United Airlines Holdings, Inc. (NASDAQ: UAL)

Sector: Industrials Industry: Airlines CIK: 0000100517
Market Cap 37.05 Bn
P/B 2.42
P/E 11.05
P/S 0.63
ROIC (Qtr) 8.08
Div Yield % 0.00
Rev 1y % (Qtr) 4.78
Total Debt (Qtr) 31.04 Bn
Debt/Equity (Qtr) 2.03
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About

United Airlines Holdings, Inc., often referred to as United Airlines, is a prominent player in the airline industry, operating under the ticker symbol UAL. The company boasts a vast network of routes that span six continents, with hubs strategically located in major airports across the United States and internationally. United Airlines' primary source of revenue is the sale of airline tickets, cargo transportation, and ancillary services such as baggage fees and in-flight meal purchases. The company's diverse fleet of aircraft includes both narrow-body...

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Investment thesis

Bull case

  • Healthy cash reserves of 12.24B provide 2.42x coverage of short-term debt 5.06B, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 69.27B provide exceptional 8.91x coverage of deferred revenue 7.78B, showing strong service capability backing.
  • Tangible assets of 69.27B provide robust 4.20x coverage of other current liabilities 16.51B, indicating strong asset backing.
  • Operating cash flow of 8.43B fully covers other non-current liabilities 1.28B by 6.60x, showing strong long-term stability.
  • Operating cash flow of 8.43B provides strong 5.42x coverage of inventory 1.56B, indicating efficient inventory management.

Bear case

  • Operating cash flow of 8.43B barely covers its investment activities of (6.35B), with a coverage ratio of -1.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 8.43B provides insufficient coverage of deferred revenue obligations of 7.78B, which is 1.08x, raising concerns about future service delivery capabilities.
  • Free cash flow of 2.65B provides weak coverage of capital expenditures of 5.78B, with a 0.46 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 5.68B show weak coverage of depreciation charges of 2.94B, with a 1.93 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 2.65B represents just -0.63x of debt issuance (4.19B), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service Breakdown of Revenue (2025)

Airline Destination Breakdown of Revenue (2025)

Peer comparison

Companies in the Airlines
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 DAL Delta Air Lines, Inc. 45.93 Bn 9.18 0.72 20.27 Bn
2 UAL United Airlines Holdings, Inc. 37.05 Bn 11.05 0.63 31.04 Bn
3 LUV Southwest Airlines Co 29.18 Bn 66.17 1.04 5.98 Bn
4 AAL American Airlines Group Inc. 9.42 Bn 15.65 0.17 36.06 Bn
5 ALK Alaska Air Group, Inc. 6.72 Bn 67.15 0.47 6.89 Bn
6 SKYW Skywest Inc 4.33 Bn 10.12 1.07 2.47 Bn
7 AERO Grupo Aeromexico, S.A.B. de C.V. 2.64 Bn 7.49 0.49 4.06 Bn
8 JBLU Jetblue Airways Corp 2.20 Bn -3.66 0.24 9.42 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.72 0.75
EV to Cash from Ops. EV/CFO 6.53 -1.78
EV to Debt EV to Debt 1.77 1.92
EV to EBIT EV/EBIT 9.69 12.70
EV to EBITDA EV/EBITDA 7.19 -7.83
EV to Free Cash Flow [EV/FCF] EV/FCF 20.73 4.43
EV to Market Cap EV to Market Cap 1.49 2.37
EV to Revenue EV/Rev 0.93 1.05
Price to Book Value [P/B] P/B 2.42 0.89
Price to Earnings [P/E] P/E 11.05 14.33
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 22,529.03
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 7.43
Dividend per Basic Share Div per Share (Qtr) 0.00 0.11
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -2.56
Interest Coverage Int. cover (Qtr) 4.14 1.76
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -4.90 -69.47
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -15.44 40.07
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.71
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 0.97 -58.97
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.64 80.32
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.04 -22.88
EBT Growth (1y) % EBT 1y % (Qtr) 3.31 -112.97
EPS Growth (1y) % EPS 1y % (Qtr) 7.72 -167.26
FCF Growth (1y) % FCF 1y % (Qtr) -32.60 2,772.29
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4.12 7.74
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 0.74
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.47 0.24
Current Ratio Curr Ratio (Qtr) 0.65 0.56
Debt to Equity Ratio Debt/Equity (Qtr) 2.03 0.61
Interest Cover Ratio Int Coverage (Qtr) 4.14 1.76
Times Interest Earned Times Interest Earned (Qtr) 4.14 1.76
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.60 5.51
EBIT Margin % EBIT Margin % (Qtr) 9.61 -0.22
EBT Margin % EBT Margin % (Qtr) 7.29 -3.82
Gross Margin % Gross Margin % (Qtr) 63.60 41.52
Net Profit Margin % Net Margin % (Qtr) 5.70 -4.40