American Airlines Group AAL
United StatesIndustrials · AirlinesUSD
16.14 USD (+25.6%)
23 analysts
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American Airlines Group is one of the world's largest airlines, operating an extensive network of domestic and international routes transporting passengers and cargo.
Key points
from its scores- ✕Fragile balance sheet0.5
- ✕Little or no dividend1.5
- ✕Little competitive advantage2.8
AI analysis
bottom line, main risk, context and newsIts extremely high leverage and weak earnings generation make it a high-risk investment in the current rising-rate environment.
American Airlines presents a highly leveraged balance sheet (Net Debt/EBITDA of 8.12) and weak profitability (operating margin of 2.81%), with sharply falling earnings growth (-88.2%), making it vulnerable to higher debt costs and fuel price volatility, despite its low valuation (P/E of 8.61).
The main risk is its extreme financial leverage (Net Debt/EBITDA of 8.12), which exposes it to higher debt costs and any operational shock, given its thin 2.81% margin.
Context and risks
The rise in interest rates and the strength of the dollar pressure American Airlines' balance sheet, which has a Net Debt/EBITDA of 8.12, an extreme leverage level that makes its debt service more expensive and limits its financial flexibility. Furthermore, weak consumer spending and fuel price volatility, in a context of rising rates, add pressure on its thin 2.81% operating margin.
Is American Airlines Group stock cheap or expensive?
at the analysis dateOn EV / EBITDA, it trades 27% below the Industrials median.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| EV / EBITDA | 10.6 | 14.5 | −27% |
| Price / sales | 0.1 | 2.1 | −93% |
Sector: median of the 388 Industrials companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.0 out of 10 (median for Industrials: 5.0).
Average analyst target: 16.14 USD, +25.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 0.5 (sector 6.4), Growth 3.8 (sector 6.6).
Classic formulas with standard assumptions (5.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Industrials medianValuation
- Forward P/E
- 8.6
- EV / EBITDA
- 10.6
- Price / book
- −2.1
- Price / sales
- 0.1
- PEG
- 0.11
- Market cap
- 8.5B USD
- Enterprise value
- 35.9B USD
Profitability
- ROA
- 1.1%
- Gross margin
- 21.2%
- Operating margin
- 2.8%
- Net margin
- −0.6%
- Free cash flow
- 519.2M USD
- FCF yield
- 6.1%
- Cash conversion
- 15%
Solvency
- Total debt
- 35.7B USD
- Net debt
- 27.4B USD
- Cash
- 8.4B USD
- EBITDA
- 3.4B USD
- Net debt / EBITDA
- 8.12
- Current ratio
- 0.53
- Quick ratio
- 0.38
Growth
- Revenue growth
- +16.3%
- Earnings growth
- −88.2%
- EPS (TTM)
- −0.49 USD
- EPS (forward)
- 1.49 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.38
- Analyst consensus
- Buy (23)
- Target price
- 16.14 USD
- 52-week range
- 10.09 – 18.79
Recent news
All AAL news →Compare it with its sector
All 388 in Industrials →Frequently asked questions about American Airlines Group
Is American Airlines Group stock cheap or expensive?
On EV / EBITDA, it trades 27% below the Industrials median. Valuation score: 5.0 out of 10 (median for Industrials: 5.0). Average analyst target: 16.14 USD, +25.6% versus the price. This is not investment advice.
What score does American Airlines Group get on MeridIAn Screener?
It scores 3.5 out of 10, rank 2,026 of 2,130 (better than 4% of the companies analysed). Its strongest category is Momentum (6.0) and its weakest, Financial health (0.5). Analysis of 08/10/2026.
How much is American Airlines Group worth on the stock market?
Its market capitalisation is 8.5B USD and its enterprise value, debt included, is 35.9B USD.
How much debt does American Airlines Group have?
Its net debt (debt minus cash) is 27.4B USD. That is 8.12 times its EBITDA; the Industrials median is 1.58.
Does American Airlines Group pay a dividend?
It pays no dividend, or almost none.
How has American Airlines Group stock performed over the last year?
It has risen 11.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 10.09 and 18.79 USD. Past performance does not guarantee future results.
What do analysts think of American Airlines Group?
23 analysts cover it; their average recommendation is “Buy” and their average target is 16.14 USD (+25.6% versus the price). It is an estimate, not market data.