American Airlines Retained Earnings vs. Beta

AAL Stock  USD 15.35  0.05  0.33%   
Based on American Airlines' profitability indicators, American Airlines Group is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in April. Profitability indicators assess American Airlines' ability to earn profits and add value for shareholders.

American Airlines Retained Earnings

(7.3 Billion)

Days Of Sales Outstanding is expected to rise to 23.80 this year, although the value of Price To Sales Ratio will most likely fall to 0.14. At this time, American Airlines' Net Income From Continuing Ops is quite stable compared to the past year. Net Income Applicable To Common Shares is expected to rise to about 120 M this year, although the value of Total Other Income Expense Net is projected to rise to (2.7 B).
For American Airlines profitability analysis, we use financial ratios and fundamental drivers that measure the ability of American Airlines to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well American Airlines Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between American Airlines's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of American Airlines Group over time as well as its relative position and ranking within its peers.
  
Check out Trending Equities.
Is American Airlines' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of American Airlines. If investors know American will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about American Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.97)
Earnings Share
1.21
Revenue Per Share
80.764
Quarterly Revenue Growth
(0.01)
Return On Assets
0.0396
The market value of American Airlines is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Airlines' value that differs from its market value or its book value, called intrinsic value, which is American Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because American Airlines' market value can be influenced by many factors that don't directly affect American Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between American Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if American Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

American Airlines Beta vs. Retained Earnings Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining American Airlines's current stock value. Our valuation model uses many indicators to compare American Airlines value to that of its competitors to determine the firm's financial worth.
American Airlines Group is number one stock in retained earnings category among related companies. It is number one stock in beta category among related companies . The company's current value of Retained Earnings is estimated at (7.3 Billion). Comparative valuation analysis is a catch-all model that can be used if you cannot value American Airlines by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for American Airlines' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the American Airlines' earnings, one of the primary drivers of an investment's value.

American Beta vs. Retained Earnings

Retained Earnings is a balance sheet account that refers to the portion of company income that is retained by the firm. In other words, it is a part of earnings that is not paid out as dividends or otherwise distributed to owners. Retained Earnings are calculated by adding net income to last period retained earnings and subtracting any dividends paid to owners.

American Airlines

Retained Earnings

 = 

Beginning RE + Income

-

Dividends

 = 
(7.69 B)
Retained Earnings shows how the firm utilizes its profits over time. In simple terms, investors can think of retained earnings as the amount of profit the company has reinvested in the business since its inceptions. However the methodology to make a decision over how much profit to retain is different between companies in different industries. For example, growing industries tend to retain more of their earnings than more matured industries as they need more assets investment to sustain their growth.
Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.

American Airlines

Beta

 = 

Covariance

Variance

 = 
1.58
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.

American Beta Comparison

American Airlines is currently under evaluation in beta category among related companies.

Beta Analysis

As the market goes up, the company is expected to outperform it. However, if the market returns are negative, American Airlines will likely underperform.

American Airlines Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in American Airlines, profitability is also one of the essential criteria for including it into their portfolios because, without profit, American Airlines will eventually generate negative long term returns. The profitability progress is the general direction of American Airlines' change in net profit over the period of time. It can combine multiple indicators of American Airlines, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-4.9 B-5.1 B
Operating IncomeB4.2 B
Income Before Tax1.1 B1.2 B
Total Other Income Expense Net-2.9 B-2.7 B
Net Income822 M863.1 M
Income Tax Expense299 M313.9 M
Net Interest Income-1.6 B-1.6 B
Interest Income591 M620.5 M
Net Income From Continuing Ops822 M863.1 M
Net Income Applicable To Common Shares114.3 M120 M
Non Operating Income Net Other622.1 M468.6 M
Change To Netincome58.5 M71.4 M
Net Income Per E B T 0.73  0.63 

American Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on American Airlines. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of American Airlines position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the American Airlines' important profitability drivers and their relationship over time.

Use American Airlines in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if American Airlines position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Airlines will appreciate offsetting losses from the drop in the long position's value.

American Airlines Pair Trading

American Airlines Group Pair Trading Analysis

The ability to find closely correlated positions to American Airlines could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace American Airlines when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back American Airlines - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling American Airlines Group to buy it.
The correlation of American Airlines is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as American Airlines moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if American Airlines moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for American Airlines can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your American Airlines position

In addition to having American Airlines in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Construction Materials Thematic Idea Now

Construction Materials
Construction Materials Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Construction Materials theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Construction Materials Theme or any other thematic opportunities.
View All  Next Launch
When determining whether American Airlines is a strong investment it is important to analyze American Airlines' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact American Airlines' future performance. For an informed investment choice regarding American Stock, refer to the following important reports:
Check out Trending Equities.
Note that the American Airlines information on this page should be used as a complementary analysis to other American Airlines' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Complementary Tools for American Stock analysis

When running American Airlines' price analysis, check to measure American Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy American Airlines is operating at the current time. Most of American Airlines' value examination focuses on studying past and present price action to predict the probability of American Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move American Airlines' price. Additionally, you may evaluate how the addition of American Airlines to your portfolios can decrease your overall portfolio volatility.
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Stocks Directory
Find actively traded stocks across global markets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
To fully project American Airlines' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of American Airlines at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include American Airlines' income statement, its balance sheet, and the statement of cash flows.
Potential American Airlines investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although American Airlines investors may work on each financial statement separately, they are all related. The changes in American Airlines's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on American Airlines's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.