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Is this Large Market Cap Stock target price reasonable for American Airlines Group Inc. (NASDAQ:AAL)?

The company in question is, American Airlines Group Inc. (NASDAQ:AAL) currently with a stock price of 38.65 (-1.50% today). The market cap for American Airlines Group Inc. is 20793.7, and is in the sector Services, and Major Airlines industry. The target price for American Airlines Group Inc. is 40.77. Currently American Airlines Group Inc. is trading with a P/E of 3.71, and a forward P/E of 8.39. Average volume for American Airlines Group Inc. is 8242.86 and so far today it is 8832200.

Performance in the last year for American Airlines Group Inc. has been -12.13%. For EPS growth, American Airlines Group Inc. has seen a growth of 182.00%, and is looking to grow in the next year to -16.03%. More long term stats show that EPS growth has been 57.90% over the last five years and could be *TBA for the next five years. American Airlines Group Inc. has seen sales growth quarter over quarter at -4.30%, with EPS growth quarter over quarter at -30.30%. The 20-day simple moving average is 5.99%, with the 200-day simple moving average coming to 6.21%.

Since the IPO date for American Airlines Group Inc. on the 9/27/2005, American Airlines Group Inc. has seen performance year to date to be -7.95%. With American Airlines Group Inc. trading at 38.65, the dividend yield is 1.03%, and the EPS is 10.4.

So could American Airlines Group Inc., be undervalued? Well as said before P/E is 3.71. The PEG is *TBA, P/S is 0.52 and the P/B is at 5.05. The P/cash is 2.92, with P/free cash flow at *TBA.

American Airlines Group Inc. ability to deal with debt shows that the current ratio is 0.7, and the quick ratio is 0.7. This is with long term debt/equity at 4.9, and total debt/equity at 5.3.

In terms of margins, American Airlines Group Inc. has a gross margin of 36.20%, an operating margin of 15.30% and a profit margin of 16.50%.Payout ratio for American Airlines Group Inc. is 3.80%. Return on assets come to 13.40% with return on investment coming to 34.90%.

Insider ownership for American Airlines Group Inc., is at 1.00% and institutional ownership comes to 76.80%. Outstanding shares are at 538. While shares float is 524.7. The float short is currently 6.98%, and short ratio is 4.44.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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