NYSE and AMEX data is at least 20 minutes delayed. Copyright 2022 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time.
For retailers, a ROA % of higher than 5% is expected. Earnings vs Industry: AAL is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (61.1%). to the use of, or inability to use, DiscoverCI.com or any content, including, without limitation, any investment Return vs Market: AAL underperformed the US Market which returned -15.4% over the past year. (10%) has been stable over the past year. It helps to project a fair market value of Ford stock properly, considering its historical, Today, most investors in American Airlines Stock are looking for. 2022 was -9.77%. A critical piece of transporting high bandwidth speeds across large business environments. Access 4000+ stock metrics covering valuations, financials, risk, returns and more. For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company.
The lowest was -14.57%. Is a Surprise Coming for American Airlines (AAL) This Earnings Season? Earnings Before Interest Taxes and Depreciation Amortization EBITDA, Earnings Before Interest Taxes and Depreciation Amortization USD, Net Current Assets as percentage of Total Assets, Net Cash Flow or Change in Cash and Cash Equivalents, Payment of Dividends and Other Cash Distributions, Net Cash Flow Investment Acquisitions and Disposals, Selling General and Administrative Expense. From December 31st, 2010 to June 30th, 2022, American Airlines Group Inc's average return on equity (roe) was The other legacy peers have similarly large PP&E amounts. Compensation vs Earnings: Robert's compensation has been consistent with company performance over the past year. USD |
We help investors to determine the real value of American Airlines using virtually all public information available. We can increase the efficiency in which information is shared across your organization, saving you time and money. How is American Airlines Group forecast to perform in the next 1 to 3 years based on estimates from 17 analysts? Growing Profit Margin: AAL is currently unprofitable.
This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data.
You can manage your stock email alerts here. Quality Dividend Growth ETF (DNL) a Strong ETF Right Now? Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. Factors like these will boost. American, as a global carrier, is experiencing a surge of international demand. Return vs Industry: AAL underperformed the US Airlines industry which returned -25.2% over the past year. Other cables have limitations on how far they can carry bandwidth. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. Consequently, we rate AAL as a Buy, with a near-term price target ((PT)) of $17, implying a potential upside of about 17% (as of July 18's close). The stock trades at only 6.5x '23 EPS targets with an easy path to growth from simply paying down debt mostly via reducing the cash balance. In 2019 dollars, the average fare has fallen from $695 in 1979 to only $297 last year.
About Us | AAL is not paying a notable dividend for the US market. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. of the use of any product, content or other material published or available on DiscoverCI.com, or relating There are constraints around pilots from a mainline perspective. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Coupled with the worsening macro headwinds, high inflation environment, and surging energy costs, the market has also battered AAL. If the correlation is 0, the equities are not correlated; they are entirely random. FORTH WORTH TX 76155, MEDTRONIC INC 710 MEDTRONIC PKWY, MS LC310 MINNEAPOLIS MN 55432-5604, C/O THE BOEING COMPANY 100 NORTH RIVERSIDE PLAZA CHICAGO IL 60606, C/O LYONDELLBASELL INDUSTRIES N V DELFTSEPLEIN 27E ROTTERDAM P7 3013AA. Visit Performance Disclosure for information about the performance numbers displayed above. In calculating the quarterly data, Its adjusted EBIT margins are also expected to recover to 7.7%. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. In essence, fares aren't a huge expense these days. Note that "N/A" values will not show up in the chart. AAL has been successfully added to your Stock Email Alerts list. See rankings and related performance below. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. Unless specified all financial data is based on a yearly period but updated quarterly. 22.75, American Airlines Group Inc's return on equity (roe) during the Trailing Twelve Month (TTM) period was $20.50. For example, a company with an ROA of 20% means it's generating 20 cents of earnings for every $1 of invested capital. decreased from Thinking about buying stock in Sonnet BioTherapeutics, VEON, Hycroft Mining, Tencent Music Entertainment, or American Airlines? This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service. ROA %s can vary drastically across industries. Stable Share Price: AAL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week. This metric is important because it gives an idea of how efficiently a business is being run in using assets and generating income. Management also highlighted in an early June conference the challenges with its capacity. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage. Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means.
22.75 Is AAL undervalued compared to its fair value, analyst forecasts and its price relative to the market? Consensus price target down from US$20.37 to US$19.22.
