UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - Nasdaq - US9100471096 - Common Stock - Currency: USD
UAL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 22 industry peers in the Passenger Airlines industry. There are concerns on the financial health of UAL while its profitability can be described as average. UAL has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
UAL had positive earnings in the past year.
In the past year UAL had a positive cash flow from operations.
In multiple years UAL reported negative net income over the last 5 years.
Of the past 5 years UAL 4 years had a positive operating cash flow.
1.2 Ratios
UAL has a Return On Assets of 4.29%. This is in the better half of the industry: UAL outperforms 77.27% of its industry peers.
With an excellent Return On Equity value of 24.75%, UAL belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
UAL has a better Return On Invested Capital (8.57%) than 77.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UAL is below the industry average of 9.02%.
The 3 year average ROIC (6.63%) for UAL is below the current ROIC(8.57%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 24.75% | ||
| ROIC | 8.57% |
ROA(3y)3.01%
ROA(5y)-1.15%
ROE(3y)21.2%
ROE(5y)-18.81%
ROIC(3y)6.63%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of UAL (5.71%) is better than 77.27% of its industry peers.
In the last couple of years the Profit Margin of UAL has declined.
UAL's Operating Margin of 9.32% is fine compared to the rest of the industry. UAL outperforms 68.18% of its industry peers.
UAL's Operating Margin has declined in the last couple of years.
UAL has a better Gross Margin (64.15%) than 72.73% of its industry peers.
In the last couple of years the Gross Margin of UAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.32% | ||
| PM (TTM) | 5.71% | ||
| GM | 64.15% |
OM growth 3YN/A
OM growth 5Y-2.78%
PM growth 3YN/A
PM growth 5Y-4.52%
GM growth 3Y6.86%
GM growth 5Y0.39%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), UAL is creating some value.
The number of shares outstanding for UAL remains at a similar level compared to 1 year ago.
UAL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for UAL has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of UAL is 6.70, which is on the high side as it means it would take UAL, 6.70 years of fcf income to pay off all of its debts.
UAL has a Debt to FCF ratio of 6.70. This is in the better half of the industry: UAL outperforms 77.27% of its industry peers.
UAL has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
UAL has a Debt to Equity ratio (1.56) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | N/A |
ROIC/WACC1.06
WACC8.12%
2.3 Liquidity
A Current Ratio of 0.70 indicates that UAL may have some problems paying its short term obligations.
With a decent Current ratio value of 0.70, UAL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
UAL has a Quick Ratio of 0.70. This is a bad value and indicates that UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
UAL's Quick ratio of 0.65 is fine compared to the rest of the industry. UAL outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.95% over the past year.
UAL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.65% yearly.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 4.23% in the last year.
UAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
EPS 1Y (TTM)17.95%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%-6.52%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%1.67%
3.2 Future
UAL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.61% yearly.
UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.87% yearly.
EPS Next Y-4.26%
EPS Next 2Y7.77%
EPS Next 3Y10.04%
EPS Next 5Y-0.61%
Revenue Next Year3.86%
Revenue Next 2Y5.75%
Revenue Next 3Y5.93%
Revenue Next 5Y2.87%
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 7.44 indicates a rather cheap valuation of UAL.
90.91% of the companies in the same industry are more expensive than UAL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.82, UAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.88, the valuation of UAL can be described as very cheap.
Based on the Price/Forward Earnings ratio, UAL is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
UAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 6.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UAL is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, UAL is valued cheaply inside the industry as 81.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.77 | ||
| EV/EBITDA | 4.06 |
4.3 Compensation for Growth
The decent profitability rating of UAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.77%
EPS Next 3Y10.04%
5. Dividend
5.1 Amount
UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.57
-3.74 (-4.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change-0.29%
Ins Owners0.55%
Ins Owner Change2.47%
Market Cap27.38B
Analysts82.96
Price Target100.09 (18.35%)
Short Float %4.21%
Short Ratio1.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.75%
Min EPS beat(2)0.48%
Max EPS beat(2)19.01%
EPS beat(4)4
Avg EPS beat(4)7.8%
Min EPS beat(4)0.48%
Max EPS beat(4)19.01%
EPS beat(8)8
Avg EPS beat(8)16.83%
EPS beat(12)12
Avg EPS beat(12)17.63%
EPS beat(16)15
Avg EPS beat(16)15.57%
Revenue beat(2)0
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.78%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)4
Avg Revenue beat(12)-0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.45%
PT rev (1m)2.97%
PT rev (3m)2.11%
EPS NQ rev (1m)-8.98%
EPS NQ rev (3m)-34.84%
EPS NY rev (1m)-1.51%
EPS NY rev (3m)-3.25%
Revenue NQ rev (1m)1.05%
Revenue NQ rev (3m)-5.22%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.44 | ||
| Fwd PE | 6.88 | ||
| P/S | 0.47 | ||
| P/FCF | 6.77 | ||
| P/OCF | 2.84 | ||
| P/B | 2.05 | ||
| P/tB | 4.43 | ||
| EV/EBITDA | 4.06 |
EPS(TTM)11.37
EY13.44%
EPS(NY)12.29
Fwd EY14.53%
FCF(TTM)12.49
FCFY14.77%
OCF(TTM)29.81
OCFY35.24%
SpS179.12
BVpS41.31
TBVpS19.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.29% | ||
| ROE | 24.75% | ||
| ROCE | 11.21% | ||
| ROIC | 8.57% | ||
| ROICexc | 12.68% | ||
| ROICexgc | 16.28% | ||
| OM | 9.32% | ||
| PM (TTM) | 5.71% | ||
| GM | 64.15% | ||
| FCFM | 6.97% |
ROA(3y)3.01%
ROA(5y)-1.15%
ROE(3y)21.2%
ROE(5y)-18.81%
ROIC(3y)6.63%
ROIC(5y)N/A
ROICexc(3y)9.5%
ROICexc(5y)N/A
ROICexgc(3y)12.05%
ROICexgc(5y)N/A
ROCE(3y)8.68%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.15%
ROICexc growth 3YN/A
ROICexc growth 5Y0.65%
OM growth 3YN/A
OM growth 5Y-2.78%
PM growth 3YN/A
PM growth 5Y-4.52%
GM growth 3Y6.86%
GM growth 5Y0.39%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 6.7 | ||
| Debt/EBITDA | 2.51 | ||
| Cap/Depr | 191.43% | ||
| Cap/Sales | 9.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.83% | ||
| Profit Quality | 122.18% | ||
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 | ||
| Altman-Z | N/A |
F-Score6
WACC8.12%
ROIC/WACC1.06
Cap/Depr(3y)218.82%
Cap/Depr(5y)162.13%
Cap/Sales(3y)11.3%
Cap/Sales(5y)10.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.95%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%-6.52%
EPS Next Y-4.26%
EPS Next 2Y7.77%
EPS Next 3Y10.04%
EPS Next 5Y-0.61%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%1.67%
Revenue Next Year3.86%
Revenue Next 2Y5.75%
Revenue Next 3Y5.93%
Revenue Next 5Y2.87%
EBIT growth 1Y10.47%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year55.24%
EBIT Next 3Y24.13%
EBIT Next 5YN/A
FCF growth 1Y136.49%
FCF growth 3YN/A
FCF growth 5Y9.97%
OCF growth 1Y9.15%
OCF growth 3Y65.94%
OCF growth 5Y6.45%