United Airlines Holdings (UAL) AI Stock Analysis

• Market Cap: $27.13B
• Dividend Yield: N/A
• Average Volume (3M): 7.05M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.83
• Revenue Growth: 6.23%
• EPS Growth: 20.08%
• Country: US
• Employees: 103,300
• Sector: Industrials
• Sector Strength: 66
• Industry: Transportation
• EPS (TTM): 9.43
• Shares Outstanding: 327,339,570
• 10 Day Avg. Volume: 9,327,244
• 30 Day Avg. Volume: 7,051,366
• PEG Ratio: 0.44
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.48
• Price to Cash Flow (P/CF): 3.10
• P/FCF Ratio: 12.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $134.81
• Price Target Upside: 62.66% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

United Airlines Holdings is on a strong financial trajectory, evidenced by significant revenue and profit margin growth. The company's strategic investments and operational achievements further bolster its outlook, despite challenges such as FAA staffing and OEM delays. Technical analysis suggests continued upward momentum, while a reasonable valuation adds to its appeal. Overall, the stock is well-positioned for growth, with strong guidance supporting future performance.

Positive Factors

Financial Performance

UAL's 2025 guide met lofty expectations with an EPS range that embeds a robust improvement to pre-tax margins and holds space to continue the beat-and-raise cycle.

Strategic Investments

United Airlines is ideally positioned to capitalize on the current industry dynamic with long-term investments that are expected to drive margins higher in the future.

Negative Factors

Uncertainty

The timing of the Investor Day remains unknown, which pushes out an important catalyst for the stock.

United Airlines Holdings Business Overview & Revenue Model

Company Description

United Airlines Holdings, Inc. (UAL) is a major American airline holding company headquartered in Chicago, Illinois. It primarily operates through its wholly owned subsidiary, United Airlines, which is one of the largest airlines in the world. United Airlines serves a comprehensive network of domestic and international routes, offering passenger transportation services across the Americas, Europe, Asia-Pacific, Africa, and the Middle East. The company is a member of the Star Alliance, which is a global airline network that provides enhanced connectivity and benefits to travelers.

How the Company Makes Money

United Airlines Holdings makes money primarily through the sale of airline tickets to passengers, which constitutes the bulk of its revenue. The company offers various ticket classes, including economy, premium economy, business, and first class, each with different pricing structures and amenities. In addition to passenger ticket sales, UAL generates revenue from ancillary services, such as baggage fees, seat upgrades, in-flight food and beverage sales, and loyalty program memberships through its MileagePlus program. Cargo transportation services also contribute to its earnings, as the company transports goods and mail across its network. Additionally, United enters into partnerships and alliances that enhance its market reach and operational efficiency, including code-sharing agreements and joint ventures with other airlines.

United Airlines Holdings Financial Statement Overview

Summary

United Airlines Holdings has demonstrated significant recovery and growth, with strong revenue and profit margins. While there is a notable improvement in leverage, the company's equity position suggests caution. Cash flow metrics are strong, indicating solid cash management and operational efficiency. Overall, the company is on a positive financial trajectory, although leveraging strategies should be monitored for stability.

Income Statement

United Airlines Holdings shows robust revenue growth with a 6.23% increase from the previous year, demonstrating a positive trajectory post-pandemic. The gross profit margin improved to 30.03%, reflecting better cost management. Net profit margin increased to 5.52%, indicating improved profitability. EBIT margin rose to 9.02%, and EBITDA margin remained stable at 13.69%, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 2.35, showing better leverage management. Return on equity significantly rose to 24.85%, exhibiting strong shareholder returns. However, the equity ratio remains low at 17.11%, indicating risk due to high liabilities in proportion to assets.

Cash Flow

Free cash flow growth is notable, transitioning from a negative position in 2023 to a strong positive in TTM. Operating cash flow to net income ratio is 3.00, showcasing efficient cash generation relative to earnings. The free cash flow to net income ratio is also healthy at 2.81, highlighting effective capital management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
57.06B	53.72B	44.95B	24.63B	15.36B
	Gross Profit
19.42B	15.20B	10.64B	721.00M	-5.03B
	EBIT
5.10B	4.21B	327.00M	-368.00M	-6.36B
	EBITDA
8.50B	7.83B	5.12B	1.50B	-5.34B
	Net Income Common Stockholders
3.15B	2.62B	737.00M	-1.96B	-7.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.47B	14.39B	16.41B	18.41B	11.68B
	Total Assets
74.08B	71.10B	67.36B	68.17B	59.55B
	Total Debt
33.63B	36.74B	36.43B	40.20B	32.75B
	Net Debt
24.86B	30.68B	29.27B	21.92B	21.48B
	Total Liabilities
61.41B	61.78B	60.46B	63.15B	53.59B
	Stockholders Equity
12.68B	9.32B	6.90B	5.03B	5.96B
Cash Flow		Free Cash Flow
3.83B	-260.00M	1.25B	-40.00M	-5.86B
	Operating Cash Flow
9.45B	6.91B	6.07B	2.07B	-4.13B
	Investing Cash Flow
-2.65B	-6.11B	-13.83B	-1.67B	10.00M
	Financing Cash Flow
-4.18B	-1.89B	-3.35B	6.40B	12.96B

United Airlines Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 82.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UAL, the sentiment is Negative. The current price of 82.88 is below the 20-day moving average (MA) of 97.59, below the 50-day MA of 101.49, and above the 200-day MA of 71.43, indicating a neutral trend. The MACD of -4.63 indicates Positive momentum. The RSI at 32.07 is Neutral, neither overbought nor oversold. The STOCH value of 25.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for UAL.

United Airlines Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UAL	80 Outperform	$27.13B	8.79	28.63%	―	6.23%	20.08%
DAL	77 Outperform	$34.42B	9.99	26.19%	1.03%	6.19%	-25.26%
ALK	77 Outperform	$7.46B	19.86	9.31%	―	12.56%	69.33%
LUV	63 Neutral	$17.31B	38.71	4.50%	2.46%	5.34%	-6.20%
Sector *	62 Neutral	$8.11B	13.34	1.17%	3.02%	4.16%	-15.14%
AAL	58 Neutral	$8.57B	11.76	-21.27%	―	2.70%	2.20%
JBLU	47 Neutral	$2.16B	―	-26.60%	―	-3.50%	-148.99%

United Airlines Holdings Corporate Events

United Airlines Reports Record Profits and Growth in 2024

United Airlines announced record profits for the fourth quarter of 2024, exceeding expectations and achieving a significant increase in pre-tax margins. The airline’s strategic investments have resulted in strong demand across various revenue streams, including premium, corporate, and basic economy, leading to robust financial performance. United also expanded its international network and introduced new customer enhancements, positioning itself as a leading global airline. The company carried a record number of passengers in 2024, underscoring its operational achievements and commitment to improving the customer experience.

United Airlines Board Sees Leadership Changes in 2025

Captain Anne Worster resigned from the United Airlines Holdings Board on January 13, 2025, following her departure as chairperson of the ALPA-MEC. Brian Noyes has been appointed to fill this vacancy. His appointment is effective immediately, as of January 15, 2025, but he will not receive cash or equity compensation as a director, though certain other benefits will be provided.