United Airlines Stock Intrinsic Value – United Airlines Upgraded Following Positive Developments
January 5, 2024
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United Airlines ($NASDAQ:UAL) recently saw a positive development in the form of a rating upgrade. The rating upgrade reflects United Airlines’ commitment to improve their customer service and operational efficiency. The company has been investing in new technology, expanding their route network, and augmenting their fleet with new aircraft to enhance customer experience.
Additionally, United Airlines has implemented a variety of initiatives to make traveling with them easier for passengers, including online check-in and baggage tracking services. Investors have also been taking note of the improvements made by United Airlines, recognizing the potential of the company moving forward. The upgraded rating is a sign that the airline is making strides to become even more competitive in the market, which positions it well for future success.
Share Price
On Wednesday, United Airlines stock opened at $40.1 and closed at $39.5, down by 2.9% from its last closing price of 40.7. Despite the minor drop in share price, the company has experienced a number of positive developments recently that have led to an overall upgraded outlook. United Airlines has seen a significant decrease in its operating expenses, helped in part by the airline’s cost-cutting measures.
Additionally, the company has seen a rise in demand for its services, particularly on domestic routes. These improvements have resulted in an upgraded outlook for United Airlines from various leading analysts. As a result, the company is expected to see greater gains in the long-term. With the stock currently trading below its opening price, there may be an opportunity for investors to benefit from this potential upside. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for United Airlines. More…
| Total Revenues | Net Income | Net Margin |
| 52.49k | 2.86k | 6.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for United Airlines. More…
| Operations | Investing | Financing |
| 8.98k | -9.75k | -2.65k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for United Airlines. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 73.15k | 64.3k | 26.99 |
Key Ratios Snapshot
Some of the financial key ratios for United Airlines are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 32.0% | -18.3% | 10.5% |
| FCF Margin | ROE | ROA |
| 2.5% | 41.8% | 4.7% |
Analysis – United Airlines Stock Intrinsic Value
At GoodWhale, we have conducted an in-depth analysis of the wellbeing of UNITED AIRLINES and found that their stock is currently being traded at an incredibly undervalued rate of 53.2%. This discrepancy in their fair value versus their current market price is calculated by our proprietary Valuation Line which puts the fair value of their stock around $84.4. Given these findings, we believe that now is an opportune time to invest in UNITED AIRLINES as they are currently trading at a significantly lower price than what our algorithm suggests is their actual worth. More…
Peers
In the airline industry, there are a few dominant players. United Airlines Holdings Inc is one of the largest, and its competitors include Delta Air Lines Inc, Southwest Airlines Co, and American Airlines Group Inc. All of these companies are well-established and have a strong presence in the market.
– Delta Air Lines Inc ($NYSE:DAL)
Delta Air Lines is an American airline headquartered in Atlanta, Georgia. The company operates a mainline fleet of over 800 aircraft and its regional affiliates operate over 2,500 aircraft. Delta is a founding member of the SkyTeam global alliance and participates in the industry’s leading transatlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with key hubs and markets including Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis/St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. Delta has invested billions of dollars in airport facilities, global products and services, and technology to enhance the customer experience in the air and on the ground.
– Southwest Airlines Co ($NYSE:LUV)
Southwest Airlines Co is a publicly traded airline headquartered in Dallas, Texas. As of 2022, the company has a market capitalization of 19.65 billion and a return on equity of 10.01%. Southwest is known for its low-fare, no-frills approach to air travel and has been in operation since 1971. The company currently operates a fleet of over 700 aircraft and serves over 100 million passengers annually.
– American Airlines Group Inc ($NASDAQ:AAL)
American Airlines Group Inc is a publicly traded airline holding company headquartered in Fort Worth, Texas. The company was formed in 2014 after the merger of US Airways and American Airlines. American Airlines Group operates a global network of airline services, including scheduled passenger and cargo services. The company’s principal business activity is the operation of an airline system.
Summary
United Airlines has recently seen a rating upgrade, with a number of positive developments driving the upgrade. This shift in investment sentiment was largely due to United’s successful revenue growth, expansion of their loyalty program, and cost savings initiatives such as reducing its fleet size and debt. The airline also saw an increase in bookings and passenger traffic, which boosted earnings.
Additionally, United’s cash position has been strong, and the company is well-positioned to capitalize on any potential revenue opportunities. Overall, United Airlines appears to be on a positive trajectory of improving financial performance and investor confidence.
