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Category: United Airlines (UAL)
Date: 29 September 2020 Stock price of United Airlines (UAL): $35.94 As we all know by now, the airline and travel industry has been hit very hard by the Covid-19 pandemic. And so has the stock prices of the firms active in these industries, Today we take a look at the stock price performance of United Airlines (UAL) over the last couple of years and compare it to some of its peers such as Southwest Airlines (LUV) and Delta Airlines (DAL)
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United Airlines and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers "
More About United Airlines (UAL)
United's shared purpose is "Connecting People. Uniting the World." We are more focused than ever on our commitment to customers through a series of innovations and improvements designed to help build a great experience: Every customer. Every flight. Every day. Together, United Airlines and United Express operate approximately 4,900 flights a day to 358 airports across five continents. In 2018, United and United Express operated more than 1.7 million flights carrying more than 158 million customers. United is proud to have the world's most comprehensive route network, including U.S. mainland hubs in Chicago, Denver, Houston, Los Angeles, New York/Newark, San Francisco and Washington, D.C. United operates 788 mainline aircraft and the airline's United Express carriers operate 560 regional aircraft. United is a founding member of Star Alliance, which provides service to 195 countries via 26 member airlines. For more information, visit united.com, follow @United on Twitter and Instagram or connect on Facebook. The common stock of United's parent, United Airlines Holdings, Inc., is traded on the Nasdaq under the symbol "UAL"
Overview of United Airlines (UAL) latest earnings report
Data below is reported for the latest quarter unless stated otherwise
- Revenue: $7.979 billion (up from $9.589 billion for the same quarter of the previous year)
- Revenue decreased by -16.8% over the last 12 months
- Operating expenses: $8.951 billion (up from $9.094 billion for the same quarter of the previous year)
- Operating expenses decreased by -1.6% over the last 12 months
- Net loss: -$2.11 billion (down from $292 million for the same quarter of the previous year)
- Diluted loss per share: -$6.86 (down from $1.09 for the same quarter of the previous year)
- Diluted weighted-average shares outstanding: 248.5 million (down from 268.3 million for the same quarter of the previous year)
- Cash and cash equivalents: $3.44 billion
- Cash and cash equivalents per share: $13.84
- Cash and cash equivalents makes up 33.8% of United Airlines' market capital
- Cash and cash equivalents makes up 6.5% of United Airlines' total assets
- Cash and cash equivalents per share: $13.84
- Accounts receivable: $792 million
- Accounts receivable makes up 1.5% of United Airlines' total assets
- Goodwill: $4.523 billion
- Goodwill per share: $18.20
- Goodwill makes up 44.5% of United Airlines' total assets
- Stockholders equity of United Airlines' : $9.418 billion
- Goodwill per share: $18.20
- Stockholders equity per share: $37.90
- So United Airlines is trading at 1.07 times its stockholders equity per share. This is just outside the expected range of between 2 and 4 most firms tend to trade at
- Long term debt of United Airlines: $13.2 billion
- Long term debt makes up 47.8% of United Airlines total liabilities
Our latest stock valuation of United Airlines (UAL)
So what is United Airlines' stock worth based on the release of their latest earnings report and the fiscal guidance provided by United Airlines? Based on the latest earnings results, and their fiscal guidance our valuation models provide a target price (full value) price for United Airlines at $63.20 a United Airlines stock. We therefore believe that the stock is undervalued at its current price of $33.23
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $63.20 Therefore we see a good entry point into United Airlines stock at $56.90 or below. Since United Airlines is trading at well below our suggested entry point into the stock we rate United Airlines as a buy, but this recommendation is only for the brave as the airline industry is still in for a very tough time in the next 18 to 24 months.
We usually suggest long term fundamental or value investors look to enter into a stock at least 10% below our target price (full value price) which in this case is $63.20 Therefore we see a good entry point into United Airlines stock at $56.90 or below. Since United Airlines is trading at well below our suggested entry point into the stock we rate United Airlines as a buy, but this recommendation is only for the brave as the airline industry is still in for a very tough time in the next 18 to 24 months.
United Airlines (UAL) stock price history over the last 5 years
The image below shows the stock price history of United Airlines (UAL) over the last 5 years. And its not been the best of times for UAL stockholders. Over the last 5 years the stock of UAL declined by -41.1%.
United Airlines (UAL) vs Southwest Airlines (LUV) vs Delta Airlines (DAL) stock performance
The image below shows the stock price performance of United Airlines (UAL), Southwest Airlines (LUV) and Delta Airlines (DAL) over the last 5 years. So while the image above showed that it has not been a good time for United Airlines. The image below shows the performance of United against its peers. The summary below shows the stock price returns of the three airlines over the last 5 years, sorted from best to worst performer
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
- Southwest Airlines (LUV): -16.45%
- Delta Airlines (DAL): -38.9%
- United Airlines (UAL): -41.1%
So of the three airlines the stock of United Airlines have been the worst performer over the last 5 years while the stock of Southwest Airlines (LUV) has been the best performer
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