American Airlines Buy or Sell Recommendation

Macroaxis provides American Airlines Group Inc buy hold or sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding American Airlines positions. The advice algorithm takes into account all of American Airlines Group Inc available fundamental, technical, and predictive indicators you will find on this site. The advice is provided from American Airlines buy-and-hold prospective. Check also American Airlines Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with current analyst consensus

Investment Horizon

  

Risk Tolerance

  
Symbol
Execute Advice
Considering 30-days investment horizon, and your above average risk tolerance our recommendation regarding American Airlines Group Inc is 'Strong Buy'.
For the selected time horizon American Airlines Group Inc has a risk adjusted performance of 0.1157, jensen alpha of 0.446, total risk alpha of 0.4231, sortino ratio of 0.1935 and treynor ratio of 0.1777
Macroaxis buy, hold, or sell recommendation tool can be used to complement American Airlines buy or sell advice provided by experts. It analyzes the organization potential to grow against your specific risk preferences and investment horizon. To make sure American Airlines is not overpriced, please confirm all American Airlines Group fundamentals including its Current Valuation, Price to Book, Cash and Equivalents, as well as the relationship between Shares Owned by Institutions and Gross Profit . Given that American Airlines Group has Price to Earning of 11.08 times, we suggest you validate American Airlines Group Inc market performance and probability of bankruptcy to make sure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Returns Distribution Density

Mean Return0.49Value At Risk-3.0923
Potential Upside4.2538Standard Deviation2.116
 Return Density 
      Distribution 

Institutional Investors

Security TypeSharesValue
Price T Rowe Associates IncCommon Shares53.4 M2.3 B
Berkshire Hathaway IncCommon Shares49.3 M2.1 B
Primecap Management CoCommon Shares46.7 M2 B
Vanguard Group IncCommon Shares30.2 M1.3 B
Blackrock IncCommon Shares28.6 M1.2 B
Fmr LlcCommon Shares26.8 M1.1 B
State Street CorpCommon Shares18.6 M786.5 M
Susquehanna International Group LlpCall Options6.5 M276.6 M
Pomelo Capital LlcPut Options3.8 M162.6 M

American Airlines Greeks

α
Alpha over DOW
= 0.45 
βBeta against DOW= 2.70 
σ
Overall volatility
= 1.96 
 IrInformation ratio = 0.22 

American Airlines Volatility Alert

American Airlines Group Inc currently demonstrates below average downside deviation of 2.41. It has Information Ratio of 0.22 and Jensen Alpha of 0.45. However, we do advice investors to further question American Airlines Group Inc expected returns to make sure all indicators are consistent with the current outlook about its relatively low value at risk.
    
 Better Than Average     
    
 Worse Than Average Compare American Airlines to competition
FundamentalsAmerican AirlinesPeer Average
Return On Equity31.40 % (15.17) %
Return On Asset16.51 % (15.64) %
Profit Margin18.57 % (5.50) %
Operating Margin16.24 % (10.91) %
Current Valuation45.53 B152.14 B
Shares Outstanding492.59 M1.43 B
Shares Owned by Insiders0.26 % 6.91 %
Shares Owned by Institutions73.80 % 18.37 %
Number of Shares Shorted34.23 M3.24 M
Price to Earning11.08 times40.69 times
Price to Book6.49 times14.44 times
Price to Sales0.56 times17.81 times
Revenue40.99 B9.85 B
Gross Profit23.91 B21.75 B
EBITDA7.16 B1.41 B
Net Income7.61 B517.71 M
Cash and Equivalents1.08 B3.89 B
Cash per Share13.04 times5.17 times
Total Debt20.56 B7.36 B
Debt to Equity5.32 times0.72 times
Current Ratio0.76 times3.30 times
Book Value Per Share6.97 times13.64 times
Cash Flow from Operations6.25 B1.25 B
Short Ratio4.79 times2.09 times
Earnings Per Share4.17 times2.30 times
Price to Earnings To Growth3.22 times1.22 times
Number of Employees121.8 K10.67 K
Beta1.380.34
Market Capitalization22.76 B29.78 B
Total Asset48.41 B126.86 B
Retained Earnings1.64 B38.24 B
Working Capital(3.62 B)3.58 B
Current Asset9.98 B36.8 B
SellBuy
Strong Buy

Volatility

Hype Condition

Current Valuation

Odds of Distress

Economic Sensitivity

Analyst Consensus

Piotroski F Score

Financial Leverage

Inapplicable
   Disposition of 26627 shares by Kirby J Scott of American Airlines subject to Rule 16b-3 [view details]
Risk Adjusted Performance0.1157
Market Risk Adjusted Performance0.1877
Mean Deviation1.54
Semi Deviation1.73
Downside Deviation2.41
Coefficient Of Variation432.26
Standard Deviation2.12
Variance4.48
Information Ratio0.2207
Jensen Alpha0.446
Total Risk Alpha0.4231
Sortino Ratio0.1935
Treynor Ratio0.1777
Maximum Drawdown9.07
Value At Risk(3.09)
Potential Upside4.25
Downside Variance5.83
Semi Variance2.99
Expected Short fall(1.66)
Skewness(0.16)
Kurtosis0.6608

Current Valuation

American Airlines Current Valuation Analysis
American Airlines Group Inc is rated third in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Airlines industry is presently estimated at about 188.77 Billion. American Airlines totals roughly 45.53 Billion in current valuation claiming about 24% of stocks in Airlines industry.