UNITED AIRLINES HOLDINGS INC (UAL) Stock Fundamental Analysis
NASDAQ:UAL - Nasdaq - US9100471096 - Common Stock - Currency: USD
Taking everything into account, UAL scores 5 out of 10 in our fundamental rating. UAL was compared to 23 industry peers in the Passenger Airlines industry. Both the profitability and the financial health of UAL get a neutral evaluation. Nothing too spectacular is happening here. UAL scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
In multiple years UAL reported negative net income over the last 5 years.
Of the past 5 years UAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of UAL (4.81%) is better than 86.96% of its industry peers.
UAL's Return On Equity of 29.01% is amongst the best of the industry. UAL outperforms 91.30% of its industry peers.
UAL has a better Return On Invested Capital (8.50%) than 73.91% of its industry peers.
The Average Return On Invested Capital over the past 3 years for UAL is below the industry average of 11.12%.
The last Return On Invested Capital (8.50%) for UAL is above the 3 year average (6.63%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 29.01% | ||
| ROIC | 8.5% |
ROA(3y)3.01%
ROA(5y)-1.15%
ROE(3y)21.2%
ROE(5y)-18.81%
ROIC(3y)6.63%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 6.34%, UAL belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
In the last couple of years the Profit Margin of UAL has declined.
UAL's Operating Margin of 9.69% is fine compared to the rest of the industry. UAL outperforms 69.57% of its industry peers.
UAL's Operating Margin has declined in the last couple of years.
UAL's Gross Margin of 63.95% is fine compared to the rest of the industry. UAL outperforms 78.26% of its industry peers.
UAL's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.69% | ||
| PM (TTM) | 6.34% | ||
| GM | 63.95% |
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 just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, UAL has about the same amount of shares outstanding.
The number of shares outstanding for UAL has been increased compared to 5 years ago.
Compared to 1 year ago, UAL has an improved debt to assets ratio.
2.2 Solvency
UAL has a debt to FCF ratio of 5.73. This is a neutral value as UAL would need 5.73 years to pay back of all of its debts.
UAL has a Debt to FCF ratio of 5.73. This is amongst the best in the industry. UAL outperforms 82.61% of its industry peers.
A Debt/Equity ratio of 1.93 is on the high side and indicates that UAL has dependencies on debt financing.
The Debt to Equity ratio of UAL (1.93) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 5.73 | ||
| Altman-Z | N/A |
ROIC/WACC1.04
WACC8.15%
2.3 Liquidity
UAL has a Current Ratio of 0.78. This is a bad value and indicates that UAL is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of UAL (0.78) 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.
Looking at the Quick ratio, with a value of 0.72, UAL is in the better half of the industry, outperforming 65.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.54% over the past year.
UAL shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.65% yearly.
Looking at the last year, UAL shows a small growth in Revenue. The Revenue has grown by 5.31% in the last year.
Measured over the past years, UAL shows a small growth in Revenue. The Revenue has been growing by 5.70% on average per year.
EPS 1Y (TTM)10.54%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%706.67%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%5.38%
3.2 Future
The Earnings Per Share is expected to grow by 6.78% on average over the next years.
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 Y21.91%
EPS Next 2Y17.45%
EPS Next 3Y14.92%
EPS Next 5Y6.78%
Revenue Next Year5.56%
Revenue Next 2Y6.4%
Revenue Next 3Y5.69%
Revenue Next 5Y3.39%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.70, the valuation of UAL can be described as very cheap.
UAL's Price/Earnings ratio is rather cheap when compared to the industry. UAL is cheaper than 91.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of UAL to the average of the S&P500 Index (28.29), we can say UAL is valued rather cheaply.
The Price/Forward Earnings ratio is 4.54, which indicates a rather cheap valuation of UAL.
Based on the Price/Forward Earnings ratio, UAL is valued cheaper than 86.96% of the companies in the same industry.
UAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 4.54 |
4.2 Price Multiples
95.65% of the companies in the same industry are more expensive than UAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, UAL is valued cheaply inside the industry as 86.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.5 | ||
| EV/EBITDA | 3.29 |
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 has a very decent profitability rating, which may justify a higher PE ratio.
