American Airlines Group, Inc. (AAL) Stock Guide

May 23, 2020
50

Before we start: if you're looking for AAL stock price, you can quickly find it out by visiting Finny and typing "AAL quote". If you're looking for a quick scoop on AAL stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "AAL". You'll get all this info in one place. Or you can just type "AAL news" to get the latest stock news.

Looking to buy or sell American Airlines Group, Inc. (AAL)? Interested in getting the full scoop on AAL, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this AAL stock guide, we'll address key questions about AAL, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are AAL earnings?
2. When is AAL earnings date?
3. What is AAL dividend?
4. What is AAL dividend yield?
5. What is AAL stock forecast (i.e., prediction)?
6. AAL buy or sell? What is AAL Finny Score?
7. What are the reasons to buy AAL? Why should I buy AAL stock?
8. What are the reasons to sell AAL? Why should I sell AAL stock?
9. What are AAL key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are AAL earnings?

AAL trailing 12-month earnings per share (EPS) is -$1.70.

2. When is AAL earnings date?

AAL earnings date is July 23, 2020.

3. What is AAL dividend?

AAL forward dividend is $0.40.

4. What is AAL dividend yield?

AAL forward dividend yield is 4.39%.

Analyst Predictions

5. What is AAL stock forecast (i.e., prediction)?

Based on AAL analyst price targets, AAL stock forecast is $15.00 (for a year from now). That means the average analyst price target for AAL stock is $15.00. The prediction is based on 18 analyst estimates.

The low price target for AAL is $1.00, while the high price target is $41.00.

AAL analyst rating is Buy.

Analysis

6. AAL buy or sell? What is AAL Finny Score?

Our quantitative analysis shows 5 reasons to buy and 5 reasons to sell AAL, resulting in Finny Score of 50.

7. What are the reasons to buy AAL? Why should I buy AAL stock?

Here are the reasons to buy AAL stock:

  • American has some of the lowest load factors in the U.S. airline industry, and expanding these will drive revenue opportunities for the carrier.
  • Management has executed its integration with US Airways rather seamlessly and will be able to squeeze further improvements out of the combined entity.
  • American’s younger fleet will require less maintenance and features improved fuel efficiency, both of which will keep a lid on unit costs.
  • American Airlines reported better-than-expected earnings per share and revenues in the fourth quarter of 2017. Additionally, both metrics improved on a year-over-year basis. Strong demand for air travel coupled with improving yields aided results.
  • We are also impressed by the company’s efforts to reward shareholders through share buybacks and dividend payments. During 2017, the company returned $1.7 billion to shareholders through dividends and buybacks. Furthermore, the carrier also declared a dividend of 10 cents per share.
  • The company's employee-friendly attiude also encourages us. Employees at American Airlines earned more than $240 million in 2017, as part of the company's profit sharing scheme. We are impressed by its efforts to expand.
  • AAL stock price ($9.70) is close to the 52-week low ($8.29). Perhaps now is a good time to buy? See AAL price chart.
  • AAL forward dividend yield is 4.39%, higher than the industry (0.80%) and sector (0.50%) forward dividend yields. See AAL forward dividend chart.
  • AAL Price/Sales ratio is 0.09, which is low compared to its industry peers’ P/S ratios. See AAL forward Price/Sales ratio chart.
  • AAL average analyst rating is Buy. See AAL analyst rating chart.
  • AAL average analyst price target ($15.00) is above its current price ($9.70). See AAL price target chart.

8. What are the reasons to sell AAL? Why should I sell AAL stock?

Let's look at the reasons to sell AAL stock (i.e., the bear case):

  • American’s strategy of operating newer, more fuel-efficient aircraft simply doesn’t make sense in an era of depressed oil prices.
  • All the obvious postmerger cost savings have been identified, and the combined American-US Airways entity will not be able to drive further efficiency gains.
  • American and other U.S. airlines will continue to bid away profits from lower fuel prices, pushing fares down and depressing profitability.
  • Consolidated cost per available seat miles (excluding special items and fuel) is expected to increase 4% in the first quarter of 2018. With fuel costs also on the rise, the bottom line is likely to be significantly hurt in the first quarter due to escalating operating expenses.
  • In December 2017, pilots at the carrier were allowed to go on vacation during the busy Christmas week, thanks to a scheduling glitch. This would have upset the travel plans of multiple passengers during the period. American Airlines managed to avert the crisis by offering pilots twice their normal hourly pay to operate flights during the period.
  • American Airlines is a highly leveraged company. This is indicated by the fact that the ratio of its long-term debt-to-equity (expressed as a percentage) is currently well over 500. This compares unfavorably to the figure of 86.3 for its industry and also the S&P 500 index, for whom the measure reads 94%.
  • Capacity overexpansion is also a problem at American Airlines. Load factor (percentage of seats filled by passengers) has been pressurized due to capacity expansion outweighing traffic growth. In fact, capacity (system) in 2018 is projected to increase 2.5% year over year.
  • AAL quarterly revenue growth was -19.50%, lower than the industry and sector average revenue growth (3.70% and 1.65%, respectively). See AAL revenue growth chart.
  • AAL profitability is declining. The YoY profit margin change was -1.38 percentage points. See AAL profitability chart.
  • AAL short share of float is 45.12%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See AAL short share of float chart.
  • AAL cash to debt ratio is 0.10, lower than the average industry (0.17) and sector (0.12) cash to debt ratio. See AAL cash to debt chart.
  • AAL Enterprise Value/EBITDA multiple is 7.71, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See AAL Enterprise Value/EBITDA chart.

Key Stats

9. What are AAL key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for AAL:

Metrics AAL
Price $11.23
Average Price Target / Upside $15.00 / 33.57%
Average Analyst Rating Hold
Forward Dividend Yield 4.39%
Industry Airlines
Sector Industrials
Number of Employees 128,900
Market Cap $3.87B
Forward P/E Ratio -228.75
Price/Book Ratio 0.09
Revenue (TTM) $43.7B
YoY Quarterly Revenue Growth -19.50%
Profit Margin -1.69%

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