Now trading at a price of $43.1, United Airlines has moved -1.4% so far today.
United Airlines returned gains of 30.0% last year, with its stock price reaching a high of $58.23 and a low of $31.58. Over the same period, the stock outperformed the S&P 500 index by 11.0%. More recently, the company's 50-day average price was $50.83. United Airlines Holdings, Inc., through its subsidiaries, provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. Based in Chicago, IL, the large-cap Consumer Discretionary company has 99,800 full time employees. United Airlines has not offered a dividend during the last year.
The Business Has Negative Margins on Average:
| 2018-02-22 | 2019-02-28 | 2020-02-25 | 2021-03-01 | 2022-02-18 | 2023-02-16 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $37,784 | $41,303 | $43,259 | $15,355 | $24,634 | $44,955 |
| Gross Margins | 39.0% | 36.0% | 38.0% | -11.0% | 18.0% | 34.0% |
| Operating Margins | 10% | 9% | 11% | -57% | -18% | 6% |
| Net Margins | 6.0% | 5.0% | 7.0% | -46.0% | -8.0% | 2.0% |
| Net Income (MM) | $2,143 | $2,122 | $3,009 | -$7,069 | -$1,964 | $737 |
| Net Interest Expense (MM) | -$569 | -$569 | -$598 | -$942 | -$1,541 | -$1,375 |
| Depreciation & Amort. (MM) | -$2,149 | -$2,165 | -$2,288 | -$2,488 | -$2,485 | -$2,456 |
| Earnings Per Share | $7.06 | $7.67 | $11.58 | -$25.3 | -$6.07 | $2.28 |
| EPS Growth | n/a | 8.64% | 50.98% | -318.48% | 76.01% | 137.56% |
| Diluted Shares (MM) | 304 | 277 | 260 | 279 | 324 | 324 |
| Free Cash Flow (MM) | $7,411 | $10,234 | $11,388 | -$2,412 | $4,067 | $10,678 |
| Capital Expenditures (MM) | -$3,998 | -$4,070 | -$4,479 | -$1,721 | -$2,000 | -$4,612 |
| Net Current Assets (MM) | -$26,479 | -$27,603 | -$32,886 | -$38,788 | -$41,312 | -$40,404 |
| Long Term Debt (MM) | $12,699 | $13,349 | $18,311 | $30,046 | $35,732 | $32,857 |
| Net Debt / EBITDA | 1.78 | 1.83 | 2.27 | -3.25 | -11.45 | 4.06 |
A Lower P/B Ratio Than Its Sector Average but Trades Above Its Graham Number:
United Airlines has a trailing twelve month P/E ratio of 6.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $11.25, the company has a forward P/E ratio of 4.5. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 2.0%. On this basis, the company's PEG ratio is 3.2, which suggests that it is overpriced. In contrast, the market is likely undervaluing United Airlines in terms of its equity because its P/B ratio is 1.83 while the sector average is 3.12. The company's shares are currently trading 30.4% above their Graham number.
United Airlines Has an Average Rating of Buy:
The 15 analysts following United Airlines have set target prices ranging from $48.0 to $88.0 per share, for an average of $70.8 with a buy rating. As of April 2023, the company is trading -28.2% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
United Airlines has an average amount of shares sold short because 5.9% of the company's shares are sold short. Institutions own 68.6% of the company's shares, and the insider ownership rate stands at 0.42%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 14% stake in the company is worth $1,627,997,105.
