UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
USA - NASDAQ:UAL - US9100471096 - Common Stock
99.31 USD
+3.63 (+3.79%)
99.15 USD
-0.16 (-0.16%)
Taking everything into account, UAL scores 4 out of 10 in our fundamental rating. UAL was compared to 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
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
With a decent Return On Assets value of 4.32%, UAL is doing good in the industry, outperforming 76.19% of the companies in the same industry.
The Return On Equity of UAL (23.02%) is better than 80.95% of its industry peers.
UAL has a better Return On Invested Capital (8.02%) than 71.43% of its industry peers.
UAL had an Average Return On Invested Capital over the past 3 years of 6.63%. This is significantly below the industry average of 14.46%.
The 3 year average ROIC (6.63%) for UAL is below the current ROIC(8.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 23.02% | ||
| ROIC | 8.02% |
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
With a decent Profit Margin value of 5.64%, UAL is doing good in the industry, outperforming 76.19% of the companies in the same industry.
In the last couple of years the Profit Margin of UAL has declined.
With a decent Operating Margin value of 8.85%, UAL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
UAL's Operating Margin has declined in the last couple of years.
UAL has a Gross Margin of 64.08%. This is in the better half 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 | 8.85% | ||
| PM (TTM) | 5.64% | ||
| GM | 64.08% |
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.
Compared to 5 years ago, UAL has more shares outstanding
Compared to 1 year ago, UAL has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of UAL is 6.85, which is on the high side as it means it would take UAL, 6.85 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.85, UAL is in the better half of the industry, outperforming 76.19% of the companies in the same industry.
UAL has a Debt/Equity ratio of 1.45. This is a high value indicating a heavy dependency on external financing.
UAL's Debt to Equity ratio of 1.45 is in line compared to the rest of the industry. UAL outperforms 57.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.45 | ||
| Debt/FCF | 6.85 | ||
| Altman-Z | N/A |
ROIC/WACC0.94
WACC8.58%
2.3 Liquidity
UAL has a Current Ratio of 0.67. 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 better Current ratio (0.67) than 66.67% of its industry peers.
A Quick Ratio of 0.61 indicates that UAL may have some problems paying its short term obligations.
UAL has a better Quick ratio (0.61) than 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 |
3. Growth
3.1 Past
UAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.09%, which is quite good.
The Earnings Per Share has been decreasing by -2.65% on average over the past years.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 4.24% in the last 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)16.09%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%-16.52%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%2.57%
3.2 Future
Based on estimates for the next years, UAL will show a decrease in Earnings Per Share. The EPS will decrease by -0.61% on average per year.
UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y3.1%
EPS Next 2Y11.18%
EPS Next 3Y11.75%
EPS Next 5Y-0.61%
Revenue Next Year4.32%
Revenue Next 2Y6.01%
Revenue Next 3Y6.07%
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.
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
The Price/Earnings ratio is 9.18, which indicates a very decent valuation of UAL.
UAL's Price/Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Earnings ratio of UAL to the average of the S&P500 Index (26.91), we can say UAL is valued rather cheaply.
UAL is valuated cheaply with a Price/Forward Earnings ratio of 7.59.
85.71% of the companies in the same industry are more expensive than UAL, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.92, UAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 7.59 |
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 76.19% of the companies listed in the same industry.
