United Airlines Holdings, Inc.
United Airlines Holdings, Inc. Fundamental Analysis
United Airlines Holdings, Inc. (UAL) shows moderate financial fundamentals with a PE ratio of 11.01, profit margin of 5.68%, and ROE of 24.13%. The company generates $58.5B in annual revenue with moderate year-over-year growth of 6.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.4/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze UAL's fundamental strength across five key dimensions:
Efficiency Score
WeakUAL struggles to generate sufficient returns from assets.
Valuation Score
ModerateUAL shows balanced valuation metrics.
Growth Score
ExcellentUAL delivers strong and consistent growth momentum.
Financial Health Score
WeakUAL carries high financial risk with limited liquidity.
Profitability Score
ModerateUAL maintains healthy but balanced margins.
Key Financial Metrics
Is UAL Expensive or Cheap?
P/E Ratio
UAL trades at 11.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, UAL's PEG of 5.86 indicates potential overvaluation.
Price to Book
The market values United Airlines Holdings, Inc. at 2.42 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.80 times EBITDA. This is generally considered low.
How Well Does UAL Make Money?
Net Profit Margin
For every $100 in sales, United Airlines Holdings, Inc. keeps $5.68 as profit after all expenses.
Operating Margin
Core operations generate 7.98 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $24.13 in profit for every $100 of shareholder equity.
ROA
United Airlines Holdings, Inc. generates $4.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
United Airlines Holdings, Inc. produces operating cash flow of $8.35B, showing steady but balanced cash generation.
Free Cash Flow
United Airlines Holdings, Inc. produces free cash flow of $2.53B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $7.82 in free cash annually.
FCF Yield
UAL converts 7.01% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.86
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.42
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.39
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How UAL Stacks Against Its Sector Peers
| Metric | UAL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.01 | 26.76 | Better (Cheaper) |
| ROE | 24.13% | 1300.00% | Weak |
| Net Margin | 5.68% | -29570.00% (disorted) | Weak |
| Debt/Equity | 2.39 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.65 | 10.68 | Weak Liquidity |
| ROA | 4.39% | -1545134.00% (disorted) | Weak |
UAL outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews United Airlines Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-0.55%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-21.10%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
3.07%
Industry Style: Cyclical, Value, Infrastructure
Growing