Price to FCFE (P/FCFE)
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American Airlines Group Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2013
- Current Ratio since 2013
- Debt to Equity since 2013
- Price to Book Value (P/BV) since 2013
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Free Cash Flow to Equity (FCFE)
American Airlines Group Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
- Net Cash Provided by (Used in) Operating Activities
- The net cash from operating activities exhibited significant volatility over the analyzed period. In 2019, the company generated a positive cash flow of 3,815 million USD, which sharply reversed to a substantial negative outflow of 6,543 million USD in 2020. This marked decline suggests a severe disruption in operations, likely linked to external factors impacting cash generation. Subsequently, the cash flow recovered in 2021 to a positive 704 million USD, further improving to 2,173 million USD in 2022, and reaching 3,803 million USD in 2023. The gradual recovery post-2020 indicates a restoration of operational efficiency and cash-generating capability, approaching pre-crisis levels by the end of 2023.
- Free Cash Flow to Equity (FCFE)
- The free cash flow to equity displayed a volatile and inconsistent trend throughout the period. Initially, the FCFE was negative at -683 million USD in 2019 and improved slightly to -256 million USD in 2020. Notably, there was a pronounced spike in FCFE during 2021, reaching a peak of 5,343 million USD, which stands out as an exceptional increase compared to other years. However, this gain was not sustained, as FCFE returned to negative territory in 2022 and 2023, with values of -3,056 million USD and -1,689 million USD respectively. The fluctuation in FCFE suggests episodic factors impacting equity cash flows, with significant positive cash flow in 2021 possibly driven by extraordinary events such as asset sales, financing activities, or changes in working capital, followed by a reversion to cash outflows in subsequent years.
Price to FCFE Ratio, Current
American Airlines Group Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| FedEx Corp. | |
| Uber Technologies Inc. | |
| Union Pacific Corp. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| P/FCFE, Sector | |
| Transportation | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
American Airlines Group Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| P/FCFE, Sector | ||||||
| Transportation | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of American Airlines Group Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The data reveals several significant trends concerning the financial performance and market valuation of the company over the five-year period ending in 2023.
- Share Price
- There is a clear downward trend in the share price from 2019 to 2023. The share price declined from $28.33 at the end of 2019 to $14.79 by the end of 2023. This represents an overall decrease of nearly 48%. The most substantial drop occurred between 2019 and 2020, coinciding with likely external economic or industry-specific challenges, with a decline from $28.33 to $17.99. The share price continued to decrease gradually each year following 2020.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share data indicates volatility and inconsistency in the company's ability to generate free cash flows attributable to equity holders. Negative FCFE per share is evident in most years except for 2021, where the company reported a positive FCFE per share of $8.23. Negative values appeared in 2019 (-$1.60), 2020 (-$0.40), 2022 (-$4.69), and 2023 (-$2.58), reflecting periods of cash outflows or lower cash generation relative to equity requirements. The positive spike in 2021 suggests a temporary improvement in operational cash flow or capital structuring.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio is available only for 2021, recorded at 2.12, indicating the market valuation of the company’s shares relative to its free cash flow generation that year. The absence of this ratio in other years limits the ability to assess valuation trends in relation to FCFE throughout the entire period. The presence of this ratio during the sole year of positive FCFE suggests market focus on cash flow performance that year.
In summary, the company's share price has experienced a significant decline over the five-year period, reflecting negative market sentiment or challenges impacting valuation. FCFE per share has been predominantly negative, except for a brief positive turnaround in 2021, indicating variable free cash flow performance. The limited availability of the P/FCFE ratio restricts comprehensive valuation analysis but aligns with the positive FCFE outcome of 2021. Overall, the financial results suggest ongoing operational or financial challenges affecting shareholder returns and company valuation.