AMERICAN AIRLINES GROUP INC (A1G.DE) Stock Fundamental Analysis
FRA:A1G - Deutsche Boerse Ag - US02376R1023 - Common Stock - Currency: EUR
We assign a fundamental rating of 3 out of 10 to A1G. A1G was compared to 13 industry peers in the Passenger Airlines industry. Both the profitability and financial health of A1G have multiple concerns. A1G has a decent growth rate and is not valued too expensively.
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.
In multiple years A1G reported negative net income over the last 5 years.
Of the past 5 years A1G 4 years had a positive operating cash flow.
1.2 Ratios
A1G has a worse Return On Assets (1.09%) than 61.54% of its industry peers.
A1G has a worse Return On Invested Capital (5.98%) than 69.23% of its industry peers.
A1G had an Average Return On Invested Capital over the past 3 years of 5.54%. This is below the industry average of 7.98%.
The last Return On Invested Capital (5.98%) for A1G is above the 3 year average (5.54%), which is a sign of increasing profitability.
| 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
A1G has a Profit Margin of 1.26%. This is in the lower half of the industry: A1G underperforms 61.54% of its industry peers.
A1G's Profit Margin has declined in the last couple of years.
The Operating Margin of A1G (5.50%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of A1G has declined.
Looking at the Gross Margin, with a value of 64.23%, A1G belongs to the top of the industry, outperforming 92.31% 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 | 5.5% | ||
| 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), A1G is destroying value.
Compared to 1 year ago, A1G has more shares outstanding
A1G has more shares outstanding than it did 5 years ago.
A1G has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.69, we must say that A1G is in the distress zone and has some risk of bankruptcy.
A1G has a Altman-Z score (0.69) which is comparable to the rest of the industry.
The Debt to FCF ratio of A1G is 18.68, which is on the high side as it means it would take A1G, 18.68 years of fcf income to pay off all of its debts.
A1G's Debt to FCF ratio of 18.68 is on the low side compared to the rest of the industry. A1G is outperformed by 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.9
WACC6.66%
2.3 Liquidity
A Current Ratio of 0.52 indicates that A1G may have some problems paying its short term obligations.
A1G has a worse Current ratio (0.52) than 84.62% of its industry peers.
A Quick Ratio of 0.42 indicates that A1G may have some problems paying its short term obligations.
A1G's Quick ratio of 0.42 is on the low side compared to the rest of the industry. A1G is outperformed by 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
The earnings per share for A1G have decreased strongly by -26.22% in the last year.
The earnings per share for A1G have been decreasing by -17.21% on average. This is quite bad
The Revenue has been growing slightly by 1.92% in the past year.
A1G shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
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
Based on estimates for the next years, A1G will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.51% on average per year.
A1G is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y19.51%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.74%
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
A Price/Earnings ratio of 6.79 indicates a rather cheap valuation of A1G.
Compared to the rest of the industry, the Price/Earnings ratio of A1G indicates a somewhat cheap valuation: A1G is cheaper than 69.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of A1G to the average of the S&P500 Index (26.29), we can say A1G is valued rather cheaply.
A1G is valuated cheaply with a Price/Forward Earnings ratio of 5.45.
Based on the Price/Forward Earnings ratio, A1G is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
A1G is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.17, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.45 |
4.2 Price Multiples
84.62% 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 cheaper than 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.7 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
No dividends for A1G!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:A1G (6/2/2025, 7:00:00 PM)
9.84
-0.1 (-0.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners68.64%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap6.49B
Analysts73.33
Price Target11.8 (19.92%)
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)-7.8%
PT rev (3m)-39.2%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)-44.7%
EPS NY rev (1m)-38.7%
EPS NY rev (3m)-62.11%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-7.02%
Revenue NY rev (1m)-2.19%
Revenue NY rev (3m)-4.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.79 | ||
| Fwd PE | 5.45 | ||
| P/S | 0.14 | ||
| P/FCF | 4.7 | ||
| P/OCF | 1.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.14 |
EPS(TTM)1.45
EY14.74%
EPS(NY)1.8
Fwd EY18.34%
FCF(TTM)2.09
FCFY21.27%
OCF(TTM)5.66
OCFY57.47%
SpS71.96
BVpS-5.99
TBVpS-14.13
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
WACC6.66%
ROIC/WACC0.9
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-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y19.51%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.74%
EBIT growth 1Y-18.14%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year43.06%
EBIT Next 3Y26.24%
EBIT Next 5Y29.4%
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%