United Airlines Holdings Inc
Exchange: NASDAQSector: IndustrialsIndustry: Airlines
United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline operations, which use jet aircraft with at least 118 seats, and its regional operations. As of December 31, 2014, the company operated a fleet of 1,257 aircraft. It also sells fuel; and provides maintenance, ground handling, and catering services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.
Did you know?
Carries 2.5x more debt than cash on its balance sheet.
Current Price
$91.25
-0.50%GoodMoat Value
$180.10
97.4% undervaluedProfile
Valuation (TTM)
Market Cap$29.51B
P/E8.05
EV$49.21B
P/B1.93
Shares Out323.43M
P/Sales0.49
Revenue$60.47B
EV/EBITDA5.16
United Airlines Holdings Inc (UAL) Stock Analysis
GoodMoat Analysis
United Airlines is a major global airline with a strong network and scale advantage, but it faces significant capital intensity and cyclical risks. Its valuation appears deeply undervalued relative to GoodMoat's target price, suggesting a potential margin of safety. The investment case hinges on whether its operational advantages can overcome the industry's inherent quality challenges.
Read full analysis
United Airlines Holdings Inc operates a major global airline network. Applying the GoodMoat framework, the business shows a narrow but potentially durable moat, primarily from scale privilege and network effects. Its extensive route network, hub-and-spoke system, and fleet size create significant barriers to entry and provide cost and efficiency advantages. However, the airline industry inherently scores poorly on many moat criteria, such as high switching costs, proprietary data, and pricing power, limiting its overall moat strength likely to the lower end of the qualifying range (a score around 5). The quality indicators present a mixed picture. While the company shows strong returns on equity (21.9%) and a favourable free cash flow yield (8.8%), it operates in a capital-intensive, cyclical industry with high financial leverage (Debt/Equity of 2.03), which contradicts the framework's preference for asset-light models and strong balance sheets. This results in an 'Adequate' or 'Unfavourable' Quality rating under the framework's criteria. The valuation is the most compelling aspect. With a P/E of 8.97 and a current price of $92.95, the stock trades at a 47% discount to the GoodMoat target of $175.77. This exceeds the 40% threshold for being 'Deeply Undervalued' in the framework's Discounted Cash Flow analysis. Following the Decision Framework, the stock presents a complex case: it may pass the initial Moat gate narrowly but likely struggles on Quality. The deep undervaluation creates a significant margin of safety, but this must be weighed against the industry's red flags, including macro sensitivity, high fixed costs, and leverage. For a value investor, this discrepancy warrants deeper investigation to understand if the price adequately compensates for the business risks. Analysis based on data as of 2024-05-15.
Market Cap$29.51B
Current Price$91.25
P/E Ratio8.05
Forward P/E—
PEG Ratio0.10
EPS$10.20
Book Value$47.25
P/B Ratio1.93
UAL Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 18.8B
Revenue
43.3B
FY19
15.4B
FY20
24.6B
FY21
45.0B
FY22
53.7B
FY23
57.1B
FY24
59.1B
FY25
Net Income
3.0B
FY19
—
FY20
—
FY21
737M
FY22
2.6B
FY23
3.1B
FY24
3.4B
FY25
UAL 52-Week Range
$68.20
$117.53
50-Day MA: $98.09200-Day MA: $100.64
Did you know?
Price sits at 47% of its 52-week range.
United Airlines Holdings Inc (UAL) Financial Summary
United Airlines Holdings Inc (UAL) is a Industrials company in the Airlines industry, listed on NASDAQ. The stock currently trades at $91.25 with a market capitalization of $29.51B.
Key valuation metrics include a P/E ratio of 8.05, price-to-book ratio of 1.93, and EPS of $10.20. The company reports a profit margin of 6.1% and return on equity of 24.0%.
UAL Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $29.51B |
| P/E Ratio | 8.05 |
| EPS | $10.20 |
| P/B Ratio | 1.93 |
| P/S Ratio | 0.49 |
| EV/EBITDA | 5.16 |
| Profit Margin | 6.1% |
| Return on Equity | 24.0% |
| Debt/Equity | 2.03 |
UAL Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $43.26B | $3.01B |
| FY20 | $15.36B | $-7.07B |
| FY21 | $24.63B | $-1.96B |
| FY22 | $44.95B | $737.00M |
| FY23 | $53.72B | $2.62B |
| FY24 | $57.06B | $3.15B |
| FY25 | $59.07B | $3.35B |
United Airlines Holdings Inc (UAL) Valuation
Based on GoodMoat's DCF model, United Airlines Holdings Inc has a fair value estimate of $180.10. At the current price of $91.25, the stock appears 49.3% undervalued relative to our intrinsic value estimate.
UAL Quality Indicators
United Airlines Holdings Inc maintains a profit margin of 6.1% and an operating margin of 8.0%. Return on equity stands at 24.0%. The current ratio is 0.65. Debt-to-equity ratio is 2.03.
About United Airlines Holdings Inc
United Continental Holdings, Inc., together with its subsidiaries, provides air transportation services in North America, the Asia-Pacific, Europe, the Middle East, Africa, and Latin America. It transports people and cargo through its mainline operations, which use jet aircraft with at least 118 seats, and its regional operations. As of December 31, 2014, the company operated a fleet of 1,257 aircraft. It also sells fuel; and provides maintenance, ground handling, and catering services for third parties. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. in October 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.
UAL Free Cash Flow
United Airlines Holdings Inc generated $2.65B in trailing twelve-month free cash flow, representing an FCF yield of 9.00%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
UAL Shares Outstanding
United Airlines Holdings Inc has 0.32 billion shares outstanding at a share price of $91.25, giving it a market capitalization of $29.51B.
UAL Recent Insider Trades
Recent insider transactions at United Airlines Holdings Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Hart Brett J (President) | SELL | 19,000 | $2.02M |