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American Airlines Group

WBAG:AAL
Snowflake Description

Good value with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AAL
WBAG
$15B
Market Cap
  1. Home
  2. AT
  3. Transportation
Company description

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The last earnings update was 50 days ago. More info.


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AAL Share Price and Events
7 Day Returns
7%
WBAG:AAL
0.2%
Europe Airlines
0.1%
AT Market
1 Year Returns
-21.2%
WBAG:AAL
-29.3%
Europe Airlines
-8.2%
AT Market
AAL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
American Airlines Group (AAL) 7% -0.5% 3% -21.2% - -
Europe Airlines 0.2% -3% -15.7% -29.3% 2% 14%
AT Market 0.1% -2.4% -1.9% -8.2% 41.2% 17.4%
1 Year Return vs Industry and Market
  • AAL outperformed the Airlines industry which returned -29.3% over the past year.
  • AAL underperformed the Market in Austria which returned -8.2% over the past year.
Price Volatility
AAL
Industry
5yr Volatility vs Market

AAL Value

 Is American Airlines Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of American Airlines Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for American Airlines Group.

WBAG:AAL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 18 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12%
Perpetual Growth Rate 10-Year AT Government Bond Rate 0.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for WBAG:AAL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AT Govt Bond Rate 0.5%
Equity Risk Premium S&P Global 6%
Airlines Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.848 (1 + (1- 21%) (230.06%))
1.931
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.51% + (1.931 * 5.96%)
12.02%

Discounted Cash Flow Calculation for WBAG:AAL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for American Airlines Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

WBAG:AAL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.02%)
2019 2,036.55 Analyst x2 1,818.09
2020 2,546.90 Analyst x5 2,029.79
2021 3,410.00 Analyst x2 2,426.12
2022 3,775.00 Analyst x1 2,397.70
2023 4,049.43 Est @ 7.27% 2,296.10
2024 4,261.70 Est @ 5.24% 2,157.25
2025 4,424.59 Est @ 3.82% 1,999.45
2026 4,549.75 Est @ 2.83% 1,835.45
2027 4,646.79 Est @ 2.13% 1,673.51
2028 4,723.28 Est @ 1.65% 1,518.58
Present value of next 10 years cash flows $20,152.04
WBAG:AAL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4,723.28 × (1 + 0.51%) ÷ (12.02% – 0.51%)
$41,259.55
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $41,259.55 ÷ (1 + 12.02%)10
$13,265.37
WBAG:AAL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $20,152.04 + $13,265.37
$33,417.41
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $33,417.41 / 444.84
$75.12
WBAG:AAL Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in WBAG:AAL represents 0.88862x of NasdaqGS:AAL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88862x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 75.12 x 0.88862
€66.76
Value per share (EUR) From above. €66.76
Current discount Discount to share price of €29.04
= -1 x (€29.04 - €66.76) / €66.76
56.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price American Airlines Group is available for.
Intrinsic value
>50%
Share price is €29.04 vs Future cash flow value of €66.76
Current Discount Checks
For American Airlines Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • American Airlines Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • American Airlines Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for American Airlines Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are American Airlines Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
WBAG:AAL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.13
NasdaqGS:AAL Share Price ** NasdaqGS (2019-06-14) in USD $32.68
Europe Airlines Industry PE Ratio Median Figure of 13 Publicly-Listed Airlines Companies 9.64x
Austria Market PE Ratio Median Figure of 54 Publicly-Listed Companies 15.12x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of American Airlines Group.

WBAG:AAL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:AAL Share Price ÷ EPS (both in USD)

= 32.68 ÷ 3.13

10.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Airlines Group is overvalued based on earnings compared to the Europe Airlines industry average.
  • American Airlines Group is good value based on earnings compared to the Austria market.
Price based on expected Growth
Does American Airlines Group's expected growth come at a high price?
Raw Data
WBAG:AAL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts
11%per year
Europe Airlines Industry PEG Ratio Median Figure of 10 Publicly-Listed Airlines Companies 0.59x
Austria Market PEG Ratio Median Figure of 32 Publicly-Listed Companies 1.28x

*Line of best fit is calculated by linear regression .

