Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
United Airlines (UAL): Strategic Starlink Deployment & Near-Term Profit Expansion – What’s the Impact, Outlook & Key Competitive and Strategic Levers?
United Airlines (UAL) delivered a strong Q4 2024 performance, with revenue of $14.70 billion, exceeding expectations by $347.76 million, and adjusted EPS of $3.26, beating estimates by $0.23. The results reflect robust demand, cost management, and the success of United Next initiatives, driving a 350 bps YoY expansion in pretax margins to 9.7%. International markets outperformed domestic routes, with transatlantic PRASM up 7.1%, supported by structural supply constraints in wide-body aircraft. United’s strategic focus on network optimization, fleet upgauging, and product enhancements, including the accelerated rollout of Starlink Wi-Fi and expanded premium offerings, positions the airline for sustained competitive advantage. The loyalty program continues to be a revenue driver, with MileagePlus revenue up 12% YoY. Operational improvements have reduced cancellations, but cost pressures persist, with CASM-ex rising 5% YoY and further increases expected in 2025 due to pending labor agreements. Despite potential headwinds from supply chain constraints and macro uncertainties, United’s liquidity of $17.4 billion and strong cash flow generation provide flexibility for strategic investments and shareholder returns. With EPS guidance of $11.50-$13.50 for 2025, reflecting 18% growth at the midpoint, can United's strategic initiatives sustain margin expansion and market share gains amidst cost inflation and macro uncertainties?
