United Continental Holdings Inc

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UAL : NYSE : Services
$50.95 | %
Today's Range: 50.49 - 51.32
Avg. Daily Volume: 4,996,700
09/23/16 - 4:00 PM ET

Financial Analysis


UNITED CONTINENTAL HLDGS INC's gross profit margin for the second quarter of its fiscal year 2016 has increased 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 industry, the revenue growth did not. UNITED CONTINENTAL HLDGS INC has very weak liquidity. Currently, the Quick Ratio is 0.44 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 88.84% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)9396.09914.0
EBITDA ($mil)1985.01945.0
EBIT ($mil)1494.01500.0
Net Income ($mil)588.01193.0


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)4685.04985.0
Total Assets ($mil)40476.039367.0
Total Debt ($mil)11415.011659.0
Equity ($mil)7784.04122.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin35.2632.73
EBITDA Margin21.1219.61
Operating Margin15.915.13
Sales Turnover0.910.98
Return on Assets16.156.73
Return on Equity84.0164.36
Debt Q2 FY16 Q2 FY15
Current Ratio0.560.64
Debt/Capital0.590.74
Interest Expense157.0167.0
Interest Coverage9.528.98


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)322.93378.84
Div / share0.00.0
EPS1.783.14
Book value / share24.110.88
Institutional Own % n/a n/a
Avg Daily Volume5111216.05767769.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 7.40 for the Airlines industry and a significant discount compared to the S&P 500 average of 25.19. For additional comparison, its price-to-book ratio of 2.12 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.01. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, UNITED CONTINENTAL HLDGS INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
UAL 2.88 Peers 7.40   UAL 2.75 Peers 4.94

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

UAL is trading at a significant 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.

UAL is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
UAL 7.68 Peers 10.64   UAL NM Peers 2.31

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

UAL is trading at a significant discount to its peers.

 

Neutral. 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.

UAL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
UAL 2.12 Peers 3.01   UAL 156.81 Peers 93.34

Discount. 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.

UAL is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

UAL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UAL 0.45 Peers 1.05   UAL -3.82 Peers 3.44

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.

UAL is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

UAL significantly trails its peers on the basis of sales growth

 

 

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