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United Airlines Holdings Inc UAL

Morningstar Rating
$47.88 +0.64 (1.35%)
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Company Report

United Has Parlayed Its Network and Cabin Segmentation to Establish Its Premium Bona Fides

Before the pandemic, much of United Airline's strategy focused on cutting costs to expand margins, which averaged 10.6% between 2015 and 2019. In 2021-22, United announced a series of aircraft orders for up to 200 Boeing 787 Dreamliners and 500 narrow-body aircraft to join its fleet by 2032. The strategy is to replace less-efficient and smaller jets to radically increase the average number of seats United can sell on an average flight, with more premium seats and legroom for those willing to pay up, and plenty of cheap seats that the company can sell to more leisurely travelers and compete with lower-cost airlines on many of its routes.

Price vs Fair Value

UAL is trading at a 18% premium.
Price
$44.89
Fair Value
$44.00
Uncertainty
High
1-Star Price
$56.60
5-Star Price
$34.50
Economic Moat
Nqpq
Capital Allocation
Gbcmdplr

Bulls Say, Bears Say

Bulls

The United Next strategy will boost capacity and drive stronger profitability with more efficient planes.

Bears

United's debt burden and fleet investment plans mean shareholders won't likely see buybacks for a while.

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News

Trading Information

Previous Close Price
$47.24
Day Range
$47.11–48.00
52-Week Range
$33.68–58.23
Bid/Ask
$47.83 / $47.84
Market Cap
$15.71 Bil
Volume/Avg
7.6 Mil / 8.6 Mil

Key Statistics

Price/Earnings (Normalized)
4.76
Price/Sales
0.30
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
—

Company Profile

United Airlines is a major U.S. network carrier with hubs in San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. United operates a hub-and-spoke system that is more focused on international and long-haul travel than its large U.S. peers.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Core
Total Number of Employees
102,000

Competitors

Valuation

Metric
UAL
AAL
DAL
Price/Earnings (Normalized)
4.765.817.67
Price/Book Value
1.68—2.77
Price/Sales
0.300.210.53
Price/Cash Flow
2.543.104.74
Price/Earnings
UAL
AAL
DAL

Financial Strength

Metric
UAL
AAL
DAL
Quick Ratio
0.730.440.26
Current Ratio
0.830.620.39
Interest Coverage
2.441.257.72
Quick Ratio
UAL
AAL
DAL

Profitability

Metric
UAL
AAL
DAL
Return on Assets (Normalized)
4.69%2.75%5.49%
Return on Equity (Normalized)
42.22%—48.70%
Return on Invested Capital (Normalized)
9.35%7.97%12.85%
Return on Assets
UAL
AAL
DAL
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Airlines Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
DAL
Delta Air Lines IncKbncsdsvWqqkt$30.8 Bil
RYAAY
Ryanair Holdings PLC ADR—Ncfwd$25.9 Bil
RYAOF
Ryanair Holdings PLC—Jhxyvq$25.9 Bil
LUV
Southwest Airlines CoKxwcydmHnkb$17.4 Bil
AIRYY
Air China Ltd ADR—Gtdj$14.2 Bil
AICAF
Air China Ltd Class H—Wdsml$14.2 Bil
SINGF
Singapore Airlines Ltd—Kxxg$14.1 Bil
SINGY
Singapore Airlines Ltd ADR—Pbjc$14.1 Bil
AAL
American Airlines Group IncDfggctfjWhrk$10.1 Bil

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