AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
NASDAQ:AAL - Nasdaq - US02376R1023 - Common Stock - Currency: USD
Overall AAL gets a fundamental rating of 3 out of 10. We evaluated AAL against 22 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
In the past year AAL was profitable.
In the past year AAL had a positive cash flow from operations.
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
With a Return On Assets value of 1.09%, AAL perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 5.98%, AAL is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AAL is below the industry average of 8.55%.
The last Return On Invested Capital (5.98%) for AAL 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
Looking at the Profit Margin, with a value of 1.26%, AAL is in line with its industry, outperforming 50.00% of the companies in the same industry.
AAL's Profit Margin has declined in the last couple of years.
AAL's Operating Margin of 5.50% is in line compared to the rest of the industry. AAL outperforms 54.55% of its industry peers.
AAL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 64.23%, 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 | 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
AAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AAL has more shares outstanding than it did 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
Based on the Altman-Z score of 0.69, we must say that AAL is in the distress zone and has some risk of bankruptcy.
AAL has a Altman-Z score of 0.69. This is comparable to the rest of the industry: AAL outperforms 50.00% of its industry peers.
AAL has a debt to FCF ratio of 18.68. This is a negative value and a sign of low solvency as AAL would need 18.68 years to pay back of all of its debts.
AAL has a Debt to FCF ratio of 18.68. This is comparable to the rest of the industry: AAL outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.9
WACC6.64%
2.3 Liquidity
A Current Ratio of 0.52 indicates that AAL may have some problems paying its short term obligations.
AAL has a Current ratio of 0.52. This is in the lower half of the industry: AAL underperforms 68.18% of its industry peers.
AAL has a Quick Ratio of 0.52. 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 Quick ratio of 0.42 is on the low side compared to the rest of the industry. AAL is outperformed by 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| 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 -26.22%.
AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.21% yearly.
Looking at the last year, AAL shows a small growth in Revenue. The Revenue has grown by 1.92% in the last 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)-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
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 3.27% on average over the next years.
EPS Next Y-53.31%
EPS Next 2Y2.52%
EPS Next 3Y11.2%
EPS Next 5Y17.02%
Revenue Next Year1.29%
Revenue Next 2Y3.58%
Revenue Next 3Y4.02%
Revenue Next 5Y3.27%
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
With a Price/Earnings ratio of 7.14, the valuation of AAL can be described as very cheap.
95.45% of the companies in the same industry are more expensive than AAL, based on the Price/Earnings ratio.
AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.28.
Based on the Price/Forward Earnings ratio of 5.91, the valuation of AAL can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 86.36% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AAL to the average of the S&P500 Index (21.76), we can say AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 5.91 |
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 81.82% of the companies listed in the same industry.
AAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AAL is cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.96 | ||
| EV/EBITDA | 4.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.52%
EPS Next 3Y11.2%
5. Dividend
5.1 Amount
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AAL (7/3/2025, 10:13:06 AM)
11.855
+0.22 (+1.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners67.52%
Inst Owner Change-0.34%
Ins Owners1.33%
Ins Owner Change10.26%
Market Cap7.82B
Analysts73.33
Price Target13.55 (14.3%)
Short Float %10.35%
Short Ratio1.15
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)3.06%
PT rev (3m)-28.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-39.62%
EPS NY rev (1m)-2.97%
EPS NY rev (3m)-56.74%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.14 | ||
| Fwd PE | 5.91 | ||
| P/S | 0.14 | ||
| P/FCF | 4.96 | ||
| P/OCF | 1.84 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.19 |
EPS(TTM)1.66
EY14%
EPS(NY)2.01
Fwd EY16.93%
FCF(TTM)2.39
FCFY20.16%
OCF(TTM)6.46
OCFY54.47%
SpS82.17
BVpS-6.84
TBVpS-16.13
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
WACC6.64%
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-53.31%
EPS Next 2Y2.52%
EPS Next 3Y11.2%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
Revenue Next Year1.29%
Revenue Next 2Y3.58%
Revenue Next 3Y4.02%
Revenue Next 5Y3.27%
EBIT growth 1Y-18.14%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year43.06%
EBIT Next 3Y26.24%
EBIT Next 5Y28.36%
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%