UAL's Price/Free Cash Flow ratio is rather cheap when compared to the industry. UAL is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.66 | ||
| EV/EBITDA | 4.51 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.97
PEG (5Y)N/A
EPS Next 2Y11.18%
EPS Next 3Y11.75%
5. Dividend
5.1 Amount
UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.31
+3.63 (+3.79%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners87.79%
Inst Owner Change-0.5%
Ins Owners0.55%
Ins Owner Change-0.07%
Market Cap32.15B
Revenue(TTM)58.37B
Net Income(TTM)3.29B
Analysts82.22
Price Target112.1 (12.88%)
Short Float %4.61%
Short Ratio2.82
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)2.55%
Min EPS beat(2)0.48%
Max EPS beat(2)4.61%
EPS beat(4)4
Avg EPS beat(4)7.92%
Min EPS beat(4)0.48%
Max EPS beat(4)19.01%
EPS beat(8)8
Avg EPS beat(8)16.41%
EPS beat(12)12
Avg EPS beat(12)16.16%
EPS beat(16)15
Avg EPS beat(16)13.37%
Revenue beat(2)0
Avg Revenue beat(2)-1.71%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-1.67%
Revenue beat(4)1
Avg Revenue beat(4)-1.05%
Min Revenue beat(4)-1.76%
Max Revenue beat(4)0.55%
Revenue beat(8)1
Avg Revenue beat(8)-0.86%
Revenue beat(12)3
Avg Revenue beat(12)-0.6%
Revenue beat(16)5
Avg Revenue beat(16)-0.58%
PT rev (1m)0.87%
PT rev (3m)11.99%
EPS NQ rev (1m)1.67%
EPS NQ rev (3m)12.66%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)0.44%
Revenue NQ rev (3m)1.53%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.18 | ||
| Fwd PE | 7.59 | ||
| P/S | 0.55 | ||
| P/FCF | 8.66 | ||
| P/OCF | 3.43 | ||
| P/B | 2.25 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 4.51 |
EPS(TTM)10.82
EY10.9%
EPS(NY)13.08
Fwd EY13.17%
FCF(TTM)11.46
FCFY11.54%
OCF(TTM)28.94
OCFY29.14%
SpS180.3
BVpS44.2
TBVpS21.99
PEG (NY)2.97
PEG (5Y)N/A
Graham Number103.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.32% | ||
| ROE | 23.02% | ||
| ROCE | 10.5% | ||
| ROIC | 8.02% | ||
| ROICexc | 11% | ||
| ROICexgc | 13.76% | ||
| OM | 8.85% | ||
| PM (TTM) | 5.64% | ||
| GM | 64.08% | ||
| FCFM | 6.36% |
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
ROICexgc growth 3YN/A
ROICexgc 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 | 1.45 | ||
| Debt/FCF | 6.85 | ||
| Debt/EBITDA | 2.57 | ||
| Cap/Depr | 193.27% | ||
| Cap/Sales | 9.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.79% | ||
| Profit Quality | 112.66% | ||
| Current Ratio | 0.67 | ||
| Quick Ratio | 0.61 | ||
| Altman-Z | N/A |
F-Score7
WACC8.58%
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)16.09%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%-16.52%
EPS Next Y3.1%
EPS Next 2Y11.18%
EPS Next 3Y11.75%
EPS Next 5Y-0.61%
Revenue 1Y (TTM)4.24%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%2.57%
Revenue Next Year4.32%
Revenue Next 2Y6.01%
Revenue Next 3Y6.07%
Revenue Next 5Y2.88%
EBIT growth 1Y10.29%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year55.18%
EBIT Next 3Y23.65%
EBIT Next 5YN/A
FCF growth 1Y177.98%
FCF growth 3YN/A
FCF growth 5Y9.97%
OCF growth 1Y4.35%
OCF growth 3Y65.94%
OCF growth 5Y6.45%
UNITED AIRLINES HOLDINGS INC / UAL FAQ
Can you provide the ChartMill fundamental rating for UNITED AIRLINES HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to UAL.
Can you provide the valuation status for UNITED AIRLINES HOLDINGS INC?
ChartMill assigns a valuation rating of 7 / 10 to UNITED AIRLINES HOLDINGS INC (UAL). This can be considered as Undervalued.
What is the profitability of UAL stock?
UNITED AIRLINES HOLDINGS INC (UAL) has a profitability rating of 6 / 10.
What is the expected EPS growth for UNITED AIRLINES HOLDINGS INC (UAL) stock?
The Earnings per Share (EPS) of UNITED AIRLINES HOLDINGS INC (UAL) is expected to grow by 3.1% in the next year.