Is American Airlines Stock a Good Investment?
American Airlines Investment Advice | AAL |
- Examine American Airlines' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research American Airlines' leadership team and their track record. Good management can help American Airlines navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Passenger Airlines space and any emerging trends that could impact American Airlines' business and its evolving consumer preferences.
- Compare American Airlines' performance and market position to its competitors. Analyze how American Airlines is positioned in terms of product offerings, innovation, and market share.
- Check if American Airlines pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about American Airlines' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in American Airlines Group stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if American Airlines Group is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Solid | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine American Airlines Stock
Researching American Airlines' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 57.0% of the company shares are held by institutions such as insurance companies. The company has Price/Earnings To Growth (PEG) ratio of 0.21. American Airlines last dividend was issued on the 4th of February 2020. The entity had 0:1 split on the 9th of December 2013.
To determine if American Airlines is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding American Airlines' research are outlined below:
| American Airlines appears to be risky and price may revert if volatility continues | |
| American Airlines Group has 40.66 B in debt with debt to equity (D/E) ratio of 7.53, demonstrating that the company may be unable to create cash to meet all of its financial commitments. American Airlines has a current ratio of 0.77, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for American to invest in growth at high rates of return. | |
| American Airlines has a strong financial position based on the latest SEC filings | |
| About 57.0% of American Airlines shares are held by institutions such as insurance companies | |
| Latest headline from nytimes.com: American Airlines Settles Racial Discrimination Case |
American Airlines Quarterly Liabilities And Stockholders Equity |
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American Airlines uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in American Airlines Group. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to American Airlines' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 25th of April 2024 Upcoming Quarterly Report | View | |
| 18th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 23rd of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact American Airlines' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises American Airlines' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2010-07-21 | 2010-06-30 | -0.01 | -0.03 | -0.02 | 200 | ||
2024-04-25 | 2024-03-31 | -0.29 | -0.34 | -0.05 | 17 | ||
2012-10-17 | 2012-09-30 | 0.28 | 0.33 | 0.05 | 17 | ||
2004-07-21 | 2004-06-30 | -0.1 | -0.15 | -0.05 | 50 | ||
2014-04-24 | 2014-03-31 | 0.48 | 0.54 | 0.06 | 12 | ||
2011-10-19 | 2011-09-30 | -0.41 | -0.48 | -0.07 | 17 | ||
2010-10-20 | 2010-09-30 | 0.32 | 0.39 | 0.07 | 21 | ||
2013-04-18 | 2013-03-31 | -0.09 | 0.02 | 0.11 | 122 |
Know American Airlines' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as American Airlines is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading American Airlines Group backward and forwards among themselves. American Airlines' institutional investor refers to the entity that pools money to purchase American Airlines' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Northern Trust Corp | 2024-09-30 | 4.5 M | Charles Schwab Investment Management Inc | 2024-09-30 | 4.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 4.3 M | Bnp Paribas Arbitrage, Sa | 2024-09-30 | 3.2 M | Jane Street Group Llc | 2024-06-30 | 3.2 M | Amvescap Plc. | 2024-09-30 | 3 M | Susquehanna International Group, Llp | 2024-09-30 | 3 M | Squarepoint Ops Llc | 2024-09-30 | 2.9 M | Schonfeld Strategic Advisors Llc | 2024-09-30 | 2.8 M | Vanguard Group Inc | 2024-09-30 | 62 M | Primecap Management Company | 2024-09-30 | 57.3 M |
American Airlines' market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 11.09 B.Market Cap |
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American Airlines' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.01 | 0.02 | |
| Return On Capital Employed | 0.07 | 0.08 | |
| Return On Assets | 0.01 | 0.01 | |
| Return On Equity | (0.16) | (0.17) |
Determining American Airlines' profitability involves analyzing its financial statements and using various financial metrics to determine if American Airlines is a good buy. For example, gross profit margin measures American Airlines' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of American Airlines' profitability and make more informed investment decisions.
