UNITED AIRLINES HOLDINGS INC (UAL)
US9100471096 - Common Stock
Overall UAL gets a fundamental rating of 4 out of 10. We evaluated UAL against 24 industry peers in the Passenger Airlines industry. UAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. A decent growth rate in combination with a cheap valuation! Better keep an eye on UAL.
1. Profitability
1.1 Basic Checks
In the past year UAL was profitable.
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 has a better Return On Assets (3.81%) than 83.33% 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 79.17% of the companies in the same industry.
UAL's Return On Invested Capital of 7.21% is fine compared to the rest of the industry. UAL outperforms 75.00% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 4.94%, UAL is in the better half of the industry, outperforming 79.17% of the companies in the same industry.
UAL's Profit Margin has been stable in the last couple of years.
UAL has a Operating Margin of 8.37%. This is in the better half of the industry: UAL outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of UAL has remained more or less at the same level.
With a decent Gross Margin value of 62.00%, UAL is doing good in the industry, outperforming 70.83% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), UAL is destroying value.
Compared to 1 year ago, UAL has more shares outstanding
The number of shares outstanding for UAL has been increased compared to 5 years ago.
UAL has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that UAL is in the distress zone and has some risk of bankruptcy.
UAL has a Altman-Z score of 1.31. This is in the better half of the industry: UAL outperforms 66.67% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 84.14, UAL is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
UAL has a Debt/Equity ratio of 1.95. This is a high value indicating a heavy dependency on external financing.
UAL has a Debt to Equity ratio (1.95) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 84.14 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.88
WACC8.17%
2.3 Liquidity
UAL has a Current Ratio of 0.79. This is a bad value and indicates that UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
UAL has a Current ratio of 0.79. This is in the better half of the industry: UAL outperforms 66.67% of its industry peers.
A Quick Ratio of 0.72 indicates that UAL may have some problems paying its short term obligations.
UAL's Quick ratio of 0.72 is in line compared to the rest of the industry. UAL outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The earnings per share for UAL have decreased strongly by -11.32% in the last year.
The Earnings Per Share has been growing slightly by 1.78% on average over the past years.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 6.67% in the last year.
Measured over the past years, UAL shows a small growth in Revenue. The Revenue has been growing by 5.40% on average per year.
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
UAL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.22% yearly.
UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.90% yearly.
EPS Next Y2.86%
EPS Next 2Y10.25%
EPS Next 3Y11.69%
EPS Next 5Y12.22%
Revenue Next Year5.62%
Revenue Next 2Y6.36%
Revenue Next 3Y6.28%
Revenue Next 5Y1.9%
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
The Price/Earnings ratio is 9.78, which indicates a very decent valuation of UAL.
UAL's Price/Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 87.50% of the companies in the same industry.
UAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.53.
The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of UAL.
UAL's Price/Forward Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 87.50% of the companies in the same industry.
UAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
UAL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UAL is cheaper than 83.33% of the companies in the same industry.
70.83% of the companies in the same industry are more expensive than UAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 98.31 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
UAL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.42
PEG (5Y)5.49
EPS Next 2Y10.25%
EPS Next 3Y11.69%
5. Dividend
5.1 Amount
No dividends for UAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
UNITED AIRLINES HOLDINGS INC
NASDAQ:UAL (11/15/2024, 8:00:01 PM)
After market: 91.49 +0.32 (+0.35%)91.17
+0.01 (+0.01%)
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 Cap29.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.78 | ||
| Fwd PE | 7.46 | ||
| 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)3.42
PEG (5Y)5.49
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 Y2.86%
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
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