AMERICAN AIRLINES GROUP INC (A1G.DE) Stock Fundamental Analysis
FRA:A1G - Deutsche Boerse Ag - US02376R1023 - Common Stock - Currency: EUR
A1G gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 14 industry peers in the Passenger Airlines industry. Both the profitability and financial health of A1G have multiple concerns. A1G is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
A1G had positive earnings in the past year.
A1G had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: A1G reported negative net income in multiple years.
Of the past 5 years A1G 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of A1G (0.89%) is worse than 92.86% of its industry peers.
With a Return On Invested Capital value of 5.37%, A1G is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for A1G 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
The Profit Margin of A1G (1.05%) is worse than 92.86% of its industry peers.
A1G's Profit Margin has declined in the last couple of years.
A1G has a Operating Margin of 5.12%. This is in the lower half of the industry: A1G underperforms 78.57% of its industry peers.
In the last couple of years the Operating Margin of A1G has declined.
With an excellent Gross Margin value of 64.95%, A1G belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Gross Margin of A1G 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 A1G is destroying value.
The number of shares outstanding for A1G has been increased compared to 1 year ago.
A1G has more shares outstanding than it did 5 years ago.
The debt/assets ratio for A1G has been reduced compared to a year ago.
2.2 Solvency
A1G has an Altman-Z score of 0.72. This is a bad value and indicates that A1G is not financially healthy and even has some risk of bankruptcy.
A1G has a Altman-Z score (0.72) which is comparable to the rest of the industry.
The Debt to FCF ratio of A1G is 19.12, which is on the high side as it means it would take A1G, 19.12 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 19.12, A1G is not doing good in the industry: 78.57% 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
WACC6.61%
2.3 Liquidity
A1G has a Current Ratio of 0.58. This is a bad value and indicates that A1G is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.58, A1G is doing worse than 92.86% of the companies in the same industry.
A1G has a Quick Ratio of 0.58. This is a bad value and indicates that A1G is not financially healthy enough and could expect problems in meeting its short term obligations.
A1G has a Quick ratio of 0.48. This is amonst the worse of the industry: A1G underperforms 92.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
A1G shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.04%.
The earnings per share for A1G have been decreasing by -17.21% on average. This is quite bad
A1G shows a small growth in Revenue. In the last year, the Revenue has grown by 1.50%.
A1G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
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
The Earnings Per Share is expected to grow by 17.02% on average over the next years. This is quite good.
Based on estimates for the next years, A1G 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
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.51, the valuation of A1G can be described as very reasonable.
A1G's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.84. A1G is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.01, which indicates a rather cheap valuation of A1G.
A1G's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 34.94. A1G is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.01 |
4.2 Price Multiples
71.43% of the companies in the same industry are cheaper than A1G, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, A1G is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.46 | ||
| EV/EBITDA | 4.17 |
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 A1G!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:A1G (8/20/2025, 7:00:00 PM)
11.062
-0.35 (-3.1%)
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 Target11.74 (6.13%)
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)-1.46%
PT rev (3m)-0.46%
EPS NQ rev (1m)-408.27%
EPS NQ rev (3m)-150.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-29.58%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-6.82%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.51 | ||
| Fwd PE | 7.01 | ||
| P/S | 0.16 | ||
| P/FCF | 5.46 | ||
| P/OCF | 2.08 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.17 |
EPS(TTM)1.3
EY11.75%
EPS(NY)1.58
Fwd EY14.26%
FCF(TTM)2.03
FCFY18.33%
OCF(TTM)5.31
OCFY48.01%
SpS70.38
BVpS-5.02
TBVpS-12.97
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
WACC6.61%
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%