AMERICAN AIRLINES GROUP INC (AAL) Fundamental Analysis & Valuation

NASDAQ:AAL • US02376R1023

Current stock price

10.3 USD
-0.25 (-2.37%)
At close:
10.2513 USD
-0.05 (-0.47%)
After Hours:

This AAL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. AAL Profitability Analysis

1.1 Basic Checks

  • AAL had positive earnings in the past year.
  • In the past year AAL had a positive cash flow from operations.
  • AAL had positive earnings in 4 of the past 5 years.
  • AAL had a positive operating cash flow in each of the past 5 years.
AAL Yearly Net Income VS EBIT VS OCF VS FCFAAL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 5B -5B -10B

1.2 Ratios

  • AAL's Return On Assets of 0.97% is fine compared to the rest of the industry. AAL outperforms 63.64% of its industry peers.
  • AAL has a Return On Invested Capital (4.03%) which is in line with its industry peers.
  • The Average Return On Invested Capital over the past 3 years for AAL is significantly below the industry average of 20.69%.
Industry RankSector Rank
ROA 0.97%
ROE N/A
ROIC 4.03%
ROA(3y)0.95%
ROA(5y)0.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.02%
ROIC(5y)N/A
AAL Yearly ROA, ROE, ROICAAL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -500 -1K

1.3 Margins

  • AAL's Profit Margin of 1.11% is fine compared to the rest of the industry. AAL outperforms 63.64% of its industry peers.
  • 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 59.09% of the companies in the same industry.
  • In the last couple of years the Operating Margin of AAL has declined.
  • With an excellent Gross Margin value of 65.01%, AAL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
  • AAL's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 4.22%
PM (TTM) 1.11%
GM 65.01%
OM growth 3Y-6.82%
OM growth 5YN/A
PM growth 3Y-7.81%
PM growth 5YN/A
GM growth 3Y3.77%
GM growth 5Y8.11%
AAL Yearly Profit, Operating, Gross MarginsAAL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 -40 60 -60

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2

2. AAL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAL is destroying value.
  • Compared to 1 year ago, AAL has about the same amount of shares outstanding.
  • The number of shares outstanding for AAL has been increased compared to 5 years ago.
  • The debt/assets ratio for AAL has been reduced compared to a year ago.
AAL Yearly Shares OutstandingAAL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
AAL Yearly Total Debt VS Total AssetsAAL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

2.2 Solvency

  • AAL has an Altman-Z score of 0.68. This is a bad value and indicates that AAL is not financially healthy and even has some risk of bankruptcy.
  • With a Altman-Z score value of 0.68, AAL perfoms like the industry average, outperforming 54.55% of the companies in the same 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 in line compared to the rest of the industry. AAL outperforms 59.09% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 32.56
Altman-Z 0.68
ROIC/WACC0.67
WACC6.01%
AAL Yearly LT Debt VS Equity VS FCFAAL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

2.3 Liquidity

  • AAL has a Current 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.
  • AAL's Current ratio of 0.54 is in line compared to the rest of the industry. AAL outperforms 50.00% of its industry peers.
  • 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.
  • AAL has a worse Quick ratio (0.42) than 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 0.54
Quick Ratio 0.42
AAL Yearly Current Assets VS Current LiabilitesAAL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. AAL Growth Analysis

3.1 Past

  • AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.68%.
  • AAL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.27% yearly.
  • The Revenue has been growing slightly by 0.78% in the past year.
  • The Revenue has been growing by 25.80% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-81.68%
EPS 3Y5.27%
EPS 5YN/A
EPS Q2Q%-81.4%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y3.71%
Revenue growth 5Y25.8%
Sales Q2Q%2.48%

3.2 Future

  • Based on estimates for the next years, AAL will show a very strong growth in Earnings Per Share. The EPS will grow by 74.14% on average per year.
  • The Revenue is expected to grow by 5.72% on average over the next years.
EPS Next Y508.9%
EPS Next 2Y180.87%
EPS Next 3Y110.82%
EPS Next 5Y74.14%
Revenue Next Year8.85%
Revenue Next 2Y7.25%
Revenue Next 3Y6.41%
Revenue Next 5Y5.72%

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 decreasing: in the next years the growth will be less than in the last years.
AAL Yearly Revenue VS EstimatesAAL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
AAL Yearly EPS VS EstimatesAAL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 -10 -15 -20

