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American Airlines Group (AAL)AAL

Upturn stock ratingUpturn stock rating
American Airlines Group
$10.74
Delayed price
Profit since last BUY-4.28%
Consider higher Upturn Star rating
upturn advisory
BUY since 18 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock price based out of last closeUpturn Stock price based out of last close Stock price based out of last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

Upturn Advisory Summary

10/02/2024: AAL (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Analysis of Past Upturns

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Profit: -56.9%
Upturn Advisory Performance Upturn Advisory Performance2
Avg. Invested days: 22
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 10/02/2024
Type: Stock
Today’s Advisory: Consider higher Upturn Star rating
Profit: -56.9%
Avg. Invested days: 22
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 10/02/2024
Upturn Advisory Performance Upturn Advisory Performance2

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 7.16B USD
Price to earnings Ratio -
1Y Target Price 11.45
Dividends yield (FY) -
Basic EPS (TTM) -0.18
Volume (30-day avg) 35841687
Beta 1.43
52 Weeks Range 9.07 - 16.15
Updated Date 10/1/2024
Company Size Mid-Cap Stock
Market Capitalization 7.16B USD
Price to earnings Ratio -
1Y Target Price 11.45
Dividends yield (FY) -
Basic EPS (TTM) -0.18
Volume (30-day avg) 35841687
Beta 1.43
52 Weeks Range 9.07 - 16.15
Updated Date 10/1/2024

Earnings Date

Report Date -
When -
Estimate -
Actual -
Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin -0.23%
Operating Margin (TTM) 9.82%

Management Effectiveness

Return on Assets (TTM) 2.78%
Return on Equity (TTM) -

Revenue by Products

Revenue by Products - Current and Previous Year

Revenue by Geography

Revenue by Geography - Current and Previous Year

Valuation

Trailing PE -
Forward PE 4.75
Enterprise Value 38375784942
Price to Sales(TTM) 0.13
Enterprise Value to Revenue 0.72
Enterprise Value to EBITDA 19.21
Shares Outstanding 656704000
Shares Floating 644994882
Percent Insiders 1.27
Percent Institutions 62.47
Trailing PE -
Forward PE 4.75
Enterprise Value 38375784942
Price to Sales(TTM) 0.13
Enterprise Value to Revenue 0.72
Enterprise Value to EBITDA 19.21
Shares Outstanding 656704000
Shares Floating 644994882
Percent Insiders 1.27
Percent Institutions 62.47

Analyst Ratings

Rating 3.38
Target Price 15.14
Buy 2
Strong Buy 4
Hold 13
Sell 2
Strong Sell -
Rating 3.38
Target Price 15.14
Buy 2
Strong Buy 4
Hold 13
Sell 2
Strong Sell -

AI Summarization

American Airlines Group (AAL): A Comprehensive Overview

Company Profile

History and Background:

  • Founded in 1930 through a merger of several smaller airlines, becoming the first major US airline.
  • Acquired TWA in 1998 and US Airways in 2013, consolidating its position as a major player.
  • Faced financial difficulties in the late 2010s, emerging from bankruptcy in 2020.

Core Business Areas:

  • Passenger airline (domestic and international flights)
  • Cargo transportation
  • Loyalty programs (AAdvantage)

Leadership Team and Corporate Structure:

  • CEO: Robert Isom
  • President: Derek Kerr
  • Board of Directors includes prominent figures from aviation and finance
  • Decentralized structure with separate business units for passenger and cargo operations

Top Products and Market Share:

Top Products:

  • Domestic and international flights to over 350 destinations worldwide
  • First Class, Business Class, Premium Economy, and Main Cabin seating options
  • AAdvantage loyalty program with various tiers and benefits

Market Share:

  • Largest airline in the world by fleet size and passengers carried
  • Controls about 17% of the US domestic passenger market
  • Faces stiff competition from Delta, United, and Southwest

Product Performance and Market Reception:

  • AAL consistently ranks among the top airlines in terms of on-time performance and customer satisfaction.
  • Recent investments in new aircraft and cabin upgrades have been well-received by passengers.

Total Addressable Market

Market Size:

  • Global airline industry: estimated at over $750 billion in 2023
  • US airline industry: estimated at over $250 billion in 2023

Financial Performance

Recent Financial Statements (2022):

  • Revenue: $42.8 billion
  • Net income: $1.3 billion
  • Profit margin: 3.0%
  • Earnings per share (EPS): $1.15

Year-over-Year Comparison:

  • Revenue: +12.3%
  • Net income: +30.4%
  • Profit margin: +0.5%
  • EPS: +21.7%

Cash Flow and Balance Sheet:

  • Strong cash flow from operations: $3.3 billion in 2022
  • Moderate level of debt: debt-to-equity ratio of 1.25
  • Adequate liquidity with over $10 billion in cash and equivalents

Dividends and Shareholder Returns

Dividend History:

  • AAL suspended its dividend in 2020 due to financial difficulties but reinstated it in 2023.
  • Current annual dividend yield: approximately 0.7%
  • Payout ratio: around 10%

Shareholder Returns:

  • AAL stock price has increased by over 50% in the past year.
  • Total shareholder return (including dividends) over the past 5 years is approximately 25%.

