AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
USA - NASDAQ:AAL - US02376R1023 - Common Stock
11.24 USD
-0.14 (-1.23%)
11.2299 USD
-0.01 (-0.09%)
AAL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. AAL may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on AAL.
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.
AAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AAL's Return On Assets of 0.89% is in line compared to the rest of the industry. AAL outperforms 57.14% of its industry peers.
With a decent Return On Invested Capital value of 5.37%, AAL is doing good in the industry, outperforming 61.90% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AAL 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
AAL has a Profit Margin of 1.05%. This is comparable to the rest of the industry: AAL outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of AAL has declined.
AAL has a Operating Margin of 5.12%. This is comparable to the rest of the industry: AAL outperforms 52.38% 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 76.19% 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
Based on the Altman-Z score of 0.71, we must say that AAL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AAL (0.71) is comparable to the rest of the industry.
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 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.12 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.81
WACC6.61%
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.
AAL's Current ratio of 0.58 is in line compared to the rest of the industry. AAL outperforms 47.62% of its industry peers.
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.
AAL's Quick ratio of 0.48 is on the low side compared to the rest of the industry. AAL is outperformed by 66.67% of its industry peers.
| 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%.
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 1.50% 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.
AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.28% yearly.
EPS Next Y-77.59%
EPS Next 2Y-5.21%
EPS Next 3Y9.25%
EPS Next 5Y17.02%
Revenue Next Year0.95%
Revenue Next 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y3.28%
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
With a Price/Earnings ratio of 7.39, the valuation of AAL can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.76, AAL is valued rather cheaply.
AAL is valuated cheaply with a Price/Forward Earnings ratio of 6.55.
AAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. AAL is cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.18. AAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 6.55 |
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 95.24% 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 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.75 | ||
| EV/EBITDA | 3.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.21%
EPS Next 3Y9.25%
5. Dividend
5.1 Amount
AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.24
-0.14 (-1.23%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners64.85%
Inst Owner Change-3.2%
Ins Owners1.4%
Ins Owner Change7.13%
Market Cap7.42B
Analysts71.85
Price Target13.59 (20.91%)
Short Float %11.1%
Short Ratio0.95
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)-0.88%
PT rev (3m)0.29%
EPS NQ rev (1m)2.31%
EPS NQ rev (3m)-301.35%
EPS NY rev (1m)-4.85%
EPS NY rev (3m)-52.01%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)-1.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 6.55 | ||
| P/S | 0.14 | ||
| P/FCF | 4.75 | ||
| P/OCF | 1.81 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.91 |
EPS(TTM)1.52
EY13.52%
EPS(NY)1.72
Fwd EY15.27%
FCF(TTM)2.37
FCFY21.07%
OCF(TTM)6.2
OCFY55.2%
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 | 0.71 |
F-Score7
WACC6.61%
ROIC/WACC0.81
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-77.59%
EPS Next 2Y-5.21%
EPS Next 3Y9.25%
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 2Y3.46%
Revenue Next 3Y3.94%
Revenue Next 5Y3.28%
EBIT growth 1Y-2.7%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year26.07%
EBIT Next 3Y25.43%
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%