ALASKA AIR GROUP INC (ALK)
US0116591092 - Common Stock
Overall ALK gets a fundamental rating of 4 out of 10. We evaluated ALK against 24 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
In the past year ALK was profitable.
ALK had a positive operating cash flow in the past year.
Of the past 5 years ALK 4 years were profitable.
Of the past 5 years ALK 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALK (1.65%) is better than 66.67% of its industry peers.
ALK has a Return On Equity of 6.16%. This is in the better half of the industry: ALK outperforms 75.00% of its industry peers.
ALK has a better Return On Invested Capital (6.05%) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 6.16% | ||
| ROIC | 6.05% |
ROA(3y)1.81%
ROA(5y)0.39%
ROE(3y)6.6%
ROE(5y)-1.35%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALK has a Profit Margin of 2.34%. This is in the better half of the industry: ALK outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of ALK has declined.
Looking at the Operating Margin, with a value of 7.90%, ALK is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of ALK has declined.
Looking at the Gross Margin, with a value of 54.39%, ALK is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ALK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.9% | ||
| PM (TTM) | 2.34% | ||
| GM | 54.39% |
OM growth 3YN/A
OM growth 5Y-3.21%
PM growth 3YN/A
PM growth 5Y-15.68%
GM growth 3Y10.28%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
ALK has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALK has less shares outstanding
The number of shares outstanding for ALK has been increased compared to 5 years ago.
ALK has a worse debt/assets ratio than last year.
2.2 Solvency
ALK has an Altman-Z score of 1.48. This is a bad value and indicates that ALK is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of ALK (1.48) is better than 70.83% of its industry peers.
ALK has a Debt/Equity ratio of 0.57. This is a neutral value indicating ALK is somewhat dependend on debt financing.
ALK's Debt to Equity ratio of 0.57 is fine compared to the rest of the industry. ALK outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.48 |
ROIC/WACC0.71
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.65 indicates that ALK may have some problems paying its short term obligations.
With a Current ratio value of 0.65, ALK perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
A Quick Ratio of 0.63 indicates that ALK may have some problems paying its short term obligations.
The Quick ratio of ALK (0.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 |
3. Growth
3.1 Past
ALK shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.14%.
Measured over the past 5 years, ALK shows a small growth in Earnings Per Share. The EPS has been growing by 0.22% on average per year.
ALK shows a small growth in Revenue. In the last year, the Revenue has grown by 2.96%.
The Revenue has been growing slightly by 4.76% on average over the past years.
EPS 1Y (TTM)-16.14%
EPS 3YN/A
EPS 5Y0.22%
EPS growth Q2Q-48.39%
Revenue 1Y (TTM)2.96%
Revenue growth 3Y42.99%
Revenue growth 5Y4.76%
Revenue growth Q2Q1.64%
3.2 Future
Based on estimates for the next years, ALK will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.55% on average per year.
The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y-1.85%
EPS Next 2Y15.63%
EPS Next 3Y16.55%
EPS Next 5YN/A
Revenue Next Year2.7%
Revenue Next 2Y5.02%
Revenue Next 3Y5.38%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.44 indicates a reasonable valuation of ALK.
Compared to the rest of the industry, the Price/Earnings ratio of ALK indicates a somewhat cheap valuation: ALK is cheaper than 70.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ALK to the average of the S&P500 Index (24.84), we can say ALK is valued rather cheaply.
The Price/Forward Earnings ratio is 7.29, which indicates a rather cheap valuation of ALK.
Based on the Price/Forward Earnings ratio, ALK is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ALK to the average of the S&P500 Index (21.35), we can say ALK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 7.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALK indicates a rather cheap valuation: ALK is cheaper than 91.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.46 |
4.3 Compensation for Growth
ALK's earnings are expected to grow with 16.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)46.78
EPS Next 2Y15.63%
EPS Next 3Y16.55%
5. Dividend
5.1 Amount
No dividends for ALK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALASKA AIR GROUP INC
NYSE:ALK (4/26/2024, 7:04:00 PM)
After market: 43.96 0 (0%)43.96
-0.59 (-1.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.53B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.44 | ||
| Fwd PE | 7.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)46.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.65% | ||
| ROE | 6.16% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.9% | ||
| PM (TTM) | 2.34% | ||
| GM | 54.39% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.57 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.65 | ||
| Quick Ratio | 0.63 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.14%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.96%
Revenue growth 3Y42.99%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y