American Airlines Group Stock Analysis:
Goldman Sachs reinstates a Neutral rating for American Airlines Group and sets a price target of $13 on the company’s stock.
The average analyst price target for American Airlines Group over the next 12 months, based on the stock projections from 10 analysts, is USD 15.07. Hold is the average analyst recommendation for American Airlines Group. Based on 3 good indications and 9 negative signals, Stock Target Advisor’s personal stock analysis of American Airlines Group is bearish. The stock price of American Airlines Group was 13.35 USD at the most recent close. The share price of American Airlines Group has changed by -1.48% over the last week, -9.06% over the past month, and -21.42% over the past year.
Fundamental Stock Analysis (AAL:NSD):
Positive Fundamentals:
High market capitalization:
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Underpriced compared to earnings:
The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.
Positive cash flow:
The company had positive total cash flow in the most recent four quarters.
Negative Fundamentals:
Poor risk adjusted returns:
This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable.
High volatility:
The total returns for this company are volatile and above median for its sector over the past 5 years.
Below median total returns:
The company has under performed its peers on annual average total returns in the past 5 years.
Below median dividend returns:
The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.
Overpriced on cashflow basis:
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors.
Poor return on assets:
The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.
Negative free cash flow:
The company had negative total free cash flow in the most recent four quarters.
Low Earnings Growth:
This stock has shown below median earnings growth in the previous 5 years compared to its sector.
Low Revenue Growth:
This stock has shown below median revenue growth in the previous 5 years compared to its sector.
Conclusion:
Our view of the American Airlines Group stock is Bearish with a score of 2.5 out of 10, where 0 is very bearish and 10 very bullish.
