No-moat-rated American Airlines released second-quarter results on July 25 and lowered its financial forecast for the rest of the year. We have lowered our fair value estimate to $12 from $13.10 per share.
American has the youngest fleet among US major airlines, which should limit the growth of fuel and maintenance expenses.
Substantial financial leverage may constrain American's ability to invest aggressively in capacity or return capital to shareholders.
|
Metric
|
AAL
|
LUV
|
UAL
|
|---|---|---|---|
Price/Earnings (Normalized) | 7.47 | 17.24 | 4.91 |
Price/Book Value | — | 1.56 | 1.48 |
Price/Sales | 0.14 | 0.65 | 0.28 |
Price/Cash Flow | 3.80 | 10.64 | 2.77 |
|
Metric
|
AAL
|
LUV
|
UAL
|
|---|---|---|---|
Quick Ratio | 0.43 | 0.97 | 0.68 |
Current Ratio | 0.60 | 1.09 | 0.77 |
Interest Coverage | 0.71 | 0.74 | 2.85 |
|
Metric
|
AAL
|
LUV
|
UAL
|
|---|---|---|---|
Return on Assets (Normalized) | 1.06% | 2.62% | 4.34% |
Return on Equity (Normalized) | — | 9.01% | 34.52% |
Return on Invested Capital (Normalized) | 5.22% | 3.46% | 8.80% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Delta Air Lines Inc
DAL
| Mfckkjzg | Hqbt | $28.5 Bil | |||
| Ryanair Holdings PLC ADR
RYAAY
| — | Ktpwb | $18.2 Bil | |||
| Ryanair Holdings PLC
RYAOF
| — | Jkvzgmc | $18.2 Bil | |||
| Southwest Airlines Co
LUV
| Mxlcxxqr | Mjtr | $16.3 Bil | |||
| United Airlines Holdings Inc
UAL
| Btvsjffv | Fstzq | $15.6 Bil | |||
| Singapore Airlines Ltd
SINGF
| — | Vbwx | $15.4 Bil | |||
| Singapore Airlines Ltd ADR
SINGY
| — | Gddyh | $15.4 Bil | |||
| Air China Ltd Class H
AICAF
| — | Tcx | $13.8 Bil | |||
| LATAM Airlines Group SA ADR
LTM
| — | Cglv | $7.5 Bil |
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