UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - US9100471096 - Common Stock
97.185 USD
-2.66 (-2.66%)
97.55 USD
+0.36 (+0.38%)
We assign a fundamental rating of 4 out of 10 to UAL. UAL was compared to 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 is valued quite cheap, but it does not seem to be growing.
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.
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 77.27% of its industry peers.
UAL's Return On Equity of 24.75% is amongst the best of the industry. UAL outperforms 81.82% of its industry peers.
UAL's Return On Invested Capital of 8.57% is fine compared to the rest of the industry. UAL outperforms 77.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UAL is below the industry average of 9.61%.
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
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.
Looking at the Operating Margin, with a value of 9.32%, UAL is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
UAL's Operating Margin has declined in the last couple of years.
The Gross Margin of UAL (64.15%) is better than 72.73% 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.
UAL has a better debt/assets ratio than last year.
2.2 Solvency
UAL has a debt to FCF ratio of 6.70. This is a slightly negative value and a sign of low solvency as UAL would need 6.70 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.70, UAL is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
UAL has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
UAL's Debt to Equity ratio of 1.56 is in line compared to the rest of the industry. UAL outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | N/A |
ROIC/WACC0.95
WACC8.99%
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 68.18% 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 has a Quick ratio of 0.65. This is in the better half 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
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.
Measured over the past years, UAL shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.65% on average per year.
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
UAL is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.61% yearly.
The Revenue is expected to grow by 2.88% on average over the next years.
EPS Next Y-4.26%
EPS Next 2Y7.77%
EPS Next 3Y10.04%
EPS Next 5Y-0.61%
Revenue Next Year3.99%
Revenue Next 2Y5.77%
Revenue Next 3Y5.87%
Revenue Next 5Y2.88%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.55, the valuation of UAL can be described as reasonable.
Based on the Price/Earnings ratio, UAL is valued cheaper than 90.91% of the companies in the same industry.
UAL is valuated cheaply when we compare the Price/Earnings ratio to 26.76, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 7.91, the valuation of UAL can be described as very cheap.
77.27% of the companies in the same industry are more expensive than UAL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of UAL to the average of the S&P500 Index (34.91), we can say UAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of UAL indicates a somewhat cheap valuation: UAL is cheaper than 77.27% of the companies listed in the same industry.
81.82% of the companies in the same industry are more expensive than UAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 4.4 |
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
No dividends for UAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.185
-2.66 (-2.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners89.4%
Inst Owner Change-2.21%
Ins Owners0.56%
Ins Owner Change0.8%
Market Cap31.46B
Analysts82.86
Price Target109.96 (13.15%)
Short Float %4.16%
Short Ratio1.88
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)9.85%
PT rev (3m)19.02%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-34.52%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.88%
Revenue NQ rev (1m)0.37%
Revenue NQ rev (3m)-5.11%
Revenue NY rev (1m)0.13%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.55 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.54 | ||
| P/FCF | 7.78 | ||
| P/OCF | 3.26 | ||
| P/B | 2.35 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 4.4 |
EPS(TTM)11.37
EY11.7%
EPS(NY)12.29
Fwd EY12.65%
FCF(TTM)12.49
FCFY12.85%
OCF(TTM)29.81
OCFY30.67%
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
WACC8.99%
ROIC/WACC0.95
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 Year3.99%
Revenue Next 2Y5.77%
Revenue Next 3Y5.87%
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%