French stock report - Air France - KLM

FRA

Air France - KLM shares post best quarter in a year September 21, 2018 17:30 CEST

NEWS BITES - EUROPE

Air France - KLM (FR:AF), France's 3rd largest Travel & leisure company by market cap, has climbed EUR1.43 (or 19%) in the past quarter to close at EUR8.96. Compared with the CAC 40 Index which rose 178.2 points (or 3.4%) in the past quarter, this represented a relative price increase of 15.6%. The volume for the past quarter was 0.9 times average trading per quarter of 363.3 million shares. In the past quarter the market cap has jumped EUR612.9 million to EUR3.8 billion (US$4.5 billion). The shares had their best quarter in a year since the quarter ended September 22, 2017.

Highlights in today's Report:

SECTION 1 BULLISH SIGNALS

SECTION 2 BEARISH SIGNALS

SECTION 3 PRICE VOLUME DYNAMICS

SECTION 4 RELATED NEWS

SECTION 5 SUMMARY FINANCIALS

SECTION 6 PROFILE

SECTION 1 AIR FRANCE - KLM BULLISH SIGNALS

1.1 Technicals:

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 8.73 minus the 26-day EMA of 8.63 is positive 0.1 suggesting a bullish signal. Both EMA prices are rising, another bullish signal.

+ The present value of EUR1,000 (PV1000) invested five years ago in Air France - KLM is EUR1,283, for a capital gain of EUR283.

+ 5 years Multiplier in EUR = 1.283x

+ Compound Annual Growth Rate (CAGR) in EUR = 5.1%

Present Value of USD1,000 invested 5 years ago:

+ The present value of USD1,000 (PV1000) invested five years ago in Air France - KLM is $US1,117, for a capital gain of $US117.

+ 5 years ago EUR 1 equalled USD 1.3544

+ 5 years Multiplier in USD = 1.117x

+ Compound Annual Growth Rate (CAGR) in USD = 2.2%

Sep 21, 2018: EUR 1 equals USD 1.18

High Performance Indicators and rank of Air France - KLM in the French market:

DescriptionAF ValueRank In Market
Price to Sales0.1In Top 3%
Today's Trading TurnoverEUR46.3 million (US$54.6 million)In Top 5%
Price/MAP501.07In Top 9%
P/E * P/NTA6.91In Top Quartile
EPS Growth %84.1In Top Quartile

1.2 Fundamentals:

+ The P/E of 3 multiplied by the P/NTA of 2.3 is 6.9. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.

+ Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.2. Compared with the rest of the market the stock is undervalued and ranks in the top 3% of stock by value of Q Ratio.

+ Air France - KLM is cash rich with Cash to Market Capitalisation at 11.0%.

Annual Trend in Revenue, EPS and EBITDA:

+ Revenue growth rate has shown signs of recovery in recent years. [Year ended, all figures in %]

YearRevenue GrowthEPS GrowthEBITDA Growth
Dec 173.884.1-
Dec 16-4.71,316.133.4

1.3 Undervaluation [compared with sector average]:

+ Price/Sales of 0.1 [0.6]. We estimate Air France - KLM stock is trading at a current year Price/Sales of 0.1 and a forward year Price/Sales of 0.1.

+ Return on Equity 33.4% [6.0%].

SECTION 2 AIR FRANCE - KLM BEARISH SIGNALS

2.1 Technicals:

+ The price decreased 1.9% in the last month.

+ The present value of EUR1,000 (PV1000) invested one year ago in Air France - KLM is EUR679, for a capital loss of EUR321.

PV10001-week1-month1-year
AF.FR1,049981679
CAC 40 Index1,0261,0031,043

2.2 Overbought/Bearish/Resistance Signals:

+ The Relative Strength Index (RSI) of 73.4 has penetrated the overbought line of 70, suggesting the price gain of 6% in the last 14 days is unusually high.

+ The stock is overbought according to the Williams % R indicator of -11.5, suggesting the price is close to its 14-day high of EUR9.08.

Low Performance Indicator and rank of Air France - KLM in the French market:

DescriptionAF ValueRank In Market
Total Debt to Equity2.5In Bottom 4%

2.3 Fundamentals:

+ Net profit margin has averaged 0.5% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

SECTION 3 AIR FRANCE - KLM PRICE VOLUME DYNAMICS

3.1 Technicals:

+ Volume: there were 5,170,000 shares worth EUR46.3 million (US$54.6 million) traded today. In the past week, volume was 0.7 times average and the shares were up 4.9%. The volume was 0.9 times the average daily trading volume of 5.5 million shares.

