United Continental Holdings Inc

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UAL : NYSE : Services
$68.26 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 5099200.0
12/05/16 - 4:00 PM ET

Financial Analysis


UNITED CONTINENTAL HLDGS INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. UNITED CONTINENTAL HLDGS 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 remained virtually unchanged only decreasing by 1.35% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)9913.010306.0
EBITDA ($mil)2172.02444.0
EBIT ($mil)1669.01975.0
Net Income ($mil)965.04816.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)4856.05599.0
Total Assets ($mil)40327.041869.0
Total Debt ($mil)11457.012121.0
Equity ($mil)8439.08555.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin36.3536.29
EBITDA Margin21.9123.71
Operating Margin16.8419.16
Sales Turnover0.910.91
Return on Assets6.6615.63
Return on Equity31.8676.5
Debt Q3 FY16 Q3 FY15
Current Ratio0.60.75
Debt/Capital0.580.59
Interest Expense150.0164.0
Interest Coverage11.1312.04


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)317.91373.73
Div / share0.00.0
EPS3.0112.82
Book value / share26.5522.89
Institutional Own % n/a n/a
Avg Daily Volume5056326.05324387.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 9.79 for the Airlines industry and a significant discount compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 2.56 indicates valuation on par with the S&P 500 average of 2.79 and a discount versus the industry average of 3.36. 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 8.58 Peers 9.79   UAL 3.62 Peers 5.88

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

UAL 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.

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 11.11 Peers 12.21   UAL NM Peers 1.32

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 2.56 Peers 3.36   UAL -54.41 Peers 20.30

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 discount to its peers.

 

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

However, UAL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
UAL 0.59 Peers 1.21   UAL -4.20 Peers 2.55

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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