American Airlines' Earnings Breakdown by Geography
Evaluate American Airlines' management efficiency
American Airlines has Return on Asset of 0.0275 % which means that on every $100 spent on assets, it made $0.0275 of profit. This is way below average. American Airlines' management efficiency ratios could be used to measure how well American Airlines manages its routine affairs as well as how well it operates its assets and liabilities. At this time, American Airlines' Return On Tangible Assets are quite stable compared to the past year. Return On Capital Employed is expected to rise to 0.08 this year, although the value of Return On Equity will most likely fall to (0.17). At this time, American Airlines' Non Currrent Assets Other are quite stable compared to the past year. Return On Tangible Assets is expected to rise to 0.02 this year, although the value of Non Current Assets Total will most likely fall to about 26.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (7.96) | (7.56) | |
| Tangible Book Value Per Share | (17.36) | (16.49) | |
| Enterprise Value Over EBITDA | 9.43 | 9.90 | |
| Price Book Value Ratio | (1.73) | (1.81) | |
| Enterprise Value Multiple | 9.43 | 9.90 | |
| Price Fair Value | (1.73) | (1.81) | |
| Enterprise Value | 15.7 B | 16.4 B |
Evaluating the management effectiveness of American Airlines allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The American Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.399 |
Basic technical analysis of American Stock
As of the 22nd of December, American Airlines shows the risk adjusted performance of 0.1818, and Mean Deviation of 1.98. American Airlines technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm American Airlines downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if American Airlines is priced correctly, providing market reflects its regular price of 16.88 per share. Given that American Airlines has jensen alpha of 0.6427, we suggest you to validate American Airlines Group's prevailing market performance to make sure the company can sustain itself at a future point.American Airlines' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific American Airlines insiders, such as employees or executives, is commonly permitted as long as it does not rely on American Airlines' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases American Airlines insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Raja Vasu over a year ago Sale by Raja Vasu of 5121 shares of American Airlines | ||
Raja Vasu over a year ago Sale by Raja Vasu of 5298 shares of American Airlines | ||
Purcell Philip J over a year ago Disposition of 1185 shares by Purcell Philip J of American Airlines subject to Rule 16b-3 | ||
Parker W Douglas over a year ago Payment of 33456 shares by Parker W Douglas of American Airlines subject to Rule 16b-3 |
American Airlines' Outstanding Corporate Bonds
American Airlines issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. American Airlines uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most American bonds can be classified according to their maturity, which is the date when American Airlines Group has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| AAL 385 15 FEB 28 Corp BondUS02379DAA81 | View | |
| AAL 365 15 JUN 28 Corp BondUS023764AA14 | View | |
| AAL 36 15 OCT 29 Corp BondUS02377CAA27 | View | |
| AAL 4 15 JUL 25 Corp BondUS023772AB21 | View | |
| American Airlines 4 Corp BondUS02378AAA51 | View | |
| US02376UAA34 Corp BondUS02376UAA34 | View | |
| AAL 35 15 FEB 32 Corp BondUS02378MAA99 | View | |
| AAL 4 22 SEP 27 Corp BondUS02377BAA44 | View |
Understand American Airlines' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing American Airlines' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1818 | |||
| Market Risk Adjusted Performance | 0.5458 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 1.39 | |||
| Downside Deviation | 1.92 | |||
| Coefficient Of Variation | 454.46 | |||
| Standard Deviation | 3.09 | |||
| Variance | 9.56 | |||
| Information Ratio | 0.2096 | |||
| Jensen Alpha | 0.6427 | |||
| Total Risk Alpha | 0.5839 | |||
| Sortino Ratio | 0.3375 | |||
| Treynor Ratio | 0.5358 | |||
| Maximum Drawdown | 19.17 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 6.38 | |||
| Downside Variance | 3.69 | |||
| Semi Variance | 1.94 | |||
| Expected Short fall | (2.37) | |||
| Skewness | 2.5 | |||
| Kurtosis | 10.72 |
| Risk Adjusted Performance | 0.1818 | |||
| Market Risk Adjusted Performance | 0.5458 | |||
| Mean Deviation | 1.98 | |||
| Semi Deviation | 1.39 | |||
| Downside Deviation | 1.92 | |||
| Coefficient Of Variation | 454.46 | |||
| Standard Deviation | 3.09 | |||
| Variance | 9.56 | |||
| Information Ratio | 0.2096 | |||
| Jensen Alpha | 0.6427 | |||
| Total Risk Alpha | 0.5839 | |||
| Sortino Ratio | 0.3375 | |||
| Treynor Ratio | 0.5358 | |||
| Maximum Drawdown | 19.17 | |||
| Value At Risk | (2.77) | |||
| Potential Upside | 6.38 | |||
| Downside Variance | 3.69 | |||
| Semi Variance | 1.94 | |||
| Expected Short fall | (2.37) | |||
| Skewness | 2.5 | |||
| Kurtosis | 10.72 |
Consider American Airlines' intraday indicators
American Airlines intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of American Airlines stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
American Airlines Corporate Filings
F4 | 13th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 5th of December 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
13A | 12th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
13A | 4th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
American Stock media impact
Far too much social signal, news, headlines, and media speculation about American Airlines that are available to investors today. That information is available publicly through American media outlets and privately through word of mouth or via American internal channels. However, regardless of the origin, that massive amount of American data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of American Airlines news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of American Airlines relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to American Airlines' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive American Airlines alpha.
American Airlines Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards American Airlines can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
American Airlines Historical Investor Sentiment
Investor biases related to American Airlines' public news can be used to forecast risks associated with an investment in American. The trend in average sentiment can be used to explain how an investor holding American can time the market purely based on public headlines and social activities around American Airlines Group. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
American Airlines' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for American Airlines and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average American Airlines news discussions. The higher the estimate score, the more favorable the investor's outlook on American Airlines.
American Airlines Corporate Management
| Stephen Johnson | Executive VP of Corporate Affairs | Profile | |
| Meghan Montana | VP Treasurer | Profile | |
| Priya JD | Chief VP | Profile | |
| Kevin Brickner | Senior Operations | Profile | |
| Scott Long | Managing Relations | Profile | |
| Stephen JD | Chief Chair | Profile |
Already Invested in American Airlines Group?
The danger of trading American Airlines Group is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of American Airlines is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than American Airlines. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile American Airlines is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in American Airlines Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.46) | Earnings Share 0.42 | Revenue Per Share 81.697 | Quarterly Revenue Growth 0.012 | Return On Assets 0.0275 |
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between American Airlines' value and its price, as these two are different measures arrived at by various means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.