American Airlines Group, Inc. (AAL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Copa Holdings SA

Delta Air Lines, Inc.

Southwest Airlines Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Allegiant Travel Co.

Alaska Air Group, Inc.

JetBlue Airways Corp.

American Airlines Group, Inc.

Spirit Airlines, Inc.

Why is American Airlines Group, Inc. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 16.47% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.35
PRE-TAX PROFIT(Q) At USD 130 MM has Fallen at -46.67%
NET PROFIT(Q) At USD 91.28 MM has Fallen at -50.01%
OPERATING CASH FLOW(Y) Lowest at USD 3,099 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -3.47%, its profits have risen by 2.6% ; the PEG ratio of the company is 2.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.47% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Airline)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is American Airlines Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

American Airlines Group, Inc.

-3.47%

-0.18

56.03%

S&P 500

20.12%

1.04

19.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.80%

EBIT Growth (5y)

16.47%

EBIT to Interest (avg)

-1.35

Debt to EBITDA (avg)

4.17

Net Debt to Equity (avg)

-4.86

Sales to Capital Employed (avg)

1.99

Tax Ratio

25.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

84.90%

ROCE (avg)

11.58%

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

-2.08

EV to EBIT

10.59

EV to EBITDA

6.12

EV to Capital Employed

1.69

EV to Sales

0.54

PEG Ratio

2.84

Dividend Yield

ROCE (Latest)

15.98%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -788.81 %

-18What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 130 MM has Fallen at -46.67%

NET PROFIT(Q)

At USD 91.28 MM has Fallen at -50.01%

OPERATING CASH FLOW(Y)

Lowest at USD 3,099 MM

RAW MATERIAL COST(Y)

Grown by 14.78% (YoY

CASH AND EQV(HY)

Lowest at USD 14,189 MM

Here's what is working for American Airlines Group, Inc.

Debt-Equity Ratio

Lowest at -788.81 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for American Airlines Group, Inc.

Pre-Tax Profit

At USD 130 MM has Fallen at -46.67%

over average net sales of the previous four periods of USD 243.75 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 91.28 MM has Fallen at -50.01%

over average net sales of the previous four periods of USD 182.58 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Operating Cash Flow

Lowest at USD 3,099 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 14,189 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 14.78% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at USD 0.48 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income