American Airlines Group Inc. Fundamental Analysis
American Airlines Group Inc. Fundamental Analysis
American Airlines Group Inc. (A1G.DE) shows weak financial fundamentals with a PE ratio of 52.51, profit margin of 0.36%, and ROE of -5.21%. The company generates $56.0B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 132.4/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze A1G.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakA1G.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateA1G.DE shows balanced valuation metrics.
Growth Score
ModerateA1G.DE shows steady but slowing expansion.
Financial Health Score
ModerateA1G.DE shows balanced financial health with some risks.
Profitability Score
WeakA1G.DE struggles to sustain strong margins.
Key Financial Metrics
Is A1G.DE Expensive or Cheap?
P/E Ratio
A1G.DE trades at 52.51 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, A1G.DE's PEG of -0.68 indicates potential undervaluation.
Price to Book
The market values American Airlines Group Inc. at -2.65 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -6.08 times EBITDA. This is generally considered low.
How Well Does A1G.DE Make Money?
Net Profit Margin
For every $100 in sales, American Airlines Group Inc. keeps $0.36 as profit after all expenses.
Operating Margin
Core operations generate 3.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-5.21 in profit for every $100 of shareholder equity.
ROA
American Airlines Group Inc. generates $0.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
American Airlines Group Inc. generates limited operating cash flow of $4.85B, signaling weaker underlying cash strength.
Free Cash Flow
American Airlines Group Inc. generates weak or negative free cash flow of $1.09B, restricting financial flexibility.
FCF Per Share
Each share generates $1.64 in free cash annually.
FCF Yield
A1G.DE converts 10.10% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
52.51
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.68
vs 25 benchmark
P/B Ratio
Price to book value ratio
-2.65
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.19
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-8.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.05
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How A1G.DE Stacks Against Its Sector Peers
| Metric | A1G.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 52.51 | 34.45 | Worse (Expensive) |
| ROE | -5.21% | 1169.00% | Weak |
| Net Margin | 0.36% | -29218.00% (disorted) | Weak |
| Debt/Equity | -8.59 | 0.46 | Strong (Low Leverage) |
| Current Ratio | 0.49 | 25.49 | Weak Liquidity |
| ROA | 0.32% | -1353142.00% (disorted) | Weak |
A1G.DE outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews American Airlines Group Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure