American Airlines Group Inc.
Find Ratings ReportsAMERICAN AIRLINES GROUP INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the subsector, the revenue growth did not. AMERICAN AIRLINES GROUP INC has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has increased by 10.29% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
---|---|---|
Net Sales ($mil) | 13062.0 | 13188.0 |
EBITDA ($mil) | 1224.0 | 1961.0 |
EBIT ($mil) | 665.0 | 1389.0 |
Net Income ($mil) | 19.0 | 803.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 8488.0 | 9960.0 |
Total Assets ($mil) | 63058.0 | 64716.0 |
Total Debt ($mil) | 40663.0 | 43687.0 |
Equity ($mil) | -5202.0 | -5799.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 24.38 | 29.04 |
EBITDA Margin | 9.37 | 14.86 |
Operating Margin | 5.09 | 10.53 |
Sales Turnover | 0.84 | 0.76 |
Return on Assets | 1.3 | 0.19 |
Return on Equity | 0.0 | 0.0 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.62 | 0.71 |
Debt/Capital | 1.15 | 1.15 |
Interest Expense | 519.0 | 532.0 |
Interest Coverage | 1.28 | 2.61 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 654.27 | 650.64 |
Div / share | 0.0 | 0.0 |
EPS | 0.03 | 1.14 |
Book value / share | -7.95 | -8.91 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 3.4419488E7 | 3.6648504E7 |
HOLD. This stock's P/E ratio indicates a discount compared to an average of 15.79 for the Air Transportation subsector and a significant discount compared to the S&P 500 average of 27.95. Normally, for additional comaprison, we would look at the price-to-book ratio; however, this company's price-to-book ratio is negative making the value useless for comparisons. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, AMERICAN AIRLINES GROUP INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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AAL 12.72 | Peers 15.79 | AAL 2.41 | Peers 5.52 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. AAL is trading at a discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. AAL is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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AAL 4.24 | Peers 9.15 | AAL 0.12 | Peers 0.28 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. AAL is trading at a significant discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. AAL trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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AAL NM | Peers 2.87 | AAL 11100.00 | Peers 835.16 | |||||||||||||||||||||
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. AAL's P/B is negative making this valuation measure meaningless. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. AAL is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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AAL 0.17 | Peers 84.66 | AAL 7.79 | Peers 20.37 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. AAL is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. AAL significantly trails its peers on the basis of sales growth. |
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