ALLEGIANT TRAVEL CO (ALGT) Stock Fundamental Analysis
NASDAQ:ALGT - Nasdaq - US01748X1028 - Common Stock - Currency: USD
Overall ALGT gets a fundamental rating of 4 out of 10. We evaluated ALGT against 22 industry peers in the Passenger Airlines industry. While ALGT is still in line with the averages on profitability rating, there are concerns on its financial health. ALGT may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year ALGT was profitable.
In the past year ALGT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: ALGT reported negative net income in multiple years.
In the past 5 years ALGT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -4.63%, ALGT is in line with its industry, outperforming 40.91% of the companies in the same industry.
The Return On Equity of ALGT (-18.73%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.65%, ALGT is in line with its industry, outperforming 50.00% of the companies in the same industry.
ALGT had an Average Return On Invested Capital over the past 3 years of 3.54%. This is below the industry average of 8.50%.
The 3 year average ROIC (3.54%) for ALGT is below the current ROIC(3.65%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -18.73% | ||
| ROIC | 3.65% |
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
With a Operating Margin value of 6.38%, ALGT perfoms like the industry average, outperforming 59.09% of the companies in the same industry.
In the last couple of years the Operating Margin of ALGT has declined.
ALGT's Gross Margin of 69.57% is amongst the best of the industry. ALGT outperforms 90.91% of its industry peers.
ALGT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.38% | ||
| PM (TTM) | N/A | ||
| GM | 69.57% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALGT is destroying value.
Compared to 1 year ago, ALGT has more shares outstanding
Compared to 5 years ago, ALGT has more shares outstanding
The debt/assets ratio for ALGT is higher compared to a year ago.
2.2 Solvency
ALGT has an Altman-Z score of 1.15. This is a bad value and indicates that ALGT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.15, ALGT is in line with its industry, outperforming 54.55% of the companies in the same industry.
ALGT has a debt to FCF ratio of 16.88. This is a negative value and a sign of low solvency as ALGT would need 16.88 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 16.88, ALGT is doing good in the industry, outperforming 63.64% of the companies in the same industry.
ALGT has a Debt/Equity ratio of 1.57. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.57, ALGT is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 1.15 |
ROIC/WACC0.49
WACC7.43%
2.3 Liquidity
ALGT has a Current Ratio of 0.90. This is a bad value and indicates that ALGT is not financially healthy enough and could expect problems in meeting its short term obligations.
ALGT has a better Current ratio (0.90) than 81.82% of its industry peers.
ALGT has a Quick Ratio of 0.90. This is a bad value and indicates that ALGT is not financially healthy enough and could expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 0.87, ALGT belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
The earnings per share for ALGT have decreased strongly by -28.52% in the last year.
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.
ALGT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.54%.
Measured over the past years, ALGT shows a small growth in Revenue. The Revenue has been growing by 6.42% on average per year.
EPS 1Y (TTM)-28.52%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%217.54%
Revenue 1Y (TTM)1.54%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%6.5%
3.2 Future
The Earnings Per Share is expected to grow by 54.79% on average over the next years. This is a very strong growth
ALGT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.02% yearly.
EPS Next Y18.44%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
EPS Next 5YN/A
Revenue Next Year5%
Revenue Next 2Y7.89%
Revenue Next 3Y9.02%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.12, ALGT is valued correctly.
ALGT's Price/Earnings ratio is a bit cheaper when compared to the industry. ALGT is cheaper than 63.64% 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 27.50.
The Price/Forward Earnings ratio is 8.21, which indicates a very decent valuation of ALGT.
Based on the Price/Forward Earnings ratio, ALGT is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
ALGT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 8.21 |
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.
Based on the Price/Free Cash Flow ratio, ALGT is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.91 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALGT's earnings are expected to grow with 54.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y61.31%
EPS Next 3Y54.79%
5. Dividend
5.1 Amount
ALGT has a Yearly Dividend Yield of 3.45%. Purely for dividend investing, there may be better candidates out there.
