American Airlines Group
Market Cap
US$12.3b
Last Updated
2019/10/15 00:16 UTC
Data Sources
Company Financials +
Executive Summary
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier.
Snowflake
Fundamentals
Undervalued with moderate growth potential.
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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
Market Performance
7 Day Return
5.2%
AAL
1.4%
US Airlines
1.3%
US Market
1 Year Return
-17.0%
AAL
1.2%
US Airlines
5.9%
US Market
Return vs Industry: AAL underperformed the US Airlines industry which returned 1.2% over the past year.
Return vs Market: AAL underperformed the US Market which returned 5.9% over the past year.
Shareholder returns
| AAL | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.2% | 1.4% | 1.3% |
| 30 Day | -7.8% | -6.0% | -1.9% |
| 90 Day | -17.0% | -8.3% | -1.8% |
| 1 Year | -16.0%-17.0% | 2.7%1.2% | 8.3%5.9% |
| 3 Year | -27.7%-29.8% | 31.7%26.6% | 45.6%36.2% |
| 5 Year | -23.3%-27.0% | 61.9%52.8% | 66.1%47.9% |
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
1 week ago | Simply Wall St
Here's What American Airlines Group Inc.'s (NASDAQ:AAL) P/E Ratio Is Telling Us3 weeks ago | Simply Wall St
Consider This Before Buying American Airlines Group Inc. (NASDAQ:AAL) For The 1.4% Dividend1 month ago | Simply Wall St
What Kind Of Shareholders Own American Airlines Group Inc. (NASDAQ:AAL)?Valuation
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
Undervalued: AAL ($27.62) is trading below our estimate of fair value ($82.16)
Significantly Undervalued: AAL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AAL is good value based on its PE Ratio (8.1x) compared to the Airlines industry average (8.8x).
PE vs Market: AAL is good value based on its PE Ratio (8.1x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
Low PEG Ratio: AAL is good value based on its PEG Ratio (0.5x)
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.
Next Steps
Future Growth
How is American Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
16.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAL's forecast earnings growth (16.5% per year) is above the savings rate (2.7%).
Earnings vs Market: AAL's earnings (16.5% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: AAL's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAL's revenue (3.8% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: AAL's revenue (3.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: AAL's Return on Equity is forecast to be very high in 3 years time (112.6%).
Next Steps
Past Performance
How has American Airlines Group performed over the past 5 years?
-17.1%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: AAL has become profitable over the past 5 years, growing earnings by -17.1% per year.
Accelerating Growth: AAL's earnings growth over the past year (94.3%) exceeds its 5-year average (-17.1% per year).
Earnings vs Industry: AAL earnings growth over the past year (94.3%) exceeded the Airlines industry -30.9%.
Return on Equity
High ROE: AAL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
ROA vs Industry: AAL's Return on Assets is below or equal to the Airlines industry average last year.
Return on Capital Employed
ROCE Improving: AAL's Return on Capital Employed has declined over the past 3 years.
Next Steps
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 debt is not well covered by operating cash flow (12.3%).
Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (3.9x coverage).
Balance Sheet
Inventory Level: AAL has a high level of physical assets or inventory.
Debt Coverage by Assets: AAL has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Next Steps
Dividend
What is American Airlines Group's current dividend yield, its reliability and sustainability?
1.45%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: AAL's dividend (1.45%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: AAL's dividend (1.45%) is low compared to the top 25% of dividend payers in the US market (3.77%).
Stable Dividend: Whilst dividend payments have been stable, AAL has been paying a dividend for less than 10 years.
Growing Dividend: AAL has only been paying a dividend for 5 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (11.8%), AAL's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AAL's dividends in 3 years are forecast to be thoroughly covered by earnings (5.9% payout ratio).
Next Steps
Management
What is the CEO of American Airlines Group's salary, the management and board of directors tenure and is there insider trading?
5.8yrs
Average management tenure
CEO
Doug Parker (57yo)
5.8yrs
Tenure
US$11,999,517
Compensation
Mr. William Douglas Parker, also known as Doug, has been the Chief Executive Officer and Chairman of American Airlines, Inc. (US) since 2013. Mr. Parker has been Chief Executive Officer of American Airline ...
