repeat nothing, could make AIG's common stock worth owning, I repeat nothing. It's a zombie and just like scooby-doo on zombie island this time the monsters are for real, and the fact that the common stock hasn't been cancelled or …” …more details…
5:46:21 PM AIG $1.59 American International Group, Inc.
Happy Hour
5 days ago (06/02)
“…People are not demanding that the could be a big problem for our taxpayer money speaking of that, give me the next screen. Here is your "fox business" red ink portfolio. Here is chunk of it, AIG and citi. That stock we own. Gm chrysler, $76 billion. Fannie mae and freddie mac, $500 billion. $785 billion. …” …more details…
7:37:19 PM AIG $1.65 American International Group, Inc.
America's Nightly Scoreboard
6 days ago (06/01)
“…Had more of the ebay style bidding for general motors and chrysler why should the government did of something when nobody would bid asset price? That was inherently to rob the same with AIG. Secondly under both president bush and obama's, the $250 checks to various people there is nothing more ecological than giving money out when …” …more details…
6:08:17 PM AIG $1.66 American International Group, Inc.
Mad Money
6 days ago (06/01)
“…Down side was minimal, and the time was right to buy, I didn't think the risk-averse crowd would come in until gm was dealt with. It's important to recognize that as with AIG, fannie mae, freddie mac, and lehman it didn't matter how, how they were resolved as those black holes like gm really had been filled only in the most …” …more details…
6:06:40 PM AIG $1.66 American International Group, Inc.
Mad Money
6 days ago (06/01)
“…Just announced jpmorgan secondary. Because as an owner for my charitable trust, actionalertsplus.Com, I think it will soar after the deal. I won't be able to buy it. You shouldn't be. The next black hole, AIG. Hey, three bailouts and plenty of angst later the problems are at last behind us. The losses have been contained to about $200 billion, the biggest hole in tarp. But without a bailout AIG could have been a huge domino knocking down just about everything in sight both here and, more important-n europe. …” …more details…
6:03:38 PM AIG $1.65 American International Group, Inc.
Mad Money
6 days ago (06/01)
“…Term over and over again the black holes. The seven black holes in the system that could bring us all I revealed these holes well before the fall of lehman brothers and AIG, and I urged the government to take action all the way back then in order to stem the losses before all seven of them went down. None of the black holes were filled by the government in time …” …more details…
4:56:48 PM AIG $1.65 American International Group, Inc.
6 days ago (06/01)
“…>> I woke up this morning and really said to ourselves we're not in kansas anymore. This bizarro world we live if right now, our government, the definition of capitalism in this country has our government owning AIG, fannie mae, freddie mac, general motors, citibank, chrysler, government-owned I don't even know what to >> tobin smith, the american business landscape changes …” …more details…
4:27:10 PM AIG $1.65 American International Group, Inc.
6 days ago (06/01)
“…Citi earlier in the decade. With its addition, weighing with be 3.5%. Help beef up the financials which had fallen because of citi's price drop and also the loss of AIG. So now it's going to bring back that financial component adding on with jp morgan, american express, and bank of america. The interesting thing is they're …” …more details…
2:16:17 PM AIG $1.66 American International Group, Inc.
6 days ago (06/01)
“…U.S. Treasury. The second, of course, is the level of government intervention. For chrysler, it's only 10% 60% in the company. That's heading up to AIG territory. Take a look here. Congressman john boehner, the top republican in the house of representatives saying this agreement may buy time but does nothing to ensure g.M. Success. The only thing it makes clear …” …more details…
2:12:13 PM AIG $1.66 American International Group, Inc.
6 days ago (06/01)
“…Yes, that is trillion with a "t" trillion. That doesn't count the $787 billion stimulus program nor does it include the $180 billion bailout for AIG or the $85 billion for general motors, chrysler and a few of their suppliers. Add that in, and take our current population of 306 million, you get a debt …” …more details…
11:15:33 AM AIG $1.67 American International Group, Inc.
6 days ago (06/01)
“…This country. Remember, the government is staying that we really don't want to own gm. They are going to want to back out over the next few months. They are going to do the dip financing, but remember, they've already financed the banks, they've financed AIG and financing chrysler, right now the government is taking a huge role in the major companies so gm, I hate it tell you, just add it to the list. Just add it to the list. >> dagen: they got theirs so gm …” …more details…