+ Air France - KLM is at a discount of 38.8% to its 12-month high of EUR14.65 on November 03, 2017. It is also at a premium of 34.7% to the 12-month low of EUR6.65 on June 11.

3.2 Moving Annual Return (Past 5 years)

Based on a dynamic start date of 5 years ago, the Moving Annual Return has been positive in 2 out of 5 years.

AFClose (EUR)Annual Return %
Sep 218.96(32.1)
1 Yr ago13.2183.9
2 Yrs ago4.65(30.5)
3 Yrs ago6.69(17.0)
4 Yrs ago8.0615.5

Close 5 years ago EUR6.98

3.3 Beta:

+ Beta: the Beta of Air France - KLM stock is 0.5. A Beta lower than 1 suggests this is a low risk, low return stock with volatility less than that of the market.

3.4 The Past Two Years

+ Air France - KLM (FR:AF), has surged EUR4.31 (or 92.7%) in the past two years to close at EUR8.96 today. Compared with the CAC 40 Index which has risen 25.2% over the same period, this is a relative price increase of 67.5%.

SECTION 4 AIR FRANCE - KLM RELATED NEWS

Other News

+ BSS/News Bites:

Air France - KLM is placed 472/575 in BSS News Bites' ranking of French performers in the past year, a percentile ranking of 18.

+ Vanguard Total World Stock ETF 7587:

The stock was one of 7587 global stocks selected by Vanguard Total World Stock ETF (VT). As at Jul 31, 2018, the Vanguard Total World Stock ETF held 68,516 shares worth $US581,601 by value of the ETF's portfolio [Ranked 3247 out of 7587 by value and 88 out of 138 for France].

SECTION 5 AIR FRANCE - KLM SUMMARY FINANCIALS

Financials Summary (Past 3 years)

Year endedDec 2017Dec 2016Dec 2015
Sales (USD B)30.12930.4
Pretax (USD M)(603.9)961.4233.6
Net (USD M)(320.1)925.2137.8
EPS (EUR)31.62910.115

+ Net profit slumped from US$925.2 million in 2016 to a loss of US$320.1 million in 2017.

+ Earnings Per Share (EPS) was up 84.1% from EUR1.63 to EUR3.0.

SECTION 6 AIR FRANCE - KLM PROFILE

6.1 Activities

Air France-KLM is one of the world's leading airline companies. Net sales break down by activity as follows: - passenger transportation (77.5%): 71.4 million people transported in 2009/10; - freight transportation (11.6%; No. 2 worldwide): 1.5 Mt of merchandise transported; - maintenance services (4.6%); - other (6.3%): primarily catering service activities (Servair and KLM Catering Services) and charters (Transavia.com). At the end of March 2010, the group had a fleet of 625 airplanes divided between the domestic fleets of Air France (262, of which 148 owned and 114 leased) and KLM (113, of which 33 owned and 80 leased), and the regional fleets of KLM Cityhopper (48, of which 32 owned and 16 leased), Brit Air (43, of which 16 owned and 27 leased), City Jet (27, of which 16 owned and 11 leased), Regional (64, of which 23 owned and 41 leased), VLM Airlines (17, of which 15 owned and 2 leased) and other (51, of which 8 owned and 43 leased).

6.2 Top Management

The chief executive officer and chairman is Jean-Marc Janaillac and the chief financial officer is Frederic Gagey.

6.3 Issued Capital

Based on 428,630,000 issued shares the market capitalisation is EUR3.8 billion (US$4.5 billion).

COMPANY IDENTIFIERS

Contact: +33 (0)1 41 56 88 85

Physical Address: 45 rue de Paris POBox 90112 95747 Roissy Charles de Gaulle France

State/Province/Country: France

Country of Incorporation: France

Exchange: Euronext - Paris

Business Sector: Cyclical Consumer Services

Industry Group: Hotels & Entertainment Services

Industry: Leisure & Recreation

Economic Sector: Consumer Cyclicals

ISIN: FR0000031122

FR:AF; EPA:AF; PA:AF; FP:AF; AIRF.PA

PermID: 4295866970

RIC: AIRF.PA

Air France Klm Sa, Air France-Klm, Astoria Financial Corp

Source: www.BuySellSignals.com