UNITED AIRLINES HOLDINGS INC (UAL1.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:UAL1 - US9100471096 - Common Stock
91.91 EUR
-4.58 (-4.75%)
We assign a fundamental rating of 4 out of 10 to UAL1. UAL1 was compared to 14 industry peers in the Passenger Airlines industry. While UAL1 is still in line with the averages on profitability rating, there are concerns on its financial health. UAL1 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year UAL1 was profitable.
- UAL1 had a positive operating cash flow in the past year.
- Of the past 5 years UAL1 4 years were profitable.
- Each year in the past 5 years UAL1 had a positive operating cash flow.
1.2 Ratios
- UAL1's Return On Assets of 4.39% is in line compared to the rest of the industry. UAL1 outperforms 57.14% of its industry peers.
- The Return On Equity of UAL1 (21.94%) is comparable to the rest of the industry.
- With a Return On Invested Capital value of 7.58%, UAL1 perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for UAL1 is in line with the industry average of 9.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.39% | ||
| ROE | 21.94% | ||
| ROIC | 7.58% |
ROA(3y)4.11%
ROA(5y)2.11%
ROE(3y)24.95%
ROE(5y)9.3%
ROIC(3y)7.85%
ROIC(5y)N/A
1.3 Margins
- UAL1 has a Profit Margin of 5.68%. This is comparable to the rest of the industry: UAL1 outperforms 57.14% of its industry peers.
- In the last couple of years the Profit Margin of UAL1 has grown nicely.
- UAL1 has a Operating Margin (8.42%) which is comparable to the rest of the industry.
- UAL1's Operating Margin has improved in the last couple of years.
- UAL1 has a better Gross Margin (63.63%) than 78.57% of its industry peers.
- UAL1's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.42% | ||
| PM (TTM) | 5.68% | ||
| GM | 63.63% |
OM growth 3Y15.17%
OM growth 5YN/A
PM growth 3Y51.28%
PM growth 5YN/A
GM growth 3Y5.21%
GM growth 5Y6.96%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so UAL1 is destroying value.
- Compared to 1 year ago, UAL1 has less shares outstanding
- The number of shares outstanding for UAL1 has been increased compared to 5 years ago.
- The debt/assets ratio for UAL1 has been reduced compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of UAL1 is 9.77, which is on the high side as it means it would take UAL1, 9.77 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of UAL1 (9.77) is comparable to the rest of the industry.
- A Debt/Equity ratio of 1.35 is on the high side and indicates that UAL1 has dependencies on debt financing.
- UAL1 has a Debt to Equity ratio of 1.35. This is comparable to the rest of the industry: UAL1 outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.35 | ||
| Debt/FCF | 9.77 | ||
| Altman-Z | N/A |
ROIC/WACC0.83
WACC9.11%
2.3 Liquidity
- A Current Ratio of 0.65 indicates that UAL1 may have some problems paying its short term obligations.
- The Current ratio of UAL1 (0.65) is worse than 64.29% of its industry peers.
- UAL1 has a Quick Ratio of 0.65. This is a bad value and indicates that UAL1 is not financially healthy enough and could expect problems in meeting its short term obligations.
- With a Quick ratio value of 0.59, UAL1 is not doing good in the industry: 64.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.59 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.76% over the past year.
- UAL1 shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 63.03% yearly.
- The Revenue has been growing slightly by 3.52% in the past year.
- UAL1 shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 30.93% yearly.
EPS 1Y (TTM)0.76%
EPS 3Y63.03%
EPS 5YN/A
EPS Q2Q%-4.91%
Revenue 1Y (TTM)3.52%
Revenue growth 3Y9.53%
Revenue growth 5Y30.93%
Sales Q2Q%4.78%
3.2 Future
- UAL1 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.88% yearly.
- The Revenue is expected to grow by 4.00% on average over the next years.
EPS Next Y24.71%
EPS Next 2Y18.65%
EPS Next 3Y8.79%
EPS Next 5Y7.88%
Revenue Next Year8.02%
Revenue Next 2Y7.29%
Revenue Next 3Y6.46%
Revenue Next 5Y4%
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 decreasing.
- 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
- A Price/Earnings ratio of 10.12 indicates a reasonable valuation of UAL1.
- Compared to the rest of the industry, the Price/Earnings ratio of UAL1 is on the same level as its industry peers.
- When comparing the Price/Earnings ratio of UAL1 to the average of the S&P500 Index (27.21), we can say UAL1 is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.12, the valuation of UAL1 can be described as reasonable.
- UAL1's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. UAL1 is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.12 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
- Based on the Price/Free Cash Flow ratio, UAL1 is valued more expensive than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.66 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- UAL1's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- UAL1 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.41
PEG (5Y)N/A
EPS Next 2Y18.65%
EPS Next 3Y8.79%
5. Dividend
5.1 Amount
- No dividends for UAL1!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
UNITED AIRLINES HOLDINGS INC / UAL1.DE FAQ
What is the fundamental rating for UAL1 stock?
ChartMill assigns a fundamental rating of 4 / 10 to UAL1.DE.
What is the valuation status of UNITED AIRLINES HOLDINGS INC (UAL1.DE) stock?
ChartMill assigns a valuation rating of 5 / 10 to UNITED AIRLINES HOLDINGS INC (UAL1.DE). This can be considered as Fairly Valued.
What is the profitability of UAL1 stock?
UNITED AIRLINES HOLDINGS INC (UAL1.DE) has a profitability rating of 6 / 10.
How financially healthy is UNITED AIRLINES HOLDINGS INC?
The financial health rating of UNITED AIRLINES HOLDINGS INC (UAL1.DE) is 2 / 10.
Can you provide the expected EPS growth for UAL1 stock?
The Earnings per Share (EPS) of UNITED AIRLINES HOLDINGS INC (UAL1.DE) is expected to grow by 24.71% in the next year.