UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - Nasdaq - US9100471096 - Common Stock - Currency: USD
Overall UAL gets a fundamental rating of 4 out of 10. We evaluated UAL against 22 industry peers in the Passenger Airlines industry. While UAL is still in line with the averages on profitability rating, there are concerns on its financial health. UAL has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year UAL was profitable.
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 better Return On Assets (4.81%) than 86.36% of its industry peers.
Looking at the Return On Equity, with a value of 29.01%, UAL belongs to the top of the industry, outperforming 95.45% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.50%, UAL is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for UAL is in line with the industry average of 8.55%.
The last Return On Invested Capital (8.50%) for UAL is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 29.01% | ||
| ROIC | 8.5% |
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
Looking at the Profit Margin, with a value of 6.34%, UAL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of UAL has declined.
The Operating Margin of UAL (9.69%) is better than 72.73% of its industry peers.
In the last couple of years the Operating Margin of UAL has declined.
UAL has a better Gross Margin (63.95%) 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 | 9.69% | ||
| PM (TTM) | 6.34% | ||
| GM | 63.95% |
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
UAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 5.73, which is a neutral value as it means it would take UAL, 5.73 years of fcf income to pay off all of its debts.
UAL's Debt to FCF ratio of 5.73 is fine compared to the rest of the industry. UAL outperforms 77.27% of its industry peers.
UAL has a Debt/Equity ratio of 1.93. This is a high value indicating a heavy dependency on external financing.
UAL has a Debt to Equity ratio (1.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC9.02%
2.3 Liquidity
UAL has a Current Ratio of 0.78. This is a bad value and indicates that UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of UAL (0.78) is better than 68.18% of its industry peers.
A Quick Ratio of 0.72 indicates that UAL may have some problems paying its short term obligations.
UAL's Quick ratio of 0.72 is fine compared to the rest of the industry. UAL outperforms 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
UAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.54%, 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 5.31% in the past year.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)10.54%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%706.67%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to decrease by -0.61% on average over the next years.
The Revenue is expected to grow by 2.87% on average over the next years.
EPS Next Y-2.78%
EPS Next 2Y8.63%
EPS Next 3Y10.62%
EPS Next 5Y-0.61%
Revenue Next Year3.55%
Revenue Next 2Y5.47%
Revenue Next 3Y5.72%
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
Based on the Price/Earnings ratio of 7.53, the valuation of UAL can be described as very cheap.
UAL's Price/Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 90.91% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. UAL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.02 indicates a rather cheap valuation of UAL.
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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UAL is valued cheaply inside the industry as 86.36% 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 | 5.93 | ||
| EV/EBITDA | 4.26 |
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 2Y8.63%
EPS Next 3Y10.62%
5. Dividend
5.1 Amount
UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
87.69
-3.98 (-4.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change0%
Ins Owners0.55%
Ins Owner Change2.58%
Market Cap28.64B
Analysts82.96
Price Target97.2 (10.85%)
Short Float %4.68%
Short Ratio2.06
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)13.3%
Min EPS beat(2)7.59%
Max EPS beat(2)19.01%
EPS beat(4)4
Avg EPS beat(4)8.72%
Min EPS beat(4)4.11%
Max EPS beat(4)19.01%
EPS beat(8)8
Avg EPS beat(8)19.73%
EPS beat(12)11
Avg EPS beat(12)15.3%
EPS beat(16)15
Avg EPS beat(16)15.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.71%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.41%
Revenue beat(12)4
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)-0.28%
PT rev (1m)5.21%
PT rev (3m)-25.16%
EPS NQ rev (1m)-0.14%
EPS NQ rev (3m)-21.11%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-20.25%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-4.39%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.53 | ||
| Fwd PE | 7.02 | ||
| P/S | 0.5 | ||
| P/FCF | 5.93 | ||
| P/OCF | 2.78 | ||
| P/B | 2.27 | ||
| P/tB | 5.29 | ||
| EV/EBITDA | 4.26 |
EPS(TTM)11.64
EY13.27%
EPS(NY)12.48
Fwd EY14.24%
FCF(TTM)14.78
FCFY16.85%
OCF(TTM)31.56
OCFY35.99%
SpS176.78
BVpS38.63
TBVpS16.57
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 29.01% | ||
| ROCE | 11.12% | ||
| ROIC | 8.5% | ||
| ROICexc | 12.22% | ||
| ROICexgc | 15.39% | ||
| OM | 9.69% | ||
| PM (TTM) | 6.34% | ||
| GM | 63.95% | ||
| FCFM | 8.36% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 187.23% | ||
| Cap/Sales | 9.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.94% | ||
| Profit Quality | 131.86% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | N/A |
F-Score7
WACC9.02%
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)10.54%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%706.67%
EPS Next Y-2.78%
EPS Next 2Y8.63%
EPS Next 3Y10.62%
EPS Next 5Y-0.61%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%5.38%
Revenue Next Year3.55%
Revenue Next 2Y5.47%
Revenue Next 3Y5.72%
Revenue Next 5Y2.87%
EBIT growth 1Y5.55%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year55.24%
EBIT Next 3Y24.13%
EBIT Next 5YN/A
FCF growth 1Y227.85%
FCF growth 3YN/A
FCF growth 5Y9.97%
OCF growth 1Y33.32%
OCF growth 3Y65.94%
OCF growth 5Y6.45%