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American Airlines Group Inc AAL

Morningstar Rating
$13.88 −0.25 (1.77%)
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Company Report

American Airlines Earnings: We See Costs Overshadowing Market Share This Year; Fair Value Up 6%

American Airlines released first-quarter results on April 25, and we have raised our fair value estimate by $0.80 per share to $13.10, predominantly due to the time value of money. Our no-moat rating is intact. A few adjustments to our fair value estimate resulting from the company's beefed-up capital spending plan for aircraft and truing up its pension obligations were offset by a more straightforward reflection of the value of its deferred tax obligations.

Price vs Fair Value

AAL is trading at a 16% premium.
Price
$14.23
Fair Value
$47.90
Uncertainty
High
1-Star Price
$44.99
5-Star Price
$8.18
Economic Moat
Pggp
Capital Allocation
Mvhcbsgy

Bulls Say, Bears Say

Bulls

American has the youngest fleet among US major airlines, which should limit the growth of fuel and maintenance expenses.

Bears

Substantial financial leverage may constrain American's ability to invest aggressively in capacity or return capital to shareholders.

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News

Trading Information

Previous Close Price
$14.13
Day Range
$13.6414.09
52-Week Range
$10.8619.08
Bid/Ask
$13.82 / $13.85
Market Cap
$9.11 Bil
Volume/Avg
36.5 Mil / 31.0 Mil

Key Statistics

Price/Earnings (Normalized)
6.17
Price/Sales
0.19
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

American Airlines is the world’s largest airline by aircraft, capacity, and scheduled revenue passenger miles. Its major US hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It generates over 30% of US airline revenue connecting Latin America with destinations in the United States. After completing a major fleet renewal, the company has the youngest fleet of US legacy carriers.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Core
Total Number of Employees
132,100

Competitors

Valuation

Metric
AAL
LUV
UAL
Price/Earnings (Normalized)
6.1718.665.02
Price/Book Value
1.661.89
Price/Sales
0.190.720.32
Price/Cash Flow
3.779.792.65
Price/Earnings
AAL
LUV
UAL

Financial Strength

Metric
AAL
LUV
UAL
Quick Ratio
0.440.970.73
Current Ratio
0.621.090.83
Interest Coverage
1.250.742.44
Quick Ratio
AAL
LUV
UAL

Profitability

Metric
AAL
LUV
UAL
Return on Assets (Normalized)
1.90%2.71%4.69%
Return on Equity (Normalized)
9.19%42.22%
Return on Invested Capital (Normalized)
6.45%3.63%9.35%
Return on Assets
AAL
LUV
UAL
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Airlines Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
DAL
Delta Air Lines IncYybjmczNgqw$32.2 Bil
RYAAY
Ryanair Holdings PLC ADRXffvsbx$24.6 Bil
UAL
United Airlines Holdings IncDnyzkqnlKfy$17.8 Bil
LUV
Southwest Airlines CoNqjtvssGrm$16.2 Bil
AICAF
Air China Ltd Class HNhzs$14.9 Bil
AIRYY
Air China Ltd ADRBnjts$14.9 Bil
SINGF
Singapore Airlines LtdQzv$14.3 Bil
SINGY
Singapore Airlines Ltd ADRYfyp$14.3 Bil
TKHVY
Turk Hava Yollari AO ADRJbqyp$13.3 Bil

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