NasdaqGS:UAL

Stock Analysis Report

Executive Summary

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, the Middle East, and Latin America.

Snowflake

Fundamentals

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.4%

UAL

1.3%

US Airlines

0.4%

US Market


1 Year Return

3.0%

UAL

-0.4%

US Airlines

6.9%

US Market

Return vs Industry: UAL exceeded the US Airlines industry which returned -0.4% over the past year.

Return vs Market: UAL underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

UALIndustryMarket
7 Day3.4%1.3%0.4%
30 Day0.7%-3.0%-1.1%
90 Day-4.0%-5.3%-0.5%
1 Year3.0%3.0%1.0%-0.4%9.3%6.9%
3 Year62.0%62.0%28.4%23.4%45.8%36.4%
5 Year81.6%81.6%54.4%45.5%62.9%45.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is United Airlines Holdings undervalued compared to its fair value and its price relative to the market?

34.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: UAL ($90.09) is trading below our estimate of fair value ($136.82)

Significantly Undervalued: UAL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: UAL is good value based on its PE Ratio (8.4x) compared to the Airlines industry average (8.7x).

PE vs Market: UAL is good value based on its PE Ratio (8.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: UAL is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: UAL is overvalued based on its PB Ratio (2x) compared to the US Airlines industry average (1.7x).


Next Steps

Future Growth

How is United Airlines Holdings forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

3.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UAL's forecast earnings growth (3.4% per year) is above the savings rate (2.7%).

Earnings vs Market: UAL's earnings (3.4% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: UAL's earnings are forecast to grow, but not significantly.

Revenue vs Market: UAL's revenue (5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: UAL's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: UAL's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has United Airlines Holdings performed over the past 5 years?

-10.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: UAL's earnings have declined by -10.2% per year over the past 5 years.

Accelerating Growth: UAL's earnings growth over the past year (26.6%) exceeds its 5-year average (-10.2% per year).

Earnings vs Industry: UAL earnings growth over the past year (26.6%) exceeded the Airlines industry -30.9%.


Return on Equity

High ROE: Whilst UAL's Return on Equity (25.1%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: UAL's Return on Assets is below or equal to the Airlines industry average last year.


Return on Capital Employed

ROCE Improving: UAL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is United Airlines Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UAL's short term assets ($8.5B) do not cover its short term liabilities ($15.7B)

Long Term Liabilities: UAL's short term assets (8.5B) do not cover its long term liabilities (25.2B)


Debt to Equity History and Analysis

Debt Level: UAL's debt to equity ratio (125.1%) is considered high

Reducing Debt: UAL's debt to equity ratio has reduced from 294.4% to 125.1% over the past 5 years.

Debt Coverage: UAL's debt is well covered by operating cash flow (48.6%).

Interest Coverage: UAL's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

Inventory Level: UAL has a high level of physical assets or inventory.

Debt Coverage by Assets: UAL's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is United Airlines Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Oscar Munoz (60yo)

4.1yrs

Tenure

US$10,493,832

Compensation

Mr. Oscar Munoz has been the Chief Executive Officer of United Continental Holdings, Inc. and United Airlines, Inc. since September 8, 2015. Mr. Munoz served as President of United Airlines, Inc. and Unite ...


CEO Compensation Analysis

Compensation vs. Market: Oscar's total compensation ($USD10.49M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

2.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: UAL's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: UAL's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: UAL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$820,00016 Aug 19
Edward Shapiro
EntityIndividual
Shares10,000
Max PriceUS$82.00
SellUS$467,41531 Jul 19
Gregory Hart
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares5,000
Max PriceUS$93.48
SellUS$448,30002 May 19
Gregory Hart
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares5,000
Max PriceUS$89.66
BuyUS$1,321,25010 Dec 18
Edward Shapiro
EntityIndividual
Shares15,000
Max PriceUS$88.08
BuyUS$2,776,99507 Dec 18
Edward Shapiro
EntityIndividual
Shares30,000
Max PriceUS$92.92

Ownership Breakdown


Management Team

  • J. Kirby (52yo)

    President

    • Tenure: 3.2yrs
    • Compensation: US$5.46m
  • Gerry Laderman (61yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$2.56m
  • Oscar Munoz (60yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: US$10.49m
  • Linda Jojo (54yo)

    Executive VP of Technology & Chief Digital Officer

    • Tenure: 2.4yrs
  • Dave Hilfman (58yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 0yrs
  • Brett Hart (49yo)

    Executive VP

    • Tenure: 2.4yrs
    • Compensation: US$3.40m
  • Mike Leskinen

    Managing Director of Investor Relations

    • Tenure: 0yrs
  • Kate Gebo (50yo)

    Executive Vice President of Human Resources & Labor Relations

    • Tenure: 0yrs
  • Greg Hart (53yo)

    Executive VP & COO

    • Tenure: 5.7yrs
    • Compensation: US$3.72m
  • Josh Earnest

    Senior VP & Chief Communications Officer

    • Tenure: 1.4yrs

Board Members

  • David Vitale (73yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$318.73k
  • Ted Philip (54yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$344.61k
  • Walter Isaacson (67yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$328.86k
  • Jim Whitehurst (51yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$312.26k
  • Oscar Munoz (60yo)

    CEO & Director

    • Tenure: 4.1yrs
    • Compensation: US$10.49m
  • Jane Garvey (75yo)

    Non Executive Chairman

    • Tenure: 1.4yrs
    • Compensation: US$477.03k
  • Jim Kennedy (65yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: US$330.32k
  • Carolyn Corvi (67yo)

    Independent Director

    • Tenure: 9.8yrs
    • Compensation: US$311.70k
  • Todd Insler (50yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$25.03k
  • Sito Pantoja (62yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$40.31k

Company Information

United Airlines Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Airlines Holdings, Inc.
  • Ticker: UAL
  • Exchange: NasdaqGS
  • Founded: 1934
  • Industry: Airlines
  • Sector: Transportation
  • Market Cap: US$22.795b
  • Shares outstanding: 253.04m
  • Website: https://www.united.com

Number of Employees


Location

  • United Airlines Holdings, Inc.
  • 233 South Wacker Drive
  • Chicago
  • Illinois
  • 60606
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
UALNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2006
UAL1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2006
UAL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2006
0LIULSE (London Stock Exchange)YesCommon StockGBUSDJan 2006

Biography

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, the Middle East, and Latin America. It transports people and cargo through its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:59
End of Day Share Price2019/10/18 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.