AMERICAN AIRLINES GROUP INC (AAL)
US02376R1023 - Common Stock
AAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 24 industry peers in the Passenger Airlines industry. While AAL is still in line with the averages on profitability rating, there are concerns on its financial 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
The Return On Assets of AAL (1.30%) is better than 62.50% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.93%, AAL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | N/A | ||
| ROIC | 6.93% |
ROA(3y)-0.5%
ROA(5y)-2.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AAL's Profit Margin of 1.56% is fine compared to the rest of the industry. AAL outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of AAL has declined.
The Operating Margin of AAL (7.60%) is better than 70.83% of its industry peers.
In the last couple of years the Operating Margin of AAL has remained more or less at the same level.
Looking at the Gross Margin, with a value of 62.44%, AAL is in the better half of the industry, outperforming 75.00% 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 | 7.6% | ||
| PM (TTM) | 1.56% | ||
| GM | 62.44% |
OM growth 3YN/A
OM growth 5Y-0.37%
PM growth 3YN/A
PM growth 5Y-13.25%
GM growth 3Y12.53%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
AAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for AAL has been increased compared to 1 year ago.
Compared to 5 years ago, AAL has more shares outstanding
The debt/assets ratio for AAL has been reduced compared to a year ago.
2.2 Solvency
AAL has an Altman-Z score of 0.80. 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 (0.80) which is in line with its industry peers.
The Debt to FCF ratio of AAL is 27.26, which is on the high side as it means it would take AAL, 27.26 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 27.26, AAL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 27.26 | ||
| Altman-Z | 0.8 |
ROIC/WACC1
WACC6.92%
2.3 Liquidity
AAL has a Current Ratio of 0.62. 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 0.62 is in line compared to the rest of the industry. AAL outperforms 50.00% of its industry peers.
AAL has a Quick Ratio of 0.62. 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 0.51 is in line compared to the rest of the industry. AAL outperforms 41.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 780.00% over the past year.
AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.32% yearly.
Looking at the last year, AAL shows a small growth in Revenue. The Revenue has grown by 7.79% in the last year.
Measured over the past years, AAL shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
EPS 1Y (TTM)780%
EPS 3YN/A
EPS 5Y-10.32%
EPS growth Q2Q-75.21%
Revenue 1Y (TTM)7.79%
Revenue growth 3Y44.94%
Revenue growth 5Y3.46%
Revenue growth Q2Q-0.96%
3.2 Future
AAL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.05% yearly.
Based on estimates for the next years, AAL will show a small growth in Revenue. The Revenue will grow by 3.43% on average per year.
EPS Next Y-6.19%
EPS Next 2Y11.1%
EPS Next 3Y16.41%
EPS Next 5Y33.05%
Revenue Next Year4.55%
Revenue Next 2Y4.64%
Revenue Next 3Y4.52%
Revenue Next 5Y3.43%
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 5.27, the valuation of AAL can be described as very cheap.
AAL's Price/Earnings ratio is rather cheap when compared to the industry. AAL is cheaper than 91.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, AAL is valued rather cheaply.
A Price/Forward Earnings ratio of 5.61 indicates a rather cheap valuation of AAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 95.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. AAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 5.61 |
4.2 Price Multiples
AAL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AAL is cheaper than 83.33% of the companies in the same industry.
87.50% of the companies in the same industry are more expensive than AAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 4.14 |
4.3 Compensation for Growth
A more expensive valuation may be justified as AAL's earnings are expected to grow with 16.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y11.1%
EPS Next 3Y16.41%
5. Dividend
5.1 Amount
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMERICAN AIRLINES GROUP INC
NASDAQ:AAL (4/26/2024, 1:36:10 PM)
13.9
-0.23 (-1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap9.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 5.61 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.3% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.6% | ||
| PM (TTM) | 1.56% | ||
| GM | 62.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)780%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.79%
Revenue growth 3Y44.94%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y