AMERICAN AIRLINES GROUP INC (1AAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AAL - US02376R1023 - Common Stock
12.772 EUR
+2.33 (+22.29%)
Overall 1AAL gets a fundamental rating of 2 out of 10. We evaluated 1AAL against 15 industry peers in the Passenger Airlines industry. 1AAL may be in some trouble as it scores bad on both profitability and health. 1AAL is quite expensive at the moment. It does show 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.
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 (0.97%) is worse than 91.67% of its industry peers.
1AAL's Return On Invested Capital of 4.48% is on the low side compared to the rest of the industry. 1AAL is outperformed by 91.67% 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 9.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | N/A | ||
| ROIC | 4.48% |
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 1.11%. This is amonst the worse of the industry: 1AAL underperforms 91.67% of its industry peers.
In the last couple of years the Profit Margin of 1AAL has declined.
1AAL's Operating Margin of 4.22% is on the low side compared to the rest of the industry. 1AAL is outperformed by 75.00% of its industry peers.
1AAL's Operating Margin has declined in the last couple of years.
1AAL's Gross Margin of 65.01% is amongst the best of the industry. 1AAL outperforms 83.33% 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 | 4.22% | ||
| PM (TTM) | 1.11% | ||
| GM | 65.01% |
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
1AAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
1AAL has a better debt/assets ratio than last year.
2.2 Solvency
1AAL has an Altman-Z score of 0.70. This is a bad value and indicates that 1AAL is not financially healthy and even has some risk of bankruptcy.
1AAL has a Altman-Z score of 0.70. This is comparable to the rest of the industry: 1AAL outperforms 50.00% of its industry peers.
The Debt to FCF ratio of 1AAL is 32.56, which is on the high side as it means it would take 1AAL, 32.56 years of fcf income to pay off all of its debts.
1AAL's Debt to FCF ratio of 32.56 is on the low side compared to the rest of the industry. 1AAL is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Altman-Z | 0.7 |
ROIC/WACC0.67
WACC6.65%
2.3 Liquidity
A Current Ratio of 0.54 indicates that 1AAL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.54, 1AAL is doing worse than 91.67% of the companies in the same industry.
A Quick Ratio of 0.42 indicates that 1AAL may have some problems paying its short term obligations.
1AAL's Quick ratio of 0.42 is on the low side compared to the rest of the industry. 1AAL is outperformed by 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for 1AAL have decreased strongly by -21.64% in the last year.
1AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.21% yearly.
1AAL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.27%.
The Revenue has been growing slightly by 3.44% on average over the past years.
EPS 1Y (TTM)-21.64%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-156.67%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.32%
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 3.20% on average per year.
EPS Next Y-58.72%
EPS Next 2Y-1.37%
EPS Next 3Y8.95%
EPS Next 5Y17.02%
Revenue Next Year1.79%
Revenue Next 2Y3.98%
Revenue Next 3Y4.25%
Revenue Next 5Y3.2%
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
1AAL is valuated correctly with a Price/Earnings ratio of 14.04.
1AAL's Price/Earnings ratio is rather expensive when compared to the industry. 1AAL is more expensive than 91.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. 1AAL is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 7.95 indicates a rather cheap valuation of 1AAL.
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 23.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
91.67% of the companies in the same industry are cheaper than 1AAL, based on the Enterprise Value to EBITDA ratio.
1AAL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1AAL is more expensive than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.05 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.37%
EPS Next 3Y8.95%
5. Dividend
5.1 Amount
1AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (12/8/2025, 7:00:00 PM)
12.772
+2.33 (+22.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners64.85%
Inst Owner ChangeN/A
Ins Owners1.4%
Ins Owner ChangeN/A
Market Cap8.43B
Revenue(TTM)54.29B
Net Income(TTM)602.00M
Analysts71.85
Price Target13.38 (4.76%)
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)29.97%
Min EPS beat(2)20.33%
Max EPS beat(2)39.61%
EPS beat(4)4
Avg EPS beat(4)25.7%
Min EPS beat(4)9.67%
Max EPS beat(4)39.61%
EPS beat(8)7
Avg EPS beat(8)44.85%
EPS beat(12)10
Avg EPS beat(12)34.95%
EPS beat(16)13
Avg EPS beat(16)28.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)3
Avg Revenue beat(12)-0.53%
Revenue beat(16)3
Avg Revenue beat(16)-0.53%
PT rev (1m)14.61%
PT rev (3m)12.97%
EPS NQ rev (1m)83.95%
EPS NQ rev (3m)66.36%
EPS NY rev (1m)75.28%
EPS NY rev (3m)21.82%
Revenue NQ rev (1m)2.89%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 7.95 | ||
| P/S | 0.18 | ||
| P/FCF | 11.05 | ||
| P/OCF | 2.58 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.15 |
EPS(TTM)0.91
EY7.12%
EPS(NY)1.61
Fwd EY12.58%
FCF(TTM)1.16
FCFY9.05%
OCF(TTM)4.94
OCFY38.71%
SpS71.17
BVpS-5.19
TBVpS-13.23
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | N/A | ||
| ROCE | 6.11% | ||
| ROIC | 4.48% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 7.04% | ||
| OM | 4.22% | ||
| PM (TTM) | 1.11% | ||
| GM | 65.01% | ||
| FCFM | 1.62% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 32.56 | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 128.69% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 83.12% | ||
| Profit Quality | 146.51% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.7 |
F-Score7
WACC6.65%
ROIC/WACC0.67
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)-21.64%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-156.67%
EPS Next Y-58.72%
EPS Next 2Y-1.37%
EPS Next 3Y8.95%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.32%
Revenue Next Year1.79%
Revenue Next 2Y3.98%
Revenue Next 3Y4.25%
Revenue Next 5Y3.2%
EBIT growth 1Y-17.23%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year26.07%
EBIT Next 3Y25.43%
EBIT Next 5Y26.85%
FCF growth 1Y-64.31%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y-24.52%
OCF growth 3Y78.19%
OCF growth 5Y0.87%
AMERICAN AIRLINES GROUP INC / 1AAL.MI FAQ
What is the ChartMill fundamental rating of AMERICAN AIRLINES GROUP INC (1AAL.MI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to 1AAL.MI.
What is the valuation status for 1AAL stock?
ChartMill assigns a valuation rating of 3 / 10 to AMERICAN AIRLINES GROUP INC (1AAL.MI). This can be considered as Overvalued.
What is the profitability of 1AAL stock?
AMERICAN AIRLINES GROUP INC (1AAL.MI) has a profitability rating of 2 / 10.
What is the valuation of AMERICAN AIRLINES GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN AIRLINES GROUP INC (1AAL.MI) is 14.04 and the Price/Book (PB) ratio is -2.46.
Can you provide the dividend sustainability for 1AAL stock?
The dividend rating of AMERICAN AIRLINES GROUP INC (1AAL.MI) is 0 / 10 and the dividend payout ratio is 0%.