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Market Cap

€3.0b

Last Updated

2021/05/10 19:44 UTC

Data Sources

Company Financials +

Executive Summary

Air France-KLM SA, together with its subsidiaries, provides passenger transportation services on scheduled flights. More Details


Snowflake Analysis

High growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Air France-KLM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AF is not significantly more volatile than the rest of French stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: AF's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-1.5%

AF

2.8%

FR Airlines

0.6%

FR Market


1 Year Return

13.7%

AF

28.5%

FR Airlines

43.0%

FR Market

Return vs Industry: AF underperformed the French Airlines industry which returned 26.7% over the past year.

Return vs Market: AF underperformed the French Market which returned 42% over the past year.


Shareholder returns

AFIndustryMarket
7 Day-1.5%2.8%0.6%
30 Day-14.2%4.5%3.4%
90 Day-6.0%18.6%11.3%
1 Year13.7%13.7%75.6%28.5%46.4%43.0%
3 Year-38.0%-38.0%-30.1%-54.7%28.7%18.3%
5 Year-36.8%-36.8%-6.8%-39.8%86.7%60.1%

Long-Term Price Volatility Vs. Market

How volatile is Air France-KLM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Air France-KLM undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AF (€4.63) is trading below our estimate of fair value (€18.35)

Significantly Below Fair Value: AF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AF is unprofitable, so we can't compare its PE Ratio to the XX Airlines industry average.

PE vs Market: AF is unprofitable, so we can't compare its PE Ratio to the French market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AF has negative assets, so we can't compare its PB Ratio to the XE Airlines industry average.


Future Growth

How is Air France-KLM forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

60.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.4%).

Earnings vs Market: AF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AF's is expected to become profitable in the next 3 years.

Revenue vs Market: AF's revenue (20% per year) is forecast to grow faster than the French market (6.8% per year).

High Growth Revenue: AF's revenue (20% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AF's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Air France-KLM performed over the past 5 years?

-82.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AF is currently unprofitable.

Growing Profit Margin: AF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AF is unprofitable, and losses have increased over the past 5 years at a rate of 82% per year.

Accelerating Growth: Unable to compare AF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AF is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (-26.2%).


Return on Equity

High ROE: AF's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Air France-KLM's financial position?


Financial Position Analysis

Short Term Liabilities: AF has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AF has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AF has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AF's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AF has sufficient cash runway for 12 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: Insufficient data to determine if AF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is Air France-KLM current dividend yield, its reliability and sustainability?

0.21%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AF's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AF's dividend in 3 years as they are not forecast to pay a notable one for the French market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Ben Smith (49 yo)

2.67yrs

Tenure

€3,981,657

Compensation

Mr. Benjamin M. Smith, also known as Ben, has been Chief Executive Officer at Air France-KLM SA since September 17, 2018 and has been its Director since December 5, 2018. He served as President of Passenge...


CEO Compensation Analysis

Compensation vs Market: Ben's total compensation ($USD4.84M) is above average for companies of similar size in the French market ($USD1.77M).

Compensation vs Earnings: Ben's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: AF's management team is considered experienced (4.6 years average tenure).


Board Members

Experienced Board: AF's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 50.1%.


Top Shareholders

Company Information

Air France-KLM SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Air France-KLM SA
  • Ticker: AF
  • Exchange: ENXTPA
  • Founded: 1919
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: €2.969b
  • Shares outstanding: 641.43m
  • Website: https://www.airfranceklm.com

Number of Employees


Location

  • Air France-KLM SA
  • 2 rue Robert Esnault-Pelterie
  • Paris
  • Ile-de-France
  • 75007
  • France

Listings


Biography

Air France-KLM SA, together with its subsidiaries, provides passenger transportation services on scheduled flights. The company operates through Network, Maintenance, Transavia, and Other segments. It also...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/10 19:44
End of Day Share Price2021/05/10 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.