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. There are concerns on the financial health of ALGT while its profitability can be described as average. ALGT scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
With a Return On Equity value of -18.73%, ALGT perfoms like the industry average, outperforming 43.48% of the companies in the same industry.
ALGT's Return On Invested Capital of 3.65% is in line compared to the rest of the industry. ALGT outperforms 47.83% of its industry peers.
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
ALGT has a Operating Margin of 6.38%. This is comparable to the rest of the industry: ALGT outperforms 56.52% of its industry peers.
In the last couple of years the Operating Margin of ALGT has declined.
ALGT has a better Gross Margin (69.57%) than 91.30% of its industry peers.
In the last couple of years the Gross Margin of ALGT has remained more or less at the same level.
| 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.
ALGT has more shares outstanding than it did 1 year ago.
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.
ALGT has a Altman-Z score (1.16) which is comparable to the rest of the 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.
With a decent Debt to FCF ratio value of 16.88, ALGT is doing good in the industry, outperforming 65.22% of the companies in the same industry.
A Debt/Equity ratio of 1.57 is on the high side and indicates that ALGT has dependencies on debt financing.
ALGT has a Debt to Equity ratio of 1.57. This is comparable to the rest of the industry: ALGT outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.57 | ||
| Debt/FCF | 16.88 | ||
| Altman-Z | 1.16 |
ROIC/WACC0.48
WACC7.61%
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.
The Current ratio of ALGT (0.90) is better than 82.61% of its industry peers.
A Quick Ratio of 0.87 indicates that ALGT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.87, ALGT belongs to the top of the industry, outperforming 82.61% 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.
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.
The Revenue is expected to grow by 9.37% on average over the next years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.19, ALGT is valued correctly.
Based on the Price/Earnings ratio, ALGT is valued a bit cheaper than the industry average as 65.22% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ALGT to the average of the S&P500 Index (26.25), we can say ALGT is valued slightly cheaper.
The Price/Forward Earnings ratio is 7.46, which indicates a rather cheap valuation of ALGT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALGT indicates a somewhat cheap valuation: ALGT is cheaper than 65.22% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of ALGT to the average of the S&P500 Index (22.15), we can say ALGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 7.46 |
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.
ALGT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ALGT is cheaper than 73.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.5 | ||
| EV/EBITDA | 3.7 |
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
ALGT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
55.58
-0.11 (-0.2%)
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 Cap1.01B
Analysts68
Price Target66.58 (19.79%)
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 | 15.19 | ||
| Fwd PE | 7.46 | ||
| P/S | 0.4 | ||
| P/FCF | 8.5 | ||
| P/OCF | 2.8 | ||
| P/B | 0.91 | ||
| P/tB | 0.91 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)3.66
EY6.59%
EPS(NY)7.45
Fwd EY13.41%
FCF(TTM)6.54
FCFY11.76%
OCF(TTM)19.84
OCFY35.69%
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
WACC7.61%
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%