UNITED AIRLINES HOLDINGS INC (UAL)
US9100471096 - Common Stock
We assign a fundamental rating of 4 out of 10 to UAL. UAL was compared to 23 industry peers in the Passenger Airlines industry. While UAL is still in line with the averages on profitability rating, there are concerns on its financial health. UAL is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
UAL had positive earnings in the past year.
In the past year UAL had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: UAL reported negative net income in multiple years.
UAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
UAL's Return On Assets of 3.81% is amongst the best of the industry. UAL outperforms 82.61% of its industry peers.
Looking at the Return On Equity, with a value of 24.18%, UAL is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
With a decent Return On Invested Capital value of 7.21%, UAL is doing good in the industry, outperforming 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 24.18% | ||
| ROIC | 7.21% |
ROA(3y)0.63%
ROA(5y)-0.85%
ROE(3y)-0.09%
ROE(5y)-18.56%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of UAL (4.94%) is better than 73.91% of its industry peers.
UAL's Profit Margin has been stable in the last couple of years.
The Operating Margin of UAL (8.37%) is better than 65.22% of its industry peers.
UAL's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 62.00%, UAL is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
In the last couple of years the Gross Margin of UAL has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.37% | ||
| PM (TTM) | 4.94% | ||
| GM | 62% |
OM growth 3YN/A
OM growth 5Y1.33%
PM growth 3YN/A
PM growth 5Y-1.03%
GM growth 3Y10.18%
GM growth 5Y0.33%
2. Health
2.1 Basic Checks
UAL 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, UAL has more shares outstanding
UAL has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, UAL has an improved debt to assets ratio.
2.2 Solvency
UAL has an Altman-Z score of 1.32. This is a bad value and indicates that UAL is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.32, UAL is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
UAL has a debt to FCF ratio of 84.14. This is a negative value and a sign of low solvency as UAL would need 84.14 years to pay back of all of its debts.
The Debt to FCF ratio of UAL (84.14) is better than 69.57% of its industry peers.
A Debt/Equity ratio of 1.95 is on the high side and indicates that UAL has dependencies on debt financing.
UAL has a Debt to Equity ratio (1.95) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 84.14 | ||
| Altman-Z | 1.32 |
ROIC/WACC0.89
WACC8.11%
2.3 Liquidity
A Current Ratio of 0.79 indicates that UAL may have some problems paying its short term obligations.
The Current ratio of UAL (0.79) is better than 69.57% of its industry peers.
A Quick Ratio of 0.72 indicates that UAL may have some problems paying its short term obligations.
With a decent Quick ratio value of 0.72, UAL is doing good in the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
UAL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.32%.
Measured over the past 5 years, UAL shows a small growth in Earnings Per Share. The EPS has been growing by 1.78% on average per year.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 6.67% in the last year.
UAL shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.40% yearly.
EPS 1Y (TTM)-11.32%
EPS 3YN/A
EPS 5Y1.78%
EPS Q2Q%-8.77%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y51.81%
Revenue growth 5Y5.4%
Sales Q2Q%2.48%
3.2 Future
Based on estimates for the next years, UAL will show a small growth in Earnings Per Share. The EPS will grow by 4.80% on average per year.
UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y2.93%
EPS Next 2Y11.04%
EPS Next 3Y12.47%
EPS Next 5Y4.8%
Revenue Next Year5.64%
Revenue Next 2Y6.36%
Revenue Next 3Y6.29%
Revenue Next 5Y3.81%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
UAL is valuated reasonably with a Price/Earnings ratio of 9.81.
Compared to the rest of the industry, the Price/Earnings ratio of UAL indicates a rather cheap valuation: UAL is cheaper than 91.30% of the companies listed in the same industry.
UAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.83.
The Price/Forward Earnings ratio is 7.38, which indicates a rather cheap valuation of UAL.
Based on the Price/Forward Earnings ratio, UAL is valued cheaper than 91.30% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of UAL to the average of the S&P500 Index (22.65), we can say UAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 7.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, UAL is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
UAL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. UAL is cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.63 | ||
| EV/EBITDA | 5.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates UAL does not grow enough to justify the current Price/Earnings ratio.
UAL has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as UAL's earnings are expected to grow with 12.47% in the coming years.
PEG (NY)3.35
PEG (5Y)5.5
EPS Next 2Y11.04%
EPS Next 3Y12.47%
5. Dividend
5.1 Amount
UAL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITED AIRLINES HOLDINGS INC
NASDAQ:UAL (12/18/2024, 8:00:01 PM)
After market: 91.9899 +0.52 (+0.57%)91.47
-3.52 (-3.71%)
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 Cap30.08B
Analysts
Price Target
Short Float %
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.81 | ||
| Fwd PE | 7.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
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OCF(TTM)
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SpS
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PEG (NY)3.35
PEG (5Y)5.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 24.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.37% | ||
| PM (TTM) | 4.94% | ||
| GM | 62% | ||
| 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 Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 | ||
| 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)-11.32%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y2.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.67%
Revenue growth 3Y51.81%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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