AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
NASDAQ:AAL - Nasdaq - US02376R1023 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to AAL. AAL was compared to 23 industry peers in the Passenger Airlines industry. AAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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
With a decent Return On Assets value of 1.09%, AAL is doing good in the industry, outperforming 60.87% of the companies in the same industry.
With a decent Return On Invested Capital value of 5.98%, AAL is doing good in the industry, outperforming 65.22% 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 11.08%.
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
AAL has a Profit Margin (1.26%) which is in line with its industry peers.
In the last couple of years the Profit Margin of AAL has declined.
AAL has a Operating Margin (5.50%) which is in line with its industry peers.
In the last couple of years the Operating Margin of AAL has declined.
The Gross Margin of AAL (64.23%) is better than 78.26% 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 | 5.5% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AAL is destroying value.
Compared to 1 year ago, AAL has more shares outstanding
The number of shares outstanding for AAL has been increased compared to 5 years ago.
AAL has a better debt/assets ratio than last year.
2.2 Solvency
AAL has an Altman-Z score of 0.69. This is a bad value and indicates that AAL is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of AAL (0.69) is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 18.68, AAL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 18.68 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.9
WACC6.67%
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 60.87% of its industry peers.
A Quick Ratio of 0.42 indicates that AAL may have some problems paying 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 69.57% 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%.
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 1.92% 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)-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 19.51% yearly.
Based on estimates for the next years, AAL will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y19.51%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.74%
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
The Price/Earnings ratio is 6.85, which indicates a rather cheap valuation of AAL.
91.30% of the companies in the same industry are more expensive than AAL, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of AAL to the average of the S&P500 Index (26.03), we can say AAL is valued rather cheaply.
A Price/Forward Earnings ratio of 5.52 indicates a rather cheap valuation of AAL.
91.30% of the companies in the same industry are more expensive than AAL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.94. AAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.52 |
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 82.61% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, AAL is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.76 | ||
| EV/EBITDA | 4.15 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.86%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AAL (5/22/2025, 12:21:08 PM)
11.365
+0.13 (+1.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners68.64%
Inst Owner Change-0.33%
Ins Owners1.18%
Ins Owner Change8.38%
Market Cap7.50B
Analysts73.33
Price Target13.14 (15.62%)
Short Float %11.31%
Short Ratio1.07
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)-30.5%
PT rev (3m)-37.47%
EPS NQ rev (1m)-22.37%
EPS NQ rev (3m)-44.7%
EPS NY rev (1m)-38.7%
EPS NY rev (3m)-62.11%
Revenue NQ rev (1m)-2.63%
Revenue NQ rev (3m)-6.87%
Revenue NY rev (1m)-2.33%
Revenue NY rev (3m)-4.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.85 | ||
| Fwd PE | 5.52 | ||
| P/S | 0.14 | ||
| P/FCF | 4.76 | ||
| P/OCF | 1.76 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.15 |
EPS(TTM)1.66
EY14.61%
EPS(NY)2.06
Fwd EY18.13%
FCF(TTM)2.39
FCFY21.03%
OCF(TTM)6.46
OCFY56.82%
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
WACC6.67%
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-51.88%
EPS Next 2Y3.86%
EPS Next 3Y11.51%
EPS Next 5Y19.51%
Revenue 1Y (TTM)1.92%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
Revenue Next Year1.29%
Revenue Next 2Y3.62%
Revenue Next 3Y4.06%
Revenue Next 5Y3.74%
EBIT growth 1Y-18.14%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year69.46%
EBIT Next 3Y28.47%
EBIT Next 5Y29.4%
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%