Is AIG’s Stock the Ultimate Comeback Story?

January 21, 2013

Page 2 of 3

E = Equity to Debt Ratio Is Normal

The debt-to-equity ratio AIG is normal. It’s higher than the debt-to-equity ratios for The Travelers Companies (NYSE:TRV) and The Chubb Corporation (NYSE:CB), but it’s nothing to worry about, and it’s heading in the right direction. The balance sheet is in decent condition. Once again, it’s more about the direction, which is good.

	Debt-To-Equity	Cash	Long-Term Debt
AIG	0.72	$49.10 Billion	$73.75 Billion
TRV	0.25	$220.00 Million	$6.35 Billion
CB	0.22	$53.00 Million	$3.78 Billion

T = Technicals on the Stock Chart Are Strong

AIG has been on a tear over the past year. It has outperformed its competitors over that timeframe.

	1 Month	Year-To-Date	1 Year	3 Year
AIG	-1.24%	-0.59%	36.80%	25.50%
TRV	3.37%	6.25%	27.44%	69.69%
CB	3.92%	4.93%	13.88%	71.14%

At $35.09, AIG is currently trading above all its averages.

50-Day SMA	34.02
100-Day SMA	34.26
200-Day SMA	32.91

E = Earnings Have Shown Improvement

Earnings and revenue haven’t been consistent on an annual basis, but there has clearly been a significant improvement since the financial crisis.

	2007	2008	2009	2010	2011
Revenue ($)in billions	103.63	-6.84	75.45	77.53	64.24
Diluted EPS ($)	47.98	-756.85	-90.48	11.60	9.44

When we look at the last quarter on a YoY basis, we see an increase in revenue and earnings.

	9/2011	12/2011	3/2012	6/2012	9/2012
Revenue ($)in billions	12.72	17.40	18.44	17.12	17.65
Diluted EPS ($)	-2.10	10.23	1.71	1.33	1.13

Page 2 of 3

view all

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com