ALGT's Dividend Yield is rather good when compared to the industry average which is at 2.73. ALGT pays more dividend than 95.45% of the companies in the same industry.
ALGT's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| 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.
The dividend of ALGT decreased recently.
Dividend Growth(5Y)-15.68%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
The earnings of ALGT are negative and hence is the payout ratio. ALGT will probably not be able to sustain this dividend level.
DP-5.27%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
51.69
-0.61 (-1.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.49%
Inst Owner Change0%
Ins Owners21.25%
Ins Owner Change-0.21%
Market Cap943.34M
Analysts69.47
Price Target63.52 (22.89%)
Short Float %9.2%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.2
Dividend Growth(5Y)-15.68%
DP-5.27%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.95%
Min EPS beat(2)5.94%
Max EPS beat(2)7.95%
EPS beat(4)3
Avg EPS beat(4)34.29%
Min EPS beat(4)-2.61%
Max EPS beat(4)125.87%
EPS beat(8)7
Avg EPS beat(8)40.08%
EPS beat(12)10
Avg EPS beat(12)55.95%
EPS beat(16)12
Avg EPS beat(16)38.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.98%
Min Revenue beat(2)-2.08%
Max Revenue beat(2)-1.88%
Revenue beat(4)0
Avg Revenue beat(4)-1.77%
Min Revenue beat(4)-2.38%
Max Revenue beat(4)-0.73%
Revenue beat(8)2
Avg Revenue beat(8)-1.21%
Revenue beat(12)4
Avg Revenue beat(12)-0.58%
Revenue beat(16)6
Avg Revenue beat(16)-0.44%
PT rev (1m)0%
PT rev (3m)-35.98%
EPS NQ rev (1m)-17.56%
EPS NQ rev (3m)-69.63%
EPS NY rev (1m)-36.47%
EPS NY rev (3m)-61.29%
Revenue NQ rev (1m)-1.88%
Revenue NQ rev (3m)-7.77%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-4.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 8.21 | ||
| P/S | 0.37 | ||
| P/FCF | 7.91 | ||
| P/OCF | 2.61 | ||
| P/B | 0.85 | ||
| P/tB | 0.85 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)3.66
EY7.08%
EPS(NY)6.3
Fwd EY12.18%
FCF(TTM)6.54
FCFY12.65%
OCF(TTM)19.84
OCFY38.38%
SpS140.01
BVpS60.97
TBVpS60.97
PEG (NY)0.77
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.63% | ||
| ROE | -18.73% | ||
| ROCE | 4.93% | ||
| ROIC | 3.65% | ||
| ROICexc | 4.97% | ||
| ROICexgc | 4.97% | ||
| OM | 6.38% | ||
| PM (TTM) | N/A | ||
| GM | 69.57% | ||
| FCFM | 4.67% |
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 Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 16.88 | ||
| Debt/EBITDA | 4.15 | ||
| Cap/Depr | 94.2% | ||
| Cap/Sales | 9.5% | ||
| Interest Coverage | 1.43 | ||
| Cash Conversion | 86.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 1.15 |
F-Score6
WACC7.43%
ROIC/WACC0.49
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)-28.52%
EPS 3Y12.05%
EPS 5Y-30.09%
EPS Q2Q%217.54%
EPS Next Y18.44%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
EPS Next 5YN/A
Revenue 1Y (TTM)1.54%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%6.5%
Revenue Next Year5%
Revenue Next 2Y7.89%
Revenue Next 3Y9.02%
Revenue Next 5YN/A
EBIT growth 1Y-11.8%
EBIT growth 3Y19.61%
EBIT growth 5Y-18.84%
EBIT Next Year260.16%
EBIT Next 3Y67.11%
EBIT Next 5YN/A
FCF growth 1Y179.31%
FCF growth 3Y-48.64%
FCF growth 5YN/A
OCF growth 1Y5.71%
OCF growth 3Y-14.33%
OCF growth 5Y-5.21%