WBAG:AAL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.43x ÷ 11%

0.95x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Airlines Group is good value based on expected growth next year.
Price based on value of assets
What value do investors place on American Airlines Group's assets?
Raw Data
WBAG:AAL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $-1.43
NasdaqGS:AAL Share Price * NasdaqGS (2019-06-14) in USD $32.68
Europe Airlines Industry PB Ratio Median Figure of 16 Publicly-Listed Airlines Companies 1.53x
Austria Market PB Ratio Median Figure of 62 Publicly-Listed Companies 1.23x
WBAG:AAL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:AAL Share Price ÷ Book Value per Share (both in USD)

= 32.68 ÷ -1.43

-22.83x

* Primary Listing of American Airlines Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • American Airlines Group has negative assets, we can't compare the value of its assets to the Europe Airlines industry average.
X
Value checks
We assess American Airlines Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Airlines industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Airlines industry average (and greater than 0)? (1 check)
  5. American Airlines Group has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AAL Future Performance

 How is American Airlines Group expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is American Airlines Group expected to grow at an attractive rate?
  • American Airlines Group's earnings growth is expected to exceed the low risk savings rate of 0.5%.
Growth vs Market Checks
  • American Airlines Group's earnings growth is expected to exceed the Austria market average.
  • American Airlines Group's revenue growth is expected to exceed the Austria market average.
Annual Growth Rates Comparison
Raw Data
WBAG:AAL Future Growth Rates Data Sources
Data Point Source Value (per year)
WBAG:AAL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 18 Analysts 11%
WBAG:AAL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 18 Analysts 3.7%
Europe Airlines Industry Earnings Growth Rate Market Cap Weighted Average 13%
Europe Airlines Industry Revenue Growth Rate Market Cap Weighted Average 6%
Austria Market Earnings Growth Rate Market Cap Weighted Average 8.7%
Austria Market Revenue Growth Rate Market Cap Weighted Average 3.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
WBAG:AAL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
WBAG:AAL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 50,640 5,722 2,752 1
2021-12-31 49,834 5,651 2,557 6
2020-12-31 48,628 5,006 2,483 18
2019-12-31 46,350 4,738 2,196 18
WBAG:AAL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 44,724 3,384 1,438
2018-12-31 44,541 3,533 1,412
2018-09-30 44,214 3,242 483
2018-06-30 43,619 3,690 803
2018-03-31 43,203 4,294 1,101
2017-12-31 42,622 4,744 1,282
2017-09-30 41,800 4,934 2,154
2017-06-30 41,429 5,629 2,230
2017-03-31 40,565 6,154 2,316
2016-12-31 40,142 6,524 2,584
2016-09-30 40,021 6,125 5,668
2016-06-30 40,134 6,241 6,624

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • American Airlines Group's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • American Airlines Group's revenue is expected to grow by 3.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
WBAG:AAL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below

All data from American Airlines Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:AAL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 13.37 13.37 13.37 1.00
2021-12-31 6.78 9.20 5.40 3.00
2020-12-31 5.80 7.05 4.84 9.00
2019-12-31 4.86 5.28 4.35 8.00
WBAG:AAL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.13
2018-12-31 3.04
2018-09-30 1.03
2018-06-30 1.69
2018-03-31 2.29
2017-12-31 2.62
2017-09-30 4.32
2017-06-30 4.38
2017-03-31 4.40
2016-12-31 4.68
2016-09-30 9.77
2016-06-30 10.78

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • American Airlines Group is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess American Airlines Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
American Airlines Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AAL Past Performance

  How has American Airlines Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare American Airlines Group's growth in the last year to its industry (Airlines).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • American Airlines Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • American Airlines Group's 1-year earnings growth exceeds its 5-year average (30.6% vs -7.6%)
  • American Airlines Group's earnings growth has exceeded the Europe Airlines industry average in the past year (30.6% vs -21.1%).
Earnings and Revenue History
American Airlines Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from American Airlines Group Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