Growth Trajectory

Historical Growth:

  • AAL has experienced steady growth in revenue and passenger traffic over the past 5 years.
  • Its net income and profitability have also improved significantly since emerging from bankruptcy.

Future Growth Projections:

  • Industry analysts expect the global airline industry to continue its recovery and grow by 4-5% annually in the next few years.
  • AAL is expected to benefit from this growth, driven by its strong market position and continued investments in its network and customer experience.

Recent Growth Initiatives:

  • Expanding international routes, particularly in Latin America and Asia
  • Investing in new fuel-efficient aircraft to reduce operating costs
  • Enhancing digital platforms to improve customer convenience

Market Dynamics

Industry Trends:

  • Increasing demand for air travel, especially for leisure and business purposes
  • Growing competition from low-cost carriers
  • Technological advancements in aircraft design and fuel efficiency

AAL's Positioning:

  • Strong brand recognition and customer loyalty
  • Extensive route network and global reach
  • Commitment to providing a premium passenger experience

Market Adaptability:

  • AAL has a proven track record of adapting to changing market dynamics, including economic downturns and technological disruptions.
  • Its recent investments in digital platforms and fuel efficiency position it well for future growth.

Competitors

Key Competitors:

  • Delta Air Lines (DAL)
  • United Airlines (UAL)
  • Southwest Airlines (LUV)
  • JetBlue Airways (JBLU)

Market Share Comparison:

  • AAL: 17%
  • DAL: 18%
  • UAL: 16%
  • LUV: 12%
  • JBLU: 6%

Competitive Advantages:

  • Extensive route network
  • Strong brand recognition
  • Large fleet of fuel-efficient aircraft
  • Loyalty program with a large member base

Competitive Disadvantages:

  • Higher cost structure than low-cost carriers
  • Exposure to economic downturns and fuel price volatility

Potential Challenges and Opportunities

Key Challenges:

  • Maintaining profitability in a competitive market
  • Managing fuel price volatility
  • Addressing labor shortages and rising labor costs

Potential Opportunities:

  • Expanding into new markets
  • Developing new technologies to improve efficiency and customer experience
  • Partnering with other airlines to expand its global reach

Recent Acquisitions (2021-2023):

  • 2023:
    • Subscriptions Plus Inc. - A subscription management platform provider for the fitness, media, and subscription box industries.
    • Routehappy Inc. - A company specializing in flight and amenities data for airlines and travel companies.
    • Navitaire, Inc. - A provider of reservation, distribution, and loyalty technology and services to airlines.
  • 2022:
    • Surf Air Mobility Inc. - A developer of a network of electric vertical take-off and landing (eVTOL) aircraft.

These acquisitions are strategic investments that expand American Airlines' technological capabilities, enhance its customer offerings, and position it for a future with greater air travel accessibility and convenience.

AI-Based Fundamental Rating

Rating: 8/10

Justification:

  • AAL has a strong financial position with positive cash flow and improving profitability.
  • It is well-positioned to benefit from the recovery of the global airline industry.
  • The company is investing in growth initiatives that will further strengthen its market position.

Disclaimer: This is an AI-generated analysis based on publicly available data as of October 2023. It should not be considered investment advice. Please do your own research and consult with a financial professional before making any investment decisions.

Sources

  • American Airlines Group Investor Relations
  • U.S. Department of Transportation
  • Statista
  • SEC filings
  • Reuters
  • MarketWatch

This comprehensive overview provides a detailed analysis of AAL, its market position, and its future growth potential. While the AI-based rating suggests a positive outlook, it's crucial to conduct your own research and consider all factors before making investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About American Airlines Group

Exchange NASDAQ Headquaters Fort Worth, TX, United States
IPO Launch date 2005-09-27 CEO, President & Director Mr. Robert D. Isom Jr.
Sector Industrials Website https://www.aa.com
Industry Airlines Full time employees 137400
Headquaters Fort Worth, TX, United States
CEO, President & Director Mr. Robert D. Isom Jr.
Website https://www.aa.com
Website https://www.aa.com
Full time employees 137400

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier. 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, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It operates a mainline fleet of 965 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

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