AMERICAN AIRLINES GROUP INC (AAL) Stock Fundamental Analysis
NASDAQ:AAL - Nasdaq - US02376R1023 - Common Stock - Currency: USD
Overall AAL gets a fundamental rating of 3 out of 10. We evaluated AAL against 23 industry peers in the Passenger Airlines industry. AAL may be in some trouble as it scores bad on both profitability and health. AAL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
AAL had positive earnings in the past year.
The reported net income has been mixed in the past 5 years: AAL reported negative net income in multiple years.
In multiple years AAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
AAL's Return On Assets of 1.37% is in line compared to the rest of the industry. AAL outperforms 56.52% of its industry peers.
AAL's Return On Invested Capital of 6.25% is fine compared to the rest of the industry. AAL outperforms 65.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AAL is below the industry average of 8.77%.
The 3 year average ROIC (5.50%) for AAL is below the current ROIC(6.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROIC | 6.25% |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.5%
ROIC(5y)N/A
1.3 Margins
AAL's Profit Margin of 1.56% is in line compared to the rest of the industry. AAL outperforms 56.52% of its industry peers.
In the last couple of years the Profit Margin of AAL has declined.
AAL's Operating Margin of 5.95% is in line compared to the rest of the industry. AAL outperforms 56.52% of its industry peers.
AAL's Operating Margin has declined in the last couple of years.
With a decent Gross Margin value of 63.55%, AAL is doing good in the industry, outperforming 73.91% of the companies in the same industry.
AAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.95% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.55% |
OM growth 3YN/A
OM growth 5Y-5.99%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.64%
GM growth 5Y0.67%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AAL is destroying value.
Compared to 1 year ago, AAL has more shares outstanding
The number of shares outstanding for AAL has been increased compared to 5 years ago.
Compared to 1 year ago, AAL has an improved debt to assets ratio.
2.2 Solvency
AAL has an Altman-Z score of 0.78. 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 0.78. This is comparable to the rest of the industry: AAL outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.78 |
ROIC/WACC0.89
WACC7.02%
2.3 Liquidity
AAL has a Current Ratio of 0.55. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
AAL has a worse Current ratio (0.55) than 60.87% of its industry peers.
AAL has a Quick Ratio of 0.55. This is a bad value and indicates that AAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.44, AAL is doing worse than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.44 |
3. Growth
3.1 Past
AAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.65%.
AAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -17.21% yearly.
Looking at the last year, AAL 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)-27.65%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%196.55%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%4.58%
3.2 Future
The Earnings Per Share is expected to grow by 19.51% on average over the next years. This is quite good.
AAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y27.01%
EPS Next 2Y28.34%
EPS Next 3Y25.68%
EPS Next 5Y19.51%
Revenue Next Year6.47%
Revenue Next 2Y5.63%
Revenue Next 3Y5.16%
Revenue Next 5Y3.74%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.97, the valuation of AAL can be described as very cheap.
Based on the Price/Earnings ratio, AAL is valued cheaper than 91.30% of the companies in the same industry.
AAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 6.28, the valuation of AAL can be described as very cheap.
Based on the Price/Forward Earnings ratio, AAL is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, AAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 6.28 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
AAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AAL's earnings are expected to grow with 25.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y28.34%
EPS Next 3Y25.68%
5. Dividend
5.1 Amount
No dividends for AAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
15.23
-0.63 (-3.97%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners62.65%
Inst Owner Change16.26%
Ins Owners1.22%
Ins Owner Change-2.93%
Market Cap10.01B
Analysts75.56
Price Target21.02 (38.02%)
Short Float %7.95%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)16.48%
PT rev (3m)73.73%
EPS NQ rev (1m)-2108.89%
EPS NQ rev (3m)-526.02%
EPS NY rev (1m)8.1%
EPS NY rev (3m)18.74%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)-0.44%
Revenue NY rev (1m)1.94%
Revenue NY rev (3m)1.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 6.28 | ||
| P/S | 0.18 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)1.91
EY12.54%
EPS(NY)2.43
Fwd EY15.93%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS82.44
BVpS-6.05
TBVpS-15.38
PEG (NY)0.3
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | N/A | ||
| ROCE | 8.53% | ||
| ROIC | 6.25% | ||
| ROICexc | 7.67% | ||
| ROICexgc | 9.58% | ||
| OM | 5.95% | ||
| PM (TTM) | 1.56% | ||
| GM | 63.55% | ||
| FCFM | N/A |
ROA(3y)0.96%
ROA(5y)-2.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)5.5%
ROIC(5y)N/A
ROICexc(3y)6.78%
ROICexc(5y)N/A
ROICexgc(3y)8.36%
ROICexgc(5y)N/A
ROCE(3y)7.5%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y2.24%
ROICexc growth 3YN/A
ROICexc growth 5Y1.34%
OM growth 3YN/A
OM growth 5Y-5.99%
PM growth 3YN/A
PM growth 5Y-15.78%
GM growth 3Y3.64%
GM growth 5Y0.67%
F-ScoreN/A
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.44 | ||
| Altman-Z | 0.78 |
F-ScoreN/A
WACC7.02%
ROIC/WACC0.89
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.65%
EPS 3YN/A
EPS 5Y-17.21%
EPS Q2Q%196.55%
EPS Next Y27.01%
EPS Next 2Y28.34%
EPS Next 3Y25.68%
EPS Next 5Y19.51%
Revenue 1Y (TTM)2.7%
Revenue growth 3Y21.96%
Revenue growth 5Y3.44%
Sales Q2Q%4.58%
Revenue Next Year6.47%
Revenue Next 2Y5.63%
Revenue Next 3Y5.16%
Revenue Next 5Y3.74%
EBIT growth 1Y-19.66%
EBIT growth 3YN/A
EBIT growth 5Y-2.75%
EBIT Next Year96.9%
EBIT Next 3Y33.65%
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A