American Airlines Group, Inc.

Valuation Analysis

About the Company

American Airlines Group Inc., through its subsidiaries, operates as a network air carrier in the United States, Latin America, Atlantic, and Pacific. The company provides scheduled air transportation services for passengers and cargo through its hubs in Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C., as well as through partner gateways in London, Doha, Madrid, Seattle/Tacoma, Sydney, and Tokyo. It also operates a mainline fleet of 1,013 aircraft. The company was formerly known as AMR Corporation and changed its name to American Airlines Group Inc. in December 2013. American Airlines Group Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.

American Airlines Group, Inc. Stock at a Glance

American Airlines Group, Inc. (AAL) is currently trading at $14.98 with a market capitalization of $9.9B. The trailing P/E ratio stands at 48.32x, with a forward P/E of 6.72x. The 52-week range spans from $10.09 to $16.50; the current price is 9.2% below the yearly high. Year-over-year revenue growth stands at +10.8%. The net profit margin stands at 0.36%.

💰 Dividend

American Airlines Group, Inc. currently does not pay a dividend. The company typically reinvests its earnings into growth initiatives and product development.

📊 Analyst Rating

24 analysts rate American Airlines Group, Inc. (AAL) on consensus: Buy. The average price target is $15.53, implying +3.65% from the current price. Analyst price targets range from $10.00 to $24.00.

American Airlines Group, Inc.: The Investment Case in Detail

American Airlines Group, Inc. (AAL) operates in the Industrials — specifically Airlines — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

Revenue is growing at a healthy 10.8% pace year-over-year, suggesting the business model continues to find new customers and pricing power.

The Bear Case

With a net margin of just 0.36%, the business has little room to absorb cost shocks or pricing pressure — a single bad quarter can swing the company to a loss. Short interest sits at 11.39% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong. Our valuation screen flags the stock as overvalued — current multiples imply the business needs to deliver well above its recent trajectory to justify the price.

Valuation in Context

With a PEG ratio of 0.83, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 9.02x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 6.72x is meaningfully below the trailing 48.32x — analysts expect earnings to step up; the next earnings release is the test.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

The price is in a transition zone relative to the moving averages — no clear signal.

Risk Profile

The data points to market-like volatility, elevated short interest (11.39%).

Trading Data

Related Stocks in the Same Sector

Where can I buy American Airlines Group, Inc.?

Compare top-rated brokers — low fees, trusted providers, fully regulated.