AMERICAN AIRLINES GROUP INC (1AAL.MI) Stock Fundamental Analysis
BIT:1AAL - Euronext Milan - US02376R1023 - Common Stock - Currency: EUR
Taking everything into account, 1AAL scores 3 out of 10 in our fundamental rating. 1AAL was compared to 12 industry peers in the Passenger Airlines industry. 1AAL may be in some trouble as it scores bad on both profitability and health. 1AAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1AAL had positive earnings in the past year.
In the past year 1AAL had a positive cash flow from operations.
In multiple years 1AAL reported negative net income over the last 5 years.
Of the past 5 years 1AAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1AAL (1.37%) is worse than 75.00% of its industry peers.
1AAL has a Return On Invested Capital of 6.37%. This is comparable to the rest of the industry: 1AAL outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1AAL is below the industry average of 7.90%.
The 3 year average ROIC (5.54%) for 1AAL is below the current ROIC(6.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROIC | 6.37% |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.54%
ROIC(5y)N/A
1.3 Margins
1AAL has a worse Profit Margin (1.56%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of 1AAL has declined.
1AAL has a Operating Margin of 6.01%. This is comparable to the rest of the industry: 1AAL outperforms 50.00% of its industry peers.
1AAL's Operating Margin has declined in the last couple of years.
1AAL has a better Gross Margin (63.54%) than 75.00% of its industry peers.
1AAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.01% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.54% |
OM growth 3YN/A
OM growth 5Y-5.79%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.63%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AAL is destroying value.
The number of shares outstanding for 1AAL has been increased compared to 1 year ago.
The number of shares outstanding for 1AAL has been increased compared to 5 years ago.
Compared to 1 year ago, 1AAL has an improved debt to assets ratio.
2.2 Solvency
1AAL has an Altman-Z score of 0.74. This is a bad value and indicates that 1AAL is not financially healthy and even has some risk of bankruptcy.
1AAL's Altman-Z score of 0.74 is in line compared to the rest of the industry. 1AAL outperforms 50.00% of its industry peers.
The Debt to FCF ratio of 1AAL is 23.44, which is on the high side as it means it would take 1AAL, 23.44 years of fcf income to pay off all of its debts.
1AAL has a Debt to FCF ratio (23.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.44 | ||
| Altman-Z | 0.74 |
ROIC/WACC1
WACC6.38%
2.3 Liquidity
1AAL has a Current Ratio of 0.54. This is a bad value and indicates that 1AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.54, 1AAL is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
1AAL has a Quick Ratio of 0.54. This is a bad value and indicates that 1AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1AAL (0.43) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
1AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.65%.
Measured over the past years, 1AAL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.21% on average per year.
The Revenue has been growing slightly by 2.70% in the past year.
1AAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
EPS 1Y (TTM)-27.65%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%196.55%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%4.58%
3.2 Future
1AAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.51% yearly.
Based on estimates for the next years, 1AAL will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-21.5%
EPS Next 2Y13.54%
EPS Next 3Y14.94%
EPS Next 5Y19.51%
Revenue Next Year3.7%
Revenue Next 2Y4.64%
Revenue Next 3Y4.55%
Revenue Next 5Y3.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.13, which indicates a rather cheap valuation of 1AAL.
91.67% of the companies in the same industry are more expensive than 1AAL, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.75. 1AAL is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.53, the valuation of 1AAL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AAL is on the same level as its industry peers.
1AAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 6.53 |
4.2 Price Multiples
1AAL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. 1AAL is more expensive than 91.67% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AAL indicates a somewhat cheap valuation: 1AAL is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.95 | ||
| EV/EBITDA | 4.09 |
4.3 Compensation for Growth
A more expensive valuation may be justified as 1AAL's earnings are expected to grow with 14.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.54%
EPS Next 3Y14.94%
5. Dividend
5.1 Amount
No dividends for 1AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (4/29/2025, 7:00:00 PM)
8.612
+0.63 (+7.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners68.64%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap5.66B
Analysts76.3
Price Target16.73 (94.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61.38%
Min EPS beat(2)33.2%
Max EPS beat(2)89.57%
EPS beat(4)3
Avg EPS beat(4)27.48%
Min EPS beat(4)-15.81%
Max EPS beat(4)89.57%
EPS beat(8)6
Avg EPS beat(8)43.57%
EPS beat(12)9
Avg EPS beat(12)31.23%
EPS beat(16)13
Avg EPS beat(16)25.03%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.48%
Revenue beat(16)4
Avg Revenue beat(16)-0.49%
PT rev (1m)-3.87%
PT rev (3m)-3.87%
EPS NQ rev (1m)-5648.53%
EPS NQ rev (3m)-5648.53%
EPS NY rev (1m)-33.19%
EPS NY rev (3m)-33.19%
Revenue NQ rev (1m)-3.09%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-0.68%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 6.53 | ||
| P/S | 0.12 | ||
| P/FCF | 4.95 | ||
| P/OCF | 1.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.09 |
EPS(TTM)1.68
EY19.51%
EPS(NY)1.32
Fwd EY15.31%
FCF(TTM)1.74
FCFY20.18%
OCF(TTM)5.33
OCFY61.84%
SpS72.49
BVpS-5.32
TBVpS-13.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROCE | 8.69% | ||
| ROIC | 6.37% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 10.06% | ||
| OM | 6.01% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.54% | ||
| FCFM | 2.4% |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.54%
ROIC(5y)N/A
ROICexc(3y)6.89%
ROICexc(5y)N/A
ROICexgc(3y)8.52%
ROICexgc(5y)N/A
ROCE(3y)7.55%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.25%
ROICexc growth 3YN/A
ROICexc growth 5Y2.18%
OM growth 3YN/A
OM growth 5Y-5.79%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.63%
GM growth 5Y0.67%
F-Score7
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.44 | ||
| Debt/EBITDA | 4.57 | ||
| Cap/Depr | 119.51% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 1.68 | ||
| Cash Conversion | 72.41% | ||
| Profit Quality | 153.66% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.74 |
F-Score7
WACC6.38%
ROIC/WACC1
Cap/Depr(3y)120.38%
Cap/Depr(5y)92.28%
Cap/Sales(3y)5.27%
Cap/Sales(5y)5.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.65%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%196.55%
EPS Next Y-21.5%
EPS Next 2Y13.54%
EPS Next 3Y14.94%
EPS Next 5Y19.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%4.58%
Revenue Next Year3.7%
Revenue Next 2Y4.64%
Revenue Next 3Y4.55%
Revenue Next 5Y3.74%
EBIT growth 1Y-18.86%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year69.46%
EBIT Next 3Y28.47%
EBIT Next 5Y29.4%
FCF growth 1Y7.71%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y4.73%
OCF growth 3Y78.19%
OCF growth 5Y0.87%