American Airlines Group Inc.
American Airlines Group Inc. (AAG), a Delaware corporation, is a holding company and its principal, wholly-owned subsidiaries are American Airlines, Inc. (American), Envoy Aviation Group Inc., PSA Airlines, Inc. (PSA) and Piedmont Airlines, Inc. (Piedmont). AAG was formed in 1982, under the name AMR Corporation (AMR), as the parent company of American, which was founded in 1934, with r…
$12.60
+$0.36 (+2.94%)
EOD Oct 22, 2026
Is American Airlines Group (AAL) a quality business at a fair price?
American Airlines Group earns a 1.73% operating margin and a 2.26% return on invested capital, and revenue grew 0.8% in the fiscal year ended Dec 2025.
Earnings are negative, so a P/E cannot say whether the price is fair.
Computed from SEC filings. The quality score and DCF model go deeper. This is analysis, not investment advice.
Operating margin is thin at 1.73%. Limited cushion if revenue slows or costs rise.
Revenue growth slowed to 0.8% in the fiscal year ended Dec 2025, essentially flat. Margins also contracted 2.1pp.
Free cash flow declined 152% in the fiscal year ended Dec 2025 versus the year before, cash generation momentum has weakened. ROIC fell 2.1 points in the fiscal year ended Dec 2025, capital efficiency is deteriorating.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$58.34B
▲ +0.8% YoY
Net Income (TTM)
-$326M
▼ -86.9% YoY
Op. Margin
1.73%
▼ -2.1pp YoY
ROIC
2.26%
▼ -2.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$285M
▼ -152.3% YoY
Op. Cash Flow (TTM)
$4.37B
▼ -22.2% YoY
Net Debt
$27.26B
Cash & Equiv.
$7.89B
5Y CAGR: +25.8%
Continue Research
SourceComputed from the 10-Q filed 23 Jul 2026, covering the period ending 30 Jun 2026, as reported to the SEC. Data last refreshed 23 Oct 2026. How this is calculated.
Price from market data, last close as of 22 Oct 2026. Fiscal year ends Dec. Sector medians are approximate S&P 500 benchmarks and update periodically.
Is American Airlines Group (AAL) overvalued?
American Airlines Group (AAL) trades above a two-stage DCF intrinsic value of about $-33.69 per share, so at $12.60 the stock looks overvalued (367.4% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, American Airlines Group scores 26/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is American Airlines Group's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $-33.69 per share for AAL, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $-25.27. At today's $12.60, that puts the stock about 367.4% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is American Airlines Group a high-quality business?+
American Airlines Group scores 26 out of 100 on Intrinsiqq's quality score, a weighted blend of 7 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 1.7% operating margin and a 2.3% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is American Airlines Group a good stock to buy right now?+
That depends on valuation and quality together, not either alone. AAL currently trades above its estimated intrinsic value and scores 26/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.
Related stocks: Air Transportation, Scheduled
Spot a number that looks wrong? Check it in AAL's SEC filings or
Download this analysis as a PDF (Pro)
Data sourced from SEC EDGAR filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.
Keep analysing AAL
Create a free account and get 14 days of Premium: every stock and every tool.
- Unlimited stocks
- Stock screener
- Portfolio tracker
- Editable DCF
- Compare side by side
- Unlimited alerts
No card. Moves to Free after, unless you upgrade.
Already have an account?
Or come back tomorrow. Stocks on your watchlist are always free to view.