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 23 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 is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
ALGT had positive earnings in the past year.
ALGT had a positive operating cash flow in the past year.
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
ALGT has a Return On Assets (-4.63%) which is in line with its industry peers.
ALGT's Return On Equity of -18.73% is in line compared to the rest of the industry. ALGT outperforms 43.48% of its industry peers.
With a Return On Invested Capital value of 3.65%, ALGT perfoms like the industry average, outperforming 47.83% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ALGT is significantly below the industry average of 10.41%.
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
Looking at the Operating Margin, with a value of 6.38%, ALGT is in line with its industry, outperforming 56.52% of the companies in the same industry.
ALGT's Operating Margin has declined in the last couple of years.
The Gross Margin of ALGT (69.57%) is better than 91.30% 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
ALGT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALGT has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.16, we must say that ALGT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.16, ALGT perfoms like the industry average, outperforming 56.52% of the companies in the same industry.
The Debt to FCF ratio of ALGT is 16.88, which is on the high side as it means it would take ALGT, 16.88 years of fcf income to pay off all of its debts.
ALGT has a Debt to FCF ratio of 16.88. This is in the better half of the industry: ALGT outperforms 65.22% of its industry peers.
A Debt/Equity ratio of 1.57 is on the high side and indicates that ALGT has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.57, ALGT is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.48
WACC7.65%
2.3 Liquidity
A Current Ratio of 0.90 indicates that ALGT may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, ALGT belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
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.
ALGT has a Quick ratio of 0.87. This is amongst the best in the industry. ALGT outperforms 82.61% of its industry peers.
| 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.
ALGT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.09% yearly.
Looking at the last year, ALGT shows a small growth in Revenue. The Revenue has grown by 1.54% in the last year.
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
ALGT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 58.02% yearly.
Based on estimates for the next years, ALGT will show a quite strong growth in Revenue. The Revenue will grow by 9.37% on average per year.
EPS Next Y86.43%
EPS Next 2Y75.49%
EPS Next 3Y58.02%
EPS Next 5YN/A
Revenue Next Year6.4%
Revenue Next 2Y8.61%
Revenue Next 3Y9.37%
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 15.27, ALGT is valued correctly.
ALGT's Price/Earnings ratio is a bit cheaper when compared to the industry. ALGT is cheaper than 65.22% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. ALGT is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 7.50, the valuation of ALGT can be described as very cheap.
ALGT's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALGT is cheaper than 65.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.20, ALGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 7.5 |
4.2 Price Multiples
95.65% of the companies in the same industry are more expensive than ALGT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, ALGT is valued a bit cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.55 | ||
| EV/EBITDA | 3.71 |
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.
A more expensive valuation may be justified as ALGT's earnings are expected to grow with 58.02% in the coming years.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y75.49%
EPS Next 3Y58.02%
5. Dividend
5.1 Amount
No dividends for ALGT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.89
+3.55 (+6.78%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners85.14%
Inst Owner Change14.01%
Ins Owners22.48%
Ins Owner Change-0.58%
Market Cap1.02B
Analysts68
Price Target66.58 (19.13%)
Short Float %10.98%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-32.9%
PT rev (3m)-34.85%
EPS NQ rev (1m)-46.89%
EPS NQ rev (3m)-54.59%
EPS NY rev (1m)-31.26%
EPS NY rev (3m)-41.33%
Revenue NQ rev (1m)-6%
Revenue NQ rev (3m)-9.49%
Revenue NY rev (1m)-2.43%
Revenue NY rev (3m)-5.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.27 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.4 | ||
| P/FCF | 8.55 | ||
| P/OCF | 2.82 | ||
| P/B | 0.92 | ||
| P/tB | 0.92 | ||
| EV/EBITDA | 3.71 |
EPS(TTM)3.66
EY6.55%
EPS(NY)7.45
Fwd EY13.34%
FCF(TTM)6.54
FCFY11.69%
OCF(TTM)19.84
OCFY35.5%
SpS140.01
BVpS60.97
TBVpS60.97
PEG (NY)0.18
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 | 1.16 |
F-Score6
WACC7.65%
ROIC/WACC0.48
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 Y86.43%
EPS Next 2Y75.49%
EPS Next 3Y58.02%
EPS Next 5YN/A
Revenue 1Y (TTM)1.54%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%6.5%
Revenue Next Year6.4%
Revenue Next 2Y8.61%
Revenue Next 3Y9.37%
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%