UAL's earnings are expected to grow with 14.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)N/A
EPS Next 2Y17.45%
EPS Next 3Y14.92%
5. Dividend
5.1 Amount
No dividends for UAL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
66.3
-0.69 (-1.03%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners87.82%
Inst Owner Change0.03%
Ins Owners0.47%
Ins Owner Change2.08%
Market Cap21.70B
Analysts84.44
Price Target129.88 (95.9%)
Short Float %5.44%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
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)13.27%
Min EPS beat(2)7.59%
Max EPS beat(2)18.96%
EPS beat(4)4
Avg EPS beat(4)8.71%
Min EPS beat(4)4.11%
Max EPS beat(4)18.96%
EPS beat(8)8
Avg EPS beat(8)19.72%
EPS beat(12)11
Avg EPS beat(12)15.29%
EPS beat(16)15
Avg EPS beat(16)15.6%
Revenue beat(2)1
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-1.39%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-0.73%
Min Revenue beat(4)-1.47%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.42%
Revenue beat(12)4
Avg Revenue beat(12)-0.44%
Revenue beat(16)7
Avg Revenue beat(16)-0.29%
PT rev (1m)-5.62%
PT rev (3m)14.77%
EPS NQ rev (1m)-16.04%
EPS NQ rev (3m)28.64%
EPS NY rev (1m)-4.13%
EPS NY rev (3m)2.91%
Revenue NQ rev (1m)-1.85%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-2.91%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.7 | ||
| Fwd PE | 4.54 | ||
| P/S | 0.38 | ||
| P/FCF | 4.5 | ||
| P/OCF | 2.11 | ||
| P/B | 1.72 | ||
| P/tB | 4.01 | ||
| EV/EBITDA | 3.29 |
EPS(TTM)11.64
EY17.56%
EPS(NY)14.59
Fwd EY22.01%
FCF(TTM)14.74
FCFY22.24%
OCF(TTM)31.49
OCFY47.5%
SpS176.38
BVpS38.54
TBVpS16.54
PEG (NY)0.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 29.01% | ||
| ROCE | 11.12% | ||
| ROIC | 8.5% | ||
| ROICexc | 12.22% | ||
| ROICexgc | 15.39% | ||
| OM | 9.69% | ||
| PM (TTM) | 6.34% | ||
| GM | 63.95% | ||
| FCFM | 8.36% |
ROA(3y)3.01%
ROA(5y)-1.15%
ROE(3y)21.2%
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.93 | ||
| Debt/FCF | 5.73 | ||
| Debt/EBITDA | 2.86 | ||
| Cap/Depr | 187.23% | ||
| Cap/Sales | 9.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 120.94% | ||
| Profit Quality | 131.86% | ||
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | N/A |
F-Score7
WACC8.15%
ROIC/WACC1.04
Cap/Depr(3y)218.82%
Cap/Depr(5y)162.13%
Cap/Sales(3y)11.3%
Cap/Sales(5y)10.74%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.54%
EPS 3YN/A
EPS 5Y-2.65%
EPS Q2Q%706.67%
EPS Next Y21.91%
EPS Next 2Y17.45%
EPS Next 3Y14.92%
EPS Next 5Y6.78%
Revenue 1Y (TTM)5.31%
Revenue growth 3Y32.31%
Revenue growth 5Y5.7%
Sales Q2Q%5.38%
Revenue Next Year5.56%
Revenue Next 2Y6.4%
Revenue Next 3Y5.69%
Revenue Next 5Y3.39%
EBIT growth 1Y5.55%
EBIT growth 3YN/A
EBIT growth 5Y2.75%
EBIT Next Year77.92%
EBIT Next 3Y27.19%
EBIT Next 5YN/A
FCF growth 1Y227.85%
FCF growth 3YN/A
FCF growth 5Y9.97%
OCF growth 1Y33.32%
OCF growth 3Y65.94%
OCF growth 5Y6.45%