AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
NASDAQ:AAL • US02376R1023
13.07 USD
-0.87 (-6.24%)
At close: Feb 27, 2026
13.0895 USD
+0.02 (+0.15%)
After Hours: 2/27/2026, 8:00:00 PM
We assign a fundamental rating of 4 out of 10 to AAL. AAL was compared to 22 industry peers in the Passenger Airlines industry. There are concerns on the financial health of AAL while its profitability can be described as average. AAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AAL was profitable.
- AAL had a positive operating cash flow in the past year.
- Of the past 5 years AAL 4 years were profitable.
- Of the past 5 years AAL 4 years had a positive operating cash flow.
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's Return On Invested Capital of 4.03% is fine compared to the rest of the industry. AAL outperforms 63.64% of its industry peers.
- AAL had an Average Return On Invested Capital over the past 3 years of 5.01%. This is significantly below the industry average of 20.69%.
| Industry Rank | Sector 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)5.01%
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 1.11%, AAL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
- In the last couple of years the Profit Margin of AAL has declined.
- AAL's Operating Margin of 4.22% is in line compared to the rest of the industry. AAL outperforms 59.09% of its industry peers.
- In the last couple of years the Operating Margin of AAL has declined.
- AAL has a better Gross Margin (65.01%) than 77.27% of its industry peers.
- AAL's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 1.11% | ||
| GM | 65.01% |
OM growth 3Y-6.88%
OM growth 5YN/A
PM growth 3Y-7.81%
PM growth 5YN/A
GM growth 3Y3.78%
GM growth 5Y8.12%
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
- 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.
- AAL has a Altman-Z score (0.71) which is comparable to the rest of the 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.
- With a decent Debt to FCF ratio value of 32.56, AAL is doing good in the industry, outperforming 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.59
WACC6.86%
2.3 Liquidity
- A Current Ratio of 0.54 indicates that AAL may have some problems paying its short term obligations.
- AAL has a Current ratio (0.54) which is comparable to the rest of the industry.
- 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's Quick ratio of 0.42 is on the low side compared to the rest of the industry. AAL is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
- The earnings per share for AAL have decreased strongly by -81.68% in the last year.
- Measured over the past 5 years, AAL shows a small growth in Earnings Per Share. The EPS has been growing by 5.27% on average per year.
- AAL shows a small growth in Revenue. In the last year, the Revenue has grown by 0.78%.
- Measured over the past years, AAL shows a very strong growth in Revenue. The Revenue has been growing by 25.80% on average per year.
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.
- AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.72% yearly.
EPS Next Y509.85%
EPS Next 2Y180.32%
EPS Next 3Y110.28%
EPS Next 5Y74.14%
Revenue Next Year8.87%
Revenue Next 2Y7.18%
Revenue Next 3Y6.4%
Revenue Next 5Y5.72%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 37.34 indicates a quite expensive valuation of AAL.
- AAL's Price/Earnings is on the same level as the industry average.
- AAL's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.10.
- A Price/Forward Earnings ratio of 6.12 indicates a rather cheap valuation of AAL.
- 100.00% of the companies in the same industry are more expensive than AAL, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of AAL to the average of the S&P500 Index (28.06), we can say AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 6.12 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, AAL is valued cheaply inside the industry as 86.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | N/A |
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 110.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y180.32%
EPS Next 3Y110.28%
5. Dividend
5.1 Amount
- AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
13.07
-0.87 (-6.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)01-27 2026-01-27/bmo
Earnings (Next)04-22 2026-04-22
Inst Owners70.53%
Inst Owner Change-2.99%
Ins Owners1.37%
Ins Owner Change12.35%
Market Cap8.63B
Revenue(TTM)54.63B
Net Income(TTM)602.00M
Analysts74.67
Price Target17.94 (37.26%)
Short Float %6.37%
Short Ratio0.76
Dividend
| Industry Rank | Sector 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)1.11%
PT rev (3m)20.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-42.39%
EPS NY rev (1m)7.09%
EPS NY rev (3m)14.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)1.57%
Revenue NY rev (3m)2.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.34 | ||
| Fwd PE | 6.12 | ||
| P/S | 0.16 | ||
| P/FCF | 9.78 | ||
| P/OCF | 2.29 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.35
EY2.68%
EPS(NY)2.13
Fwd EY16.33%
FCF(TTM)1.34
FCFY10.22%
OCF(TTM)5.71
OCFY43.7%
SpS82.23
BVpS-6
TBVpS-15.28
PEG (NY)0.07
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector 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)5.01%
ROIC(5y)N/A
ROICexc(3y)6.17%
ROICexc(5y)N/A
ROICexgc(3y)7.65%
ROICexgc(5y)N/A
ROCE(3y)7.61%
ROCE(5y)N/A
ROICexgc growth 3Y0.04%
ROICexgc growth 5YN/A
ROICexc growth 3Y-0.63%
ROICexc growth 5YN/A
OM growth 3Y-6.88%
OM growth 5YN/A
PM growth 3Y-7.81%
PM growth 5YN/A
GM growth 3Y3.78%
GM growth 5Y8.12%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 146.51% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.71 |
F-Score7
WACC6.86%
ROIC/WACC0.59
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
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 Y509.85%
EPS Next 2Y180.32%
EPS Next 3Y110.28%
EPS Next 5Y74.14%
Revenue 1Y (TTM)0.78%
Revenue growth 3Y3.71%
Revenue growth 5Y25.8%
Sales Q2Q%2.48%
Revenue Next Year8.87%
Revenue Next 2Y7.18%
Revenue Next 3Y6.4%
Revenue Next 5Y5.72%
EBIT growth 1Y-17.23%
EBIT growth 3Y-3.42%
EBIT growth 5YN/A
EBIT Next Year195.43%
EBIT Next 3Y63.99%
EBIT Next 5Y34.07%
FCF growth 1Y259.78%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y68.8%
OCF growth 3YN/A
OCF growth 5YN/A
AMERICAN AIRLINES GROUP INC / AAL 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 6 / 10 to AMERICAN AIRLINES GROUP INC (AAL). This can be considered as Fairly Valued.
What is the profitability of AAL stock?
AMERICAN AIRLINES GROUP INC (AAL) has a profitability rating of 4 / 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%.