The share price of American Airlines Group Inc. [NASDAQ: AAL] inclined by $29.12, presently trading at $29.58. The company’s shares saw 22.10% gains compared to the lowest price in the period of the last 52 weeks, set at $24.23 recorded on 09/10/19. The last few days have been benevolent to the share price as AAL jumped by +9.22% during the last week, even though the stock is still down by -0.41% compared to 2.49 of all time high it touched on 09/11/19. However, the stock had a poor performance during the past 3 months, roughly gaining 1.18%, while additionally dropping -24.23% during the last 12 months. American Airlines Group Inc. is said to have a 12-month price target set at $38.75. That means that the stock has a strong potential to acquire 9.17% increase from the current trading price.
American Airlines Group Inc. [NASDAQ:AAL]: Analyst Rating and Earnings
Its stock price has been found in the range of 24.23 to 43.89. This is compared to its latest closing price of $29.12.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Thu 24 Oct (In 43 Days).
Fundamental Analysis of American Airlines Group Inc. [AAL]
Now let’s turn to look at profitability: with a current Operating Margin for American Airlines Group Inc. [AAL] sitting at +7.74 and its Gross Margin at +24.74, this company’s Net Margin is now 3.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 10.98, and its Return on Invested Capital has reached 9.00%. Its Return on Equity is 75.17, and its Return on Assets is 2.52. These metrics suggest that this American Airlines Group Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Similarly, its Total Debt to Total Capital is 77.16, while its Total Debt to Total Assets stands at 56.17.
What about valuation? This company’s Enterprise Value to EBITDA is 7.39 and its Total Debt to EBITDA Value is 6.07. The Enterprise Value to Sales for this firm is now 0.92, and its Total Debt to Enterprise Value stands at 0.77.
Shifting the focus to workforce efficiency, American Airlines Group Inc. [AAL] earns $345,547 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 25.76 and its Total Asset Turnover is 0.80. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 0.39 and its Current Ratio is 0.48. This company is not investing its short-term assets in an optimally efficient way, making it a riskier investment.
American Airlines Group Inc. [AAL] has 443.67M shares outstanding, amounting to a total market cap of $12.92B. Its stock price has been found in the range of 24.23 to 43.89. At its current price, it has moved down by -32.59% from its 52-week high, and it has moved up 22.10% from its 52-week low.
This stock’s Beta value is currently 1.71, which indicates that it is 2.82% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.22. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is American Airlines Group Inc. [AAL] a Reliable Buy?
American Airlines Group Inc. [AAL] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.