CEO Compensation Analysis
Compensation vs. Market: Doug's total compensation ($USD12.00M) is about average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.8yrs
Average Tenure
54yo
Average Age
Experienced Management: AAL's management team is seasoned and experienced (5.8 years average tenure).
Board Age and Tenure
5.8yrs
Average Tenure
61.5yo
Average Age
Experienced Board: AAL's board of directors are considered experienced (5.8 years average tenure).
Insider Trading
Insider Buying: AAL insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | President President |
| Shares | 2,500 |
| Max Price | US$26.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 6,930 |
| Max Price | US$29.11 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 4,000 |
| Max Price | US$28.18 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 25,000 |
| Max Price | US$28.60 |
| Entity | Individual |
| Role | President President |
| Shares | 15,000 |
| Max Price | US$27.75 |
| Entity | Individual |
| Role | Chief Executive Officer Chairman & CEO |
| Shares | 50,000 |
| Max Price | US$28.09 |
| Entity | Individual |
| Role | Senior Key Executive Executive Vice President of Corporate Affairs |
| Shares | 5,000 |
| Max Price | US$27.72 |
| Entity | Individual |
| Role | Chief Information Officer Executive VP & Chief Information Officer |
| Shares | 5,000 |
| Max Price | US$27.63 |
| Entity | Individual |
| Role | Head of Corporate Communications Executive Vice President of People & Communications |
| Shares | 5,000 |
| Max Price | US$27.76 |
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 5,000 |
| Max Price | US$27.76 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 15,000 |
| Max Price | US$35.69 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 25,000 |
| Max Price | US$33.47 |
Ownership Breakdown
Management Team
Doug Parker (57yo)
Chairman & CEO
- Tenure: 5.8yrs
- Compensation: US$12.00m
Steve Johnson (62yo)
Executive Vice President of Corporate Affairs
- Tenure: 5.8yrs
- Compensation: US$3.90m
Elise Eberwein (53yo)
Executive Vice President of People & Communications
- Tenure: 5.8yrs
Robert Isom (55yo)
President
- Tenure: 3.2yrs
- Compensation: US$6.69m
Derek Kerr (54yo)
Executive VP & CFO
- Tenure: 5.8yrs
- Compensation: US$3.85m
Kurt Stache (52yo)
Senior Vice President of Marketing
- Tenure: 3.2yrs
Maya Leibman (52yo)
Executive VP & Chief Information Officer
- Tenure: 7.8yrs
- Compensation: US$3.86m
Bruce Wark
VP & Deputy General Counsel
- Tenure: 5yrs
Alison Taylor
Senior Vice President of Global Sales & Distribution
- Tenure: 3.1yrs
Daniel Cravens
Managing Director of Investor Relations
- Tenure: 0yrs
Board Members
Matt Hart (67yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$316.91k
Doug Parker (57yo)
Chairman & CEO
- Tenure: 5.8yrs
- Compensation: US$12.00m
Jim Albaugh (69yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$291.52k
John Cahill (62yo)
Lead Independent Director
- Tenure: 5.8yrs
- Compensation: US$347.89k
Denise O’Leary (61yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$311.75k
Ray Robinson (71yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$306.25k
Jeff Benjamin (58yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$320.35k
Sue Kronick (67yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$308.89k
Mike Embler (55yo)
Independent Director
- Tenure: 5.8yrs
- Compensation: US$302.44k
Marty Nesbitt (57yo)
Independent Director
- Tenure: 3.9yrs
- Compensation: US$321.03k
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: 1934
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$12.296b
- Shares outstanding: 445.27m
- Website: https://www.aa.com
Number of Employees
Location
- American Airlines Group Inc.
- 4333 Amon Carter Boulevard
- Fort Worth
- Texas
- 76155
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AAL | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 2013 |
| AAL * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Dec 2013 |
| A1G | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 2013 |
| AAL | WBAG (Wiener Boerse AG) | Yes | Common Stock | AT | EUR | Dec 2013 |
| A1G | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Dec 2013 |
| 0HE6 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Dec 2013 |
| AALL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1 COM SHS USD1 | BR | BRL | Sep 2016 |
Biography
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 o ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/15 00:16 |
| End of Day Share Price | 2019/10/14 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.