NasdaqGS:UAL

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Undervalued with acceptable track record.


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

Stable Share Price: UAL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

UAL

-11.7%

US Airlines

2.4%

US Market


1 Year Return

-71.0%

UAL

-57.1%

US Airlines

-10.0%

US Market

Return vs Industry: UAL underperformed the US Airlines industry which returned -57.1% over the past year.

Return vs Market: UAL underperformed the US Market which returned -10% over the past year.


Shareholder returns

UALIndustryMarket
7 Day-4.6%-11.7%2.4%
30 Day-47.7%-43.1%-11.0%
90 Day-72.2%-59.4%-19.4%
1 Year-71.0%-71.0%-56.4%-57.1%-8.1%-10.0%
3 Year-65.0%-65.0%-53.6%-55.5%17.3%9.6%
5 Year-59.9%-59.9%-45.4%-48.6%36.1%21.1%

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?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UAL ($24.48) is trading below our estimate of fair value ($26.23)

Significantly Below Fair Value: 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 (2.1x) compared to the Airlines industry average (3.2x).

PE vs Market: UAL is good value based on its PE Ratio (2.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: UAL is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: UAL is good value based on its PB Ratio (0.5x) compared to the US Airlines industry average (0.6x).


Next Steps

Future Growth

How is United Airlines Holdings forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

13.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UAL's forecast earnings growth (13% per year) is above the savings rate (1.7%).

Earnings vs Market: UAL's earnings (13% per year) are forecast to grow slower than the US market (13.3% per year).

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

Revenue vs Market: UAL's revenue (1.4% per year) is forecast to grow slower than the US market (7% per year).

High Growth Revenue: UAL's revenue (1.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: UAL's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

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

-13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UAL has high quality earnings.

Growing Profit Margin: UAL's current net profit margins (7%) are higher than last year (5.1%).


Past Earnings Growth Analysis

Earnings Trend: UAL's earnings have declined by -13.4% per year over the past 5 years.

Accelerating Growth: UAL's earnings growth over the past year (41.8%) exceeds its 5-year average (-13.4% per year).

Earnings vs Industry: UAL earnings growth over the past year (41.8%) underperformed the Airlines industry 41.8%.


Return on Equity

High ROE: Whilst UAL's Return on Equity (26.09%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is United Airlines Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: UAL's short term assets ($8.2B) do not cover its short term liabilities ($14.9B).

Long Term Liabilities: UAL's short term assets ($8.2B) do not cover its long term liabilities ($26.1B).


Debt to Equity History and Analysis

Debt Level: UAL's debt to equity ratio (126.2%) is considered high.

Reducing Debt: UAL's debt to equity ratio has reduced from 469% to 126.2% over the past 5 years.

Debt Coverage: UAL's debt is well covered by operating cash flow (47.5%).

Interest Coverage: UAL's interest payments on its debt are well covered by EBIT (8.9x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

2.9yrs

Average management tenure


CEO

Oscar Munoz (60yo)

4.58s

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 ($USD10.49M) is above average for companies of similar size in the US market ($USD7.52M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Oscar Munoz
CEO & Director4.58yrsUS$10.49m0.10% $6.1m
J. Kirby
President3.67yrsUS$5.46m0.062% $3.8m
Gerald Laderman
Executive VP & CFO1.92yrsUS$2.56m0.025% $1.5m
Gregory Hart
Executive VP & COO6.17yrsUS$3.72m0.011% $659.8k
Brett Hart
Executive VP2.92yrsUS$3.40m0.034% $2.1m
Linda Jojo
Executive VP of Technology & Chief Digital Officer2.92yrsno data0.011% $673.8k
Michael Leskinen
Vice President of Corporate Development & Investor Relationsno datano datano data
Josh Earnest
Senior VP & Chief Communications Officer1.92yrsno datano data
David Hilfman
Senior Vice President of Worldwide Salesno datano datano data
Kate Gebo
Executive Vice President of Human Resources & Labor Relationsno datano data0.011% $645.2k

2.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: UAL's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Oscar Munoz
CEO & Director4.58yrsUS$10.49m0.10% $6.1m
David Vitale
Independent Director14.17yrsUS$318.73k0.0070% $427.9k
Edward Philip
Former Lead Independent Director3.75yrsUS$344.61k0.0021% $125.0k
Walter Isaacson
Independent Director14.17yrsUS$328.86k0.0059% $357.5k
James Whitehurst
Independent Director4.08yrsUS$312.26k0.0054% $330.8k
Jane Garvey
Non Executive Chairman1.92yrsUS$477.03k0.0024% $146.9k
James Kennedy
Independent Director4.08yrsUS$330.32k0.0031% $189.4k
Carolyn Corvi
Independent Director10.25yrsUS$311.70k0.0060% $361.2k
Todd Insler
Director4.08yrsUS$25.03kno data
Sito Pantoja
Director4.08yrsUS$40.31kno data

4.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: UAL's board of directors are considered experienced (4.1 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.070b
  • Shares outstanding: 247.95m
  • 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
UAL1BRSE (Berne Stock Exchange)YesCommon StockCHCHFJan 2006
U1AL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 2 COMBRBRLDec 2019

Biography

United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. It transports people and cargo through its mainline and regional fleets. As of February 28, 2020, the company operated approximately 791 mainline aircraft. It also sells fuel; and offers catering, ground handling, and maintenance services for third parties. The company was formerly known as United Continental Holdings, Inc. and changed its name to United Airlines Holdings, Inc. in June 2019. United Airlines Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 05:09
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.