UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - Nasdaq - US9100471096 - Common Stock
Taking everything into account, UAL scores 4 out of 10 in our fundamental rating. UAL was compared to 23 industry peers in the Passenger Airlines industry. UAL has a medium profitability rating, but doesn't score so well on its financial health evaluation. UAL is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year UAL was profitable.
UAL had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 3.81%, UAL belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.18%, UAL belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.21%, UAL is in the better half of 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.
With a decent Operating Margin value of 8.37%, UAL is doing good in the industry, outperforming 65.22% of the companies in the same industry.
UAL's Operating Margin has been stable in the last couple of years.
UAL's Gross Margin of 62.00% is fine compared to the rest of the industry. UAL outperforms 73.91% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UAL is destroying value.
UAL has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, UAL has more shares outstanding
The debt/assets ratio for UAL has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that UAL is in the distress zone and has some risk of bankruptcy.
UAL has a Altman-Z score of 1.36. This is in the better half of the industry: UAL outperforms 73.91% 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.
UAL's Debt to FCF ratio of 84.14 is fine compared to the rest of the industry. UAL outperforms 65.22% 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's Debt to Equity ratio of 1.95 is in line compared to the rest of the industry. UAL outperforms 52.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 84.14 | ||
| Altman-Z | 1.36 |
ROIC/WACC0.9
WACC8%
2.3 Liquidity
A Current Ratio of 0.79 indicates that UAL may have some problems paying its short term obligations.
With a decent Current ratio value of 0.79, UAL is doing good in the industry, outperforming 69.57% of the companies in the same industry.
A Quick Ratio of 0.72 indicates that UAL may have some problems paying its short term obligations.
The Quick ratio of UAL (0.72) is better than 65.22% of its industry peers.
| 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%.
The Earnings Per Share has been growing slightly by 1.78% on average over the past years.
The Revenue has been growing slightly by 6.67% in the past 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
The Earnings Per Share is expected to grow by 4.80% on average over the next years.
UAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.81% yearly.
EPS Next Y2.97%
EPS Next 2Y11.67%
EPS Next 3Y12.89%
EPS Next 5Y4.8%
Revenue Next Year5.69%
Revenue Next 2Y6.28%
Revenue Next 3Y6.35%
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
With a Price/Earnings ratio of 11.52, the valuation of UAL can be described as very reasonable.
86.96% of the companies in the same industry are more expensive than UAL, based on the Price/Earnings ratio.
UAL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.96.
Based on the Price/Forward Earnings ratio of 8.57, the valuation of UAL can be described as reasonable.
Based on the Price/Forward Earnings ratio, UAL is valued cheaper than 82.61% of the companies in the same industry.
UAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.11, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 8.57 |
4.2 Price Multiples
UAL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. UAL is cheaper than 86.96% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, UAL is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 115.79 | ||
| EV/EBITDA | 5.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of UAL may justify a higher PE ratio.
UAL's earnings are expected to grow with 12.89% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.88
PEG (5Y)6.46
EPS Next 2Y11.67%
EPS Next 3Y12.89%
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 (1/17/2025, 8:00:01 PM)
After market: 108 +0.62 (+0.58%)107.38
+1.27 (+1.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners79.52%
Inst Owner Change-0.03%
Ins Owners0.39%
Ins Owner Change-0.49%
Market Cap35.32B
Analysts84.44
Price Target113.17 (5.39%)
Short Float %5.93%
Short Ratio3.53
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)4.14%
Min EPS beat(2)4.11%
Max EPS beat(2)4.17%
EPS beat(4)4
Avg EPS beat(4)24.9%
Min EPS beat(4)4.11%
Max EPS beat(4)74.16%
EPS beat(8)8
Avg EPS beat(8)20.27%
EPS beat(12)11
Avg EPS beat(12)15.19%
EPS beat(16)13
Avg EPS beat(16)13.36%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.47%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-0.68%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)-0.28%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)-0.42%
Revenue beat(16)6
Avg Revenue beat(16)-0.45%
PT rev (1m)7.82%
PT rev (3m)57.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.15%
EPS NY rev (1m)0.04%
EPS NY rev (3m)4.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.86%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.52 | ||
| Fwd PE | 8.57 | ||
| P/S | 0.63 | ||
| P/FCF | 115.79 | ||
| P/OCF | 5.6 | ||
| P/B | 3.09 | ||
| P/tB | 8.37 | ||
| EV/EBITDA | 5.58 |
EPS(TTM)9.32
EY8.68%
EPS(NY)12.53
Fwd EY11.67%
FCF(TTM)0.93
FCFY0.86%
OCF(TTM)19.19
OCFY17.87%
SpS170.26
BVpS34.78
TBVpS12.83
PEG (NY)3.88
PEG (5Y)6.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.81% | ||
| ROE | 24.18% | ||
| ROCE | 9.51% | ||
| ROIC | 7.21% | ||
| ROICexc | 10.12% | ||
| ROICexgc | 12.74% | ||
| OM | 8.37% | ||
| PM (TTM) | 4.94% | ||
| GM | 62% | ||
| FCFM | 0.54% |
ROA(3y)0.63%
ROA(5y)-0.85%
ROE(3y)-0.09%
ROE(5y)-18.56%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y3.72%
ROICexc growth 3YN/A
ROICexc growth 5Y4.69%
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%
F-Score6
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.95 | ||
| Debt/FCF | 84.14 | ||
| Debt/EBITDA | 3.03 | ||
| Cap/Depr | 224.86% | ||
| Cap/Sales | 10.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.79% | ||
| Profit Quality | 11.03% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 1.36 |
F-Score6
WACC8%
ROIC/WACC0.9
Cap/Depr(3y)183.16%
Cap/Depr(5y)163.36%
Cap/Sales(3y)10.87%
Cap/Sales(5y)10.87%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-11.32%
EPS 3YN/A
EPS 5Y1.78%
EPS Q2Q%-8.77%
EPS Next Y2.97%
EPS Next 2Y11.67%
EPS Next 3Y12.89%
EPS Next 5Y4.8%
Revenue 1Y (TTM)6.67%
Revenue growth 3Y51.81%
Revenue growth 5Y5.4%
Sales Q2Q%2.48%
Revenue Next Year5.69%
Revenue Next 2Y6.28%
Revenue Next 3Y6.35%
Revenue Next 5Y3.81%
EBIT growth 1Y-14.94%
EBIT growth 3YN/A
EBIT growth 5Y6.8%
EBIT Next Year61.02%
EBIT Next 3Y26.33%
EBIT Next 5Y17.98%
FCF growth 1Y-83.27%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y36.04%
OCF growth 3YN/A
OCF growth 5Y2.31%