ALLEGIANT TRAVEL CO (ALGT) Stock Fundamental Analysis
USA - NASDAQ:ALGT - US01748X1028 - Common Stock
65.6 USD
+0.01 (+0.02%)
65.6 USD
0 (0%)
Overall ALGT gets a fundamental rating of 4 out of 10. We evaluated ALGT against 21 industry peers in the Passenger Airlines industry. There are concerns on the financial health of ALGT while its profitability can be described as average. ALGT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALGT had positive earnings in the past year.
In the past year ALGT had a positive cash flow from operations.
In multiple years ALGT reported negative net income over the last 5 years.
ALGT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -6.54%, ALGT is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -27.17%, ALGT is in line with its industry, outperforming 42.86% of the companies in the same industry.
The Return On Invested Capital of ALGT (3.60%) is comparable to the rest of the industry.
ALGT had an Average Return On Invested Capital over the past 3 years of 3.54%. This is significantly below the industry average of 14.50%.
The last Return On Invested Capital (3.60%) for ALGT is above the 3 year average (3.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.54% | ||
| ROE | -27.17% | ||
| ROIC | 3.6% |
ROA(3y)-1.02%
ROA(5y)-0.99%
ROE(3y)-4.46%
ROE(5y)-5.5%
ROIC(3y)3.54%
ROIC(5y)N/A
1.3 Margins
The Operating Margin of ALGT (6.22%) is better than 61.90% of its industry peers.
In the last couple of years the Operating Margin of ALGT has declined.
With an excellent Gross Margin value of 69.59%, ALGT belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
ALGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 69.59% |
OM growth 3Y5.16%
OM growth 5Y-23.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-0.76%
2. Health
2.1 Basic Checks
ALGT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
ALGT has more shares outstanding than it did 1 year ago.
The number of shares outstanding for ALGT has been increased compared to 5 years ago.
The debt/assets ratio for ALGT is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.27, we must say that ALGT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALGT (1.27) is better than 61.90% of its industry peers.
The Debt to FCF ratio of ALGT is 19.28, which is on the high side as it means it would take ALGT, 19.28 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 19.28, ALGT is in line with its industry, outperforming 57.14% of the companies in the same industry.
ALGT has a Debt/Equity ratio of 1.68. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of ALGT (1.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 19.28 | ||
| Altman-Z | 1.27 |
ROIC/WACC0.45
WACC7.95%
2.3 Liquidity
A Current Ratio of 1.10 indicates that ALGT should not have too much problems paying its short term obligations.
ALGT has a better Current ratio (1.10) than 95.24% of its industry peers.
ALGT has a Quick Ratio of 1.07. This is a normal value and indicates that ALGT is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 1.07, ALGT belongs to the best of the industry, outperforming 95.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.07 |
3. Growth
3.1 Past
ALGT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.83%, which is quite impressive.
Measured over the past years, ALGT shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -30.09% on average per year.
Looking at the last year, ALGT shows a small growth in Revenue. The Revenue has grown by 3.17% in the last year.
The Revenue has been growing slightly by 6.42% on average over the past years.
EPS 1Y (TTM)22.83%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%-30.51%
Revenue 1Y (TTM)3.17%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%3.47%
3.2 Future
The Earnings Per Share is expected to grow by 51.11% on average over the next years. This is a very strong growth
Based on estimates for the next years, ALGT will show a small growth in Revenue. The Revenue will grow by 5.94% on average per year.
EPS Next Y-0.48%
EPS Next 2Y57.04%
EPS Next 3Y51.11%
EPS Next 5YN/A
Revenue Next Year3.9%
Revenue Next 2Y4.62%
Revenue Next 3Y5.94%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALGT is valuated rather expensively with a Price/Earnings ratio of 21.03.
Based on the Price/Earnings ratio, ALGT is valued a bit cheaper than 61.90% of the companies in the same industry.
ALGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.53.
A Price/Forward Earnings ratio of 10.99 indicates a reasonable valuation of ALGT.
ALGT's Price/Forward Earnings ratio is in line with the industry average.
ALGT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 10.99 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALGT indicates a rather cheap valuation: ALGT is cheaper than 100.00% of the companies listed in the same industry.
71.43% of the companies in the same industry are more expensive than ALGT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.83 | ||
| EV/EBITDA | 4.01 |
4.3 Compensation for Growth
ALGT's earnings are expected to grow with 51.11% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y57.04%
EPS Next 3Y51.11%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, ALGT has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.70, ALGT pays a better dividend. On top of this ALGT pays more dividend than 95.24% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, ALGT pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of ALGT decreases each year by -15.68%.
