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 14 industry peers in the Passenger Airlines industry. Both the profitability and financial health of 1AAL have multiple concerns. 1AAL has a correct valuation and a medium 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
Looking at the Return On Assets, with a value of 1.09%, 1AAL is doing worse than 78.57% of the companies in the same industry.
The Return On Invested Capital of 1AAL (5.98%) is worse than 78.57% 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 8.66%.
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
The Profit Margin of 1AAL (1.26%) is worse than 78.57% of its industry peers.
In the last couple of years the Profit Margin of 1AAL has declined.
The Operating Margin of 1AAL (5.50%) is worse than 64.29% of its industry peers.
1AAL's Operating Margin has declined in the last couple of years.
1AAL's Gross Margin of 64.23% is fine compared to the rest of the industry. 1AAL outperforms 78.57% 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 | 5.5% | ||
| 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.
1AAL has more shares outstanding than it did 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 0.69. This is a bad value and indicates that 1AAL is not financially healthy and even has some risk of bankruptcy.
1AAL's Altman-Z score of 0.69 is in line compared to the rest of the industry. 1AAL outperforms 50.00% of its industry peers.
1AAL has a debt to FCF ratio of 18.68. This is a negative value and a sign of low solvency as 1AAL would need 18.68 years to pay back of all of its debts.
The Debt to FCF ratio of 1AAL (18.68) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.91
WACC6.56%
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.
With a Current ratio value of 0.52, 1AAL is not doing good in the industry: 92.86% of the companies in the same industry are doing better.
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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. 1AAL is outperformed by 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| 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 -26.22%.
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.
1AAL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.92%.
The Revenue has been growing slightly by 3.44% on average over the past years.
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
The Earnings Per Share is expected to grow by 17.02% on average over the next years. This is quite good.
1AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.27% yearly.
EPS Next Y-53.31%
EPS Next 2Y2.52%
EPS Next 3Y11.2%
EPS Next 5Y17.02%
Revenue Next Year1.29%
Revenue Next 2Y3.58%
Revenue Next 3Y4.02%
Revenue Next 5Y3.27%
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
The Price/Earnings ratio is 7.52, which indicates a rather cheap valuation of 1AAL.
Compared to the rest of the industry, the Price/Earnings ratio of 1AAL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.35, 1AAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.21, the valuation of 1AAL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1AAL indicates a somewhat cheap valuation: 1AAL is cheaper than 71.43% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.54, 1AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.52 | ||
| Fwd PE | 6.21 |
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 71.43% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than 1AAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.22 | ||
| EV/EBITDA | 4.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.52%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
1AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1AAL (7/21/2025, 7:00:00 PM)
10.604
-0.07 (-0.64%)
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 Cap6.99B
Analysts73.33
Price Target11.92 (12.41%)
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)-0.92%
PT rev (3m)-31.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-40.77%
EPS NY rev (1m)-2.97%
EPS NY rev (3m)-60.26%
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 | 7.52 | ||
| Fwd PE | 6.21 | ||
| P/S | 0.15 | ||
| P/FCF | 5.22 | ||
| P/OCF | 1.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.3 |
EPS(TTM)1.41
EY13.3%
EPS(NY)1.71
Fwd EY16.1%
FCF(TTM)2.03
FCFY19.17%
OCF(TTM)5.49
OCFY51.8%
SpS69.9
BVpS-5.81
TBVpS-13.72
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
WACC6.56%
ROIC/WACC0.91
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-53.31%
EPS Next 2Y2.52%
EPS Next 3Y11.2%
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 2Y3.58%
Revenue Next 3Y4.02%
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 5Y28.36%
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%