NASDAQ
ABALX
Last Price
US $41.04
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
American Funds American Balanced A cash flow to debt ratio of 1.53K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
American Funds American Balanced A's free cash flow has increased 130.28% from $39.22M last year to $90.31M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
American Funds American Balanced A's debt to equity ratio is 0.02, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
American Funds American Balanced A's debt has decreased relative to shareholder equity from 0.02 last year to 0.02 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
American Funds American Balanced A has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
American Funds American Balanced A earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
American Funds American Balanced A's profit margin has increased (125.71%) in the last year from 3.24% to 7.31%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
American Funds American Balanced A's short-term assets of $452.10M exceed its short-term liabilities of $66.26M
Increasing performance - ROA.
American Funds American Balanced A's return on assets of 9.17% is higher than the 5.00% threshold, indicating efficient asset utilization
Decreasing performance - Absolute return on equity.
American Funds American Balanced A's return on equity of 12.67%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
American Funds American Balanced A's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
American Funds American Balanced A had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
American Funds American Balanced A has positive free cash flow, indicating the company generates cash after capital expenditures
Decreasing performance - FCF yield.
American Funds American Balanced A has a free cash flow yield of 0.03%, which is below the 2.00% threshold, indicating limited cash return relative to market value
Increasing performance - Healthy earnings growth.
American Funds American Balanced A's yearly earnings has increased 120.01% since last year from $27.70M to $60.94M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
American Funds American Balanced A's yearly revenue has decreased -2.53% since last year from $855.00M to $833.38M, signaling decreasing performance
Increasing performance - ROIC.
ROIC 8.87% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Increasing performance - 3-year revenue CAGR.
American Funds American Balanced A's 3-year revenue CAGR of 30.77% is positive, indicating growing revenue over the past 3 years
Decreasing performance - Revenue consistency.
American Funds American Balanced A had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
American Funds American Balanced A had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
American Funds American Balanced A has insufficient data to evaluate this check.
Overvalued - Earnings yield.
American Funds American Balanced A has an earnings yield of 0.02%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
American Funds American Balanced A is overvalued relative to its fair value price of 0.00 based on EBITDA multiple model
Overvalued - EV/EBITDA.
American Funds American Balanced A has an EV/EBITDA ratio of 3.33Kx, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings
Undervalued - PEG ratio value.
American Funds American Balanced A has a PEG-ratio under 1 which is considered undervalued
Overvalued - P/B ratio.
American Funds American Balanced A has a price-to-book ratio of 531.79x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value
Overvalued - P/S ratio.
American Funds American Balanced A has a price-to-sales ratio of 346.13x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue
Profit margin
Current Ratio
Capital Returns
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Return on equity
ROIC: -
Valuation History
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Price to Earnings
EV/EBITDA: -
Cash flow
Profit margin
-
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Fair Value
Market $41.04
-99.85%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.