American Airlines Group
Market Cap
US$12.5b
Last Updated
2020/02/19 01:31 UTC
Data Sources
Company Financials +
Executive Summary
American Airlines Group Inc., through its subsidiaries, operates as a network air carrier.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with limited growth.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-6.0%
AAL
-1.2%
US Airlines
0.06%
US Market
1 Year Return
-18.3%
AAL
5.2%
US Airlines
19.4%
US Market
Return vs Industry: AAL underperformed the US Airlines industry which returned 3.5% over the past year.
Return vs Market: AAL underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| AAL | Industry | Market | |
|---|---|---|---|
| 7 Day | -6.0% | -1.2% | 0.06% |
| 30 Day | 0.8% | -2.7% | 1.1% |
| 90 Day | 2.5% | 0.4% | 8.9% |
| 1 Year | -17.2%-18.3% | 7.0%5.2% | 21.9%19.4% |
| 3 Year | -36.2%-38.2% | 5.9%1.6% | 48.9%39.3% |
| 5 Year | -39.4%-42.4% | 26.2%18.9% | 71.9%53.1% |
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
Who Has Been Buying American Airlines Group Inc. (NASDAQ:AAL) Shares?2 weeks ago | Simply Wall St
American Airlines Group Inc. (NASDAQ:AAL) Is About To Go Ex-Dividend, And It Pays A 1.5% Yield3 weeks ago | Simply Wall St
Is It Too Late To Consider Buying 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
Below Fair Value: AAL ($29.2) is trading below our estimate of fair value ($64.41)
Significantly Below Fair Value: 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 (7.7x) compared to the Airlines industry average (8.8x).
PE vs Market: AAL is good value based on its PE Ratio (7.7x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: AAL is good value based on its PEG Ratio (0.7x)
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 17 analysts?
11.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AAL's forecast earnings growth (11.4% per year) is above the savings rate (1.7%).
Earnings vs Market: AAL's earnings (11.4% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: AAL's earnings are forecast to grow, but not significantly.
Revenue vs Market: AAL's revenue (3.9% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: AAL's revenue (3.9% 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 high in 3 years time (35.1%)
Next Steps
Past Performance
How has American Airlines Group performed over the past 5 years?
-31.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AAL has a large one-off loss of $644.0M impacting its December 31 2019 financial results.
Growing Profit Margin: AAL's current net profit margins (3.7%) are higher than last year (3.2%).
Past Earnings Growth Analysis
Earnings Trend: AAL's earnings have declined by -31.8% per year over the past 5 years.
Accelerating Growth: AAL's earnings growth over the past year (19.4%) exceeds its 5-year average (-31.8% per year).
Earnings vs Industry: AAL earnings growth over the past year (19.4%) underperformed the Airlines industry 41.3%.
Return on Equity
High ROE: AAL's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
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 (16.2%).
Interest Coverage: AAL's interest payments on its debt are well covered by EBIT (3.8x 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?
1.40%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AAL's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: AAL's dividend (1.37%) is low compared to the top 25% of dividend payers in the US market (3.69%).
Stability and Growth of Payments
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 6 years, and since then payments have not increased.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.5%), 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 (6.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.2yrs
Average management tenure
CEO
Doug Parker (57yo)
6.2yrs
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 ($USD10.78M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.2yrs | US$12.00m | 0.50% $63.0m | |
| President | 3.5yrs | US$6.69m | 0.17% $21.9m | |
| Executive VP & CFO | 6.2yrs | US$3.85m | 0.12% $14.8m | |
| Executive VP & Chief Information Officer | 8.1yrs | US$3.86m | 0.057% $7.2m | |
| Executive Vice President of Corporate Affairs | 6.2yrs | US$3.90m | 0.14% $17.8m | |
| Senior Vice President of Operations | 0.2yrs | no data | no data | |
| Managing Director of Investor Relations | 0yrs | no data | no data | |
| VP & Deputy General Counsel | 5.3yrs | no data | no data | |
| Executive Vice President of People & Communications | 6.2yrs | no data | 0.091% $11.4m | |
| Senior Vice President of Global Sales & Distribution | 3.4yrs | no data | no data |
6.2yrs
Average Tenure
54.5yo
Average Age
Experienced Management: AAL's management team is seasoned and experienced (6.2 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 6.2yrs | US$12.00m | 0.50% $63.0m | |
| Independent Director | 6.2yrs | US$316.91k | 0.0084% $1.1m | |
| Independent Director | 6.2yrs | US$291.52k | 0.0082% $1.0m | |
| Lead Independent Director | 6.2yrs | US$347.89k | 0.022% $2.8m | |
| Independent Director | 6.2yrs | US$311.75k | 0.020% $2.5m | |
| Independent Director | 6.2yrs | US$306.25k | 0.0057% $713.6k | |
| Independent Director | 6.2yrs | US$320.35k | 0.016% $2.1m | |
| Independent Director | 4.3yrs | US$308.89k | 0.0029% $370.0k | |
| Independent Director | 6.2yrs | US$302.44k | 0.0060% $748.7k | |
| Independent Director | 4.3yrs | US$321.03k | 0.0029% $370.0k |
6.2yrs
Average Tenure
61.5yo
Average Age
Experienced Board: AAL's board of directors are considered experienced (6.2 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
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: 1934
- Industry: Airlines
- Sector: Transportation
- Market Cap: US$12.542b
- Shares outstanding: 438.06m
- Website: https://www.aa.com
Number of Employees
Location
- American Airlines Group Inc.
- 1 Skyview Drive
- 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 |
| A1G | XTRA (XETRA Trading Platform) | 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 |
| A1G | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 01:31 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.