Is AIG’s Stock the Ultimate Comeback Story?

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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

 

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