UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
USA - NASDAQ:UAL - US9100471096 - Common Stock
106.58 USD
-2.78 (-2.54%)
106.55 USD
-0.03 (-0.03%)
Overall UAL gets a fundamental rating of 4 out of 10. We evaluated UAL against 21 industry peers in the Passenger Airlines industry. UAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. UAL is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year UAL was profitable.
UAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: UAL reported negative net income in multiple years.
Of the past 5 years UAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UAL (4.29%) is better than 76.19% of its industry peers.
Looking at the Return On Equity, with a value of 24.75%, UAL belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
UAL has a Return On Invested Capital of 8.57%. This is in the better half of the industry: UAL outperforms 76.19% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UAL is significantly below the industry average of 14.49%.
The last Return On Invested Capital (8.57%) for UAL is above the 3 year average (6.63%), which is a sign of increasing profitability.
| 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
UAL's Profit Margin of 5.71% is fine compared to the rest of the industry. UAL outperforms 76.19% of its industry peers.
UAL's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 9.32%, UAL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of UAL has declined.
UAL's Gross Margin of 64.15% is fine compared to the rest of the industry. UAL outperforms 71.43% of its industry peers.
UAL's Gross Margin has been stable in the last couple of years.
| 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) below the Cost of Capital (WACC), UAL is destroying value.
UAL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for UAL has been increased compared to 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.
The Debt to FCF ratio of UAL (6.70) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 1.56 is on the high side and indicates that UAL has dependencies on debt financing.
UAL has a Debt to Equity ratio (1.56) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC9.09%
2.3 Liquidity
A Current Ratio of 0.70 indicates that UAL may have some problems paying its short term obligations.
UAL's Current ratio of 0.70 is fine compared to the rest of the industry. UAL outperforms 71.43% of its industry peers.
A Quick Ratio of 0.65 indicates that UAL may have some problems paying its short term obligations.
UAL has a better Quick ratio (0.65) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
UAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.95%, which is quite good.
The Earnings Per Share has been decreasing by -2.65% on average over the past years.
The Revenue has been growing slightly by 4.23% in the past year.
Measured over the past years, UAL shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
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
The Earnings Per Share is expected to decrease by -0.61% on average over the next years.
Based on estimates for the next years, UAL will show a small growth in Revenue. The Revenue will grow by 2.88% on average per year.
EPS Next Y-2.17%
EPS Next 2Y9.18%
EPS Next 3Y10.81%
EPS Next 5Y-0.61%
Revenue Next Year4.03%
Revenue Next 2Y5.79%
Revenue Next 3Y5.92%
Revenue Next 5Y2.88%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.37, the valuation of UAL can be described as very reasonable.
90.48% 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 27.30, UAL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.45, the valuation of UAL can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UAL indicates a rather cheap valuation: UAL is cheaper than 80.95% of the companies listed in the same industry.
UAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.45 |
4.2 Price Multiples
UAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. UAL is cheaper than 71.43% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UAL is valued cheaply inside the industry as 80.95% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.53 | ||
| EV/EBITDA | 4.87 |
4.3 Compensation for Growth
UAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.18%
EPS Next 3Y10.81%
5. Dividend
5.1 Amount
UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
106.58
-2.78 (-2.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners89.4%
Inst Owner Change-2.23%
Ins Owners0.56%
Ins Owner Change-0.31%
Market Cap34.50B
Analysts82.22
Price Target111.14 (4.28%)
Short Float %4.26%
Short Ratio2.13
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)10.35%
PT rev (3m)14.91%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)-34.02%
EPS NY rev (1m)2.18%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-5.07%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.45 | ||
| P/S | 0.6 | ||
| P/FCF | 8.53 | ||
| P/OCF | 3.58 | ||
| P/B | 2.58 | ||
| P/tB | 5.59 | ||
| EV/EBITDA | 4.87 |
EPS(TTM)11.37
EY10.67%
EPS(NY)12.61
Fwd EY11.83%
FCF(TTM)12.49
FCFY11.72%
OCF(TTM)29.81
OCFY27.97%
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
WACC9.09%
ROIC/WACC0.94
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-2.17%
EPS Next 2Y9.18%
EPS Next 3Y10.81%
EPS Next 5Y-0.61%
Revenue 1Y (TTM)4.23%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%1.67%
Revenue Next Year4.03%
Revenue Next 2Y5.79%
Revenue Next 3Y5.92%
Revenue Next 5Y2.88%
EBIT growth 1Y10.47%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year55.04%
EBIT Next 3Y23.51%
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%