Industrials / Airlines

United Airlines Holdings, Inc. (UAL)

$108.82
-2.63%
$37.3B
Market Cap
10.3
P/E Ratio
1.21
Beta
Dividend Yield
Piotroski 7/9Altman Z 1.4 DistressBeneish M -2.67 CleanROIC−WACC -0.7%

Quantitative Summary

Deterministic

At 10.3x earnings — a 77% discount to the sector average of 44.7x — UAL is in the lower valuation range. Strong operational fundamentals (Piotroski 7/9) with Altman Z of 1.4. DCF fair value of $46 implies 51% downside based on model assumptions.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of United Airlines Holdings reveal a capital allocation structure where the ROIC-WACC spread stands at -0.3%, indicating that current returns on invested capital are marginally below the cost of equity, despite a robust DuPont-decomposed ROE of 21.9%. This high return is driven primarily by significant financial leverage (Equity Multiplier of 5.0x) and moderate asset turnover rather than operational efficiency or expansive net margins of 5.7%. While the Piotroski F-Score of 7/9 suggests strong balance sheet strength, the Altman Z-Score of 1.3 flags elevated bankruptcy risk relative to historical norms, creating a tension between apparent profitability metrics and underlying solvency concerns.

Valuation analysis highlights a substantial divergence between current pricing and intrinsic value models; with a P/E ratio of 9.0x significantly below the sector average of 44.2x, the stock appears deeply discounted on traditional multiples. However, DCF modeling implies a fair value of $51, which corresponds to -44.1% downside from current levels based on an implied ten-year free cash flow growth rate of only 2.9%. This pricing disconnect suggests the market is not merely penalizing for weak profitability factors (RMW: -0.326) but may be incorporating a severe discount regarding future expansion capabilities and capital efficiency in this cyclical industrial sector.

Risk assessment indicators further complicate the investment thesis, as negative Fama-French alpha of -1.65% annually indicates underperformance relative to size and value benchmarks over the measured period. Although the stock exhibits a positive HML tilt (0.271) aligning with its undervalued status, recent insider activity shows $2,2 million in net selling over 90 days, which often precedes further price pressure or signals management's view of limited near-term upside. The Beneish M-Score of -2.67 offers some reassurance against earnings manipulation, yet the combination of distressed Z-score metrics and negative alpha suggests a high-risk environment where current valuation levels may reflect persistent structural headwinds rather than temporary dislocation.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

DCF Sandbox

Interactive
Market Price
$108.82
Fair Value
$48
Implied Upside
-55.7%
$48IMPLIED FAIR VALUEOVERVALUEDOVERUNDER
Growth Rate (Y1–5)-4%
-10%20%50%
Discount Rate (WACC)9.2%
5%12.5%20%

5-year two-stage DCF. Terminal growth 3%. Default sliders match the pre-computed base case. Drag to explore scenarios. Not investment advice.

Reverse DCFMarket-Implied
4.0%annual FCF growth priced in at $108.82

The growth rate the market implicitly expects over the next 10 years to justify today's price. Compare with historical growth of 4% YoY revenue.

Sensitivity Matrix

TG ↓ / WACC →7.2%9.2%11.2%
2%$67$37$20
3%$87$46$25
4%$121$59$32

Center = base case. Green = >10% upside, Red = >10% downside vs $108.82.

Pre-computed DCF: WACC=9.2%, terminal growth 3%. Fair value $46 (-51.5%). Not investment advice.

Valuation Context

10.3x
UAL P/E
44.7x
Sector Avg
8.0x
5Y Avg P/E
-77%
vs Sector

Currently trading 18% above its 5-year average P/E of 8.0x.

Price Chart with Moving Averages

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SMA 50 SMA 200

Technical Setup

AI Generated

The stock is trading below both its 50-day and 200-day moving averages, indicating a technical weakness. With the RSI at 30.9, which falls into oversold territory, this suggests that near-term momentum may be approaching a potential bottoming phase.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

7/9
Piotroski F-Score
Strong — high operational efficiency and profitability signals
1.4
Altman Z-Score
Distress Zone — below 1.8 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.
-2.67
Beneish M-Score
Below threshold — no statistical earnings quality concern per Beneish model. Threshold: <-2.22 = below threshold.

Profitability & Value Creation

28.8%
Gross Margin
5.7%
Net Margin
8.6%
ROIC
9.2%
WACC
ROIC − WACC Spread: -0.7%— Negative spread.
+3.5%
Revenue Growth (YoY)
+6.5%
Earnings Growth (YoY)
2.6B
Free Cash Flow

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

5.7%
Net Profit Margin
NI ÷ Revenue
×
0.77x
Asset Turnover
Revenue ÷ Assets
×
5.00x
Equity Multiplier
Assets ÷ Equity
=
21.9%
Return on Equity
⚠️ High equity multiplier — ROE is being amplified by leverage, not operational excellence.