WBAG:AAL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 44,724.00 1,438.00 1,534.00
2018-12-31 44,541.00 1,412.00 1,520.00
2018-09-30 44,214.00 483.00 1,519.00
2018-06-30 43,619.00 803.00 1,524.00
2018-03-31 43,203.00 1,101.00 1,515.00
2017-12-31 42,622.00 1,282.00 1,477.00
2017-09-30 41,800.00 2,154.00 1,427.00
2017-06-30 41,429.00 2,230.00 1,375.00
2017-03-31 40,565.00 2,316.00 1,333.00
2016-12-31 40,142.00 2,584.00 1,323.00
2016-09-30 40,021.00 5,668.00 1,333.00
2016-06-30 40,134.00 6,624.00 1,350.00
2016-03-31 40,598.00 7,378.00 1,366.00
2015-12-31 40,990.00 7,610.00 1,394.00
2015-09-30 41,520.00 4,926.00 1,399.00
2015-06-30 41,953.00 4,175.00 1,426.00
2015-03-31 42,482.00 3,334.00 1,479.00
2014-12-31 42,650.00 2,882.00 1,544.00
2014-09-30 39,827.00 284.00 1,497.00
2014-06-30 35,516.00 -369.00 1,399.00
2014-03-31 30,609.00 -1,013.00 1,269.00
2013-12-31 26,712.00 -1,834.00 1,158.00
2013-09-30 25,312.00 430.00 1,109.00
2013-06-30 24,912.00 -98.00 1,092.00
2013-03-31 24,916.00 -557.00 1,082.00
2012-12-31 24,855.00 -1,876.00 1,058.00
2012-09-30 24,874.00 -3,234.00 1,059.00
2012-06-30 24,822.00 -3,157.00 1,067.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if American Airlines Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • American Airlines Group used its assets less efficiently than the Europe Airlines industry average last year based on Return on Assets.
  • American Airlines Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess American Airlines Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Airlines industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
American Airlines Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AAL Health

 How is American Airlines Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up American Airlines Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • American Airlines Group's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • American Airlines Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of American Airlines Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • American Airlines Group has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from American Airlines Group Company Filings, last reported 2 months ago.

WBAG:AAL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 -636.00 33,444.00 4,349.00
2018-12-31 -169.00 34,029.00 4,760.00
2018-09-30 -568.00 24,767.00 4,855.00
2018-06-30 -869.00 24,076.00 4,674.00
2018-03-31 -1,018.00 24,739.00 5,291.00
2017-12-31 -780.00 25,065.00 5,066.00
2017-09-30 3,948.00 24,684.00 5,768.00
2017-06-30 3,715.00 24,859.00 6,886.00
2017-03-31 3,457.00 24,543.00 6,676.00
2016-12-31 3,785.00 24,344.00 6,359.00
2016-09-30 4,391.00 23,343.00 6,755.00
2016-06-30 4,312.00 22,846.00 7,118.00
2016-03-31 4,710.00 21,744.00 6,930.00
2015-12-31 5,635.00 20,561.00 6,254.00
2015-09-30 3,762.00 20,561.00 8,873.00
2015-06-30 3,636.00 18,794.00 8,919.00
2015-03-31 2,764.00 18,922.00 9,173.00
2014-12-31 2,021.00 17,720.00 7,303.00
2014-09-30 4,971.00 17,090.00 7,899.00
2014-06-30 4,086.00 16,728.00 9,459.00
2014-03-31 1,095.00 17,274.00 9,664.00
2013-12-31 -2,731.00 20,632.00 9,251.00
2013-09-30 -7,922.00 11,697.00 6,763.00
2013-06-30 -8,216.00 10,856.00 6,210.00
2013-03-31 -8,376.00 9,505.00 4,244.00
2012-12-31 -7,987.00 9,733.00 3,892.00
2012-09-30 -7,375.00 10,300.00 4,226.00
2012-06-30 -8,968.00 10,679.00 4,980.00
  • American Airlines Group has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if American Airlines Group's debt level has increased considering it has negative shareholder equity.
  • Debt is not well covered by operating cash flow (14.1%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.9x coverage).
X
Financial health checks
We assess American Airlines Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. American Airlines Group has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AAL Dividends

 What is American Airlines Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.22%
Current annual income from American Airlines Group dividends. Estimated to be 1.27% next year.
If you bought €2,000 of American Airlines Group shares you are expected to receive €24 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • American Airlines Group's pays a lower dividend yield than the bottom 25% of dividend payers in Austria (1.42%).
  • American Airlines Group's dividend is below the markets top 25% of dividend payers in Austria (4.45%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
WBAG:AAL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 18 Analyst Estimates (S&P Global) See Below
Europe Airlines Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.5%
Austria Market Average Dividend Yield Market Cap Weighted Average of 51 Stocks 3.6%
Austria Minimum Threshold Dividend Yield 10th Percentile 1.1%
Austria Bottom 25% Dividend Yield 25th Percentile 1.4%
Austria Top 25% Dividend Yield 75th Percentile 4.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

