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American Airlines Group Inc AAL

Morningstar Rating
$15.13 −0.11 (0.72%)
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Company Report

American Airlines Earnings: Margins Grew in 2023, Giving Some Leeway; Fair Value Up 17%

After reviewing 2023 results, we've raised our fair value estimate for American Airlines to $12.30 per share from $10.50. The primary driver of this increase was a stabilization of American's cost structure, augmented by overall revenue growth. Though the company grew revenue faster than costs, benefiting its bottom line and providing a buffer of sorts should industry conditions soften, we will keep an eye on American's ability to fill its planes—we noted the airline didn't fill as many seats in 2023 as we had expected, but it managed to garner more revenue per seat than we had forecast.

Price vs Fair Value

AAL is trading at a 23% premium.
Price
$15.13
Fair Value
$73.70
Uncertainty
High
1-Star Price
$49.13
5-Star Price
$1.27
Economic Moat
Vss
Capital Allocation
Jykmcnbg

Bulls Say, Bears Say

Bulls

American has the youngest fleet among U.S. 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
$15.24
Day Range
$14.9515.29
52-Week Range
$10.8619.08
Bid/Ask
$15.10 / $15.12
Market Cap
$9.91 Bil
Volume/Avg
22.9 Mil / 34.5 Mil

Key Statistics

Price/Earnings (Normalized)
4.22
Price/Sales
0.20
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 U.S. hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It generates over 30% of U.S. airline revenue connecting Latin America with destinations in the United States. After completing a major fleet renewal, the company has the youngest fleet of U.S. legacy carriers.
Sector
Industrials
Industry
Airlines
Stock Style Box
Mid Value
Total Number of Employees
132,100

Competitors

Valuation

Metric
AAL
AC
UAL
Price/Earnings (Normalized)
4.224.614.08
Price/Book Value
12.371.51
Price/Sales
0.200.330.26
Price/Cash Flow
2.812.032.06
Price/Earnings
AAL
AC
UAL

Financial Strength

Metric
AAL
AC
UAL
Quick Ratio
0.440.970.78
Current Ratio
0.621.030.89
Interest Coverage
1.252.932.66
Quick Ratio
AAL
AC
UAL

Profitability

Metric
AAL
AC
UAL
Return on Assets (Normalized)
2.75%6.43%4.95%
Return on Equity (Normalized)
49.92%
Return on Invested Capital (Normalized)
7.97%15.83%9.92%
Return on Assets
AAL
AC
UAL
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Airlines Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
DAL
Delta Air Lines IncHdf$26.8 Bil
RYAAY
Ryanair Holdings PLC ADRJscq$25.2 Bil
RYAOF
Ryanair Holdings PLCDvmw$25.2 Bil
LUV
Southwest Airlines CoYycyn$20.2 Bil
AIRYY
Air China Ltd ADRMjjyl$14.9 Bil
AICAF
Air China Ltd Class HBfb$14.9 Bil
UAL
United Airlines Holdings IncYtbw$14.9 Bil
SINGF
Singapore Airlines LtdPwwj$14.5 Bil
SINGY
Singapore Airlines Ltd ADRYwqg$14.5 Bil

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