AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
USA - NASDAQ:AAL - US02376R1023 - Common Stock
12.47 USD
+0.38 (+3.14%)
AAL gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 21 industry peers in the Passenger Airlines industry. Both the profitability and financial health of AAL have multiple concerns. A decent growth rate in combination with a cheap valuation! Better keep an eye on AAL.
1. Profitability
1.1 Basic Checks
AAL had positive earnings in the past year.
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
AAL has a Return On Assets (0.89%) which is in line with its industry peers.
AAL has a Return On Invested Capital of 5.37%. This is in the better half of the industry: AAL outperforms 61.90% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAL is significantly below the industry average of 14.46%.
| 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
With a Profit Margin value of 1.05%, AAL perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of AAL has declined.
With a Operating Margin value of 5.12%, AAL perfoms like the industry average, outperforming 52.38% of the companies in the same industry.
In the last couple of years the Operating Margin of AAL has declined.
AAL has a Gross Margin of 64.95%. This is in the better half of the industry: AAL outperforms 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
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.
The debt/assets ratio for AAL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.72, we must say that AAL is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of AAL (0.72) is comparable to the rest of the industry.
The Debt to FCF ratio of AAL is 19.12, which is on the high side as it means it would take AAL, 19.12 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AAL (19.12) is better than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 19.12 | ||
| Altman-Z | 0.72 |
ROIC/WACC0.8
WACC6.71%
2.3 Liquidity
A Current Ratio of 0.58 indicates that AAL may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.58, AAL is in line with its industry, outperforming 47.62% of the companies in the same industry.
A Quick Ratio of 0.48 indicates that AAL may have some problems paying its short term obligations.
AAL has a worse Quick ratio (0.48) than 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%.
AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.21% yearly.
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 Year1.02%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
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.
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
AAL is valuated reasonably with a Price/Earnings ratio of 8.20.
Based on the Price/Earnings ratio, AAL is valued cheaper than 100.00% of the companies in the same industry.
AAL is valuated cheaply when we compare the Price/Earnings ratio to 27.57, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.27, 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 85.71% 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 (23.09), we can say AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.2 | ||
| Fwd PE | 7.27 |
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.
90.48% 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 | 5.26 | ||
| EV/EBITDA | 4.01 |
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
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:AAL (10/23/2025, 10:26:09 AM)
12.47
+0.38 (+3.14%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners64.85%
Inst Owner Change-0.12%
Ins Owners1.4%
Ins Owner Change7.53%
Market Cap8.23B
Revenue(TTM)54.25B
Net Income(TTM)567.00M
Analysts71.85
Price Target13.76 (10.34%)
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)1.25%
PT rev (3m)0.09%
EPS NQ rev (1m)2.51%
EPS NQ rev (3m)-402.43%
EPS NY rev (1m)-4.85%
EPS NY rev (3m)-33.87%
Revenue NQ rev (1m)-0.09%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.2 | ||
| Fwd PE | 7.27 | ||
| P/S | 0.15 | ||
| P/FCF | 5.26 | ||
| P/OCF | 2.01 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.01 |
EPS(TTM)1.52
EY12.19%
EPS(NY)1.72
Fwd EY13.76%
FCF(TTM)2.37
FCFY19%
OCF(TTM)6.2
OCFY49.76%
SpS82.22
BVpS-5.87
TBVpS-15.16
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/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
ROICexgc growth 3YN/A
ROICexgc 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 | 0.72 |
F-Score7
WACC6.71%
ROIC/WACC0.8
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 Year1.02%
Revenue Next 2Y3.47%
Revenue Next 3Y3.98%
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%