IAG: We Initiate Coverage With No Moat; Strong Demand Supports Our Fair Value Estimate
IAG is a European network airline utilizing a hub-and-spoke model with major hubs in London Heathrow, London Gatwick, Madrid, Barcelona, and Dublin.
IAG is a European network airline utilizing a hub-and-spoke model with major hubs in London Heathrow, London Gatwick, Madrid, Barcelona, and Dublin.
The group's higher margins and lower debt levels afford it more flexibility than peers to deal with the current downturn.
The group’s high exposure to high-margin business travel may see margins come under pressure if business-related travel stays persistently below pre-covid-19 levels.
Metric
|
IAG
|
EZJ
|
RYA
|
---|---|---|---|
Price/Earnings (Normalized) | 2.43 | 9.43 | 12.09 |
Price/Book Value | 2.53 | 1.66 | 2.46 |
Price/Sales | 0.42 | 0.46 | 1.45 |
Price/Cash Flow | 2.27 | 3.31 | 7.04 |
Metric
|
IAG
|
EZJ
|
RYA
|
---|---|---|---|
Quick Ratio | 0.57 | 0.80 | 0.65 |
Current Ratio | 0.70 | 1.03 | 0.93 |
Interest Coverage | 3.35 | 3.53 | — |
Metric
|
IAG
|
EZJ
|
RYA
|
---|---|---|---|
Return on Assets (Normalized) | 6.26% | 3.71% | 9.48% |
Return on Equity (Normalized) | 75.91% | 16.30% | 20.03% |
Return on Invested Capital (Normalized) | 15.39% | 6.96% | 14.23% |
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
---|---|---|---|---|---|---|
Delta Air Lines Inc
DAL
| Wbdbzpsqd | Sgln | $33.4 Bil | |||
Ryanair Holdings PLC ADR
RYAAY
| — | Kqffgs | $20.8 Bil | |||
Ryanair Holdings PLC
RYAOF
| — | Dlrvqv | $20.8 Bil | |||
United Airlines Holdings Inc
UAL
| Hxbxqwm | Plb | $19.4 Bil | |||
Southwest Airlines Co
LUV
| Dvqjkfkbp | Qtwkq | $17.9 Bil | |||
Singapore Airlines Ltd
SINGF
| — | Pvfk | $15.3 Bil | |||
Singapore Airlines Ltd ADR
SINGY
| — | Hvkh | $15.3 Bil | |||
Air China Ltd ADR
AIRYY
| — | Kht | $13.8 Bil | |||
Air China Ltd Class H
AICAF
| — | Ctflm | $13.8 Bil | |||
American Airlines Group Inc
AAL
| Gkpmvxps | Tdg | $7.7 Bil |