American Airlines Group Inc.AAL

NASDAQIndustrials

CAUTIOUS

$11.43

P/E

67.21

PEG

0.36

FCF Yield

Rev Growth YoY

+2.2% YoY

Gross Margin

20.0%

Health Score

3/10

D/E Ratio

-9.65

Confidence

LOW


Business Snapshot

American Airlines Group Inc. is one of the world's largest commercial airlines, operating an extensive domestic and international network of passenger and cargo routes. The company competes in the highly cyclical, capital-intensive global airline industry under the Industrials sector. With a current price of $11.43 and a trailing twelve-month revenue of $54.63B, AAL operates at large-cap scale, though its market capitalisation figure is unavailable for precise tier classification.

Financial Health

Score: 3/10 American Airlines carries a gross margin of 20.0% (improved from 17.3% in the prior year), which is a modest positive, but the broader financial picture is strained. Free cash flow is negative at -$680M, meaning the company is consuming cash rather than generating it — a structural concern in a capital-heavy industry...

Risk Assessment

- **CASH FLOW:** Free cash flow is -$680M, meaning AAL is burning cash — problematic in a capital-intensive industry requiring continuous fleet investment and maintenance. - **VALUATION:** P/E of 67.21x is approximately 2.7x the sector average of 25x, leaving little margin for error if earnings disappoint. - **LIQUIDITY:** Current ratio of 0.5x indicates current liabilities are roughly double current assets, raising near-term solvency concerns. - **EARNINGS VOLATILITY:** Net income swung from -$473M to +$599M across adjacent quarters, reflecting the extreme seasonality and operational fragility of the business. - **TECHNICALS:** A confirmed death cross pattern (50-day MA crossing below 200-day MA) with MACD trending bearish suggests sustained downward price momentum. ---...

Last updated 4 hours ago · Data sourced from FMP & Finnhub · Not financial advice