10:28:24 AM AIG $1.68 American International Group, Inc.
6 days ago (06/01)
“…Much involvement from the government. The administration is really down playing those charges, saying, they want to get in and they want to get out as soon as possible, not just for gm, but for chrysler, AIG, city citi and the financial institutions they've been investing in over the course of the year. Secretary had to say about that. >> the government assistance is coming, support a restructuring, not to prevent restructuring and …” …more details…
10:23:12 AM AIG $1.68 American International Group, Inc.
6 days ago (06/01)
“…>> google is still, what, five years public, not even? >> I know. It's probably going to be the fastest. One that can give us the most >> instead of putting AIG in at 70. >> putting chevron back in at 150 oil. I mean, you know, they kind of have been calling the oh we. >> meanwhile, correlates 95% in the s&p somehow. …” …more details…
10:21:45 AM AIG $1.68 American International Group, Inc.
6 days ago (06/01)
“…Cisco, you know, we did have dow jones industrials saying that cisco is a vital part of the economy and the culture and the information age, so they like putting that one in travelers represent the financials, and putting in, because they thought that after they took out AIG, you may remember when they did that in 2008, that they were a little underweight in the so they put travelers in. And very ironic, there's …” …more details…
9:31:06 AM AIG $1.70 American International Group, Inc.
6 days ago (06/01)
“…Obviously, citigroup and general motors are coming out and you know, dow jones actually saying that travelers in particular which they thought, obviously, was a little lacking in that group after at the took out AIG. So these are some of the names that we're going to be watching as they go into the dow jones these names with up arrows, cisco up nearly 4%, travelers up nearly 3%. …” …more details…
8:44:03 AM AIG $1.69 American International Group, Inc.
Squawk Box
6 days ago (06/01)
“…Government at this point to so many companies in the country. Certainly modern era. We're deep in gm, also deep in don't forget $150 billion for AIG. Don't forget a moving target on fannie and freddie. We own 79.9% of, veryd,ho$=m to the ownership stake ultimately the u.S. Taxpayer will have in and thenoo which the …” …more details…
8:39:21 AM AIG $1.69 American International Group, Inc.
Squawk Box
6 days ago (06/01)
“…>> google. >> google? >> no. >> too young. >> huge market cap. >> help the stock market if it goes up. That's what they always try to they pick AIG, presto. Let's put the oil stocks in at $150 a barrel. That was smart. Anyway, the man that -- >> big banks. >> the man that broke the story of the second largest bankruptcy …” …more details…
7:27:34 PM AIG $1.69 American International Group, Inc.
America's Nightly Scoreboard
9 days ago (05/29)
“…Was if you bet naked it was like your bookmaker welched on you lose money. If you had insurance against actual issue out standing that is something else again. AIG and casano's operation in london were taken over. David: adam, disagreeing with you because he always likes to get naked. >> we're not arguing that point here. But there was an issue, remember this was all …” …more details…
7:27:10 PM AIG $1.69 American International Group, Inc.
America's Nightly Scoreboard
9 days ago (05/29)
“…Become more intrusive than the previous government. >> david, may I jump in on that please. David: hold on, adam. Something adam said. In AIG situation when they made counter parties whole a lot of those contracts were not insurance contracts they were just naked bets as to whether irms on the street were going to go down. My own feeling at the time …” …more details…
View All American International Group, Inc. News

Key Fundamentals

AIG - American International Group, Incorporated Fundamentals
Price (6/5 4:00PM) $1.71
Volume (6/5 4:00PM) 90.1 Million
Last Close Price $1.64
10 Day Average Volume 67.4 Million
13 Week Price Range $0.33 - $2.19
52 Week Price Range $0.33 - $31.09
LTM Revenue $102.2 Billion
 
Shares Outstanding (12/2008) 2.7 Billion
Market Capitalization $4.6 Billion
Shares Held By Institutions 1.2 Billion
Institutional Holders 861
% Shares Held By Institutions 46.20%
Earnings Per Share (EPS) ($37.84)
P/E Ratio n/a
Book Value Per Share $17.00
 
Gross Margin n/a%
Annual Dividend 0.00
Dividend Yield 0.00%
Beta 3.79
Fiscal Year Ends December
NASDAQ 1849.42

-0.6  -0.03%
S&P; 500 940.09

-2.37  -0.25%
^DIA 87.91

0.4  0.46%