1316 Lakewood Ave SE, Suite L-1 However, if energy costs and inflation fell over the next two years, it could help lift the company's profitability margins. American Airlines Group's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as: American Airlines Group's annualized ROA % for the quarter that ended in Mar. Which metric is best to use when looking at relative valuation for AAL? Neither American nor JetBlue might be the best airline investments. Researching stocks has never been so easy or insightful as with the ZER Analyst and Snapshot reports. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Is WisdomTree Global exU.S. Zacks Ranks stocks can, and often do, change throughout the month. This alleviates many unforseen issues and coordination conflicts, while providing the best product available.
American Airlines clearly has a ton of outstanding debt, but the market always wants to ignore the reason for this debt. 2004-2022 GuruFocus.com, LLC. Not So Burdensome Debt Learn more, See historical performance and comparison. the Net Income data used here is four times the quarterly (Mar. Who are the major shareholders and have insiders been buying or selling? We know that there are constraints out there in terms of aircraft. Significantly Below Fair Value: AAL is trading below fair value by more than 20%. AAL is trading below fair value by more than 20%. AAL is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).
For the Transportation industry and Industrials sector, American Airlines Group's ROA % distribution charts can be found below: * The bar in red indicates where American Airlines Group's ROA % falls into. Uptime Authority is proud to offer our superior customer service and skill to all of the Southeast. Source: American Airlines 8-K Zacks Rank Education -- Learn more about the Zacks Rank E.g. ZacksTrade and Zacks.com are separate companies. High Growth Revenue: AAL's revenue (5% per year) is forecast to grow slower than 20% per year. Stifel also updated in a recent note that it expects the energy markets to come under further pressure, attributed to the increasing likelihood of an economic slowdown. If you do not, click Cancel. than the rest of US stocks over the past 3 months. See why all of our clients are repeat clients with our exceptional service, attention to detail, and workmanship. AAL is good value based on its Price-To-Sales Ratio (0.3x) compared to the US Airlines industry average (0.6x). New target price is 22% above last closing price of US$14.47. Real time prices by BATS. AAL's revenue (5% per year) is forecast to grow slower than the US market (8% per year). Lower interest expenses will feed to higher cash flows. How good is it? Delayed quotes by Sungard. Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months. Past
Consumers could afford 117 round trips with disposable income now versus only 43 back in 1979. About Us
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank. Many analysts argue the higher return the better. 2022) net income data. Earnings Coverage: AAL is not paying a notable dividend for the US market. The firm's major hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. After completing a major fleet renewal, the company has the youngest fleet of U.S. legacy carriers. Therefore, American Airlines Group's annualized ROA % for the quarter that ended in Mar. The sentiments over airline stocks remain discernibly weak, as AAL is still mired in a long-term downtrend. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk ($USD5.00M) is below average for companies of similar size in the US market ($USD8.41M). For the Airlines subindustry, American Airlines Group's ROA %, along with its competitors' market caps and ROA % data, can be viewed below: * Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Learn more about Zacks Equity Research reports.
What is the Fair Price of AAL when looking at its future cash flows? Source: Airlines.org Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. Click here to check it out. Please click on the following links to see related term pages.
Unable to compare AAL's earnings growth over the past year to its 5-year average as it is currently unprofitable. AAL's revenue (5% per year) is forecast to grow slower than 20% per year. Stock quotes provided by InterActive Data. Please enter Portfolio Name for new portfolio. AAL is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x). This can be seen from the Du Pont Formula: Note:
? This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. He served as President of American Airlines Group Inc. since August 29, 2016 until March 31, 2022. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Most of American Airlines' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. My investment thesis remains ultra-Bullish on the airlines stocks with a prime focus on those taking unnecessary hits by the market due to debt fears such as American Airlines. Both Delta Air Lines (DAL) and United Airlines (UAL) have ~$37 billion in related aircraft assets and equipment. Fare Hike Capacity Insufficient data to determine if AAL's dividend payments have been increasing. Stable Dividend: Insufficient data to determine if AAL's dividends per share have been stable in the past. This includes personalizing content and advertising. Thinking about trading options or stock in American Airlines, Uber, Peloton, Marathon Digital, or Carnival Corp? The Macroaxis Fundamental Analysis modules help investors analyze American Airlines Gp's financials across various querterly and yearly statements, indicators and fundamental ratios.
He serves a. ROA % is displayed in the 30-year financial page.