Balance Sheet Health

4.00x
Debt / Equity
0.65x
Current Ratio
4.7x
Interest Coverage
1.7x
Net Debt / EBITDA
5.57%
FCF Yield
8.4B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
-$2M
Net Selling
0
Buy Transactions
1
Sale Transactions
2026-02-27HART BRETT JSold 2/8 qtrsOther79,324 shares
2026-02-27GEBO KATESold 3/8 qtrsOther35,144 shares
2026-02-27LESKINEN MICHAEL D.Sold 1/8 qtrsOther24,024 shares
2026-02-27BOKEMEIER BRIGITTEOther2,145 shares
2026-02-27NOCELLA ANDREW POther31,098 shares

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✓ Beat
Est: $0.74
Act: $0.91
+23.8%
Q3
✓ Beat
Est: $3.81
Act: $3.87
+1.5%
Q2
✓ Beat
Est: $2.68
Act: $2.78
+3.8%
Q1
✓ Beat
Est: $2.94
Act: $3.10
+5.4%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$2.1500
Latest Dividend
$2.15
2008 Total
DateAmountChange
2008-01-07$2.1500

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

57.1%
Annual Volatility
0.75
Sharpe (1Y)
-30.0%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

2.14
Market β
Mkt-RF
+0.951
Size (SMB)
Small-cap tilt
+0.271
Value (HML)
Value tilt
-0.326
Profit (RMW)
Weak
+0.664
Invest (CMA)
Conservative
Alpha (annual): -1.65%
R²: 59.4%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

8.1
Forward P/E
6.50
PEG Ratio
2.36
Price/Book
8M
Avg Volume
$119.21
52W High
$71.55
52W Low
78%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$4.1B
Tracked Passive Exposure
8
ETFs Holding UAL
0.07%
Avg Weight in ETFs
$6.1T
Total ETF AUM

When investors buy or sell ETFs like XTN or XLI, the fund manager is mechanically forced to buy or sell UAL shares regardless of United Airlines Holdings, Inc.'s individual fundamentals. We estimate $4.1B of passive capital is structurally linked to UAL through 8 tracked ETFs. Index rebalances and ETF creation/redemption cycles can create noticeable volume spikes unrelated to company news.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in United Airlines Holdings, Inc. to visualize passive redemption contagion across ETFs and collateral stocks.

UAL Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
UALEpicenterVTIETFVOOETFIVVETFCATLow RiskGELow RiskCATLow RiskUNPLow RiskGEVLow Risk
UAL Price Drop (%)0

If United Airlines Holdings, Inc. (UAL) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies CATERPILLAR INC (CAT) as the most exposed collateral stock, sharing 1 ETFs with UAL. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 26 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

UAL Ownership Dynamics

Passive funds hold 1 in every 7 UAL shares, reducing daily market volatility.

Ticker
UAL
Total Shares
325M
ETF Lock-Up
14.2%
Display Mode
Total Float Impact
14.2%Locked Float

United Airlines Holdings, Inc. (UAL) exerts measurable gravity on the passive index market, currently representing 2.5% of the XTN (XTN) and 0.6% of the State Street Industrial Select Sector SPDR ETF (XLI). Across 26 tracked ETFs, approximately 46M shares (14.2% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 26 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

UAL Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
UAL
PRICE
$108.82
FLOOR (POC)
$91.81
STRENGTH
Medium
$73$75$78$80$82$85$87$898%$92POC 11%$9411%$979%$998%$1016%$1047%$1066%$108$108.82$111$113$116$118
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for United Airlines Holdings, Inc. over the past year sits near $91.81 (11% of 252-day volume). The current price of $108.82 trades 18.5% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

UAL Capital Efficiency

How efficiently does United Airlines Holdings, Inc. convert operating profits into free cash? The FCF Conversion ratio measures the gap between accounting earnings and real cash generation.

Free Cash Flow
$2.6B
EBITDA
$8.4B
FCF Conversion
30%
Reinvestment Rate
70%
30% of EBITDA → Free Cash
0% (cash burn)25% (low)50% (efficient)100% (pure cash)
ROIC
8.6%
ROIC − WACC Spread
-0.6%

United Airlines Holdings, Inc. converts 30% of its EBITDA into free cash flow, a moderate conversion rate — significant EBITDA is consumed by capital expenditures, working capital changes, or interest payments. The 70% reinvestment rate signals aggressive capacity expansion. However, the ROIC-WACC spread is negative (-0.6%), suggesting reinvested capital is destroying shareholder value.

Capital efficiency = Free Cash Flow ÷ EBITDA. Reinvestment = (EBITDA − FCF) ÷ EBITDA. Metrics from latest annual filings. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-113,200$99.58$318,656
2026-05-04200$92.52$18,504
2026-05-01159$90.00$14,310
2026-04-3053$88.62$4,696.86
2026-04-208,415$101.80$856,647
2026-04-171$95.03$95.03
2026-04-15255$97.20$24,786
2026-04-14397$95.20$37,794.4
2026-04-13160$96.40$15,424
2026-04-09615$96.30$59,224.5
2026-04-0810,752$89.29$960,046.08
2026-04-07251$90.97$22,833.47
2026-04-06516$92.21$47,580.36
2026-04-0212,984$95.08$1.2M
2026-03-25213$93.56$19,928.28
2026-03-2412$93.96$1,127.52
2026-03-239$89.95$809.55
2026-03-181,397$93.19$130,186.43
2026-03-17918$90.28$82,877.04
2026-03-138,083$86.53$699,421.99
2026-03-047$102.54$717.78
2026-02-26327$112.87$36,908.49
2026-02-25335$112.59$37,717.65
2026-02-192,938$116.93$343,540.34
2026-02-182,462$114.02$280,717.24
2026-02-1210$113.94$1,139.4
2026-02-1016,618$116.20$1.9M
2026-02-09243$115.91$28,166.13
2026-02-04371$110.86$41,129.06
2026-01-28395$104.04$41,095.8

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
DAL0.9040.897High co-movement
AAL0.8440.848High co-movement
CCL0.6260.635Moderate
FNB0.6240.638Moderate
ASB0.6180.620Moderate
LUV0.6170.617Moderate
GS0.6170.680Moderate
COF0.6160.639Moderate
ONB0.6120.585Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare UAL to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.