American Airlines Group (AAL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
American Airlines Group stock (AAL) is currently trading at $10.74. American Airlines Group PE ratio is 63.18. American Airlines Group PS ratio (Price-to-Sales) is 0.13. Analyst consensus price target for AAL is $16.03. WallStSmart rates AAL as Sell.
- AAL PE ratio analysis and historical PE chart
- AAL PS ratio (Price-to-Sales) history and trend
- AAL intrinsic value — DCF, Graham Number, EPV models
- AAL stock price prediction 2025 2026 2027 2028 2029 2030
- AAL fair value vs current price
- AAL insider transactions and insider buying
- Is AAL undervalued or overvalued?
- American Airlines Group financial analysis — revenue, earnings, cash flow
- AAL Piotroski F-Score and Altman Z-Score
- AAL analyst price target and Smart Rating
American Airlines Group
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AAL Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · American Airlines Group (AAL)
AAL trades 1137% above its Graham fair value of $1.16, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
American Airlines Group (AAL) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales, institutional own.. Concerns around operating margin and price/book. Mixed signals suggest waiting for clearer direction before acting.
American Airlines Group (AAL) Key Strengths (4)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
71.17% of shares held by major funds and institutions
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
American Airlines Group (AAL) Areas to Watch (5)
Earnings declining -83.10%, profits shrinking
Near-zero operating margins, business under pressure
Very expensive at 78.8x book value
Revenue growing slowly at 2.50% annually
Very thin margins, barely profitable
Supporting Valuation Data
American Airlines Group (AAL) Detailed Analysis Report
Overall Assessment
This company scores 43/100 in our Smart Analysis, earning a D grade. Out of 9 metrics analyzed, 4 register as strengths (avg 9.3/10) while 5 fall into concern territory (avg 1.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Institutional Own.. Valuation metrics including PEG Ratio (0.09), Price/Sales (0.13) suggest the stock is attractively priced.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Price/Book. Some valuation metrics including Price/Book (78.85) suggest expensive pricing. Growth concerns include Revenue Growth at 2.50%, EPS Growth at -83.10%, which may limit upside. Profitability pressure is visible in Operating Margin at 3.62%, Profit Margin at 0.20%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Operating Margin at 3.62% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 2.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. EPS Growth and Operating Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
AAL Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
AAL's Price-to-Sales ratio of 0.13x trades at a deep discount to its historical average of 0.3x (31th percentile). The current valuation is 89% below its historical high of 1.2x set in May 2021, and 1200% above its historical low of 0.01x in Jun 2008. Over the past 12 months, the PS ratio has compressed from ~0.2x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for American Airlines Group (AAL) · INDUSTRIALS › AIRLINES
The Big Picture
American Airlines Group is a strong growth company balancing expansion with improving profitability. Revenue reached 54.6B with 250% growth year-over-year. Profit margins of 20.0% are healthy, with room for further expansion as the business scales.
Key Findings
Revenue growing at 250% YoY, reaching 54.6B. This pace significantly outperforms most AIRLINES peers.
Free cash flow is -1.9B, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
Earnings fell 83% YoY while revenue grew 250%. This gap usually reflects one-time items (tax benefits, write-offs) in the prior period, not an operational decline.
What to Watch Next
Growth sustainability: can American Airlines Group maintain 250%+ revenue growth, or will competition slow it down?
Valuation compression risk at a P/E of 63.2x. Any growth miss could trigger a sharp correction.
Sector dynamics: monitor AIRLINES industry trends, competitive moves, and regulatory changes that could impact American Airlines Group.
Bottom Line
American Airlines Group offers an attractive blend of growth (250% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About American Airlines Group(AAL)
NASDAQ
INDUSTRIALS
AIRLINES
USA
American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.