Accelerating Growth: Unable to compare AAL's earnings growth over the past year to its 5-year average as it is currently unprofitable. All Rights Reserved. Including the Zacks Rank, Zacks Industry Rank, Style Scores, the Price, Consensus & Surprise chart, graphical estimate analysis and how a stocks stacks up to its peers.
Zacks Investment Research is releasing its prediction for AAL based on the 1-3 month trading system that nearly triples the S&P 500.
AAL is unprofitable, making it difficult to compare its past year earnings growth to the Airlines industry (61.1%). You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. The main issue with the numbers going forward are the higher salary expenses for pilots due to several high-profile issues including the recent system glitch that canceled pilot assignments for 12,075 flights. What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target? The ever popular one-page Snapshot reports are generated for virtually every single Zacks Ranked stock. was higher than its peers in the Major Airlines industry group Compensation vs Market: Robert's total compensation ($USD5.00M) is below average for companies of similar size in the US market ($USD8.41M). Therefore, we believe investors can still consider capitalizing on its potential recovery and add exposure at the current levels. American Airlines Group(NAS:AAL) ROA % Explanation. Notable Dividend: Unable to evaluate AAL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
* indicates the important links in the menu. While American Airlines has $25.4 billion in net debt, the airline has $12.2 billion of PP&E in excess of net debt. American Airlines Group Inc.'s employee growth, exchange listings and data sources.
American Airlines is the world's largest airline by scheduled revenue passenger miles. This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors. In addition to all of the proprietary analysis in the Snapshot, the report also visually displays the four components of the Zacks Rank (Agreement, Magnitude, Upside and Surprise); provides a comprehensive overview of the company business drivers, complete with earnings and sales charts; a recap of their last earnings report; and a bulleted list of reasons to buy or sell the stock.
Zacks Rank Education - Learn about the Zacks Rank, Zacks Rank Home - Zacks Rank resources in one place, Zacks Premium - The only way to fully access the Zacks Rank. Jul 21, 16:00. AAL's Robust Q2 Corporate Update Quelled Fears Price-To-Sales vs Peers: AAL is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x). Thank you for viewing the detailed overview of American Airlines Group's ROA % provided by GuruFocus.com. We use both quantitative as well as qualitative analysis to arrive at, Investor biases related to American Airlines' public news can be used, Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Sorry. The information on this site, and in its related application software, spreadsheets, blog, email and The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Madrid, Seattle/Tacoma, Sydney, and Tokyo.
When running American Airlines price analysis, check to, Is American Airlines' industry expected to grow? The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. Zacks Style Scores Education - Learn more about the Zacks Style Scores. But, most importantly, we stand by our work! Debt Coverage: AAL's debt is not well covered by operating cash flow (4.6%). ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). Warning! Future ROE: Insufficient data to determine if AAL's Return on Equity is forecast to be high in 3 years time. Earnings vs Savings Rate: AAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
The company is forecast to post a net loss per share of US$1.55 next year compared to a net loss per share of US$3.09 last year. Disclaimer: DiscoverCI LLC is not operated by a broker, a dealer, or a registered investment adviser. It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. The airline was set up for a strong Summer. These airlines don't have burdensome debt with revenues set to reach record levels and equipment in excess of net debt levels.
Below are some of American Airlines' important valuation drivers and their relationship over time. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. American Airlines also highlighted that it expects fuel costs to range between $4.00 and $4.05 a gallon, much higher than Q1's $2.80 per gallon. American Airlines (NASDAQ:AAL) is offering pilots raises of nearly 17% by the end of 2024, a sign of theleverage that pilots enjoyas airlines struggle with a labor shortage, according to CNBC report. Since 337927). Airline stocks fell on Thursday amid abroad sell-off in travel and leisure stocks on recession worries.
American Airlines Group's average Total Assets over the quarter that ended in Mar. The airlines stocks shouldn't trade at yearly lows as revenues are headed to top 2019 levels on far less flights here in 2022. Some large increases in fares aren't burdensome enough to keep consumers from paying additional costs for higher fuel costs, especially considering the reduced travel over the prior two years. American Airlines is scheduled to report its Q2 earnings release on July 21. a security. Growing Dividend: Insufficient data to determine if AAL's dividend payments have been increasing. Large or small, we have services that can help your organization stay connected.
Below Fair Value: AAL ($14.08) is trading below our estimate of fair value ($70.27).