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 2 out of 10. We evaluated 1AAL against 14 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
In the past year 1AAL was profitable.
In the past year 1AAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1AAL reported negative net income in multiple years.
Of the past 5 years 1AAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1AAL (0.89%) is worse than 85.71% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.37%, 1AAL is doing worse than 71.43% of the companies in the same industry.
1AAL had an Average Return On Invested Capital over the past 3 years of 5.54%. This is below the industry average of 9.53%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | N/A | ||
| ROIC | 5.37% |
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 Profit Margin of 1.05%. This is amonst the worse of the industry: 1AAL underperforms 85.71% of its industry peers.
1AAL's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 5.12%, 1AAL is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
1AAL's Operating Margin has declined in the last couple of years.
The Gross Margin of 1AAL (64.95%) is better than 92.86% of its industry peers.
In the last couple of years the Gross Margin of 1AAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.12% | ||
| PM (TTM) | 1.05% | ||
| GM | 64.95% |
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.
The number of shares outstanding for 1AAL has been increased compared to 1 year ago.
Compared to 5 years ago, 1AAL has more shares outstanding
Compared to 1 year ago, 1AAL has an improved debt to assets ratio.
2.2 Solvency
1AAL has an Altman-Z score of 0.72. 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 0.72, 1AAL is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of 1AAL is 19.12, which is on the high side as it means it would take 1AAL, 19.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.12, 1AAL is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.12 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.81
WACC6.62%
2.3 Liquidity
1AAL has a Current Ratio of 0.58. 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 0.58, 1AAL is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
A Quick Ratio of 0.48 indicates that 1AAL may have some problems paying its short term obligations.
The Quick ratio of 1AAL (0.48) is worse than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 7.04% over the past year.
The earnings per share for 1AAL have been decreasing by -17.21% on average. This is quite bad
The Revenue has been growing slightly by 1.50% in the past year.
The Revenue has been growing slightly by 3.44% on average over the past years.
EPS 1Y (TTM)7.04%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-12.84%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.4%
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 17.02% on average per year.
Based on estimates for the next years, 1AAL will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y-66.12%
EPS Next 2Y-1.76%
EPS Next 3Y8.7%
EPS Next 5Y17.02%
Revenue Next Year1.04%
Revenue Next 2Y3.52%
Revenue Next 3Y4.05%
Revenue Next 5Y3.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.51 indicates a reasonable valuation of 1AAL.
1AAL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.82. 1AAL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 7.00, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.24, 1AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7 |
4.2 Price Multiples
64.29% of the companies in the same industry are cheaper than 1AAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1AAL is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.45 | ||
| EV/EBITDA | 4.12 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.76%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
No dividends for 1AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (8/13/2025, 7:00:00 PM)
11.06
+1.02 (+10.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners67.43%
Inst Owner ChangeN/A
Ins Owners1.35%
Ins Owner ChangeN/A
Market Cap7.30B
Analysts73.57
Price Target11.78 (6.51%)
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)15%
Min EPS beat(2)9.67%
Max EPS beat(2)20.33%
EPS beat(4)4
Avg EPS beat(4)38.19%
Min EPS beat(4)9.67%
Max EPS beat(4)89.57%
EPS beat(8)7
Avg EPS beat(8)46.06%
EPS beat(12)10
Avg EPS beat(12)33.46%
EPS beat(16)13
Avg EPS beat(16)25.94%
Revenue beat(2)0
Avg Revenue beat(2)-0.87%
Min Revenue beat(2)-1.41%
Max Revenue beat(2)-0.33%
Revenue beat(4)2
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.61%
Revenue beat(12)3
Avg Revenue beat(12)-0.54%
Revenue beat(16)3
Avg Revenue beat(16)-0.54%
PT rev (1m)-1.17%
PT rev (3m)-2.08%
EPS NQ rev (1m)-298.57%
EPS NQ rev (3m)-150.89%
EPS NY rev (1m)-27.43%
EPS NY rev (3m)-29.58%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7 | ||
| P/S | 0.16 | ||
| P/FCF | 5.45 | ||
| P/OCF | 2.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.12 |
EPS(TTM)1.3
EY11.75%
EPS(NY)1.58
Fwd EY14.28%
FCF(TTM)2.03
FCFY18.35%
OCF(TTM)5.32
OCFY48.06%
SpS70.43
BVpS-5.02
TBVpS-12.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.89% | ||
| ROE | N/A | ||
| ROCE | 7.33% | ||
| ROIC | 5.37% | ||
| ROICexc | 7.12% | ||
| ROICexgc | 9.06% | ||
| OM | 5.12% | ||
| PM (TTM) | 1.05% | ||
| GM | 64.95% | ||
| FCFM | 2.88% |
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 Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.12 | ||
| Debt/EBITDA | 5.03 | ||
| Cap/Depr | 112.74% | ||
| Cap/Sales | 4.67% | ||
| Interest Coverage | 1.55 | ||
| Cash Conversion | 81.52% | ||
| Profit Quality | 275.66% | ||
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.48 | ||
| Altman-Z | 0.72 |
F-Score7
WACC6.62%
ROIC/WACC0.81
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)7.04%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-12.84%
EPS Next Y-66.12%
EPS Next 2Y-1.76%
EPS Next 3Y8.7%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.4%
Revenue Next Year1.04%
Revenue Next 2Y3.52%
Revenue Next 3Y4.05%
Revenue Next 5Y3.28%
EBIT growth 1Y-2.7%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year25.83%
EBIT Next 3Y25.12%
EBIT Next 5Y25.86%
FCF growth 1Y-10.99%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y-5.78%
OCF growth 3Y78.19%
OCF growth 5Y0.87%