15.73 USD
-0.26 (-1.63%)
15.82 USD
+0.09 (+0.57%)
Overall AAL gets a fundamental rating of 3 out of 10. We evaluated AAL against 22 industry peers in the Passenger Airlines industry. There are concerns on the financial health of AAL while its profitability can be described as average. AAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AAL was profitable.
AAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: AAL reported negative net income in multiple years.
Of the past 5 years AAL 4 years had a positive operating cash flow.
1.2 Ratios
AAL has a better Return On Assets (0.97%) than 63.64% of its industry peers.
AAL's Return On Invested Capital of 4.48% is fine compared to the rest of the industry. AAL outperforms 68.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAL is below the industry average of 8.38%.
| 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 decent Profit Margin value of 1.11%, AAL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of AAL has declined.
Looking at the Operating Margin, with a value of 4.22%, AAL is in line with its industry, outperforming 54.55% of the companies in the same industry.
AAL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 65.01%, AAL is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
In the last couple of years the Gross Margin of AAL 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAL is destroying value.
The number of shares outstanding for AAL has been increased compared to 1 year ago.
The number of shares outstanding for AAL has been increased compared to 5 years ago.
Compared to 1 year ago, AAL has an improved debt to assets ratio.
2.2 Solvency
AAL has an Altman-Z score of 0.72. This is a bad value and indicates that AAL is not financially healthy and even has some risk of bankruptcy.
AAL has a Altman-Z score (0.72) which is comparable to the rest of the industry.
The Debt to FCF ratio of AAL is 32.56, which is on the high side as it means it would take AAL, 32.56 years of fcf income to pay off all of its debts.
AAL's Debt to FCF ratio of 32.56 is fine compared to the rest of the industry. AAL outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.62
WACC7.27%
2.3 Liquidity
A Current Ratio of 0.54 indicates that AAL may have some problems paying its short term obligations.
The Current ratio of AAL (0.54) is comparable to the rest of the industry.
AAL has a Quick Ratio of 0.54. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AAL (0.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.64%.
The earnings per share for AAL 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.
AAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
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
AAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.02% yearly.
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y-67.3%
EPS Next 2Y-1.62%
EPS Next 3Y10.45%
EPS Next 5Y17.02%
Revenue Next Year1.59%
Revenue Next 2Y4.07%
Revenue Next 3Y4.37%
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.
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
Based on the Price/Earnings ratio of 14.98, the valuation of AAL can be described as correct.
72.73% of the companies in the same industry are more expensive than AAL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.00, AAL is valued a bit cheaper.
A Price/Forward Earnings ratio of 8.51 indicates a reasonable valuation of AAL.
Based on the Price/Forward Earnings ratio, AAL is valued cheaply inside the industry as 95.45% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 8.51 |
4.2 Price Multiples
63.64% of the companies in the same industry are more expensive than AAL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 86.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.77 | ||
| EV/EBITDA | 5.49 |
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
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
15.73
-0.26 (-1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners70.53%
Inst Owner Change0%
Ins Owners1.37%
Ins Owner Change0.72%
Market Cap10.38B
Revenue(TTM)54.29B
Net Income(TTM)602.00M
Analysts71.85
Price Target15.92 (1.21%)
Short Float %7.98%
Short Ratio0.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)7.22%
PT rev (3m)15.76%
EPS NQ rev (1m)-12.13%
EPS NQ rev (3m)25.31%
EPS NY rev (1m)-16.1%
EPS NY rev (3m)45.93%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 8.51 | ||
| P/S | 0.19 | ||
| P/FCF | 11.77 | ||
| P/OCF | 2.75 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.49 |
EPS(TTM)1.05
EY6.68%
EPS(NY)1.85
Fwd EY11.75%
FCF(TTM)1.34
FCFY8.49%
OCF(TTM)5.71
OCFY36.32%
SpS82.25
BVpS-6
TBVpS-15.29
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 | 0.72 |
F-Score7
WACC7.27%
ROIC/WACC0.62
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-67.3%
EPS Next 2Y-1.62%
EPS Next 3Y10.45%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.32%
Revenue Next Year1.59%
Revenue Next 2Y4.07%
Revenue Next 3Y4.37%
Revenue Next 5Y3.2%
EBIT growth 1Y-17.23%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year30.87%
EBIT Next 3Y24.28%
EBIT Next 5Y27.46%
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 / AAL FAQ
What is the ChartMill fundamental rating of AMERICAN AIRLINES GROUP INC (AAL) stock?
ChartMill assigns a fundamental rating of 3 / 10 to AAL.
Can you provide the valuation status for AMERICAN AIRLINES GROUP INC?
ChartMill assigns a valuation rating of 6 / 10 to AMERICAN AIRLINES GROUP INC (AAL). This can be considered as Fairly Valued.
What is the profitability of AAL stock?
AMERICAN AIRLINES GROUP INC (AAL) has a profitability rating of 4 / 10.
What is the financial health of AMERICAN AIRLINES GROUP INC (AAL) stock?
The financial health rating of AMERICAN AIRLINES GROUP INC (AAL) is 2 / 10.
Can you provide the dividend sustainability for AAL stock?
The dividend rating of AMERICAN AIRLINES GROUP INC (AAL) is 0 / 10 and the dividend payout ratio is 0%.