WBAG:AAL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.41 1.00
2021-12-31 0.40 6.00
2020-12-31 0.43 10.00
2019-12-31 0.41 10.00
WBAG:AAL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-26 0.400 1.274
2018-10-25 0.400 1.176
2018-04-26 0.400 1.019
2017-10-26 0.400 0.787
2017-07-28 0.400 0.833
2017-04-27 0.400 0.822
2017-02-22 0.400 0.918
2017-01-27 0.400 0.873
2016-10-20 0.400 0.883
2016-07-22 0.400 1.096
2016-02-03 0.400 1.132
2015-10-23 0.400 0.946
2015-07-24 0.400 0.966
2015-04-24 0.400 0.927
2015-02-25 0.400 0.800
2015-01-27 0.400 0.811
2014-07-24 0.400 0.962

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, American Airlines Group has been paying a dividend for less than 10 years.
  • American Airlines Group has only been paying a dividend for 5 years, and since then there has been no growth.
Current Payout to shareholders
What portion of American Airlines Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (20x coverage).
X
Income/ dividend checks
We assess American Airlines Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can American Airlines Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. American Airlines Group has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AAL Management

 What is the CEO of American Airlines Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Doug Parker
COMPENSATION $11,999,517
AGE 56
TENURE AS CEO 5.5 years
CEO Bio

Mr. William Douglas Parker, also known as Doug, has been the Chief Executive Officer and Chairman of American Airlines, Inc. (US) since 2013. Mr. Parker has been Chief Executive Officer of American Airlines Group Inc. since December 9, 2013 and has been its Chairman since June 03, 2014. He served as the Chief Executive Officer of US Airways Inc., a subsidiary of US Airways Group, Inc. from September 2005 to December 9, 2013. Mr. Parker served as the Chief Executive Officer of US Airways Group Inc. Mr. Parker served as the Chairman, Chief Executive Officer and President of US Airways, LLC, a subsidiary of US Airways Group from September 2001 to September 2007. Mr. Parker served as the Chairman, Chief Executive Officer and President at America West Holdings, a subsidiary of US Airways Group from September 2001 to September 2007. Mr. Parker joined America West Holdings Corp. as the Senior Vice President and Chief Financial Officer in June 1995. Mr. Parker served as the President at US Airways Inc., a subsidiary of US Airways Group Inc. from September 27, 2005 to October 1, 2006 and its Chief Executive Officer from September 2005 to December 2013. He served as an Executive Vice President of America West Holdings Corp. and Executive Vice President of Corporate Group of America West Airlines Inc. (AWA) in April 1999, overseeing the finance, planning and revenue management, sales and marketing, information systems and corporate affairs divisions. His responsibilities were expanded in 1997 to include schedule planning and revenue management. Prior to joining America West, Mr. Parker spent four years with Northwest Airlines as vice president and assistant treasurer and vice president of financial planning and analysis. He served as the President of US Airways Group Inc., from September 2001 to October 1, 2006. He served as the Chief Operating Officer of AWA (AWA is a subsidiary of US Airways Group Inc.) since December 2000. Mr. Parker served as the Chairman of US Airways Group, Inc. and its subsdiary since September 2005. He served as a Unit Chairman of US Airways Group Inc. He served as Chairman at US Airways Inc. since September 2005. He served as a Director of US Airways Group, Inc. since 1999. He has been a Director of American Airlines Group Inc. (US) since December 2013. He serves as a Director of American Airlines, Inc. He served as a Director of Arizona Public Service Co. until February 3, 2012. He served as a Director of Pinnacle West Capital Corporation from November 1, 2007 to February 3, 2012. He served as a Director of Clear Channel Outdoor Holdings Inc. from November 11, 2005 to July 16, 2008. He served as a Director of AWA. Mr. Parker received a Bachelor of Arts degree in Economics from Albion College in 1984 and an MBA from Vanderbilt University in 1986.

CEO Compensation
  • Doug's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Insufficient data for Doug to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure

Average tenure and age of the American Airlines Group management team in years:

5.5
Average Tenure
53
Average Age
  • The average tenure for the American Airlines Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Doug Parker

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
56
TENURE
5.5 yrs

Robert Isom

TITLE
President
COMPENSATION
$7M
AGE
54
TENURE
2.8 yrs

Derek Kerr

TITLE
Executive VP & CFO
COMPENSATION
$4M
AGE
53
TENURE
5.5 yrs

Maya Leibman

TITLE
Executive VP & Chief Information Officer
COMPENSATION
$4M
AGE
51
TENURE
7.4 yrs

Steve Johnson

TITLE
Executive Vice President of Corporate Affairs
COMPENSATION
$4M
AGE
61
TENURE
5.5 yrs

