As of Tuesday, the GuruFocus All-in-One Screener, a Premium feature, found that the following airline stocks have low price-earnings ratios and have been bought by gurus. While some of them are great value investments, others may need to be researched more carefully, according to the discounted cash flow calculator.
American Airlines
With a market cap of $6.7 billion, American Airlines Group Inc. (AAL) has a price-earnings ratio of 4.18. According to the DCF calculator, the stock has a fair value of $40.77 while trading at $15.92.
The stock has lost 48% over the last 12 months and is now 56.18% below the 52-week high and 32.67% above the 52-week low.
The company has a GuruFocus profitability rating of 7 out of 10. The return on assets of 2.77% is outperforming 51% of companies in the transportation industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.11 is below the industry median of 0.27.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 15.99% of outstanding shares, followed by Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway with 9.93% and Bill Nygren (Trades, Portfolio)’s Oakmark Fund with 1.89%.
Hawaiian Holdings
With a $603 million market cap, Hawaiian Holdings Inc. (HA) is trading with a price-earnings ratio of 2.78.
The share price has declined 47.48% over the past 12 months and is now 58% below the 52-week high and 16.98% above the 52-week low.
The company is specialized in air transportation of passengers between Hawaii and the United States. GuruFocus gave the company a profitability rating of 9 out of 10. The return on equity of 22.05% and return on assets of 5.92% are outperforming 77% of companies in the transportation industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.45 is above the industry median of 0.27.
Third Avenue Management (Trades, Portfolio) is the company’s largest guru shareholder with 2.35% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 2.32% and PRIMECAP Management (Trades, Portfolio) with 2.08%.
United Airlines Holdings
With a market cap of $8.7 billion, United Airlines Holdings Inc. (UAL) is trading with a price-earnings ratio of 3.05 and a price-book ratio of 0.78. According to the DCF calculator, the stock has a fair value of $124 while trading at about $35.47.
Shares have tumbled 56% over the last 12 months and are now trading 16.75% below the 52-week high and 63.06% above the 52-week low.
The operator of more than 4,000 flights around the world has a Gurufocus profitability rank of 8 out of 10. The company's return on equity of 28.39% and return on assets of 5.86% are outperforming 77% of companies in the transportation industry. The cash-debt ratio of 0.24 is below the industry median of 0.27.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 14.69% of outstanding shares, followed by Buffett’s firm with 8.67% and Diamond Hill Capital (Trades, Portfolio) with 1.40%.
Delta Air Lines
Delta Air Lines Inc. (DAL) has a market cap of $22.9 billion and is trading with a price-earnings ratio of 4.89 and a price-book ratio of 1.51. According to the DCF calculator, the stock has a fair value of $15.30 while trading at about $13.30.
Shares have declined 6% over the last 12 months.
GuruFocus gives the company a profitability rating of 8 out of 10. The return on equity of 33.57% and return on assets of 7.63% are outperforming 83% of companies in the transportation industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.17 is below the industry median of 0.27.
With 11.12% of outstanding shares, Buffett is the company’s largest guru shareholder, followed by PRIMECAP Management (Trades, Portfolio) with 4.38% and Pioneer Investments (Trades, Portfolio) with 0.35%.
Alaska Air Group
Alaska Air Group Inc. (ALK) has a market cap of $3.9 billion. Its shares are trading with a price-earnings ratio of 5.25 and a price-book ratio of 0.92. According to the DCF calculator, the stock has a fair value of $176.5 while trading at $32.53.
Shares price have declined 41% over the past 12 months and are currently trading 54.96% below the 52-week high and 12.48% above the 52-week low.
The Seattle-based airline has a GuruFocus profitability rating of 9 out of 10. The return on equity of 19.17% and return on assets of 6.15% are outperforming 78% of companies in the transportation industry. Its financial strength is rated 5 out of 10. The company has no debt.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 4.91% of outstanding shares, followed by T Rowe Price Equity Income Fund (Trades, Portfolio) with 1.93% and Diamond Hill Capital (Trades, Portfolio) with 1.67%.
JetBlue Airways
JetBlue Airways Corp. (JBLU) has a market cap of $2.9 billion. Its shares are trading with a price-earnings ratio of 5.53 and a price-book ratio of 0.62. According to the DCF calculator, the stock has a fair value of $54.66 while trading at $10.61.
Shares have declined 36% over a 12-month period and are currently trading 50.99% below the 52-week high and 13.84% above the 52-week low.
The low-cost airline has a GuruFocus profitability rating of 8 out of 10. The return on equity of 12.08% and return on assets of 5.03% are outperforming 71% of companies in the transportation industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.42 is above the industry median of 0.27.
The company’s largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 7.98% of outstanding shares, followed by Donald Smith (Trades, Portfolio) with 3.85% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.74%.
Disclosure: I do not own any stocks mentioned.
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