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

Southwest Airlines Co.

Allegiant Travel Co.

Air Transport Services Group, Inc.

United Airlines Holdings, Inc.

SkyWest, Inc.

Delta Air Lines, Inc.

Alaska Air Group, Inc.

American Airlines Group, Inc.

JetBlue Airways Corp.

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

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At USD -327 MM has Fallen at -496.36%
NET PROFIT(Q) At USD -233 MM has Fallen at -478.19%
INVENTORY TURNOVER RATIO(HY) Lowest at 15.61 times

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 51.41%, its profits have fallen by -83.4%

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, High Return

Absolute

Risk Adjusted

Volatility

American Airlines Group, Inc.

48.07%

0.78

51.09%

S&P 500

22.24%

1.91

13.23%

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

84.34%

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

-1.82

EV to EBIT

18.26

EV to EBITDA

8.24

EV to Capital Employed

1.55

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

8.49%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 4,866 MM

RAW MATERIAL COST(Y)

Fallen by -8.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 28.45 times

-17What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -327 MM has Fallen at -496.36%

NET PROFIT(Q)

At USD -233 MM has Fallen at -478.19%

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.61 times

CASH AND EQV(HY)

Lowest at USD 14,582 MM

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

Operating Cash Flow

Highest at USD 4,866 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 28.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -8.67% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

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

Pre-Tax Profit

At USD -327 MM has Fallen at -496.36%

over average net sales of the previous four periods of USD 82.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -233 MM has Fallen at -478.19%

over average net sales of the previous four periods of USD 61.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Inventory Turnover Ratio

Lowest at 15.61 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Cash and Eqv

Lowest at USD 14,582 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents