ALLEGIANT TRAVEL CO (ALGT) Stock Fundamental Analysis
NASDAQ:ALGT - Nasdaq - US01748X1028 - Common Stock - Currency: USD
Taking everything into account, ALGT scores 5 out of 10 in our fundamental rating. ALGT was compared to 22 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 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.
ALGT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: ALGT reported negative net income in multiple years.
Each year in the past 5 years ALGT had a positive operating cash flow.
1.2 Ratios
ALGT's Return On Assets of -4.63% is in line compared to the rest of the industry. ALGT outperforms 40.91% of its industry peers.
ALGT has a Return On Equity (-18.73%) which is comparable to the rest of the industry.
ALGT has a Return On Invested Capital (3.65%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALGT is significantly below the industry average of 9.04%.
The last Return On Invested Capital (3.65%) for ALGT is above the 3 year average (3.54%), which is a sign of increasing profitability.
| 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
The Operating Margin of ALGT (6.38%) is better than 63.64% of its industry peers.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 1.14, we must say that ALGT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALGT (1.14) is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 16.88, ALGT is in the better half of the industry, outperforming 68.18% 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 | 1.14 |
ROIC/WACC0.5
WACC7.23%
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 86.36% of the companies in the same industry.
A Quick Ratio of 0.87 indicates that ALGT may have some problems paying its short term obligations.
ALGT has a better Quick ratio (0.87) than 86.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.87 |
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.
ALGT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -30.09% yearly.
ALGT shows a small growth in Revenue. In the last year, the Revenue has grown by 0.11%.
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)0.11%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%3.47%
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
Based on estimates for the next years, ALGT will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
EPS Next Y18.44%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
EPS Next 5YN/A
Revenue Next Year4.76%
Revenue Next 2Y7.76%
Revenue Next 3Y8.89%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALGT is valuated correctly with a Price/Earnings ratio of 15.69.
63.64% of the companies in the same industry are more expensive than ALGT, based on the Price/Earnings ratio.
ALGT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.48.
ALGT is valuated cheaply with a Price/Forward Earnings ratio of 7.77.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.04, ALGT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALGT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ALGT is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.49 | ||
| EV/EBITDA | 3.43 |
4.3 Compensation for Growth
ALGT's 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)0.85
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%.
ALGT's Dividend Yield is rather good when compared to the industry average which is at 2.81. 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
5.2 History
The dividend of ALGT decreases each year by -15.68%.
ALGT has paid a dividend for at least 10 years, which is 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
ALGT has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-5.27%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
48.94
-0.54 (-1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners94.49%
Inst Owner Change0.15%
Ins Owners21.25%
Ins Owner Change-0.21%
Market Cap893.15M
Analysts69.47
Price Target62.41 (27.52%)
Short Float %10.44%
Short Ratio3.69
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)-0.44%
PT rev (3m)-9.43%
EPS NQ rev (1m)-1.37%
EPS NQ rev (3m)-70.22%
EPS NY rev (1m)-18.2%
EPS NY rev (3m)-56.33%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-7.75%
Revenue NY rev (1m)-1.36%
Revenue NY rev (3m)-3.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.69 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.35 | ||
| P/FCF | 7.49 | ||
| P/OCF | 2.47 | ||
| P/B | 0.8 | ||
| P/tB | 0.8 | ||
| EV/EBITDA | 3.43 |
EPS(TTM)3.12
EY6.38%
EPS(NY)6.3
Fwd EY12.87%
FCF(TTM)6.54
FCFY13.36%
OCF(TTM)19.84
OCFY40.54%
SpS140.01
BVpS60.97
TBVpS60.97
PEG (NY)0.85
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 | 1.14 |
F-Score6
WACC7.23%
ROIC/WACC0.5
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 Y18.44%
EPS Next 2Y61.31%
EPS Next 3Y54.79%
EPS Next 5YN/A
Revenue 1Y (TTM)0.11%
Revenue growth 3Y13.73%
Revenue growth 5Y6.42%
Sales Q2Q%3.47%
Revenue Next Year4.76%
Revenue Next 2Y7.76%
Revenue Next 3Y8.89%
Revenue Next 5YN/A
EBIT growth 1Y-11.8%
EBIT growth 3Y19.61%
EBIT growth 5Y-18.84%
EBIT Next Year226.88%
EBIT Next 3Y68.9%
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%