AMERICAN AIRLINES GROUP INC (1AAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AAL - US02376R1023 - Common Stock
13.46 EUR
+0.56 (+4.32%)
Overall 1AAL gets a fundamental rating of 2 out of 10. We evaluated 1AAL against 14 industry peers in the Passenger Airlines industry. 1AAL has a bad profitability rating. Also its financial health evaluation is rather negative. 1AAL is valied quite expensively at the moment, while 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.
- 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 0.97%, 1AAL is doing worse than 88.89% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 4.48%, 1AAL is doing worse than 83.33% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 1AAL is below the industry average of 9.17%.
| 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
- With a Profit Margin value of 1.11%, 1AAL is not doing good in the industry: 88.89% of the companies in the same industry are doing better.
- 1AAL's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 4.22%, 1AAL is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
- In the last couple of years the Operating Margin of 1AAL has declined.
- 1AAL's Gross Margin of 65.01% is fine compared to the rest of the industry. 1AAL outperforms 77.78% of its industry peers.
- 1AAL's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- The number of shares outstanding for 1AAL has been increased compared to 5 years ago.
- 1AAL has a better debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 0.72, we must say that 1AAL is in the distress zone and has some risk of bankruptcy.
- With a Altman-Z score value of 0.72, 1AAL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 32.56, 1AAL is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.64
WACC6.96%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that 1AAL may have some problems paying its short term obligations.
- The Current ratio of 1AAL (0.54) is worse than 77.78% of its industry peers.
- 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.
- With a Quick ratio value of 0.42, 1AAL is not doing good in the industry: 77.78% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- 1AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.64%.
- 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 1.27% in the past year.
- 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
- 1AAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.67% yearly.
- Based on estimates for the next years, 1AAL will show a small growth in Revenue. The Revenue will grow by 3.83% on average per year.
EPS Next Y-67.3%
EPS Next 2Y-1.62%
EPS Next 3Y10.45%
EPS Next 5Y14.67%
Revenue Next Year1.45%
Revenue Next 2Y4.25%
Revenue Next 3Y4.52%
Revenue Next 5Y3.83%
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
- 1AAL is valuated correctly with a Price/Earnings ratio of 14.96.
- Based on the Price/Earnings ratio, 1AAL is valued expensively inside the industry as 83.33% of the companies are valued cheaper.
- The average S&P500 Price/Earnings ratio is at 27.25. 1AAL is valued slightly cheaper when compared to this.
- Based on the Price/Forward Earnings ratio of 8.46, the valuation of 1AAL can be described as reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AAL indicates a slightly more expensive valuation: 1AAL is more expensive than 61.11% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of 1AAL to the average of the S&P500 Index (25.98), we can say 1AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 8.46 |
4.2 Price Multiples
- 1AAL's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1AAL is more expensive than 66.67% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1AAL indicates a slightly more expensive valuation: 1AAL is more expensive than 72.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.7 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.62%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
- 1AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.
Can you provide the valuation status for AMERICAN AIRLINES GROUP INC?
ChartMill assigns a valuation rating of 2 / 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.
Can you provide the PE and PB ratios for 1AAL stock?
The Price/Earnings (PE) ratio for AMERICAN AIRLINES GROUP INC (1AAL.MI) is 14.96 and the Price/Book (PB) ratio is -2.61.
How sustainable is the dividend of AMERICAN AIRLINES GROUP INC (1AAL.MI) stock?
The dividend rating of AMERICAN AIRLINES GROUP INC (1AAL.MI) is 0 / 10 and the dividend payout ratio is 0%.