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. While 1UAL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
- In the past year 1UAL had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 4.29%, 1UAL is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- 1UAL has a better Return On Equity (24.75%) 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.
- 1UAL had an Average Return On Invested Capital over the past 3 years of 6.63%. This is below the industry average of 9.24%.
- 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
- Looking at the Profit Margin, with a value of 5.71%, 1UAL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- 1UAL's Profit Margin has declined in the last couple of years.
- The Operating Margin of 1UAL (9.32%) is better than 76.92% of its industry peers.
- 1UAL's Operating Margin has declined in the last couple of years.
- 1UAL's Gross Margin of 64.15% is amongst the best of the industry. 1UAL outperforms 84.62% of its industry peers.
- 1UAL's Gross Margin has been stable in the last couple of years.
| 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.
- Compared to 1 year ago, 1UAL has about the same amount of shares outstanding.
- 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.
- 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's Debt to Equity ratio of 1.56 is fine compared to the rest of the industry. 1UAL outperforms 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.
- 1UAL's Current ratio of 0.70 is fine compared to the rest of the industry. 1UAL outperforms 69.23% of its industry peers.
- A Quick Ratio of 0.65 indicates that 1UAL may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.65, 1UAL is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.7 | ||
| Quick Ratio | 0.65 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.95% over the past year.
- 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%.
- Measured over the past years, 1UAL shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
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.
- The Revenue is expected to grow by 2.88% on average over the next years.
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.
- The rest of the industry has a similar Price/Earnings ratio as 1UAL.
- Compared to an average S&P500 Price/Earnings ratio of 27.32, 1UAL is valued rather cheaply.
- The Price/Forward Earnings ratio is 7.31, which indicates a rather cheap valuation of 1UAL.
- 1UAL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1UAL is more expensive than 61.54% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.32. 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 76.92% of the companies in the same industry.
- 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
- 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.