AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
NASDAQ:AAL - US02376R1023 - Common Stock
13.08 USD
+0.22 (+1.71%)
13.08 USD
0 (0%)
Taking everything into account, AAL scores 4 out of 10 in our fundamental rating. AAL was compared to 21 industry peers in the Passenger Airlines industry. AAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. AAL may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AAL had positive earnings in the past year.
In the past year AAL had a positive cash flow from operations.
In multiple years AAL reported negative net income over the last 5 years.
AAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AAL has a better Return On Assets (0.89%) than 60.87% of its industry peers.
The Return On Invested Capital of AAL (5.37%) is better than 65.22% of its industry peers.
AAL had an Average Return On Invested Capital over the past 3 years of 5.54%. This is significantly below the industry average of 14.49%.
| 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 AAL (1.05%) is better than 60.87% of its industry peers.
AAL's Profit Margin has declined in the last couple of years.
AAL's Operating Margin of 5.12% is in line compared to the rest of the industry. AAL outperforms 56.52% of its industry peers.
In the last couple of years the Operating Margin of AAL has declined.
The Gross Margin of AAL (64.95%) is better than 73.91% of its industry peers.
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 | 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAL is destroying value.
AAL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, AAL has more shares outstanding
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 in line with its industry peers.
AAL has a debt to FCF ratio of 19.12. This is a negative value and a sign of low solvency as AAL would need 19.12 years to pay back of all of its debts.
AAL's Debt to FCF ratio of 19.12 is fine compared to the rest of the industry. AAL outperforms 65.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.12 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.78
WACC6.88%
2.3 Liquidity
AAL has a Current Ratio of 0.58. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.58, AAL perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
AAL has a Quick Ratio of 0.58. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.48, AAL is doing worse than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.58 | ||
| Quick Ratio | 0.48 |
3. Growth
3.1 Past
AAL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.04%.
Measured over the past years, AAL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.21% on average per year.
The Revenue has been growing slightly by 1.50% in the past year.
Measured over the past years, AAL shows a small growth in Revenue. The Revenue has been growing by 3.44% on average per year.
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, AAL will show a small growth in Revenue. The Revenue will grow by 3.28% on average per year.
EPS Next Y-76.45%
EPS Next 2Y-5.67%
EPS Next 3Y8.75%
EPS Next 5Y17.02%
Revenue Next Year0.95%
Revenue Next 2Y3.52%
Revenue Next 3Y4%
Revenue Next 5Y3.28%
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
A Price/Earnings ratio of 8.61 indicates a reasonable valuation of AAL.
Based on the Price/Earnings ratio, AAL is valued cheaper than 95.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, AAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.70, the valuation of AAL can be described as very cheap.
Based on the Price/Forward Earnings ratio, AAL is valued cheaper than 86.96% of the companies in the same industry.
AAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 95.65% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AAL is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.52 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.67%
EPS Next 3Y8.75%
5. Dividend
5.1 Amount
AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.08
+0.22 (+1.71%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners67.43%
Inst Owner Change-3.18%
Ins Owners1.35%
Ins Owner Change7.6%
Market Cap8.63B
Analysts71.85
Price Target13.53 (3.44%)
Short Float %10.02%
Short Ratio1.01
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)-1.56%
PT rev (3m)-0.13%
EPS NQ rev (1m)-5.6%
EPS NQ rev (3m)-152.82%
EPS NY rev (1m)-30.5%
EPS NY rev (3m)-51.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-6.89%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.61 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.16 | ||
| P/FCF | 5.52 | ||
| P/OCF | 2.11 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.14 |
EPS(TTM)1.52
EY11.62%
EPS(NY)1.7
Fwd EY12.99%
FCF(TTM)2.37
FCFY18.11%
OCF(TTM)6.2
OCFY47.44%
SpS82.22
BVpS-5.87
TBVpS-15.16
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
WACC6.88%
ROIC/WACC0.78
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-76.45%
EPS Next 2Y-5.67%
EPS Next 3Y8.75%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.5%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.4%
Revenue Next Year0.95%
Revenue Next 2Y3.52%
Revenue Next 3Y4%
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%