AMERICAN AIRLINES GROUP INC (AAL)
US02376R1023 - Common Stock
Taking everything into account, AAL scores 3 out of 10 in our fundamental rating. AAL was compared to 23 industry peers in the Passenger Airlines industry. There are concerns on the financial health of AAL while its profitability can be described as average. AAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AAL was profitable.
In multiple years AAL reported negative net income over the last 5 years.
AAL 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 0.43%, AAL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
AAL's Return On Invested Capital of 5.16% is fine compared to the rest of the industry. AAL outperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | N/A | ||
| ROIC | 5.16% |
ROA(3y)-0.5%
ROA(5y)-2.6%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 0.51%, AAL is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
AAL's Profit Margin has declined in the last couple of years.
AAL has a Operating Margin (5.16%) which is in line with its industry peers.
AAL's Operating Margin has been stable in the last couple of years.
AAL has a Gross Margin of 62.15%. This is in the better half of the industry: AAL outperforms 73.91% of its industry peers.
AAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.16% | ||
| PM (TTM) | 0.51% | ||
| GM | 62.15% |
OM growth 3YN/A
OM growth 5Y-0.37%
PM growth 3YN/A
PM growth 5Y-13.25%
GM growth 3Y12.53%
GM growth 5Y0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAL is destroying value.
The number of shares outstanding for AAL has been increased compared to 1 year ago.
AAL has more shares outstanding than it did 5 years ago.
AAL has a better debt/assets ratio than last year.
2.2 Solvency
AAL has an Altman-Z score of 0.71. This is a bad value and indicates that AAL is not financially healthy and even has some risk of bankruptcy.
AAL has a Altman-Z score of 0.71. This is in the lower half of the industry: AAL underperforms 60.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.71 |
ROIC/WACC0.72
WACC7.18%
2.3 Liquidity
AAL has a Current Ratio of 0.57. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of AAL (0.57) is worse than 60.87% of its industry peers.
AAL has a Quick Ratio of 0.57. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of AAL (0.47) is worse than 69.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.47 |
3. Growth
3.1 Past
AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -61.93%.
AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -10.32% yearly.
The Revenue has been growing slightly by 1.32% in the past year.
Measured over the past years, AAL shows a small growth in Revenue. The Revenue has been growing by 3.46% on average per year.
EPS 1Y (TTM)-61.93%
EPS 3YN/A
EPS 5Y-10.32%
EPS Q2Q%-21.05%
Revenue 1Y (TTM)1.32%
Revenue growth 3Y44.94%
Revenue growth 5Y3.46%
Sales Q2Q%1.22%
3.2 Future
The Earnings Per Share is expected to grow by 15.70% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y-43.35%
EPS Next 2Y-11.55%
EPS Next 3Y1.7%
EPS Next 5Y15.7%
Revenue Next Year1.76%
Revenue Next 2Y3.28%
Revenue Next 3Y3.94%
Revenue Next 5Y3.5%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
AAL is valuated correctly with a Price/Earnings ratio of 12.29.
82.61% of the companies in the same industry are more expensive than AAL, based on the Price/Earnings ratio.
AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.83.
AAL is valuated cheaply with a Price/Forward Earnings ratio of 7.97.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AAL indicates a rather cheap valuation: AAL is cheaper than 82.61% of the companies listed in the same industry.
AAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.65, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AAL is valued cheaper than 91.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-11.55%
EPS Next 3Y1.7%
5. Dividend
5.1 Amount
AAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AMERICAN AIRLINES GROUP INC
NASDAQ:AAL (12/18/2024, 8:00:13 PM)
After market: 16.4996 +0.03 (+0.18%)16.47
-0.25 (-1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.82B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.29 | ||
| Fwd PE | 7.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.43% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.16% | ||
| PM (TTM) | 0.51% | ||
| GM | 62.15% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.57 | ||
| Quick Ratio | 0.47 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-61.93%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y-43.35%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.32%
Revenue growth 3Y44.94%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y