IAG stock: fundamental analysis
Stocks · IAG · Industrials
International Consolidated Airlines Group S.A., together with its subsidiaries, engages in the provision of passenger and cargo transportation services in the North Atlantic, Latin America, the Caribbean, Europe, Africa, the Middle East, South Asia, the Asia Pacific, and internationally. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 4.90 EUR
- Market cap: 21.4B EUR
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
ROE of 42.1%: it earns a high return on shareholders' money. Out of every 100 in sales, 9.2 end up as profit.
Financial health
Net debt/EBITDA of 0.7x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
Growth
Revenue is growing 0.2% year on year: modest growth. Earnings are down 30.4%.
Valuation
It trades at a P/E of 7.7, below the 24.2 median of the industrials companies we track. On expected earnings the P/E falls to 6.2: the market expects profits to rise. A low P/E is not automatically a bargain: it can reflect risks or slower growth.
Dividend
Dividend yield of 2.0% (0.10 EUR per share per year) with a payout ratio of 15.3%.
Tools
All metrics
| IAG | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | 42.1% | 24.1% |
| ROA | 7.0% | 2.6% |
| Gross margin | 38.3% | 66.9% |
| Operating margin | 14.4% | 10.4% |
| Net margin | 9.2% | 2.8% |
| Financial health | ||
| Net debt/EBITDA | 0.7x | 3.0x |
| Debt/equity | 1.6x | 1.6x |
| Current ratio | 0.8x | 1.1x |
| Growth | ||
| Revenue growth | 0.2% | 5.2% |
| Earnings growth | -30.4% | 14.7% |
| Valuation | ||
| P/E ratio | 7.7x | 24.2x |
| Forward P/E | 6.2x | 18.1x |
| EV/EBITDA | 4.2x | 11.1x |
| Price/book | 2.5x | 4.1x |
| FCF yield | 5.1% | 5.1% |
| Dividend | ||
| Dividend yield | 2.0% | 3.0% |
| Payout ratio | 15.3% | 87.6% |
| Beta (volatility) | 1.3x | 0.8x |
Frequently asked questions
What is IAG's P/E ratio?
IAG's P/E is 7.7 based on trailing 12-month earnings and 6.2 on expected earnings. The median for its sector among the companies we track is 24.2. Data as of September 18, 2026.
What dividend does IAG pay?
Dividend yield of 2.0% (0.10 EUR per share per year) with a payout ratio of 15.3%.
Is IAG stock expensive?
It trades at a P/E of 7.7, below the 24.2 median of the industrials companies we track. On expected earnings the P/E falls to 6.2: the market expects profits to rise. A low P/E is not automatically a bargain: it can reflect risks or slower growth. This is an educational reading based on ratios, not a buy or sell recommendation.
Does IAG have a lot of debt?
Net debt/EBITDA of 0.7x: it could repay its debt with less than two years of operating profit. Comfortable leverage.
What is IAG's market cap?
IAG has a market cap of 21.4B EUR and its shares trade at 4.90 EUR, with a 52-week range of 3.82 EUR to 5.72 EUR (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.