NasdaqGS:AAL

Stock Analysis Report

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Market Cap

US$14.7b

Last Updated

2021/06/15 07:12 UTC

Data Sources

Company Financials +

Executive Summary

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has American Airlines Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AAL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AAL's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-5.1%

AAL

-2.2%

US Airlines

0.8%

US Market


1 Year Return

35.0%

AAL

55.5%

US Airlines

43.1%

US Market

Return vs Industry: AAL underperformed the US Airlines industry which returned 55.5% over the past year.

Return vs Market: AAL underperformed the US Market which returned 43.1% over the past year.


Shareholder returns

AALIndustryMarket
7 Day-5.1%-2.2%0.8%
30 Day2.6%-5.0%3.0%
90 Day-8.6%-8.4%4.8%
1 Year35.0%35.0%55.5%55.5%45.5%43.1%
3 Year-43.4%-44.6%-3.9%-5.5%60.2%50.3%
5 Year-20.3%-23.4%31.4%27.3%126.4%101.0%

Long-Term Price Volatility Vs. Market

How volatile is American Airlines Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is American Airlines Group undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AAL ($22.99) is trading below our estimate of fair value ($40.94)

Significantly Below Fair Value: AAL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AAL is unprofitable, so we can't compare its PE Ratio to the Global Airlines industry average.

PE vs Market: AAL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AAL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AAL has negative assets, so we can't compare its PB Ratio to the US Airlines industry average.


Future Growth

How is American Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

68.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: AAL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AAL's is expected to become profitable in the next 3 years.

Revenue vs Market: AAL's revenue (19.6% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: AAL's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AAL's Return on Equity is forecast to be high in 3 years time


Past Performance

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

-72.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AAL is currently unprofitable.

Growing Profit Margin: AAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AAL is unprofitable, and losses have increased over the past 5 years at a rate of 72.9% per year.

Accelerating Growth: Unable to compare AAL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AAL is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (10.3%).


Return on Equity

High ROE: AAL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is American Airlines Group's financial position?


Financial Position Analysis

Short Term Liabilities: AAL has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: AAL has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: AAL has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: AAL's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: AAL's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AAL's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

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

0.036%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate AAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AAL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AAL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AAL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: AAL is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AAL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.1yrs

Average management tenure


CEO

Doug Parker (58 yo)

7.5yrs

Tenure

US$10,663,866

Compensation

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 Airline...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD10.66M) is about average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: AAL's management team is seasoned and experienced (7.1 years average tenure).


Board Members

Experienced Board: AAL's board of directors are considered experienced (7.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 51.7%.


Top Shareholders

Company Information

American Airlines Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: American Airlines Group Inc.
  • Ticker: AAL
  • Exchange: NasdaqGS
  • Founded: 1930
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$14.745b
  • Shares outstanding: 641.38m
  • Website: https://www.aa.com

Number of Employees


Location

  • American Airlines Group Inc.
  • 1 Skyview Drive
  • Fort Worth
  • Texas
  • 76155
  • United States

Listings


Biography

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 07:12
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.