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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1AAL was profitable.
1AAL had a positive operating cash flow in the past year.
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 (1.09%) is worse than 61.54% of its industry peers.
The Return On Invested Capital of 1AAL (5.98%) is worse than 69.23% of its industry peers.
1AAL had an Average Return On Invested Capital over the past 3 years of 5.54%. This is below the industry average of 7.90%.
The last Return On Invested Capital (5.98%) for 1AAL is above the 3 year average (5.54%), which is a sign of increasing profitability.
| 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
The Profit Margin of 1AAL (1.26%) is worse than 61.54% of its industry peers.
In the last couple of years the Profit Margin of 1AAL has declined.
1AAL has a Operating Margin (5.50%) which is in line with its industry peers.
In the last couple of years the Operating Margin of 1AAL has declined.
1AAL has a better Gross Margin (64.23%) than 92.31% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1AAL is destroying value.
Compared to 1 year ago, 1AAL has more shares outstanding
Compared to 5 years ago, 1AAL has more shares outstanding
The debt/assets ratio for 1AAL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that 1AAL is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.69, 1AAL is in line with its industry, outperforming 46.15% 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 has a Debt to FCF ratio of 18.68. This is in the lower half of the industry: 1AAL underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.9
WACC6.66%
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.
1AAL has a worse Current ratio (0.52) than 84.62% of its industry peers.
A Quick Ratio of 0.42 indicates that 1AAL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.42, 1AAL is doing worse than 84.62% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 1.92% in the past year.
Measured over the past years, 1AAL shows a small growth in Revenue. The Revenue has been growing by 3.44% on average per year.
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
Based on estimates for the next years, 1AAL will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.51% on average per year.
1AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y19.51%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.74%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.68 indicates a rather cheap valuation of 1AAL.
The rest of the industry has a similar Price/Earnings ratio as 1AAL.
1AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
Based on the Price/Forward Earnings ratio of 5.39, the valuation of 1AAL can be described as very cheap.
1AAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1AAL is cheaper than 61.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, 1AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 5.39 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AAL is valued a bit more expensive than 69.23% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1AAL is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.65 | ||
| EV/EBITDA | 4.15 |
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
No dividends for 1AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (5/23/2025, 7:00:00 PM)
9.816
-0.13 (-1.33%)
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 Cap6.47B
Analysts73.33
Price Target12.03 (22.56%)
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)-28.08%
PT rev (3m)-30.86%
EPS NQ rev (1m)-22.37%
EPS NQ rev (3m)-40.77%
EPS NY rev (1m)-38.7%
EPS NY rev (3m)-59.04%
Revenue NQ rev (1m)-2.63%
Revenue NQ rev (3m)-4.2%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-2.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.68 | ||
| Fwd PE | 5.39 | ||
| P/S | 0.14 | ||
| P/FCF | 4.65 | ||
| P/OCF | 1.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.15 |
EPS(TTM)1.47
EY14.98%
EPS(NY)1.82
Fwd EY18.56%
FCF(TTM)2.11
FCFY21.53%
OCF(TTM)5.71
OCFY58.17%
SpS72.66
BVpS-6.04
TBVpS-14.27
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 | 0.69 |
F-Score7
WACC6.66%
ROIC/WACC0.9
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 5Y19.51%
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 5Y3.74%
EBIT growth 1Y-18.14%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year69.46%
EBIT Next 3Y28.47%
EBIT Next 5Y29.4%
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%