UNITED AIRLINES HOLDINGS INC (1UAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1UAL - US9100471096 - Common Stock
80.34 EUR
-10.57 (-11.63%)
Taking everything into account, 1UAL scores 4 out of 10 in our fundamental rating. 1UAL was compared to 14 industry peers in the Passenger Airlines industry. 1UAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 1UAL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- 1UAL had positive earnings in the past year.
- 1UAL had a positive operating cash flow in the past year.
- In multiple years 1UAL reported negative net income over the last 5 years.
- 1UAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of 1UAL (4.29%) is better than 69.23% of its industry peers.
- With a decent Return On Equity value of 24.75%, 1UAL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- The Return On Invested Capital of 1UAL (8.57%) is better than 76.92% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1UAL is below the industry average of 9.17%.
- The 3 year average ROIC (6.63%) for 1UAL is below the current ROIC(8.57%), indicating increased profibility in the last year.
| 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
- 1UAL's Profit Margin of 5.71% is fine compared to the rest of the industry. 1UAL outperforms 76.92% of its industry peers.
- 1UAL's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 9.32%, 1UAL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- In the last couple of years the Operating Margin of 1UAL has declined.
- 1UAL's Gross Margin of 64.15% is amongst the best of the industry. 1UAL outperforms 84.62% of its industry peers.
- In the last couple of years the Gross Margin of 1UAL has remained more or less at the same level.
| 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
- 1UAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- 1UAL has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1UAL has more shares outstanding
- Compared to 1 year ago, 1UAL has an improved debt to assets ratio.
2.2 Solvency
- The Debt to FCF ratio of 1UAL is 6.70, which is on the high side as it means it would take 1UAL, 6.70 years of fcf income to pay off all of its debts.
- 1UAL's Debt to FCF ratio of 6.70 is fine compared to the rest of the industry. 1UAL outperforms 61.54% of its industry peers.
- 1UAL has a Debt/Equity ratio of 1.56. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 1.56, 1UAL is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.56 | ||
| Debt/FCF | 6.7 | ||
| Altman-Z | N/A |
ROIC/WACC1
WACC8.58%
2.3 Liquidity
- 1UAL has a Current Ratio of 0.70. This is a bad value and indicates that 1UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a decent Current ratio value of 0.70, 1UAL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 1UAL has a Quick Ratio of 0.70. This is a bad value and indicates that 1UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of 1UAL (0.65) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- 1UAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.95%, which is quite good.
- The Earnings Per Share has been decreasing by -2.65% on average over the past years.
- 1UAL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.23%.
- 1UAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.70% yearly.
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
- The Earnings Per Share is expected to decrease by -0.61% on average over the next years.
- 1UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.88% yearly.
EPS Next Y-2.09%
EPS Next 2Y9.64%
EPS Next 3Y11.39%
EPS Next 5Y-0.61%
Revenue Next Year4.1%
Revenue Next 2Y5.87%
Revenue Next 3Y6.01%
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
- With a Price/Earnings ratio of 8.17, the valuation of 1UAL can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of 1UAL is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of 1UAL to the average of the S&P500 Index (28.87), we can say 1UAL is valued rather cheaply.
- A Price/Forward Earnings ratio of 7.31 indicates a rather cheap valuation of 1UAL.
- Based on the Price/Forward Earnings ratio, 1UAL is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 25.96. 1UAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.17 | ||
| Fwd PE | 7.31 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1UAL is valued a bit more expensive than the industry average as 76.92% of the companies are valued more cheaply.
- Based on the Price/Free Cash Flow ratio, 1UAL is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 4.24 |
4.3 Compensation for Growth
- The decent profitability rating of 1UAL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.64%
EPS Next 3Y11.39%
5. Dividend
5.1 Amount
- 1UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITED AIRLINES HOLDINGS INC / 1UAL.MI FAQ
Can you provide the ChartMill fundamental rating for UNITED AIRLINES HOLDINGS INC?
ChartMill assigns a fundamental rating of 4 / 10 to 1UAL.MI.
What is the valuation status for 1UAL stock?
ChartMill assigns a valuation rating of 4 / 10 to UNITED AIRLINES HOLDINGS INC (1UAL.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for UNITED AIRLINES HOLDINGS INC?
UNITED AIRLINES HOLDINGS INC (1UAL.MI) has a profitability rating of 6 / 10.
Can you provide the expected EPS growth for 1UAL stock?
The Earnings per Share (EPS) of UNITED AIRLINES HOLDINGS INC (1UAL.MI) is expected to decline by -2.09% in the next year.