UNITED AIRLINES HOLDINGS INC (1UAL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1UAL - US9100471096 - Common Stock
80.34 EUR
-10.57 (-11.63%)
We assign a fundamental rating of 4 out of 10 to 1UAL. 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year 1UAL was profitable.
- 1UAL had a positive operating cash flow in the past year.
- In multiple years 1UAL reported negative net income over the last 5 years.
- Of the past 5 years 1UAL 4 years had a positive operating cash flow.
1.2 Ratios
- 1UAL's Return On Assets of 4.29% is fine compared to the rest of the industry. 1UAL outperforms 69.23% of its industry peers.
- The Return On Equity of 1UAL (24.75%) is better than 69.23% of its industry peers.
- 1UAL has a Return On Invested Capital of 8.57%. This is in the better half of the industry: 1UAL outperforms 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 9.24%.
- The last Return On Invested Capital (8.57%) for 1UAL 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
- 1UAL has a better Profit Margin (5.71%) than 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 has a Gross Margin of 64.15%. This is amongst the best in 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 1UAL 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
- 1UAL has a better debt/assets ratio than last year.
2.2 Solvency
- 1UAL has a debt to FCF ratio of 6.70. This is a slightly negative value and a sign of low solvency as 1UAL would need 6.70 years to pay back of all of its debts.
- The Debt to FCF ratio of 1UAL (6.70) is better than 61.54% of its industry peers.
- A Debt/Equity ratio of 1.56 is on the high side and indicates that 1UAL has dependencies on debt financing.
- 1UAL has a better Debt to Equity ratio (1.56) than 61.54% of its industry peers.
| 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.
- A Quick Ratio of 0.65 indicates that 1UAL may have some problems paying its short term obligations.
- 1UAL's Quick ratio of 0.65 is in line compared to the rest of the industry. 1UAL outperforms 46.15% of its industry peers.
| 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
- 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 decreasing.
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.
- The rest of the industry has a similar Price/Earnings ratio as 1UAL.
- Compared to an average S&P500 Price/Earnings ratio of 27.30, 1UAL is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 7.31, the valuation of 1UAL can be described as very cheap.
- 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.
- When comparing the Price/Forward Earnings ratio of 1UAL to the average of the S&P500 Index (24.32), we can say 1UAL is valued rather cheaply.
| 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 the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.44 | ||
| EV/EBITDA | 4.24 |
4.3 Compensation for Growth
- 1UAL has a very decent profitability rating, which 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.