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7

4. AAL Valuation Analysis

4.1 Price/Earnings Ratio

  • AAL is valuated quite expensively with a Price/Earnings ratio of 29.43.
  • Compared to the rest of the industry, the Price/Earnings ratio of AAL is on the same level as its industry peers.
  • AAL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 4.83, the valuation of AAL can be described as very cheap.
  • Based on the Price/Forward Earnings ratio, AAL is valued cheaper than 100.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, AAL is valued rather cheaply.
Industry RankSector Rank
PE 29.43
Fwd PE 4.83
AAL Price Earnings VS Forward Price EarningsAAL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, AAL is valued a bit cheaper than 77.27% of the companies in the same industry.
  • 90.91% of the companies in the same industry are more expensive than AAL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.71
EV/EBITDA 4.73
AAL Per share dataAAL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • AAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • AAL's earnings are expected to grow with 110.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y180.87%
EPS Next 3Y110.82%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. AAL Dividend Analysis

5.1 Amount

  • No dividends for AAL!.
Industry RankSector Rank
Dividend Yield 0%

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AAL Fundamentals: All Metrics, Ratios and Statistics

AMERICAN AIRLINES GROUP INC

NASDAQ:AAL (3/13/2026, 8:08:23 PM)

After market: 10.2513 -0.05 (-0.47%)

10.3

-0.25 (-2.37%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)01-27
Earnings (Next)04-22
Inst Owners71.12%
Inst Owner Change-3.11%
Ins Owners1.71%
Ins Owner Change11.89%
Market Cap6.80B
Revenue(TTM)54.63B
Net Income(TTM)602.00M
Analysts74.67
Price Target17.9 (73.79%)
Short Float %6.92%
Short Ratio0.81
Dividend
Industry RankSector 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)-0.27%
PT rev (3m)18.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-27.04%
EPS NY rev (1m)-0.16%
EPS NY rev (3m)15.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)2.11%
Valuation
Industry RankSector Rank
PE 29.43
Fwd PE 4.83
P/S 0.13
P/FCF 7.71
P/OCF 1.8
P/B N/A
P/tB N/A
EV/EBITDA 4.73
EPS(TTM)0.35
EY3.4%
EPS(NY)2.13
Fwd EY20.69%
FCF(TTM)1.34
FCFY12.97%
OCF(TTM)5.71
OCFY55.45%
SpS82.23
BVpS-6
TBVpS-15.28
PEG (NY)0.06
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 0.97%
ROE N/A
ROCE 6.11%
ROIC 4.03%
ROICexc 5.03%
ROICexgc 6.33%
OM 4.22%
PM (TTM) 1.11%
GM 65.01%
FCFM 1.62%
ROA(3y)0.95%
ROA(5y)0.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.02%
ROIC(5y)N/A
ROICexc(3y)6.19%
ROICexc(5y)N/A
ROICexgc(3y)7.69%
ROICexgc(5y)N/A
ROCE(3y)7.62%
ROCE(5y)N/A
ROICexgc growth 3Y0.95%
ROICexgc growth 5YN/A
ROICexc growth 3Y0.11%
ROICexc growth 5YN/A
OM growth 3Y-6.82%
OM growth 5YN/A
PM growth 3Y-7.81%
PM growth 5YN/A
GM growth 3Y3.77%
GM growth 5Y8.11%
F-Score7
Asset Turnover0.87
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 32.56
Debt/EBITDA 5.57
Cap/Depr 130.19%
Cap/Sales 5.32%
Interest Coverage 1.31
Cash Conversion 83.6%
Profit Quality 146.51%
Current Ratio 0.54
Quick Ratio 0.42
Altman-Z 0.68
F-Score7
WACC6.01%
ROIC/WACC0.67
Cap/Depr(3y)135%
Cap/Depr(5y)109.82%
Cap/Sales(3y)5.59%
Cap/Sales(5y)4.82%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-81.68%
EPS 3Y5.27%
EPS 5YN/A
EPS Q2Q%-81.4%
EPS Next Y508.9%
EPS Next 2Y180.87%
EPS Next 3Y110.82%
EPS Next 5Y74.14%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y3.71%
Revenue growth 5Y25.8%
Sales Q2Q%2.48%
Revenue Next Year8.85%
Revenue Next 2Y7.25%
Revenue Next 3Y6.41%
Revenue Next 5Y5.72%
EBIT growth 1Y-17.23%
EBIT growth 3Y-3.36%
EBIT growth 5YN/A
EBIT Next Year201.51%
EBIT Next 3Y54.01%
EBIT Next 5Y34.07%
FCF growth 1Y259.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y68.8%
OCF growth 3Y12.56%
OCF growth 5YN/A

AMERICAN AIRLINES GROUP INC / AAL Fundamental Analysis FAQ

What is the ChartMill fundamental rating of AMERICAN AIRLINES GROUP INC (AAL) stock?

ChartMill assigns a fundamental rating of 4 / 10 to AAL.


Can you provide the valuation status for AMERICAN AIRLINES GROUP INC?

ChartMill assigns a valuation rating of 7 / 10 to AMERICAN AIRLINES GROUP INC (AAL). This can be considered as Undervalued.


What is the profitability of AAL stock?

AMERICAN AIRLINES GROUP INC (AAL) has a profitability rating of 5 / 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%.