ALASKA AIR GROUP INC (ALK) Stock Fundamental Analysis
NYSE:ALK - US0116591092 - Common Stock
58.5599 USD
+3.64 (+6.63%)
We assign a fundamental rating of 3 out of 10 to ALK. ALK was compared to 22 industry peers in the Passenger Airlines industry. While ALK is still in line with the averages on profitability rating, there are concerns on its financial health. ALK has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ALK had positive earnings in the past year.
ALK had a positive operating cash flow in the past year.
Of the past 5 years ALK 4 years were profitable.
ALK had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ALK has a better Return On Assets (1.57%) than 68.18% of its industry peers.
ALK's Return On Equity of 7.94% is fine compared to the rest of the industry. ALK outperforms 68.18% of its industry peers.
The Return On Invested Capital of ALK (4.44%) is comparable to the rest of the industry.
ALK had an Average Return On Invested Capital over the past 3 years of 5.24%. This is below the industry average of 9.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 7.94% | ||
| ROIC | 4.44% |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
1.3 Margins
ALK has a Profit Margin of 2.33%. This is in the better half of the industry: ALK outperforms 68.18% of its industry peers.
ALK's Profit Margin has declined in the last couple of years.
ALK has a Operating Margin of 5.99%. This is comparable to the rest of the industry: ALK outperforms 59.09% of its industry peers.
ALK's Operating Margin has declined in the last couple of years.
ALK's Gross Margin of 56.32% is fine compared to the rest of the industry. ALK outperforms 63.64% of its industry peers.
In the last couple of years the Gross Margin of ALK has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.99% | ||
| PM (TTM) | 2.33% | ||
| GM | 56.32% |
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALK is destroying value.
ALK has less shares outstanding than it did 1 year ago.
ALK has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for ALK is higher compared to a year ago.
2.2 Solvency
ALK has an Altman-Z score of 1.20. This is a bad value and indicates that ALK is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.20, ALK perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
ALK has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external financing.
ALK's Debt to Equity ratio of 1.14 is in line compared to the rest of the industry. ALK outperforms 59.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.2 |
ROIC/WACC0.52
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.52 indicates that ALK may have some problems paying its short term obligations.
With a Current ratio value of 0.52, ALK is not doing good in the industry: 68.18% of the companies in the same industry are doing better.
A Quick Ratio of 0.49 indicates that ALK may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.49, ALK is in line with its industry, outperforming 40.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.50% over the past year.
ALK shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.48% yearly.
Looking at the last year, ALK shows a very strong growth in Revenue. The Revenue has grown by 27.81%.
The Revenue has been growing slightly by 5.97% on average over the past years.
EPS 1Y (TTM)12.5%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-30.2%
Revenue 1Y (TTM)27.81%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%27.86%
3.2 Future
Based on estimates for the next years, ALK will show a very strong growth in Earnings Per Share. The EPS will grow by 20.24% on average per year.
ALK is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.27% yearly.
EPS Next Y-23.05%
EPS Next 2Y14.6%
EPS Next 3Y20.24%
EPS Next 5YN/A
Revenue Next Year21.66%
Revenue Next 2Y13.93%
Revenue Next 3Y11.27%
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
ALK is valuated correctly with a Price/Earnings ratio of 13.84.
Based on the Price/Earnings ratio, ALK is valued a bit cheaper than 72.73% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.76, ALK is valued a bit cheaper.
A Price/Forward Earnings ratio of 9.19 indicates a reasonable valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued a bit cheaper than the industry average as 68.18% of the companies are valued more expensively.
