The IAG (LSE: IAG) share price is at a ridiculously low level, I feel. With a price-to-earnings ratio of just 3.96, this is one of the cheapest stocks on the entire FTSE 100.
The British Airways-owner took a beating in the pandemic as fleets were grounded. And its shares are still stuck on the runway as the world starts flying again.
IAG’s poor performance is even more surprising given that it posted a “strong” first half on 2 August, with sales climbing 8.4% to €14.7bn. Profit before tax dipped 1.1% to €905m but comfortably beat estimates.
The stock pays dividends again
IAG’s core North Atlantic, Latin America and intra-Europe markets are doing nicely, with revenues up 7.8% to €8.3bn. Better still, the board announced it was resuming dividends as free cash flow surged to €3.2bn.
The shares rose 3% that morning but have idled since. Investors who thought they’d spotted a bargain will have been…
