American Airlines Stock Analysis, Valuation (NASDAQ:AAL)

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$41.6 $0.81 (1.99%) AAL stock closing price Sep 19, 2018 (Closing)

View the American Airlines stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for AAL stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

American Airlines Group Inc Stock Rating 3/5

Amigobulls AAL stock analysis takes into account various financial ratios like relative valuation, American Airlines revenue, growth and return on equity based on latest quarter 2018 Q2 financial statements. We also check American Airlines dividend performance. We compare American Airlines valuation with its sector peers to gauge relative attractiveness of AAL stock. Based on a company's historical fundamentals we arrive at American Airlines stock rating which is indicative of the company's financial performance.

Should you buy AAL stock?

  • The company has an operating cash flow which is 1.9152 times the net income. We see this as a positive signal.
  • AAL stock is trading at an earnings multiple of 8.8 which is better than the sector average of 19.9.
  • AAL stock is trading at a favorable price to sales multiple of 0.4 as against the Transportation sector average multiple of 1.4.
  • American Airlines has an attractive ROIC (Return on Invested Capital) of 6.8
  • American Airlines has a good Return On Equity (ROE) of 84.2.

Should you sell AAL stock?

  • American Airlines had a low YoY revenue growth of 4.8% in the 2018-06.

Comments on this video and American Airlines stock

Investors can make use of the Amigobulls American Airlines stock analysis to ascertain how AAL stock fares in fundamental analysis investment criteria. Fundamentals of a company give detailed information which helps in making invesment decisions.

American Airlines revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of AAL technical analysis to check whether the fundamental story is reflected in the market sentiment.