| 2021 | 2022 | 2023 | 2024 (projected) | |
| Total Revenue | 24.6B | 45.0B | 53.7B | 56.4B |
| Interest Expense | 1.6B | 1.7B | 2.0B | 2.1B |
Ownership Breakdown
| Retail Investors23.91% | Institutions75.62% |
| Retail Investors | 23.91 | |
| Insiders | 0.47 | |
| Institutions | 75.62 |
Is United Airlines (USA Stocks:UAL) finally getting endorsement from institutional investors?
 | By Gabriel Shpitalnik | Macroaxis Story |
The sky's the limit for United Airlines Holdings (NASDAQ: UAL), as institutional investors are showing a heightened interest in this key player in the industrials sector, specifically in the airlines industry. Despite experiencing a loss in the current quarter with an EPS estimate of -0.57, United Airlines, with an enterprise value of $38.3B, has managed to pique the interest of Wall Street's big players.
United Airlines has a robust workforce of 104.5K full-time employees and a healthy return on assets of 4.77%. Moreover, the company's operating margin stands at 1.11%, indicating its ability to generate profit from its operations. This combined with a profit margin of 4.9% demonstrates United's potential to bounce back.
Analysts' sentiments about the stock are also positive, with 12 strong buys and an estimated target price of $61.56, suggesting a potential upside from its current valuation market value of $52.73. Despite the challenges, United Airlines continues to soar in the transportation domain, making it a stock worth watching for investors. Currently, United Airlines' Book Value Per Share remains relatively stable compared to last year. The Stock-Based Compensation To Revenue is projected to increase to 0 this year, but the Free Cash Flow Yield is likely to decrease to -0.02. This article will examine United Airlines, assessing the potential for net loss reduction this year. Additionally, it will highlight key indicators for investors to consider in June.
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Reviewed by Rifka Kats
United Airlines Holdings is currently undervalued at $60.69 per share, with modest future projections. The company's performance score is 7 out of 100. With a beta of 0.91, United Airlines offers potential diversification benefits for a portfolio. The company's returns are highly sensitive to market fluctuations, typically mirroring market trends. It's advisable to review United Airlines' Treynor ratio and the relationship between its semi-variance and rate of daily change for informed decision-making. This will help determine if the current price patterns are likely to revert.
Main Points
United Airlines Holdings (NASDAQ: UAL) has shown a promising Total Risk Alpha of 0.2322 and a Jensen Alpha of 0.3565, indicating a potential for higher returns adjusted for risk. Despite a Maximum Drawdown of 20.3%, the company's strong EBITDA of $8B and a PE Ratio of 6.475 suggest that it may be undervalued, potentially attracting increased interest from institutional investors.The performance of United Airlines Holdings in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence United Airlines' stock prices. When investing in United Airlines, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, United Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as United Airlines carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.How important is United Airlines's Liquidity
United Airlines financial leverage refers to using borrowed capital as a funding source to finance United Airlines Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. United Airlines financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to United Airlines' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of United Airlines' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between United Airlines's total debt and its cash.
What do experts say about United?
Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
Analysis ConsensusBreaking down United Airlines Indicators
United Airlines maintains a total of 328.8 Million outstanding shares. The majority of United Airlines Holdings outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in United Airlines to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in United Airlines Holdings. Please pay attention to any change in the institutional holdings of United Airlines Holdings as this could imply that something significant has changed or is about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
As Warren Buffet once said, "Risk comes from not knowing what you're doing." United Airlines Holdings (NASDAQ: UAL) seems to be on the radar of institutional investors, with 75.62% of its shares owned by institutions. Despite the airline industry's inherent risks, United Airlines' risk-adjusted performance of 0.0898 and a market risk-adjusted performance of 0.4327 show a degree of stability. With an EBITDA of $7.83B and operating income of $5.2B, the company's financial health appears solid. However, a probability of bankruptcy at 41.70% should be a consideration for potential investors. The company's current valuation stands at $38.29B, with a target price of $68.67, indicating a potential upside of 4.71..
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of United Airlines Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.