ALK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
ALK's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ALK is cheaper than 68.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.64 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 20.24% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y14.6%
EPS Next 3Y20.24%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:ALK (8/22/2025, 12:17:03 PM)
58.5599
+3.64 (+6.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners99.73%
Inst Owner Change-6.34%
Ins Owners0.58%
Ins Owner Change-1.33%
Market Cap6.75B
Analysts80.95
Price Target65.48 (11.82%)
Short Float %5.32%
Short Ratio2.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.24%
Min EPS beat(2)-1.79%
Max EPS beat(2)14.26%
EPS beat(4)3
Avg EPS beat(4)32.84%
Min EPS beat(4)-1.79%
Max EPS beat(4)116.17%
EPS beat(8)6
Avg EPS beat(8)26.47%
EPS beat(12)8
Avg EPS beat(12)16.3%
EPS beat(16)12
Avg EPS beat(16)14.83%
Revenue beat(2)1
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-2%
Max Revenue beat(2)0.19%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-2%
Max Revenue beat(4)1.9%
Revenue beat(8)4
Avg Revenue beat(8)-0.58%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)9
Avg Revenue beat(16)-0.16%
PT rev (1m)1.73%
PT rev (3m)0.62%
EPS NQ rev (1m)-20.91%
EPS NQ rev (3m)-46.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.04%
Revenue NQ rev (1m)-1.44%
Revenue NQ rev (3m)-6.65%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 9.19 | ||
| P/S | 0.5 | ||
| P/FCF | N/A | ||
| P/OCF | 4.73 | ||
| P/B | 1.71 | ||
| P/tB | 18.05 | ||
| EV/EBITDA | 5.64 |
EPS(TTM)4.23
EY7.22%
EPS(NY)6.37
Fwd EY10.88%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)12.38
OCFY21.14%
SpS116.65
BVpS34.2
TBVpS3.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.57% | ||
| ROE | 7.94% | ||
| ROCE | 6.12% | ||
| ROIC | 4.44% | ||
| ROICexc | 5.3% | ||
| ROICexgc | 7.82% | ||
| OM | 5.99% | ||
| PM (TTM) | 2.33% | ||
| GM | 56.32% | ||
| FCFM | N/A |
ROA(3y)1.34%
ROA(5y)-0.4%
ROE(3y)5.42%
ROE(5y)-3.09%
ROIC(3y)5.24%
ROIC(5y)N/A
ROICexc(3y)6.57%
ROICexc(5y)N/A
ROICexgc(3y)9.14%
ROICexgc(5y)N/A
ROCE(3y)7.22%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-7.41%
ROICexc growth 3YN/A
ROICexc growth 5Y-9.28%
OM growth 3YN/A
OM growth 5Y-9.13%
PM growth 3Y-24.24%
PM growth 5Y-17.41%
GM growth 3Y3.86%
GM growth 5Y0.81%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.23 | ||
| Cap/Depr | 246.14% | ||
| Cap/Sales | 10.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.52 | ||
| Quick Ratio | 0.49 | ||
| Altman-Z | 1.2 |
F-Score5
WACC8.53%
ROIC/WACC0.52
Cap/Depr(3y)317.88%
Cap/Depr(5y)215.36%
Cap/Sales(3y)14.19%
Cap/Sales(5y)10.61%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.5%
EPS 3Y-6.46%
EPS 5Y-5.48%
EPS Q2Q%-30.2%
EPS Next Y-23.05%
EPS Next 2Y14.6%
EPS Next 3Y20.24%
EPS Next 5YN/A
Revenue 1Y (TTM)27.81%
Revenue growth 3Y23.86%
Revenue growth 5Y5.97%
Sales Q2Q%27.86%
Revenue Next Year21.66%
Revenue Next 2Y13.93%
Revenue Next 3Y11.27%
Revenue Next 5YN/A
EBIT growth 1Y4.4%
EBIT growth 3YN/A
EBIT growth 5Y-3.7%
EBIT Next Year92.7%
EBIT Next 3Y41.08%
EBIT Next 5YN/A
FCF growth 1Y98.78%
FCF growth 3Y-37.18%
FCF growth 5Y-29.16%
OCF growth 1Y40.59%
OCF growth 3Y12.43%
OCF growth 5Y-3.19%