| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 5/6 |
| Past Performance | 0/6 |
| Financial Health | 0/6 |
| Dividends | 0/6 |
AAL Stock Overview
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier.
American Airlines Group Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$18.49 |
| 52 Week High | US$26.09 |
| 52 Week Low | US$15.02 |
| Beta | 1.66 |
| 1 Month Change | 9.09% |
| 3 Month Change | -6.80% |
| 1 Year Change | 17.32% |
| 3 Year Change | -45.57% |
| 5 Year Change | -61.48% |
| Change since IPO | -24.84% |
Recent News & Updates
American Airlines Has A Balance Sheet Problem
Owning equity in American Airlines is riskier than investors might think. The additional debt issued since 2020 is going to be a problem for years. Enterprise value is currently higher than it was pre-pandemic. Omicron variant poses new risks. Bearish on American Airlines common equity, target price $13/share.
American Airlines: Buy For The Long Haul
The new Covid strain out of South Africa is already impacting the AAL stock without knowing very much about the variant; the stock could be oversold. Leisure travel has recovered to pre-Covid levels, just waiting on business travel to return, which could happen over the next 12-24 months. Debt reduction will continue as CapEx will remain low due to good fleet management over the last 10 years.
An Intrinsic Calculation For American Airlines Group Inc. (NASDAQ:AAL) Suggests It's 42% Undervalued
In this article we are going to estimate the intrinsic value of American Airlines Group Inc. ( NASDAQ:AAL ) by taking...
Shareholder Returns
| AAL | US Airlines | US Market | |
|---|---|---|---|
| 7D | -4.1% | -1.0% | -0.5% |
| 1Y | 17.3% | -4.6% | 13.7% |
Return vs Industry: AAL exceeded the US Airlines industry which returned -4.6% over the past year.
Return vs Market: AAL exceeded the US Market which returned 13.7% over the past year.
Price Volatility
| AAL volatility | |
|---|---|
| AAL Average Weekly Movement | 6.9% |
| Airlines Industry Average Movement | 6.4% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: AAL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: AAL's weekly volatility (7%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1930 | 119,800 | Doug Parker | https://www.aa.com |
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, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Madrid, Seattle/Tacoma, Sydney, and Tokyo. As of December 31, 2020, it operated a mainline fleet of 855 aircraft.
American Airlines Group Fundamentals Summary
| AAL fundamental statistics | |
|---|---|
| Market Cap | US$11.97b |
| Earnings (TTM) | -US$3.24b |
| Revenue (TTM) | US$24.48b |
0.5x
P/S Ratio-3.7x
P/E RatioIs AAL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| AAL income statement (TTM) | |
|---|---|
| Revenue | US$24.48b |
| Cost of Revenue | US$25.60b |
| Gross Profit | -US$1.11b |
| Expenses | US$2.13b |
| Earnings | -US$3.24b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 20, 2022
| Earnings per share (EPS) | -5.00 |
| Gross Margin | -4.54% |
| Net Profit Margin | -13.23% |
| Debt/Equity Ratio | -509.3% |
How did AAL perform over the long term?
See historical performance and comparisonValuation
Is American Airlines Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AAL ($18.49) is trading below our estimate of fair value ($48.64)
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 US 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?
74.6%
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 (15.9% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: AAL's revenue (15.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AAL's Return on Equity is forecast to be very high in 3 years time (150.1%).
Past Performance
How has American Airlines Group performed over the past 5 years?
-69.8%
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 69.8% 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 (48%).
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?
0.19%
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?
7.3yrs
Average management tenure
CEO
Doug Parker (59 yo)
8.08yrs
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 ($USD11.18M).
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 (7.3 years average tenure).
Board Members
Experienced Board: AAL's board of directors are considered experienced (8.1 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 diluted in the past year, with total shares outstanding growing by 6%.
Top Shareholders
Company Information
American Airlines Group Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: American Airlines Group Inc.
- Ticker: AAL
- Exchange: NasdaqGS
- Founded: 1930
- Industry: Airlines
- Sector: Transportation
- Implied Market Cap: US$11.972b
- Shares outstanding: 647.48m
- Website: https://www.aa.com
Number of Employees
Location
- American Airlines Group Inc.
- 1 Skyview Drive
- Fort Worth
- Texas
- 76155
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:01 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
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.