AMERICAN AIRLINES GROUP INC (1AAL.MI) Stock Fundamental Analysis
BIT:1AAL - Euronext Milan - US02376R1023 - Common Stock - Currency: EUR
Overall 1AAL gets a fundamental rating of 3 out of 10. We evaluated 1AAL against 13 industry peers in the Passenger Airlines industry. 1AAL may be in some trouble as it scores bad on both profitability and health. 1AAL has a correct valuation and a medium 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
Looking at the Return On Assets, with a value of 1.09%, 1AAL is doing worse than 69.23% of the companies in the same industry.
1AAL's Return On Invested Capital of 5.98% is on the low side compared to the rest of the industry. 1AAL is outperformed by 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1AAL is below the industry average of 7.98%.
The 3 year average ROIC (5.54%) for 1AAL is below the current ROIC(5.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | N/A | ||
| ROIC | 5.98% |
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 (1.26%) than 69.23% of its industry peers.
1AAL's Profit Margin has declined in the last couple of years.
The Operating Margin of 1AAL (5.50%) is comparable to the rest of the industry.
1AAL's Operating Margin has declined in the last couple of years.
The Gross Margin of 1AAL (64.23%) is better than 84.62% of its industry peers.
1AAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 1.26% | ||
| GM | 64.23% |
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.
1AAL has more shares outstanding than it did 5 years ago.
1AAL has a better debt/assets ratio than last year.
2.2 Solvency
1AAL has an Altman-Z score of 0.68. This is a bad value and indicates that 1AAL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.68, 1AAL is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Debt to FCF ratio of 1AAL is 18.68, which is on the high side as it means it would take 1AAL, 18.68 years of fcf income to pay off all of its debts.
1AAL's Debt to FCF ratio of 18.68 is on the low side compared to the rest of the industry. 1AAL is outperformed by 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.68 |
ROIC/WACC0.94
WACC6.34%
2.3 Liquidity
1AAL has a Current Ratio of 0.52. This is a bad value and indicates that 1AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.52, 1AAL is doing worse than 92.31% of the companies in the same industry.
1AAL has a Quick Ratio of 0.52. This is a bad value and indicates that 1AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
1AAL has a worse Quick ratio (0.42) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for 1AAL have decreased strongly by -26.22% in the last year.
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.
Looking at the last year, 1AAL shows a small growth in Revenue. The Revenue has grown by 1.92% in the last 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)-26.22%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-73.53%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
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 17.02% yearly.
The Revenue is expected to grow by 3.27% on average over the next years.
EPS Next Y-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y17.02%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.27%
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
With a Price/Earnings ratio of 6.46, the valuation of 1AAL can be described as very cheap.
1AAL's Price/Earnings ratio is in line with the industry average.
1AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 5.20 indicates a rather cheap valuation of 1AAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AAL indicates a somewhat cheap valuation: 1AAL is cheaper than 61.54% of the companies listed in the same industry.
1AAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.2 |
4.2 Price Multiples
1AAL's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. 1AAL is more expensive than 92.31% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AAL indicates a rather cheap valuation: 1AAL is cheaper than 84.62% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.48 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
1AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (6/16/2025, 7:00:00 PM)
9.303
-1.08 (-10.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners67.52%
Inst Owner ChangeN/A
Ins Owners1.33%
Ins Owner ChangeN/A
Market Cap6.14B
Analysts73.33
Price Target11.84 (27.27%)
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)21.44%
Min EPS beat(2)9.67%
Max EPS beat(2)33.2%
EPS beat(4)4
Avg EPS beat(4)33.85%
Min EPS beat(4)2.97%
Max EPS beat(4)89.57%
EPS beat(8)7
Avg EPS beat(8)45.93%
EPS beat(12)9
Avg EPS beat(12)31.66%
EPS beat(16)13
Avg EPS beat(16)25.59%
Revenue beat(2)1
Avg Revenue beat(2)-0.22%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.36%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.41%
Revenue beat(12)3
Avg Revenue beat(12)-0.58%
Revenue beat(16)4
Avg Revenue beat(16)-0.46%
PT rev (1m)-1.57%
PT rev (3m)-31.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-59.04%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.46 | ||
| Fwd PE | 5.2 | ||
| P/S | 0.13 | ||
| P/FCF | 4.48 | ||
| P/OCF | 1.66 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.08 |
EPS(TTM)1.44
EY15.48%
EPS(NY)1.79
Fwd EY19.23%
FCF(TTM)2.08
FCFY22.31%
OCF(TTM)5.61
OCFY60.28%
SpS71.36
BVpS-5.94
TBVpS-14.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.09% | ||
| ROE | N/A | ||
| ROCE | 8.16% | ||
| ROIC | 5.98% | ||
| ROICexc | 7.67% | ||
| ROICexgc | 9.77% | ||
| OM | 5.5% | ||
| PM (TTM) | 1.26% | ||
| GM | 64.23% | ||
| FCFM | 2.91% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Debt/EBITDA | 4.73 | ||
| Cap/Depr | 119.51% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 1.57 | ||
| Cash Conversion | 81.53% | ||
| Profit Quality | 230.07% | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.68 |
F-Score7
WACC6.34%
ROIC/WACC0.94
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)-26.22%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-73.53%
EPS Next Y-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.27%
EBIT growth 1Y-18.14%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year43.06%
EBIT Next 3Y26.24%
EBIT Next 5Y28.58%
FCF growth 1Y-11.41%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y-1.43%
OCF growth 3Y78.19%
OCF growth 5Y0.87%