AMERICAN AIRLINES GROUP INC (AAL)
US02376R1023 - Common Stock
Taking everything into account, AAL scores 4 out of 10 in our fundamental rating. AAL was compared to 24 industry peers in the Passenger Airlines industry. AAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. AAL may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
AAL had positive earnings in the past year.
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.
Of the past 5 years AAL 4 years had a positive operating cash flow.
1.2 Ratios
AAL has a Return On Assets of 1.30%. This is in the better half of the industry: AAL outperforms 62.50% of its industry peers.
The Return On Invested Capital of AAL (6.93%) is better than 75.00% of its industry peers.
| 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 has a better Profit Margin (1.56%) than 66.67% of its industry peers.
AAL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 7.60%, AAL is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of AAL has remained more or less at the same level.
The Gross Margin of AAL (62.44%) is better than 75.00% 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 | 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.
AAL has more shares outstanding than it did 5 years ago.
AAL has a better debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 0.80, AAL is in line with its industry, outperforming 41.67% of the companies in the same industry.
AAL has a debt to FCF ratio of 27.26. This is a negative value and a sign of low solvency as AAL would need 27.26 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.26, AAL belongs to the top 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/WACC1.01
WACC6.88%
2.3 Liquidity
A Current Ratio of 0.62 indicates that AAL may have some problems paying its short term obligations.
AAL has a Current ratio (0.62) which is in line with its industry peers.
A Quick Ratio of 0.51 indicates that AAL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.51, AAL is in line with its industry, outperforming 41.67% of the companies in the same industry.
| 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.
Measured over the past years, AAL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -10.32% on average per year.
AAL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.79%.
AAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.46% yearly.
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.
AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
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
AAL is valuated cheaply with a Price/Earnings ratio of 5.27.
91.67% of the companies in the same industry are more expensive than AAL, based on the Price/Earnings ratio.
AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.25.
The Price/Forward Earnings ratio is 5.62, which indicates a rather cheap valuation of AAL.
95.83% 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 (21.67), we can say AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 5.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAL is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
AAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. AAL is cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.55 | ||
| EV/EBITDA | 4.15 |
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
AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMERICAN AIRLINES GROUP INC
NASDAQ:AAL (4/24/2024, 7:00:00 PM)
After market: 14.05 +0.13 (+0.93%)13.92
-0.31 (-2.18%)
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 Cap9.11B
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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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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)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.27 | ||
| Fwd PE | 5.62 | ||
| 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