AMERICAN AIRLINES GROUP INC (A1G.DE) Stock Fundamental Analysis
FRA:A1G - Deutsche Boerse Ag - US02376R1023 - Common Stock - Currency: EUR
A1G gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 12 industry peers in the Passenger Airlines industry. A1G has a bad profitability rating. Also its financial health evaluation is rather negative. A1G has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year A1G was profitable.
In the past year A1G had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: A1G reported negative net income in multiple years.
A1G 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 1.37%, A1G is doing worse than 75.00% of the companies in the same industry.
A1G has a Return On Invested Capital (6.37%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for A1G is below the industry average of 8.02%.
The last Return On Invested Capital (6.37%) for A1G is above the 3 year average (5.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROIC | 6.37% |
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
A1G has a Profit Margin of 1.56%. This is in the lower half of the industry: A1G underperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of A1G has declined.
The Operating Margin of A1G (6.01%) is comparable to the rest of the industry.
A1G's Operating Margin has declined in the last couple of years.
The Gross Margin of A1G (63.54%) is better than 75.00% of its industry peers.
A1G's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.01% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.54% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so A1G is destroying value.
A1G has more shares outstanding than it did 1 year ago.
A1G has more shares outstanding than it did 5 years ago.
A1G has a better debt/assets ratio than last year.
2.2 Solvency
A1G has an Altman-Z score of 0.74. This is a bad value and indicates that A1G is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of A1G (0.74) is comparable to the rest of the industry.
The Debt to FCF ratio of A1G is 23.44, which is on the high side as it means it would take A1G, 23.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of A1G (23.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.44 | ||
| Altman-Z | 0.74 |
ROIC/WACC1
WACC6.39%
2.3 Liquidity
A Current Ratio of 0.54 indicates that A1G may have some problems paying its short term obligations.
A1G's Current ratio of 0.54 is on the low side compared to the rest of the industry. A1G is outperformed by 91.67% of its industry peers.
A Quick Ratio of 0.43 indicates that A1G may have some problems paying its short term obligations.
The Quick ratio of A1G (0.43) is worse than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 |
3. Growth
3.1 Past
A1G shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.22%.
Measured over the past years, A1G shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.21% on average per year.
Looking at the last year, A1G shows a small growth in Revenue. The Revenue has grown by 2.70% in the last year.
The Revenue has been growing slightly by 3.44% on average over the past years.
EPS 1Y (TTM)-26.22%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-73.53%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
3.2 Future
Based on estimates for the next years, A1G will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.51% on average per year.
Based on estimates for the next years, A1G will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-21.5%
EPS Next 2Y13.54%
EPS Next 3Y14.94%
EPS Next 5Y19.51%
Revenue Next Year3.56%
Revenue Next 2Y4.56%
Revenue Next 3Y4.49%
Revenue Next 5Y3.74%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 5.86, the valuation of A1G can be described as very cheap.
75.00% of the companies in the same industry are more expensive than A1G, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of A1G to the average of the S&P500 Index (28.79), we can say A1G is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.94, the valuation of A1G can be described as very cheap.
Based on the Price/Forward Earnings ratio, A1G is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
A1G is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 3.94 |
4.2 Price Multiples
A1G's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. A1G is more expensive than 91.67% of the companies in the same industry.
A1G's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. A1G is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.91 | ||
| EV/EBITDA | 4.08 |
4.3 Compensation for Growth
A more expensive valuation may be justified as A1G's earnings are expected to grow with 14.94% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y13.54%
EPS Next 3Y14.94%
5. Dividend
5.1 Amount
No dividends for A1G!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:A1G (4/25/2025, 7:00:00 PM)
8.552
+0.26 (+3.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners68.64%
Inst Owner ChangeN/A
Ins Owners1.18%
Ins Owner ChangeN/A
Market Cap5.62B
Analysts76.3
Price Target12.79 (49.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)61.38%
Min EPS beat(2)33.2%
Max EPS beat(2)89.57%
EPS beat(4)3
Avg EPS beat(4)27.48%
Min EPS beat(4)-15.81%
Max EPS beat(4)89.57%
EPS beat(8)6
Avg EPS beat(8)43.57%
EPS beat(12)9
Avg EPS beat(12)31.23%
EPS beat(16)13
Avg EPS beat(16)25.03%
Revenue beat(2)2
Avg Revenue beat(2)0.57%
Min Revenue beat(2)0.17%
Max Revenue beat(2)0.97%
Revenue beat(4)2
Avg Revenue beat(4)-0.32%
Min Revenue beat(4)-1.24%
Max Revenue beat(4)0.97%
Revenue beat(8)3
Avg Revenue beat(8)-0.37%
Revenue beat(12)3
Avg Revenue beat(12)-0.48%
Revenue beat(16)4
Avg Revenue beat(16)-0.49%
PT rev (1m)-38.4%
PT rev (3m)-26.55%
EPS NQ rev (1m)-15.73%
EPS NQ rev (3m)-5648.53%
EPS NY rev (1m)-27.27%
EPS NY rev (3m)-33.19%
Revenue NQ rev (1m)-0.97%
Revenue NQ rev (3m)-3.09%
Revenue NY rev (1m)-2.74%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.86 | ||
| Fwd PE | 3.94 | ||
| P/S | 0.12 | ||
| P/FCF | 4.91 | ||
| P/OCF | 1.6 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.08 |
EPS(TTM)1.46
EY17.07%
EPS(NY)2.17
Fwd EY25.35%
FCF(TTM)1.74
FCFY20.35%
OCF(TTM)5.33
OCFY62.36%
SpS72.59
BVpS-5.33
TBVpS-13.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROCE | 8.69% | ||
| ROIC | 6.37% | ||
| ROICexc | 7.99% | ||
| ROICexgc | 10.06% | ||
| OM | 6.01% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.54% | ||
| FCFM | 2.4% |
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
ROICexcg growth 3YN/A
ROICexcg 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 Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 23.44 | ||
| Debt/EBITDA | 4.57 | ||
| Cap/Depr | 119.51% | ||
| Cap/Sales | 4.95% | ||
| Interest Coverage | 1.68 | ||
| Cash Conversion | 72.41% | ||
| Profit Quality | 153.66% | ||
| Current Ratio | 0.54 | ||
| Quick Ratio | 0.43 | ||
| Altman-Z | 0.74 |
F-Score7
WACC6.39%
ROIC/WACC1
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)-26.22%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%-73.53%
EPS Next Y-21.5%
EPS Next 2Y13.54%
EPS Next 3Y14.94%
EPS Next 5Y19.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%-0.15%
Revenue Next Year3.56%
Revenue Next 2Y4.56%
Revenue Next 3Y4.49%
Revenue Next 5Y3.74%
EBIT growth 1Y-18.86%
EBIT growth 3YN/A
EBIT growth 5Y-2.55%
EBIT Next Year69.46%
EBIT Next 3Y28.47%
EBIT Next 5Y29.4%
FCF growth 1Y7.71%
FCF growth 3Y64.51%
FCF growth 5YN/A
OCF growth 1Y4.73%
OCF growth 3Y78.19%
OCF growth 5Y0.87%