Daniel Cravens

TITLE
Managing Director of Investor Relations

Bruce Wark

TITLE
VP & Deputy General Counsel
TENURE
4.7 yrs

Elise Eberwein

TITLE
Executive Vice President of People & Communications
AGE
52
TENURE
5.5 yrs

Kurt Stache

TITLE
Senior Vice President of Marketing
AGE
51
TENURE
2.8 yrs

Alison Taylor

TITLE
Senior Vice President of Global Sales
TENURE
2.8 yrs
Board of Directors Tenure

Average tenure and age of the American Airlines Group board of directors in years:

5.5
Average Tenure
63.5
Average Age
  • The tenure for the American Airlines Group board of directors is about average.
Board of Directors

Doug Parker

TITLE
Chairman & CEO
COMPENSATION
$12M
AGE
56
TENURE
5 yrs

Ray Robinson

TITLE
Independent Director
COMPENSATION
$306K
AGE
70
TENURE
5.5 yrs

Mike Embler

TITLE
Independent Director
COMPENSATION
$302K
AGE
54
TENURE
5.5 yrs

Matt Hart

TITLE
Independent Director
COMPENSATION
$317K
AGE
66
TENURE
5.5 yrs

Denise O’Leary

TITLE
Independent Director
COMPENSATION
$312K
AGE
60
TENURE
5.5 yrs

John Cahill

TITLE
Lead Independent Director
COMPENSATION
$348K
AGE
61
TENURE
5.5 yrs

Alberto Ibargüen

TITLE
Independent Director
COMPENSATION
$298K
AGE
74
TENURE
5.5 yrs

Jim Albaugh

TITLE
Independent Director
COMPENSATION
$292K
AGE
68
TENURE
5.5 yrs

Jeff Benjamin

TITLE
Independent Director
COMPENSATION
$320K
AGE
57
TENURE
5.5 yrs

Rich Kraemer

TITLE
Independent Director
COMPENSATION
$323K
AGE
74
TENURE
5.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by American Airlines Group insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Jun 19 Buy John Cahill Individual 04. Jun 19 04. Jun 19 25,000 €25.44 €636,111
04. Jun 19 Buy William Parker Individual 04. Jun 19 04. Jun 19 50,000 €24.99 €1,249,392
04. Jun 19 Buy Robert Isom Individual 04. Jun 19 04. Jun 19 15,000 €24.69 €370,338
04. Jun 19 Buy Stephen Johnson Individual 04. Jun 19 04. Jun 19 5,000 €24.66 €123,296
04. Jun 19 Buy Maya Leibman Individual 04. Jun 19 04. Jun 19 5,000 €24.58 €122,912
04. Jun 19 Buy Elise Eberwein Individual 04. Jun 19 04. Jun 19 5,000 €24.70 €123,508
04. Jun 19 Buy Derek Kerr Individual 04. Jun 19 04. Jun 19 5,000 €24.70 €123,508
20. Nov 18 Buy Jeffrey Benjamin Individual 19. Nov 18 19. Nov 18 15,000 €31.16 €467,371
30. Oct 18 Buy John Cahill Individual 29. Oct 18 29. Oct 18 25,000 €29.40 €735,096
X
Management checks
We assess American Airlines Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. American Airlines Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AAL News

Simply Wall St News

AAL Company Info

Description

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. It provides scheduled air transportation services for passengers and cargo. As of December 31, 2018, the company operated a mainline fleet of 956 aircraft. It serves 350 destinations in approximately 50 countries, principally from its hubs in Charlotte, Chicago, Dallas/Fort Worth, London Heathrow, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1934 and is headquartered in Fort Worth, Texas.

Details
Name: American Airlines Group Inc.
AAL
Exchange: WBAG
Founded: 1934
$12,954,109,219
444,835,115
Website: http://www.aa.com
Address: American Airlines Group Inc.
4333 Amon Carter Boulevard,
Fort Worth,
Texas, 76155,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS AAL Common Stock Nasdaq Global Select US USD 09. Dec 2013
DB A1G Common Stock Deutsche Boerse AG DE EUR 09. Dec 2013
LSE 0HE6 Common Stock London Stock Exchange GB USD 09. Dec 2013
SWX A1G Common Stock SIX Swiss Exchange CH CHF 09. Dec 2013
WBAG AAL Common Stock Wiener Boerse AG AT EUR 09. Dec 2013
BMV AAL * Common Stock Bolsa Mexicana de Valores MX MXN 09. Dec 2013
Number of employees
Current staff
Staff numbers
129,800
American Airlines Group employees.
Industry
Airlines
Transportation
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 22:33
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.