American Airlines Group Stock Fundamentals

AAL Stock  USD 14.11  0.15  1.07%   
American Airlines Group fundamentals help investors to digest information that contributes to American Airlines' financial success or failures. It also enables traders to predict the movement of American Stock. The fundamental analysis module provides a way to measure American Airlines' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to American Airlines stock.
At this time, American Airlines' EBITDA is quite stable compared to the past year. Cost Of Revenue is expected to rise to about 43 B this year, although the value of Other Operating Expenses will most likely fall to about 28.7 B.
  
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American Retained Earnings Analysis

American Airlines' Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

American Airlines Retained Earnings

(7.3 Billion)

Retained Earnings

 = 

Beginning RE + Income

-

Dividends

More About Retained Earnings | All Equity Analysis

Current American Airlines Retained Earnings

    
  (7.69 B)  
Most of American Airlines' fundamental indicators, such as Retained Earnings, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, American Airlines Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Competition

American Retained Earnings

Retained Earnings

(7.3 Billion)

The company's current value of Retained Earnings is estimated at (7.3 Billion)
Based on the latest financial disclosure, American Airlines Group has a Retained Earnings of (7.69 Billion). This is 174.28% lower than that of the Passenger Airlines sector and significantly lower than that of the Industrials industry. The retained earnings for all United States stocks is 182.41% higher than that of the company.

American Airlines Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining American Airlines's current stock value. Our valuation model uses many indicators to compare American Airlines value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across American Airlines competition to find correlations between indicators driving American Airlines's intrinsic value. More Info.
American Airlines Group is rated below average in working capital category among related companies. It is rated fifth in earnings per share category among related companies . . Comparative valuation analysis is a catch-all model that can be used if you cannot value American Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Airlines' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Airlines' earnings, one of the primary drivers of an investment's value.

American EBITDA Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses American Airlines' direct or indirect competition against its EBITDA to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of American Airlines could also be used in its relative valuation, which is a method of valuing American Airlines by comparing valuation metrics of similar companies.
American Airlines is currently under evaluation in ebitda category among related companies.

American Airlines ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, American Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to American Airlines' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

American Airlines Institutional Holders

Institutional Holdings refers to the ownership stake in American Airlines that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of American Airlines' outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing American Airlines' value.
Shares
Renaissance Technologies Corp2023-12-31
5.4 M
Northern Trust Corp2023-09-30
4.7 M
Bank Of America Corp2023-09-30
3.7 M
Bank Of New York Mellon Corp2023-09-30
3.7 M
Squarepoint Ops Llc2023-09-30
3.7 M
Barclays Plc2023-09-30
3.3 M
Millennium Management Llc2023-09-30
3.1 M
Par Capital Management Inc2023-12-31
2.5 M
Man Group Plc2023-09-30
2.4 M
Vanguard Group Inc2023-09-30
78.9 M
Primecap Management Company2023-12-31
37 M

American Fundamentals

About American Airlines Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze American Airlines Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Airlines Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2024
Current Deferred Revenue9.7 B10.1 B
Total Revenue52.8 B55.4 B
Cost Of Revenue41 B43 B
Ebit Per Revenue 0.08  0.08 

American Airlines Investors Sentiment

The influence of American Airlines' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in American. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
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 is the estimated score. Higher bars for a given day show more participation in the average American Airlines' news discussions. The higher the estimated score, the more favorable is the investor's outlook on American Airlines.

American Airlines Implied Volatility

    
  46.52  
American Airlines' implied volatility exposes the market's sentiment of American Airlines Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if American Airlines' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that American Airlines stock will not fluctuate a lot when American Airlines' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards American Airlines in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, American Airlines' short interest history, or implied volatility extrapolated from American Airlines options trading.

Pair Trading with American Airlines

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.

Moving against American Stock

  0.46ATSG Air Transport Services Financial Report 2nd of May 2024 PairCorr
  0.45VLRS Volaris Financial Report 22nd of April 2024 PairCorr
  0.43SRFM Surf Air MobilityPairCorr
The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
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 American Airlines Piotroski F Score and American Airlines Altman Z Score analysis.
Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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When running American Airlines' price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
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Is American Airlines' industry 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
(0.97)
Earnings Share
1.21
Revenue Per Share
80.764
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0396
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.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different 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.