ALGT has been paying a dividend for at least 10 years, so it has a reliable track record.
ALGT has decreased its dividend recently.
Dividend Growth(5Y)-15.68%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
DP0%
EPS Next 2Y57.04%
EPS Next 3Y51.11%
65.6
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners97.01%
Inst Owner Change-0.01%
Ins Owners21.11%
Ins Owner Change-0.54%
Market Cap1.20B
Analysts70.53
Price Target63.89 (-2.61%)
Short Float %15%
Short Ratio5.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.2
Dividend Growth(5Y)-15.68%
DP0%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.56%
Min EPS beat(2)7.95%
Max EPS beat(2)59.16%
EPS beat(4)3
Avg EPS beat(4)17.61%
Min EPS beat(4)-2.61%
Max EPS beat(4)59.16%
EPS beat(8)7
Avg EPS beat(8)45.68%
EPS beat(12)11
Avg EPS beat(12)63.72%
EPS beat(16)12
Avg EPS beat(16)40.79%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-1.23%
Revenue beat(4)0
Avg Revenue beat(4)-1.89%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-1.23%
Revenue beat(8)1
Avg Revenue beat(8)-1.52%
Revenue beat(12)4
Avg Revenue beat(12)-0.52%
Revenue beat(16)5
Avg Revenue beat(16)-0.53%
PT rev (1m)2.68%
PT rev (3m)0.58%
EPS NQ rev (1m)2.8%
EPS NQ rev (3m)-42.15%
EPS NY rev (1m)3.56%
EPS NY rev (3m)-15.97%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.25%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.03 | ||
| Fwd PE | 10.99 | ||
| P/S | 0.47 | ||
| P/FCF | 11.83 | ||
| P/OCF | 3.12 | ||
| P/B | 1.14 | ||
| P/tB | 1.14 | ||
| EV/EBITDA | 4.01 |
EPS(TTM)3.12
EY4.76%
EPS(NY)5.97
Fwd EY9.1%
FCF(TTM)5.55
FCFY8.45%
OCF(TTM)21
OCFY32.01%
SpS140.51
BVpS57.54
TBVpS57.54
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.54% | ||
| ROE | -27.17% | ||
| ROCE | 4.87% | ||
| ROIC | 3.6% | ||
| ROICexc | 4.84% | ||
| ROICexgc | 4.84% | ||
| OM | 6.22% | ||
| PM (TTM) | N/A | ||
| GM | 69.59% | ||
| FCFM | 3.95% |
ROA(3y)-1.02%
ROA(5y)-0.99%
ROE(3y)-4.46%
ROE(5y)-5.5%
ROIC(3y)3.54%
ROIC(5y)N/A
ROICexc(3y)4.65%
ROICexc(5y)N/A
ROICexgc(3y)4.65%
ROICexgc(5y)N/A
ROCE(3y)4.79%
ROCE(5y)N/A
ROICexcg growth 3Y15.68%
ROICexcg growth 5Y-22.03%
ROICexc growth 3Y15.68%
ROICexc growth 5Y-22.03%
OM growth 3Y5.16%
OM growth 5Y-23.74%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.14%
GM growth 5Y-0.76%
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.68 | ||
| Debt/FCF | 19.28 | ||
| Debt/EBITDA | 4.22 | ||
| Cap/Depr | 108.72% | ||
| Cap/Sales | 11% | ||
| Interest Coverage | 1.44 | ||
| Cash Conversion | 91.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.07 | ||
| Altman-Z | 1.27 |
F-Score6
WACC7.95%
ROIC/WACC0.45
Cap/Depr(3y)191.04%
Cap/Depr(5y)174.75%
Cap/Sales(3y)17.29%
Cap/Sales(5y)19.05%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.83%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%-30.51%
EPS Next Y-0.48%
EPS Next 2Y57.04%
EPS Next 3Y51.11%
EPS Next 5YN/A
Revenue 1Y (TTM)3.17%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%3.47%
Revenue Next Year3.9%
Revenue Next 2Y4.62%
Revenue Next 3Y5.94%
Revenue Next 5YN/A
EBIT growth 1Y38.72%
EBIT growth 3Y19.61%
EBIT growth 5Y-18.84%
EBIT Next Year212.16%
EBIT Next 3Y67.9%
EBIT Next 5YN/A
FCF growth 1Y212.44%
FCF growth 3Y-48.64%
FCF growth 5YN/A
OCF growth 1Y-8.66%
OCF growth 3Y-14.33%
OCF growth 5Y-5.21%