UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - Nasdaq - US9100471096 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to UAL. UAL was compared to 23 industry peers in the Passenger Airlines industry. There are concerns on the financial health of UAL while its profitability can be described as average. UAL has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year UAL was profitable.
In multiple years UAL reported negative net income over the last 5 years.
In multiple years UAL reported negative operating cash flow during the last 5 years.
1.2 Ratios
UAL has a better Return On Assets (4.25%) than 78.26% of its industry peers.
UAL has a Return On Equity of 24.84%. This is amongst the best in the industry. UAL outperforms 86.96% of its industry peers.
The Return On Invested Capital of UAL (7.84%) is better than 73.91% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for UAL is below the industry average of 8.77%.
The 3 year average ROIC (6.63%) for UAL is below the current ROIC(7.84%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 24.84% | ||
| ROIC | 7.84% |
ROA(3y)3.01%
ROA(5y)-1.14%
ROE(3y)21.21%
ROE(5y)-18.81%
ROIC(3y)6.63%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.52%, UAL is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
UAL's Profit Margin has declined in the last couple of years.
The Operating Margin of UAL (9.13%) is better than 69.57% of its industry peers.
UAL's Operating Margin has declined in the last couple of years.
The Gross Margin of UAL (63.26%) is better than 69.57% of its industry peers.
UAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.13% | ||
| PM (TTM) | 5.52% | ||
| GM | 63.26% |
OM growth 3YN/A
OM growth 5Y-2.78%
PM growth 3YN/A
PM growth 5Y-4.52%
GM growth 3Y6.86%
GM growth 5Y0.39%
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.
The number of shares outstanding for UAL has been increased compared to 1 year ago.
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
A Debt/Equity ratio of 1.99 is on the high side and indicates that UAL has dependencies on debt financing.
UAL has a Debt to Equity ratio (1.99) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.86
WACC9.16%
2.3 Liquidity
UAL has a Current Ratio of 0.81. 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 0.81. This is in the better half of the industry: UAL outperforms 73.91% of its industry peers.
A Quick Ratio of 0.74 indicates that UAL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, UAL is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.81 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
UAL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.27%.
The Earnings Per Share has been decreasing by -2.65% on average over the past years.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 6.23% in the last year.
The Revenue has been growing slightly by 5.70% on average over the past years.
EPS 1Y (TTM)5.27%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%63%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%7.85%
3.2 Future
UAL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.68% yearly.
Based on estimates for the next years, UAL will show a small growth in Revenue. The Revenue will grow by 3.39% on average per year.
EPS Next Y27.16%
EPS Next 2Y19.29%
EPS Next 3Y15.48%
EPS Next 5Y4.68%
Revenue Next Year8.52%
Revenue Next 2Y7.54%
Revenue Next 3Y6.45%
Revenue Next 5Y3.39%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.69, the valuation of UAL can be described as very reasonable.
UAL's Price/Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 86.96% of the companies in the same industry.
UAL is valuated cheaply when we compare the Price/Earnings ratio to 30.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 7.62 indicates a rather cheap valuation of UAL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of UAL indicates a rather cheap valuation: UAL is cheaper than 86.96% of the companies listed in the same industry.
UAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 7.62 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
UAL's earnings are expected to grow with 15.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y19.29%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
No dividends for UAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
102.49
-4.02 (-3.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners79.52%
Inst Owner Change5.68%
Ins Owners0.39%
Ins Owner Change0.98%
Market Cap33.71B
Analysts84.44
Price Target136.54 (33.22%)
Short Float %4.53%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.85%
Min EPS beat(2)4.11%
Max EPS beat(2)7.59%
EPS beat(4)4
Avg EPS beat(4)22.51%
Min EPS beat(4)4.11%
Max EPS beat(4)74.16%
EPS beat(8)8
Avg EPS beat(8)19.23%
EPS beat(12)11
Avg EPS beat(12)13.75%
EPS beat(16)14
Avg EPS beat(16)14.11%
Revenue beat(2)1
Avg Revenue beat(2)-0.02%
Min Revenue beat(2)-0.59%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.45%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.36%
Revenue beat(12)4
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)-0.34%
PT rev (1m)20.65%
PT rev (3m)51.45%
EPS NQ rev (1m)76.83%
EPS NQ rev (3m)218.89%
EPS NY rev (1m)7.34%
EPS NY rev (3m)10.13%
Revenue NQ rev (1m)2.3%
Revenue NQ rev (3m)2.5%
Revenue NY rev (1m)1.6%
Revenue NY rev (3m)1.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.69 | ||
| Fwd PE | 7.62 | ||
| P/S | 0.59 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 2.66 | ||
| P/tB | 6.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)10.58
EY10.32%
EPS(NY)13.45
Fwd EY13.13%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS173.51
BVpS38.54
TBVpS16.62
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 24.84% | ||
| ROCE | 10.26% | ||
| ROIC | 7.84% | ||
| ROICexc | 10.97% | ||
| ROICexgc | 13.68% | ||
| OM | 9.13% | ||
| PM (TTM) | 5.52% | ||
| GM | 63.26% | ||
| FCFM | N/A |
ROA(3y)3.01%
ROA(5y)-1.14%
ROE(3y)21.21%
ROE(5y)-18.81%
ROIC(3y)6.63%
ROIC(5y)N/A
ROICexc(3y)9.5%
ROICexc(5y)N/A
ROICexgc(3y)12.05%
ROICexgc(5y)N/A
ROCE(3y)8.68%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-0.15%
ROICexc growth 3YN/A
ROICexc growth 5Y0.65%
OM growth 3YN/A
OM growth 5Y-2.78%
PM growth 3YN/A
PM growth 5Y-4.52%
GM growth 3Y6.86%
GM growth 5Y0.39%
F-ScoreN/A
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.99 | ||
| 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 | 0.81 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | N/A |
F-ScoreN/A
WACC9.16%
ROIC/WACC0.86
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)5.27%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%63%
EPS Next Y27.16%
EPS Next 2Y19.29%
EPS Next 3Y15.48%
EPS Next 5Y4.68%
Revenue 1Y (TTM)6.23%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%7.85%
Revenue Next Year8.52%
Revenue Next 2Y7.54%
Revenue Next 3Y6.45%
Revenue Next 5Y3.39%
EBIT growth 1Y0.87%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year83.98%
EBIT Next 3Y28.36%
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