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. 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.
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.
UAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.81%, UAL belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
The Return On Equity of UAL (29.01%) is better than 95.45% of its industry peers.
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.
UAL had an Average Return On Invested Capital over the past 3 years of 6.63%. This 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
With an excellent Profit Margin value of 6.34%, UAL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
UAL's Profit Margin has declined in the last couple of years.
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 Gross Margin of 63.95%. This is in the better half of the industry: UAL outperforms 72.73% of its industry peers.
UAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| 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.
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.
Compared to 1 year ago, UAL has an improved debt to assets ratio.
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 has a Debt to FCF ratio of 5.73. This is in the better half of the industry: UAL outperforms 77.27% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that UAL has dependencies on debt financing.
UAL's Debt to Equity ratio of 1.93 is in line compared to the rest of the industry. UAL outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC8.71%
2.3 Liquidity
A Current Ratio of 0.78 indicates that UAL may have some problems paying its short term obligations.
The Current ratio of UAL (0.78) is better than 68.18% of its industry peers.
UAL has a Quick 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.
With a decent Quick ratio value of 0.72, UAL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.54% 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.
UAL shows a small growth in Revenue. In the last year, the Revenue has grown by 5.31%.
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
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 2.87% yearly.
EPS Next Y-2.42%
EPS Next 2Y8.41%
EPS Next 3Y10.17%
EPS Next 5Y-0.61%
Revenue Next Year3.49%
Revenue Next 2Y5.42%
Revenue Next 3Y5.68%
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.
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
UAL is valuated cheaply with a Price/Earnings ratio of 6.74.
95.45% of the companies in the same industry are more expensive than UAL, based on the Price/Earnings ratio.
UAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.32.
Based on the Price/Forward Earnings ratio of 6.31, 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.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, UAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
90.91% of the companies in the same industry are more expensive than UAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UAL is valued cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.31 | ||
| EV/EBITDA | 3.58 |
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 2Y8.41%
EPS Next 3Y10.17%
5. Dividend
5.1 Amount
No dividends for UAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:UAL (6/16/2025, 3:08:04 PM)
78.425
+4.42 (+5.98%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners88.93%
Inst Owner Change0.74%
Ins Owners0.55%
Ins Owner Change2.58%
Market Cap25.61B
Analysts82.96
Price Target96.13 (22.58%)
Short Float %4.53%
Short Ratio1.54
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)4.05%
PT rev (3m)-30.15%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)-22.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-23.26%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-5.23%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-4.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 6.31 | ||
| P/S | 0.44 | ||
| P/FCF | 5.31 | ||
| P/OCF | 2.48 | ||
| P/B | 2.03 | ||
| P/tB | 4.73 | ||
| EV/EBITDA | 3.58 |
EPS(TTM)11.64
EY14.84%
EPS(NY)12.44
Fwd EY15.86%
FCF(TTM)14.78
FCFY18.84%
OCF(TTM)31.56
OCFY40.24%
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
WACC8.71%
ROIC/WACC0.98
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-2.42%
EPS Next 2Y8.41%
EPS Next 3Y10.17%
EPS Next 5Y-0.61%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%5.38%
Revenue Next Year3.49%
Revenue Next 2Y5.42%
Revenue Next 3Y5.68%
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%