AMERICAN AIRLINES GROUP INC (1AAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1AAL - US02376R1023 - Common Stock
12.772 EUR
+1.21 (+10.45%)
Taking everything into account, 1AAL scores 2 out of 10 in our fundamental rating. 1AAL was compared to 13 industry peers in the Passenger Airlines industry. Both the profitability and financial health of 1AAL have multiple concerns. 1AAL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1AAL was profitable.
1AAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1AAL reported negative net income in multiple years.
1AAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.97%, 1AAL is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
1AAL has a worse Return On Invested Capital (4.48%) than 78.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1AAL is below the industry average of 9.36%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | N/A | ||
| ROIC | 4.48% |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.54%
ROIC(5y)N/A
1.3 Margins
1AAL has a worse Profit Margin (1.11%) than 85.71% of its industry peers.
1AAL's Profit Margin has declined in the last couple of years.
1AAL has a worse Operating Margin (4.22%) than 64.29% of its industry peers.
1AAL's Operating Margin has declined in the last couple of years.
1AAL has a better Gross Margin (65.01%) than 85.71% of its industry peers.
1AAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.22% | ||
| PM (TTM) | 1.11% | ||
| GM | 65.01% |
OM growth 3YN/A
OM growth 5Y-5.79%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.63%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1AAL is destroying value.
1AAL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1AAL has more shares outstanding
1AAL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.71, we must say that 1AAL is in the distress zone and has some risk of bankruptcy.
1AAL has a worse Altman-Z score (0.71) than 64.29% of its industry peers.
1AAL has a debt to FCF ratio of 32.56. This is a negative value and a sign of low solvency as 1AAL would need 32.56 years to pay back of all of its debts.
1AAL has a Debt to FCF ratio of 32.56. This is in the lower half of the industry: 1AAL underperforms 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Altman-Z | 0.71 |
ROIC/WACC0.66
WACC6.84%
2.3 Liquidity
1AAL has a Current Ratio of 0.54. This is a bad value and indicates that 1AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.54, 1AAL is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
A Quick Ratio of 0.42 indicates that 1AAL may have some problems paying its short term obligations.
1AAL has a worse Quick ratio (0.42) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 |
3. Growth
3.1 Past
1AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.64%.
The earnings per share for 1AAL have been decreasing by -17.21% on average. This is quite bad
Looking at the last year, 1AAL shows a small growth in Revenue. The Revenue has grown by 1.27% in the last year.
1AAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.44% yearly.
EPS 1Y (TTM)-21.64%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-156.67%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.32%
3.2 Future
1AAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.02% yearly.
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y-61.03%
EPS Next 2Y-1.91%
EPS Next 3Y9.43%
EPS Next 5Y17.02%
Revenue Next Year1.75%
Revenue Next 2Y3.99%
Revenue Next 3Y4.28%
Revenue Next 5Y3.2%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.19 indicates a correct valuation of 1AAL.
Compared to the rest of the industry, the Price/Earnings ratio of 1AAL indicates a slightly more expensive valuation: 1AAL is more expensive than 78.57% of the companies listed in the same industry.
1AAL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.14, the valuation of 1AAL can be described as reasonable.
