AAL

American Airlines Group

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Industrials

industry

Airlines

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

American Airlines generates revenue by selling passenger air travel across domestic and international routes, monetizing seat inventory through dynamic pricing models. Cash flow depends on load factors, ticket pricing power, and cost control over fuel, labor, and aircraft ownership. Its competitive moat is scale-driven: network breadth, airport slots, and loyalty programs create switching friction and recurring customer value. However, the moat is operational rather than structural — it relies on efficient execution and demand stability rather than proprietary technology or high-margin intellectual property.

VALUATION

P/E

66.7

Market Cap ($M USD)

$7,474

Forward P/E

4.7

PEG

-

PRICE TO SALES

0.1

PRICE TO BOOK

-

EV / EBITDA

9.4

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$0.17

Next Year EPS Growth Estimate

$2.41

Next Year Revenue Growth Estimate

4.20%

Return on Equity (ROE)

-3.00%

Operating Margin

3.00%

Debt-to-Equity

-

Piotroski F-Score

5

Altman Z-Score

0.7

Return on Invested Capital (ROIC)

5.50%%

Current Ratio

0.5

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At a 66.7 P/E with a collapsing Forward P/E of 4.7, the market is signaling a violent earnings reset rather than sustainable growth. The headline EPS of 9.4 versus EPS Next Year of $0.17 explains the distortion — this is not growth, it’s normalization after an abnormal spike. The Altman Z-Score of 0.7 is deep distress territory, and a 0.5 current ratio confirms liquidity pressure. Even with a 0.1 Price/Sales suggesting surface-level cheapness, this balance sheet risk prevents the stock from qualifying as true value — it trades more like a leveraged recovery option than a stable GARP opportunity.

AI Exposure / Tech Reliance

As a legacy airline in the Industrials sector, American Airlines operates in a capital-intensive, asset-heavy model where AI adoption is incremental rather than transformative. AI can improve route optimization, pricing algorithms, and fuel efficiency, but it will not structurally change a -3.00% operating margin business. Technology may enhance yield management, yet it cannot eliminate cyclicality or balance sheet strain.

The Bull Case

A value-oriented investor could argue that a 0.1 Price/Sales ratio already discounts extreme pessimism, especially with ROIC at 5.50% exceeding Return on Equity of 4.20%, suggesting operating capital is still generating positive returns despite pressure. The Piotroski F-Score of 5 indicates middling but not deteriorating fundamentals — this is not a zero-quality operator. Institutional Ownership at $15.03 signals that serious capital remains involved, and a Forward P/E of 4.7 implies that if earnings stabilize even modestly above the $0.17 estimate, equity upside could be asymmetric. In a cyclical upturn, airlines can re-rate quickly, and with a $7,474M market cap, even small improvements in operating margin from -3.00% could significantly alter equity valuation.

The Bear Case

The bear case is brutal. A Debt/Equity ratio of 3.00 combined with an Altman Z-Score of 0.7 is a flashing red light for solvency risk in any downturn. A 0.5 current ratio signals tight liquidity, and negative operating margins confirm the core business is currently unprofitable. The PEG Forward is absent while EPS collapses from 9.4 to $0.17, implying earnings volatility rather than compounding — this destroys GARP credibility. With no dividend, no yield, and no payout support, equity holders are fully exposed to leverage risk in a structurally cyclical industry.

Market Sentiment & Smart Money

Short Interest %

8.60%

Analyst Consensus

2.04

Average Analyst Price Target

$15.03

Institutional Ownership %

71.10%

1-Year Beta

1.84

Insider Buying % (6 Mo)

1.80%%

Distance to 52-Week High

68.60%%

Distance to 52-Week Low

126.30%%