1AAL's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, 1AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 8.14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1AAL is valued a bit more expensive than 64.29% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1AAL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.19 | ||
| EV/EBITDA | 5.38 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.91%
EPS Next 3Y9.43%
5. Dividend
5.1 Amount
1AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BIT:1AAL (12/8/2025, 7:00:00 PM)
12.772
+1.21 (+10.45%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners70.27%
Inst Owner ChangeN/A
Ins Owners1.38%
Ins Owner ChangeN/A
Market Cap8.43B
Revenue(TTM)54.29B
Net Income(TTM)602.00M
Analysts71.85
Price Target13.22 (3.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.97%
Min EPS beat(2)20.33%
Max EPS beat(2)39.61%
EPS beat(4)4
Avg EPS beat(4)25.7%
Min EPS beat(4)9.67%
Max EPS beat(4)39.61%
EPS beat(8)7
Avg EPS beat(8)44.85%
EPS beat(12)10
Avg EPS beat(12)34.95%
EPS beat(16)13
Avg EPS beat(16)28.07%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)-0.33%
Revenue beat(4)1
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.41%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.52%
Revenue beat(12)3
Avg Revenue beat(12)-0.53%
Revenue beat(16)3
Avg Revenue beat(16)-0.53%
PT rev (1m)-1.23%
PT rev (3m)13.2%
EPS NQ rev (1m)-29.8%
EPS NQ rev (3m)29.14%
EPS NY rev (1m)-5.59%
EPS NY rev (3m)65.49%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)0.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.19 | ||
| Fwd PE | 8.14 | ||
| P/S | 0.18 | ||
| P/FCF | 11.19 | ||
| P/OCF | 2.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.38 |
EPS(TTM)0.9
EY7.05%
EPS(NY)1.57
Fwd EY12.29%
FCF(TTM)1.14
FCFY8.93%
OCF(TTM)4.88
OCFY38.19%
SpS70.23
BVpS-5.12
TBVpS-13.05
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.97% | ||
| ROE | N/A | ||
| ROCE | 6.11% | ||
| ROIC | 4.48% | ||
| ROICexc | 5.6% | ||
| ROICexgc | 7.04% | ||
| OM | 4.22% | ||
| PM (TTM) | 1.11% | ||
| GM | 65.01% | ||
| FCFM | 1.62% |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.54%
ROIC(5y)N/A
ROICexc(3y)6.89%
ROICexc(5y)N/A
ROICexgc(3y)8.52%
ROICexgc(5y)N/A
ROCE(3y)7.55%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.25%
ROICexc growth 3YN/A
ROICexc growth 5Y2.18%
OM growth 3YN/A
OM growth 5Y-5.79%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.63%
GM growth 5Y0.67%
F-Score7
Asset Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 32.56 | ||
| Debt/EBITDA | 5.54 | ||
| Cap/Depr | 128.69% | ||
| Cap/Sales | 5.32% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 83.12% | ||
| Profit Quality | 146.51% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.42 | ||
| Altman-Z | 0.71 |
F-Score7
WACC6.84%
ROIC/WACC0.66
Cap/Depr(3y)120.38%
Cap/Depr(5y)92.28%
Cap/Sales(3y)5.27%
Cap/Sales(5y)5.69%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-21.64%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-156.67%
EPS Next Y-61.03%
EPS Next 2Y-1.91%
EPS Next 3Y9.43%
EPS Next 5Y17.02%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%0.32%
Revenue Next Year1.75%
Revenue Next 2Y3.99%
Revenue Next 3Y4.28%
Revenue Next 5Y3.2%
EBIT growth 1Y-17.23%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year31.28%
EBIT Next 3Y24.15%
EBIT Next 5Y27.46%
FCF growth 1Y-64.31%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y-24.52%
OCF growth 3Y78.19%
OCF growth 5Y0.87%
AMERICAN AIRLINES GROUP INC / 1AAL.MI FAQ
What is the ChartMill fundamental rating of AMERICAN AIRLINES GROUP INC (1AAL.MI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to 1AAL.MI.
What is the valuation status for 1AAL stock?
ChartMill assigns a valuation rating of 3 / 10 to AMERICAN AIRLINES GROUP INC (1AAL.MI). This can be considered as Overvalued.
What is the profitability of 1AAL stock?
AMERICAN AIRLINES GROUP INC (1AAL.MI) has a profitability rating of 2 / 10.
What is the valuation of AMERICAN AIRLINES GROUP INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for AMERICAN AIRLINES GROUP INC (1AAL.MI) is 14.19 and the Price/Book (PB) ratio is -2.49.
Can you provide the dividend sustainability for 1AAL stock?
The dividend rating of AMERICAN AIRLINES GROUP INC (1AAL.MI) is 0 / 10 and the dividend payout ratio is 0%.